How much competition are Amazon Own Brands?

17 Mar 2019
Below we have a list of over 80 known Amazon Own Brands or Amazon Private labels as they are sometimes referred to. It’s by no means a complete list as it doesn’t include products such as Amazon Echo, Amazon Fire TV, Amazon Fire Tablet and Amazon Kindle products which come under the Amazon name. It’s also largely a US list and doesn’t include all the Amazon Own Brands from the UK and other territories around the world. What it does serve is to demonstrate the scope of Amazon Own Brands and how much they’ve grown in recent years.
Amazon Own Brands have grown to account for around 1% of Amazon’s total sales although Amazon didn’t specify if they were measuring total sales by product units or revenues. Nevertheless, 1% by whichever yardstick you use is a small but significant proportion of their business.
Amazon Own Brands vs Merchants
Amazon have around 2,500,000 merchants actively selling on their marketplace and Amazon reports that merchants sell more than half of all product units sold on the site. In the past the major competition would have been Amazon Retail selling products sourced through Amazon Vendors, but with their growing Private Label business, Amazon Own Brands will increasingly become the real competition in the future.
If Amazon have 2,500,000 merchants then for Amazon Own Brands (even if counted as 80 odd individual businesses) to take 1% of total sales is massive.
Amazon justified their 1% take of total sales by comparing themselves with household names like Aldi, Asda, Lidl, and Tesco, each of whom Amazon say have private label products that represent 25% to 85% of their sales. The difference being, of course, that none of the named supermarkets operate as marketplaces.
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By Chris Dawson
Source: TameBay