Amazon Slashes Dozens of In-House Brands. Did Your Favorite Line Get Cut?Amazon is trimming in-house brands in its private-label business, including going from 30 to three clothing labels.
Key Takeaways
- Amazon slashes in-house brands amid antitrust probes.
- It aims to boost profitability, focusing on value-driven essentials and shedding non-performers.
Amazonis significantly reducing its number of in-house brands amidantitrust concernsand a slowdown in revenue growth,The Wall Street Journalfirstreported.
在过去的一年中,该公司已决定以利minate 27 out of 30 clothing brands alone, including private labels such as Lark & Ro, Daily Ritual and Goodthreads. As the brands phase out, only Amazon Essentials, Amazon Collection and Amazon Aware will remain in the clothing sector.
Amazon is also discontinuing private-label furniture brands like Rivet and Stone & Beam.
"We always make decisions based on what our customers want, and we've learned that customers seek out our biggest brands — like Amazon Basics and Amazon Essentials — for great value with high-quality products at great price points," Matt Taddy, vice president of Amazon Private Brands, told雷竞技手机版.
Taddy added that the company is getting rid of products that "aren't resonating with customers," and looking "for other opportunities to better meet their needs."
Related:How Amazon Got Americans to Spend $12.7 Billion in 2 Days Without Lifting a Finger
The reduction of in-house brands aligns with Amazon's broader efforts to cut costs, particularly in response to the economic impact of the pandemic. Amazon's private-label sector had 243,000 products across 45 brands at the end of 2020, a number that has now been reduced to less than 20 private-label brands overall, according to theWSJ.
The changes come after Amazon was criticized for using data from its platform to develop products that competed with third-party sellers in a 2020WSJinvestigation, which resulted in then-CEO Jeff Bezos testifying before a Congressional antitrust committee. As a result, Amazon's practice of giving its own brands preferential treatment in search results has been curtailed, impacting its visibility and sales, people familiar with the matter told the outlet.
Amazon has also been accused of selling products similar to those of other brands. In 2018, Williams-Sonoma sued Amazon for allegedly copying its designs; the suit wassettledin 2020 for an undisclosed amount.
Related:Own a Small Business? A New Amazon Program Could Help You Make an Additional $27,000 a Year.
