This is why I think Amazon will continue to push hard on Amazon Basics. That is an area that has the potential to be Amazon's Kirkland (Costco private label).

This is why I think Amazon will continue to push hard on Amazon Basics. That is an area that has the potential to be Amazon's Kirkland (Costco private label). Amazon has the data from Amazon Marketplace to know the top selling products, and Amazon has the scale to arrange manufacturing deals with perhaps the same overseas factories Amazon Marketplace sellers are using to economically produce private label brands for Amazon, thereby decreasing the market share of Amazon Marketplace sellers. Amazon could also make their Amazon Basics more visible to consumers by default, and have more control over the QA of the items. With growing negative feedback about the quality-side of Amazon's Marketplace items/sellers, there is an opportunity to accelerate into private-label territory with more control over manufacturing oversight/customer service while using the Amazon Marketplace as the "proving grounds" to determine which products are most profitable for Amazon to private-label. Sure AMZN's earnings are doing well, but the real secret sauce for Bezos isn't just logistics - it's holding control over a market. Right now, Amazon's quality-gatekeeping on their platform is the equivalent of Mac doing an "ocular pat down" on entrants. If there is monetary incentive to stray away from this, Amazon would be more willing to flip the switch on the marketplace. And thus we come one step closer towards living in an Amazon corporate town buying Amazon-branded items from the Amazon general store.