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Isn't this essentially what they're doing with Amazon Basics and probably almost every other Amazon-owned brand? They will let sellers scout products, and then
by bootlooped 6y ago
Isn't this essentially what they're doing with Amazon Basics and probably almost every other Amazon-owned brand?
They will let sellers scout products, and then squeeze them out after they have a product that's proven to move. It's better for Amazon this way, you can externalize lots of risk while still making a fat commission + assorted fees.
- jackTheMan 6y agoMoreover they have the data (which product sells/returns and where) to optimize the priorities of entries that no other seller has.
- victor9000 6y agoThey do the same thing at Whole Foods with their 365 brand.
- mimikatz 6y agoand at Costco with Kirkland and Wal-Mart with great Value and Target and something
- ethbr0 6y agoI'd say the difference is inventory costs. Most box retail seems to clone high-sales-volume items. Amazon can afford to clone the long tail, because they'll still make profits off it.
- minitoar 6y agoOne of targets brands is “up and up” which always gets a lol because like...trust me, these garbage bags are on the up and up. Who are you trying to convince?!
- davchana 6y agoAgreed, I have seen Great Value things in food isle popping up after few months of something else; my personal observation was Uncle Rice ready made rice.
- redis_mlc 6y agoWell, Costco is likely just re-labelling premium brands from Campbell, P&G, etc. as Kirkland. I don't think Costco makes anything itself, or even does lowest-cost outsourcing like Walmart or Amazon do. Safeway has at least 14 private-label brands, including Lucerne.
- nerfhammer 6y agoWhole Foods was doing that before Amazon bought them, and so was literally every other supermarket or retail chain
- baskire 6y agoWhich is also what Walmart, target, Kroger’s, publix, Safeway, Costco, kohl’s, and every other big box retailer does. It’s not a new paradigm.