Undoubtedly, one of the leading online retailers, Amazon.com, Inc. (NASDAQ:AMZN) is now flourishing with its private brands, reports suggest. The venture dates back to 2014 when the label household items, Amazon Elements was launched. The label focused on baby wipes which is currently holding 15% market share.
Today, Amazon private brands brags of leading the market with top private labels that include, Amazon Basics. Behind the success of the private brands is Amazon’s rigorous marketing strategy backed by its hold of the selling platform.
A search sample highlights Amazon’s marketing strategy. Random searches of products popup with a special banner of Amazon’s private brands. Arguably, this has led to the amazing response by customers who are said to be three times more likely to purchase compared to other categories.
The brands are enjoying a leading role in the market currently. Techcrunch.com reports that towards the end of 2016, Amazon Elements gained 16% based on dollars sold. In addition, they cite that ‘wipes have seen 266% year-over-year growth.
Plans for Amazon private brands are a classic complimentary show of the success the items have enjoyed over the statistical figures pointed out in this article. WSJ in May 2016 noted that Amazon was considering expanding its own brands as a response. New launches are said to include Happy Belly, Presto, Wickedly Prime and Mama Bear.
The product line has expanded to include food items on offer. This incorporated nuts, hot beverages, and cooking oil. WWD in March 2017 also reported that Amazon is considering venturing into the fashion empire, earmarking eight brands. The question that is begs in this category has been whether it will manage to lead?
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Amazon’s lead is pivoted by its advantageous edge. Outside the online marketing platform it owns, there is the physical environment. A point to note is its new bookstores reported by WWD. The experiment is set to increase its market share and better market and sell the many private brands that the company is constantly introducing and leading in.
Amazon’s new ventures is a demonstration of how companies are expanding, collaborating to form massive product lines and maximize market share and dominance.