Online retail giant Amazon has had its most successful year yet in terms of private-label sales, according to data from One Click Retail.
The e-commerce analytics firm estimates that Amazon generated sales of almost $450 million from its own brands in 2017, including Amazon Basics, Pinzon, Amazon Elements, Happy Belly, and Whole Foods’ 365 Everyday Value food range.
Amazon Basics, the retailer’s home-care brand, which includes everything from batteries to water filters, accounts for about 85% of Amazon’s total private-brand sales, and it was estimated to finish 2017 with sales of over $400 million.
Since September, Amazon has launched several new private brands, including Rivet furniture, Stone & Beam furnishings, and active-wear brands Goodsport, Peak Velocity and Rebel Canyon.
Home products have now surpassed electronics as the e-commerce giant’s best-selling own-brand category.
Game-Changer
“[The year] 2017 was a game-changing year for Amazon private brands,” said Spencer Millerberg, managing partner at One Click Retail.
“They’ve been experimenting with private brands for years, and now, finally, Amazon has refined their strategy, leveraged their brand, and launched over 30 new brand names in highly competitive categories,” Millerberg continued.
“This year, Amazon’s private brands showed enough success stories to guarantee that Amazon won’t be backing off any time soon. This is a wake-up call for brands selling on Amazon – it’s truly time to pay attention,” he added.
Amazon reported that net sales increased by 34%, to $43.7 billion, in the third quarter of this year.
This figure includes $1.3 billion in sales from US organic grocery chain Whole Foods Market, which Amazon acquired last August in a $13.7 billion deal.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.
