Amazon's Private Label Brands Are On Fire
Amazon’s lines of batteries, speakers, and wipes are gaining momentum.
Amazon’s private label batteries, speakers, and baby wipes may be big sellers during the all-important holiday season, according to a new report.
Although it is best know for selling products from other companies, the e-commerce giant has been increasingly creating its own product lines. They open the door to higher profit margins while also giving Amazon more control over shipping.
And at least some of those private label brands are doing well, says data analytics firm 1010data Market Insights. Its analysis of sales trends for the year ending in August shows that Amazon is catching up to established brands in three product categories.
For example, Amazon’s line of batteries, AmazonBasics, accounted for about one-third of battery sales online, the report said. Additionally, sales of Amazon’s batteries rose 93% year-over-year. The report did not give dollar figures for those sales.
Amazon has a huge advantage with batteries because 94% of all those sold online are through Amazon’s marketplace, making it easier to market its own products to shoppers.
Amazon’s baby wipe line, Amazon Elements, is also gaining momentum. It now has 16% of the category’s market share among the top 10 brands on Amazon, just behind the leaders Huggies (33%) and Pampers (26%).
The report said that sales of the Amazon Elements baby wipes have grown 266% year-over-year.
In terms of Internet-connected speakers, Amazon is relative newcomer with the recent debut of the home assistant Echo and the Internet connected speaker, Tap. But there is promise, according to 1010data research.
Amazon Echo holds a 45% market share among the top 10 brands of connected speakers based on dollars sold. The data shows that Amazon Echo, which debuted in 2015, is the most popular speaker sold on Amazon.com and that its sales have grown 67% year-over-year.
However, 1010data did not examine sales of other areas where Amazon has been selling its own product lines such as designer clothing, coffee, and baby food. In the future, the company is expected to expand into selling more perishables including nuts, spices, tea, and vitamins along with household items such as laundry detergents.
But Amazon has faced challenges in past with competing against established brands. For example, it pulled its private-label diapers line only seven weeks after introducing them in 2015.