Amazon pruned a wide range of private brands to exit weaker performers. The move is timed with the retailer facing antitrust scrutiny involving the expansion of its in-house labels.
Amazon eliminated 27 of its 30 apparel brands, leaving only Amazon Essentials, Amazon Collection and Amazon Aware. According to a Wall Street Journal report, Amazon plans to drop its Rivet and Stone & Beam furniture brands, inferring the move is a merchandising decision.
“We always make decisions based on what our customers want, and we’ve learned that customers seek out our biggest brands like Amazon Basics and Amazon Essentials for great value with high-quality products at great price points,” said Matt Taddy, VP of Amazon Private Brands, in a media statement. “If there are products that aren’t resonating with customers, we deprecate those items and look for other opportunities.”
Since 2020, Amazon has sold over 45 private-label brands. The private-label streamlining is also believed to be part of a broader move to slash expenses and comes as Amazon’s in-house brands are at the core of investigations launched by U.S. and European regulators over alleged abuse of its dominance in online shopping.
Amazon has been accused of giving advantages to its owned brands in search listings and copying best sellers sold by third-party merchants based on internal sales data. Several reports felt it was more than a coincidence that the private label consolidation labels come as Amazon representatives are scheduled to meet with the Federal Trade Commission this week in a “last-rites” meeting, typically a final step before the agency votes on filing a lawsuit.
