Amazon’s private label business is leaving small brands to protect themselves against knockoffs. KatieTarasov breaks down why you may be buying Amazon products without knowing it.
"They will put it next to the national brand with whom they are trying to compete, with a me-too packaging, a similar look and then even have a big sign that says, 'Buy basically the same product or better at 30% lower price,'" Ailawadi said. "Some of the practices around private label that are now under scrutiny by Congress and other people have not only been around a long time, they are perfectly acceptable practices.
Amazon also has more power to steer shoppers to particular products than a typical brick-and-mortar retailer. How private labels are made is often shrouded in mystery, leading to speculation around certain products. For instance, Grey Goose has had toAilawadi said some private labels are made by national brand manufacturers, who use their excess capacity to make products for others. Then there are specialty firms that only do private labels, and some store brands have their own devoted manufacturing facilities. Although Amazon releasedAmazonBasics batteries are shown on September 29, 2022.
that found Amazon drastically reduced the number of private-label items on its site in the first half of this year. The Journal reported that executives had discussed exiting the private-label business entirely to ease antitrust scrutiny."We never seriously considered closing our private label business, and we continue to invest in this area, just as our many retail competitors have done for decades and continue to do today," the company said.
Ailawadi says private-label goods bring in around 25% higher profit margins for retailers than national brands, because of savings on things such as packaging, marketing and promotion."There is nothing anti-competitive about comparing one product with another and saying that these products are very similar, and I'm selling you one at a lower price," Ailawadi said. "That is as competitive as it gets.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Random new Amazon deal makes Samsung's 128GB Galaxy Tab A8 cheaper than everUnveiled near the end of 2021 and released at the very beginning of 2022, the mid-range Samsung Galaxy Tab A8 is on sale right now at a massive discount... at one retailer... in one specific variant.
Read more »
Black Friday is about to hit Canadian stores and websites — here's what to expectDeals from Amazon, Best Buy, Staples, Aritzia and more. BlackFridayinCanada
Read more »
G20: Viola Davis to Lead Amazon Studio's Action Thriller MovieViola Davis has found her next action project in the form of the Amazon Studios' thriller film titled G20, which is being developed for Prime Video.
Read more »
Amazon and Walmart Drop Early Black Friday Deals — 1000s of Car Parts, Tools, Tech, and Accessories.Amazon and Walmart drop early Black Friday deals—1000s of car parts, tools, tech, and accessories:
Read more »