It’s 2018, and by now, everyone knows Amazon sells everything from books to food and tools to baby products. What you might not realize, however, is Amazon has evolved from simply being a distribution channel for brands and manufacturers into actually being the manufacturer.
What began in 2016, has grown to be a big business on Amazon–and for Amazon. Our Brands gives you a rundown of Amazon’s private label brands. Customers can purchase Egyptian cotton towels, baby food, mid-century style light fixtures, boxer briefs, leather armchairs, coconut-toffee enrobed cashews and thousands of other items from 18 categories on the site.
According to a report published by TJI Research this month, Amazon currently has over 120 private label brands. And from numbers delivered by SunTrust Robinson Humphrey this June, the expectation is that the private-label portion of Amazon will generate $7.5 billion in sales in 2018 and $25 billion by 2022.
Unsurprisingly, Amazon merchandises these products in inventive ways that other sellers and vendors cannot. For example, by pointing customers to its (usually lower-priced) Mama Bear diapers on the search results listings for big-name brands like Huggies and Pampers. Some of the brands offer incentives, too. Rivet and Stone & Beam, two of Amazon’s furniture brands, offer customers not only speedy Prime Shipping on huge items (like sofas and dining tables), but also free 30-day returns and a three-year guarantee.
You can explore Amazon’s selection of private labels on their Our Brands page.
Amazon Accelerator Program
As Amazon expands its private-label business, vendors may be concerned about their prospects on Amazon. Recently, Amazon has rolled out a program for other companies to “Join the Amazon family of brands.” The Our Brands page links to information about the Amazon Accelerator program, where you can sign up to become an Our Brands manufacturer.
Amazon summarizes the program as: “The Accelerator Program enables you to launch your assortment rapidly on Amazon under an exclusive brand that you create and own. This will allow you to establish your brand early and capture sales quickly. The program is also an avenue to Our Brands, a family of high-quality value brands sold exclusively on Amazon and marketed across our website. This program is open to manufacturers in all categories in both direct to consumer (B2C) and commercial (B2B) spaces.”
Amazon also lists some of the benefits of the program on the site and in a welcome email after you input your company info into the sign-up link.
- Onboarding Support: The manufacturer will get guided support and a free toolset of products to tell the brand story and track retail analytics and performance.
- Marketing Services: Brands will receive a suite of marketing support, including site merchandising, Vine, and A+ Content. Products with high ratings and reviews can receive additional placements across Amazon.com.
- Test & Learn: Manufacturers are encouraged to use this program to test innovative new products and get quick customer feedback.
- Unlock New Doors: This program may provide an opportunity to become a supplier for in-house Amazon owned-brands in the future.
The next steps after signing up are gaining pre-qualification from Amazon by filling out catalog and product details, costs, and procurement information. Amazon also asks manufacturers to develop a brand name, image and ideas about how the brand will be presented. Once all of this is submitted and agreed upon, Amazon provides details for onboarding, setup and launch via a portal in Vendor Central.