{"id":127524,"date":"2022-07-03T07:17:10","date_gmt":"2022-07-03T07:17:10","guid":{"rendered":"https:\/\/www.similarweb.com\/corp\/?p=127524"},"modified":"2025-01-23T08:56:15","modified_gmt":"2025-01-23T08:56:15","slug":"private-label-brands","status":"publish","type":"post","link":"https:\/\/www.similarweb.com\/blog\/ecommerce\/amazon-insights\/private-label-brands\/","title":{"rendered":"A Complete Guide to Amazon Private Label Brands"},"content":{"rendered":"

Have you ever searched for a specific product from a well-known brand on Amazon and come across a bunch of products with nearly all the features of the original name brand \u2014 but for about half the price? These products are made by Amazon private label brands and the eCommerce platform is packed<\/strong> with them across just about every category.<\/p>\n

Obviously, any third-party seller on Amazon would be worried about losing business to these cheaper alternatives. However, there are a few things you can do to stand out and out-compete Amazon brands.<\/p>\n

What are Amazon brands?<\/h2>\n

Ok, let’s back up for a second.<\/p>\n

Amazon has over 400 private brands offering 243,000 products in almost every category, from food & clothing to technical gadgets.<\/strong> Almost all of these products bear an eerie resemblance to something from another company. Amazon brands identify top-selling products, tweak (and often simplify) them, and sell them under their brand name at a much lower price.<\/p>\n

Take AmazonBasics, for example. After launching in 2009 and selling heavily discounted batteries, AmazonBasics now offers more than 1,500 items, running from cameras and headphones to bedding.<\/p>\n

The key difference between Amazon products like Echo and Kindle and Amazon private label brands is that they may or may not<\/strong> contain the word \u201cAmazon\u201d in the brand name. Some private-label brands like AmazonBasics and Amazon Essentials do, while many \u2014 like Goodthreads, Daily Ritual, and Solimo \u2014 do not, even though they are all owned by Amazon.<\/p>\nThe popularity of Amazon private brands has skyrocketed recently, with price-conscious customers opting for affordable products over brand-name items. <\/a><\/span>Tweet this<\/a><\/span>\n

Amazon\u2019s private brands have grown from just 30<\/a> in 2017 to over 10 times<\/a> that amount. The reasons for this go beyond affordability: Amazon has built a loyal client base thanks to its excellent customer service. The company is known for offering easy search, quick delivery, and a simple return and refund policy, with customer support available 24\/7.<\/p>\n

Another reason for Amazon brands growing popularity is its targeted marketing. Amazon collects a massive amount of data and uses it to analyze customers’ search behavior and buying patterns and identify the types of products they are interested in. The company uses this data to promote its private label brands and target new customers as part of Amazon’s private label strategy.<\/p>\n

How Amazon\u2019s brands affect third-party sellers<\/h2>\n

Amazon has attracted significant criticism for being an eCommerce platform selling third-party goods at the same time as acting as a direct seller through its private-label brands.<\/p>\n

Options like \u201cfeatured from our brands\u201d give exposure to Amazon’s private labels over the original products offered by third-party sellers.<\/p>\n

Not only does Amazon use its algorithm to make sure its private-label brands are featured at the top of search results. When customers add higher-priced third-party products to their shopping carts, they may recommend cheaper products sold by Amazon private labels.<\/p>\n

The advantages enjoyed by Amazon private label brands, not to mention the sheer volume of their products, are undoubtedly worrying to third-party sellers on the platform. A 2019 survey<\/a> revealed that Amazon private label brands were one of the biggest concerns of third-party sellers: 73% of respondents said that they were worried about private label brands outperforming them, while 57% said that it was a major cause of concern.<\/p>\n

\"Are<\/p>\n

A number of third-party brands have called Amazon out for their use of private labels and even launched legal action against the eCommerce platform for copyright infringement. In 2019<\/a>, Allbirds, a sustainable shoe, and clothing brand accused Amazon of selling the same footwear under its private label brands.<\/p>\n

However, this is not a new practice \u2014 it\u2019s been happening for years in the brick-and-mortar landscape. IKEA<\/a> and Tesco<\/a> Everyday Value are examples of private-label brands that offer copycat products at a cheaper price, poaching sales from their original counterparts.<\/p>\n

How to Compete with Amazon\u2019s Private Label Brands<\/h2>\n

Amazon private label brands can be pretty intimidating for third-party sellers. It goes without saying that having the eCommerce giant offering a duplicate or even comparable version of your product at a fraction of the cost represents a threat to your business.<\/p>\n

However, you don\u2019t have to lose out to Amazon brands. There\u2019s a lot you can do, from marketing strategies to customer service, to stay competitive and boost your sales, even on Amazon\u2019s own platform.<\/p>\n

1. Highlight your USP<\/h3>\n

In order to sell a copycat version of a product at a fraction of the price, Amazon’s private brands almost always have to sacrifice quality.<\/p>\n

As one of the world\u2019s largest companies, it can use its size to reduce supply costs and other overheads in order to keep prices down, but this only gets them so far.<\/p>\n

Typically, these products use poorer-quality materials, inferior manufacturing processes, and\/or they\u2019ve eliminated many of the features included in the original product.<\/p>\n

Furthermore, quality is not the only factor you may have on your side. Your products or your brand may have a number of benefits that Amazon private label companies lack.<\/p>\n

For example, you may offer sustainable manufacturing processes, focus on fair trade, or use organic materials. Amazon brands skip over these kinds of advantages as part of their bargain-basement approach.<\/p>\n

These factors are all your unique selling points (USPs). Promote them aggressively as part of your marketing, and be clear on what sets you apart from the Amazon private label brand.<\/p>\n

2. Focus on marketing<\/h3>\n

The biggest downside of Amazon’s private labels is that these products have limited exposure, as their primary goal is to sell the same product for a lower price. Their target audience<\/a> is budget-conscious buyers, so they don\u2019t put much effort into marketing. All they have to offer is a low price.<\/p>\n

That\u2019s why these brands do not enjoy the same exposure and reputation as well-known name brands. On the other hand, brands with a trusted name and reputation have a special relationship with their target audience. Spreading brand awareness<\/a> and investing in marketing outside of the Amazon platform will help you to outshine private-label brands.<\/p>\n

\"Spreading<\/p>\n

Further readings:<\/strong> Amazon SEO: Your Guide to Getting it Right in 2022<\/a> and Amazon PPC: What You Need to Know to be a Top Seller<\/a><\/p>\n

3. Improve your shipping and fulfillment<\/h3>\n

One of the many reasons for the growing popularity of Amazon is that it offers lightning-fast fulfillment and delivery. It\u2019s nearly impossible for a small retailer to beat Amazon\u2019s shipping times.<\/p>\n

However, by focusing on shipping and fulfillment and making this as quick as possible, you\u2019ll at least stay competitive.<\/p>\n

There are several options for improving your shipping and fulfillment speeds:<\/p>\n