Majority of own-label Amazon brands under performing

Amazon’s own brands have failed to pose a significant threat to rival retailers on its platform, according to a new study.

Data from ecommerce research firm Marketplace Pulse, which looked at over 23,000 products from Amazon-owned or Amazon-exclusive brands, found that only a handful of brands made up the bulk of sales.

The online giant currently has around 130 private label brands on its marketplace, alongside a further 422 brands which are sold exclusively on Amazon.

READ MORE: Amazon scraps laws preventing sellers offering items cheaper on rival sites

Its growing investment in these brands, including AmazonBasics and Pinzon, sparked fears in the retail sector that by pushing these items up the search listings Amazon could put them out of business.

Marketplace Pulse’s research suggests otherwise, finding that shoppers are not more inclined to buy own branded products despite being elevated in search results.

Of the 100 own-label brands launched by Amazon in 2018, none of them are category leaders.

Furthermore, the vast majority of its own brand sales come from just a few brands, for instance its AmazonBasics range accounts for just five per cent of products launched, but 57 per cent of overall own-brand sales.

Over 80 per cent of its private label sales come from just 10 brands, four of which have Amazon in the name, suggesting an obvious affiliation with the company is an effective selling point.

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