Amazon’s white label business

Its ~1% of sales and prob not worth the regulatory scrutiny.

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1/ The first white label product was the Amazon Basics battery in 2009. Within a few years, it had ⅓ of online battery sales, outselling Duracell and Energizer.
2/ Today, Amazon has 400+ brands under “Our Brands” (some are private label and some are 3rd party exclusives).

By one estimate, these brands collectively bring in ~$1-2B of 2019 revenue (drop in the bucket for total: $280B)

Here are some:
3/ Of these 400+ brands, the top 4 account for 72% of sales (all with "Amazon" in name):

-- Amazon Basics
-- Amazon Collection
-- Amazon Elements
-- Amazon Essentials
4/ AmazonBasics is everywhere

• 70% of word searches on Amazon are for generic goods rather than brands (e.g., “shoes”, not “nike”)...
• ...and AmazonBasics sells 1300+ generic products...
• 5.4% of top 1000 search results end up with AmazonBasics as a top 3 choice
5/ What makes AmazonBasics tick?

AmazonBasics targets categories where:

--products themselves are commodities
--no brand “owns” the category as a result of fragmentation and downward price pressure

Top categories:
6/ Like most white label offerings, Amazon’s pricing is LOW.

Of the top 10 white label brands, 49% are under $20.
7/ Looking across the 400+ white label brands (totalling 23k+ products), the majority of them are clothes (48%)...

...followed by Home & Kitchen (11%) and Grocery (8%).
9/ Amazon DOES have higher end brands:

--Nod by Tuft & Needle mattresses
--Stone & Beam furniture
--Rivet furniture
--Comfort Zone pet supplies
--Amazon Collection jewelry

Still doesn’t move the needle (eg. Amazon Collection jewelry has 4k+ items with an average price of $221)
10/ FYI, I got the @-mention wrong.

It’s @MarketplacePuls and — also for reference — it’s CEO @juokaz
11/ Great point re: Target as reference
12/ To Amazon’s credit, the name of their internal groups that study competitors sound less ominous now:

❌ Wayfair = “Wayfair Parity Team”
✅ Shopify = “Project Santos” (ironically enough, “santos” means “saints”)
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