According to recent reports, Amazon is leveraging a new feature called the Amazon Accelerator Program to expand their “exclusive product offerings” and “help create more brands to be sold exclusively on the website”.
If you purchase from Amazon often, chances are you’re not just using Amazon’s distribution and shipping channels anymore.
With dozens upon dozens of private label brands to its name, you’re likely buying Amazon-manufactured products, too—and you might not even know it.
What are Amazon Private Label Brands?
If it sounds like an exaggeration, data shows that Amazon private label brands are growing rapidly.
According to SunTrust Robinson Humphrey, Amazon’s private label business is on pace to generate $25 billion in sales by 2022.
Last year, Amazon’s batteries, for example, saw 93% year-over-year growth and now account for 94% of all batteries sold on Amazon.com.
Another example is Baby wipes—sold under the Amazon Elements line— which grew 266% (in 2017) sitting just behind big-name brands like Huggies and Pampers.
What is the Amazon Accelerator Program – “Our Brands”?
Here’s what we know about the program so far:
Our Brands is a collection of Amazon private brands and a curated selection of brands sold exclusively on Amazon.
According to the announcement from Amazon:
“With Our Brands, we are bringing high-quality products at great prices to our global network of customers both directly (B2C) and commercially (B2B).”
What are the Benefits of Amazon “Our Brands”?
Onboarding Support: You’ll receive guided support and a free toolset of products to tell your brand story and track performance.
Marketing Services: Brands will receive a suite of marketing support executed by our Amazon merchandising team. Products with high ratings and reviews can receive additional placements across Amazon.com.
Venue to Test & Learn: You can easily test new innovative products and get quick customer feedback.
Which Product Categories Can Apply?
- Apparel & Accessories
- Business & Industrial
- Consumer Electronics
- Food & Beverages
- Health & Wellness
- Home & Kitchen
- Household & Personal Care
- Lawn & Garden
- Office Supplies
- Sporting & Outdoors
- Tools & Home Improvement
- and more.
About Amazon Private Label Brands:
Amazon is constantly adding more private label brands.
Nasdaq reports Amazon’s private label product portfolio includes more than 120 products across kitchen goods, batteries, clothing and electronics accessories categories.
Popular Amazon Brands (include but are not limited to):
- Amazon Happy Belly, which offers kitchen basics like coffee, trail mix and nuts. You can even get one of the site’s proprietary Dash Buttons, which allows you to order Happy Belly products with the click of a handy button.
- Mama Bear, offers a variety of affordable baby foods, snacks and even diapers.
- Wickedly Prime, a snack food line aimed at the Trader Joe’s market. It boasts chips, cookies, popcorn, soups, herbal teas, nuts, spreads and other gourmet items.
Overall, the menswear market is growing at a faster rate than even women’s fashion–and Amazon is taking note–hence the introduction of Franklin & Freeman (Men’s dress shoes) and Buttoned Down (Men’s button-down shirts).
Example of a manufacturer who joined Amazon’s Private Label:
One example of a brand who partnered with Amazon to launch a new line of private label products is Perrigo OTC.
Earlier this year, Amazon expanded its brand, looking to take on CVS, Rite Aid, Walgreens and other drugstores with Basic Care line of products.
In partnership with Perrigo OTC, Basic Care includes a variety of branded over-the-counter medications, like painkillers, cold medicines and even nicotine gum.
Currently, the line includes about 60+ products, serving a variety of needs from basic health care to hair regrowth.
The big benefit of Amazon Basic Care is its lack of branding and marketing, which lets the retailer cut costs to the consumer.
As Amazon itself puts it:
“Everyone should have their basic health care needs met, without having to pay for extras like expensive marketing. Basic Care: it’s transparent. It’s authentic. And, it’s basic. In a good way.”
And the costs-savings really are significant.
According to data from CNBC, the same dosage and volume of ibuprofen runs at $6.98 from Basic Care, compared to $14.99 at Rite Aid, $15.49 at Walgreens and $15.99 at CVS. The only retailer with comparable pricing is Walmart.
How to apply to be an Amazon Private Label Brand:
Think your product might be a good fit for Amazon’s Brand? You can submit an application here.
We will continue to update this post as more information becomes available including requirements & expert insight. For additional information, email [email protected]