Amazon Prepares to Launch Its Own Food Line

Can the online retail giant generate customer loyalty for its products to compete with the likes of Costco and Wal-Mart?

Amazon-branded milk, cereal and baby food, oh my!

Amazon is planning to expand its private-label Elements brand to include a variety of grocery items and household cleaners, The Wall Street Journal reports.

“[In May], Amazon sought trademark protection for more than two dozen categories under its Elements brand, including coffee, soup, pasta, water, vitamins, dog food and household items like razors and cleaning products,” the WSJ said.

Amazon first launched its Elements line with diapers and wipes in December. They were only available for purchase if you were an Amazon Prime member, which costs $99 per year. A few weeks later, the e-commerce giant pulled the diaper line so it could make design improvements. The Elements diapers are still missing from the Amazon marketplace.

Amazon will be joining a long line of retailers that have added private-label products to boost store sales.

“Costco (Kirkland), Walmart (Great Value) and Target (Up & Up) use their private label brands – an arrangement in which products are exclusively manufactured by a third-party for a retailer – to drum up sales in popular categories at their stores,” USA Today said.

Quality control will be one of the biggest challenges the Seattle retailer faces in expanding its Elements line into perishable food items.

“Amazon must rely on outside manufacturers to design the products and then vouch for the quality,” the WSJ said.

It appears that the grocery items will be sold through Amazon’s Fresh grocery delivery service, which is available in several U.S. cities.

Would you buy Amazon’s Elements-branded items? Share your comments below.

Stacy Johnson

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