Amazon to Expand Private-Label Products Lineup

Photo (cc) by lgkiii

Amazon is set to expand its private-label product offerings, according to a report in the Wall Street Journal.

New lines of store-brand products will appear on the internet retailer’s site in the coming weeks, the newspaper reports, citing people familiar with the matter. Amazon declined to comment for the article.

The products cited in the report include:

  • Nuts
  • Spices
  • Trail mix
  • Snack foods
  • Tea
  • Coffee
  • Cooking oils
  • Vitamins
  • Baby products like diapers, baby-food jars and gentle detergent
  • Household items like laundry detergents

While Amazon already sells private-label products, these new offerings will include the company’s “first broad push into perishable foods,” the Wall Street Journal reports.

Bill Bishop, chief architect of brand consultancy Brick Meets Click, tells the newspaper:

“Amazon is ‘carpet-bombing’ the market with new products. Private label allows them to test out new prices and distinctive flavors with less risk.”

It is unclear how Amazon will price its upcoming private-label products, the Wall Street Journal reports. But the products will be available only to customers who’ve bought a $99-per-year Amazon Prime membership.

Other perks of Amazon Prime include free two-day shipping as well as free access to movies and TV shows, ad-free music, unlimited photo storage and Kindle e-books.

Private-label products are designed by a third-party manufacturer and sold under a retailer’s name, according to the Associated Press. They are generally cheaper than name-brand products.

Ali Dibadj, a Wall Street analyst at Bernstein, tells the AP that traditional retailers have long used private-label products to pressure consumer goods manufacturers to lower their prices or deliver more products.

So Amazon is “putting more and more of a focus on the consumer packaged goods world,” Dibadj explains:

“This is a big threat. The tug-of-war that always exists between the retailer and consumer product goods maker, in Amazon’s world, is shifting much more to the retailer.”

If you’re unfamiliar with Amazon’s private-label products, check them out, as they can be a great way to save. The AP reports that they include:

For more ways to save at the retailer giant, check out “10 Secret Strategies to Save Big Bucks at Amazon.”

What’s your take on Amazon’s existing or upcoming private-label products? Have you tried any? Would you? Share your thoughts in our Forums. It’s a place where you can swap questions and answers on money-related matters, life hacks and ingenious ways to save.

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