Sold only at Sam's Club.
Posted on 01/25/2019 3:30:52 AM PST by reaganaut1
To build a big line of exclusive products on its site, Amazon.com Inc. is pushing other brand manufacturers to do most of the work.
The online retail giant is asking consumer-goods companies to create brands exclusively for Amazon after finding that developing them on its own is too costly and time-consuming, according to people familiar with the strategy.
Equal sweeteners and nutrition brand GNC are among the first to launch products through an accelerator program Amazon launched last year to outsource the work. Mattress maker Tuft & Needle also recently created a new brand called Nod exclusively for Amazon.
Amazon’s program is the latest example of the e-commerce giant flexing its muscles to try to offer the lowest prices and widest selection, as it seeks to gain a bigger piece of market share from big-brand manufacturers.
Manufacturers would profit more from selling their products through a range of retailers, but they say they are eager to offer up their concepts solely to Amazon. In exchange, brands get help launching their products on Amazon.com, faster customer feedback when testing new products, marketing support and revenue from the sales. They also can appear at the top of search results—a big draw, given Amazon’s platform lists an estimated 550 million items.
“We had a lot of flexibility in terms of what we could do,” said Brian Huff, North American president of Equal sweetener manufacturer Merisant US Inc. His team created a new brand called Sugarly Sweet by Equal for Amazon.
(Excerpt) Read more at wsj.com ...
This can’t be anything new. Hasn’t any other retailer ever had a manufacturer develop a line for sale by its own chain?
It isn’t new at all. What do you think Sears’ Kenmore line is? Sears didn’t do any development of Kenmore appliances in the last three quarter century. They and most other historic retailers did this for more than the past century. This is the same as the relabeling or contract manufacture of the past.
Sears was known for its Kenmore appliances, which were produced by other manufacturers and given the Kenmore label.
Aren’t most of the generic store brand items from stores like Kroger/City Market the same idea?
Sold only at Sam's Club.
It’s done all the time, deals exclusive to a certain retailer.
“Ping” ping #6. :-)
Must have been a slow news day at WSJ.
I read before that when you buy a “generic brand” its possible its a name brand but in a plain wrapper..?
So Amazon is bringing the old practice of relabeling merchandise for sale under its own brand name into the twenty-first century. Yay Amazon.
Rebranding products has been done for eternity.
I have never given the liberal doosh Bezos one penny so it doesn’t matter to me what he does.
There are stores where I live so I just get what I need from them.
William Blake
This has been going on for decades. Sometimes the products are identical to those sold in other stores and only differ in a model number. Other times there are minor design differences, sometimes obvious, sometimes subtle. Then there are the truly custom products developed for a single retailer.
The risk here is that Amazon demands exclusivity and won’t sell other manufacturers’ products. So far, you find Amazon branded products next to a myriad of similar products from other merchants and/or manufacturers, but mainly for small items. This could lead to a lot of internal conflict with the platform people responsible for broad revenue and the product people responsible only for their own Amazon brand products.
Shelf inventory at our local stores has been declining for years. Fry’s Electronics used to have high shelves that’s went over your head. Now the shelves don’t go above your chest and there is still lots of barren shelf space and empty hooks. There is lots more “As Seen on TV” junk.
Lots of things we need are just not available locally or they are out of stock. Sometimes I try to buy locally and give up after visiting the third or fourth store with no luck.
Article points out Amazon has 550 million products available. Hard to find that selection in the stores in town.
You don’t have to tell me about rebranding products - tell reaganaut there up at post number 1.
The high shelves at Fry’s went away because people sued after injuring themselves getting things off higher shelves and due to shoplifters stealing things, just FYI.
However, your point otherwise still stands - lots of things one wants or needs are often not available in local stores, even in major metropolitan areas. Or you spend days calling/visiting stores only to not find it.
Major manufacturers create “store brands” for supermarkets.
You don’t have to tell me about rebranding products - tell reaganaut there up at post number 1.
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Everyone knows rebranding has always been done.
I like to remind everyone why I never give a penny to bezos.
I had not heard that about the high shelves at Fry’s. What about the ultra-high shelves at Costco, Home Depot, et al?
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