Amazon also has its particular Achilles heel: It has a considerable number of brands that are passing without pain or glory. There are more than 400 Amazon own brands on the market but actually 10 of them They generate 81% of sales.
Put another way, these private (and proprietary/exclusive) brands are not as successful as they might first appear. In fact, the products from these brands only represent 1% of the total of company sales.
Does Amazon take care of its own brands?
A carried out by the analysis and research firm Marketplace Pulse has analyzed this matter in detail. With the investigation he intended to determine if they were directing the enough efforts (for example, using your internal data) to drive and increase sales of Amazon’s own brands in all categories. It has been concluded that the world leader in electronic commerce is rather moving in other directions.
An analysis of more than 400 brands
To conduct the research, Marketplace Pulse analyzed more than 400 marks of the company, some of which are private firms created by Amazon and others are exclusive firms belonging to third parties.
As we already anticipated a little above, the data reveals that the 10 most successful Amazon own brands sweep, and produce 81% of the total sales of this type of product. In 2018, Amazon launched more than 100 brands and none has managed to reach that top 10 to date. And it is not so much a question of quantity, but of quality. Without going further, AmazonBasics represents less than 5% of products launched on the market, but is also responsible for 57% of sales.
The (3) Most Successful Amazon Own Brands
and not only AmazonBasics contributes more than half of the total. The three main brands, AmazonBasics, Amazon-Collection Y Amazon Essentialsalready represent a 70% of total income.
The underlying perception is that brands with Amazon in their name tend to perform better than brands that don’t. It is logical to think that the brands that do not allude to their Amazon are lost in the chaos which means competing with thousands of other products and/or brands present on the platform.
The truth is that most consumers because on Amazon they search, compare and buy products based on other parameters (rating or reviews) and not so much on product names
Why Amazon’s Own Brands Don’t Work
Thus, in general, a disaster of the Amazon brands can be certified. That is, the firms for which Amazon is responsible do not usually work. Not only that, but it seems that the company itself does not apply too much in practices of branding that can boost these names. These have little brand recognitionhave no presence outside of Amazon and rely for their positive performance on their low prices and high user ratings.
Under these circumstances, it is inevitable to ask ourselves why then Amazon launches (continually) brands that are not working and that, on the other hand, do not seem to be working too hard either.
Amazon isn’t worried about its new “brands”
The answer may lie in the goals (authentic) of the eCommerce giant. Amazon is not really bringing new brands to the market to give them value as a firm, but rather uses them to group a series of products when the name or prestige matters little to consumers.
Amazon’s own brands are here to take advantage of that close to 70% of searches on Amazon are for generic items. That is, Amazon’s efforts are concentrated on offering a alternative to consumers that they are not willing to pay too much for items that objectively are not worth the price premium that the brands give them. What has been the white marks of a lifetime, come on.
The success or failure of brands also reveals consumer preferences
In spite of everything, it would be unfair to limit this entire exercise to taking advantage of the need for private labels by consumers. It should be noted that the maneuver approximates other very valuable benefits. Both the success and the failure of Amazon’s own brands in different categories allow us to see in a true way in which specific cases consumers are willing to pay more by a well-known brand, which products cannot be improved and where there are niches that can be exploited.
Thus, these references combined with the sales of established brands and other private brands that compete with each other, provides a very comprehensive perspective of how millions of users are willing to buy online. Without a doubt, this knowledge is vital to direct Amazon’s strategy in the coming years, even more than the data of net sales.
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