Amazon Is Doubling Down On Its Private Label Business

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Amazon is doubling down on its private label business, stoking ‘huge fear’ in some sellers

There is a huge fear among Amazon sellers as Amazon is doubling down on its private label business.

Recently Amazon showed its commitment to growing its private label business, but now Amazon is doubling down on its private label business, therefore, sellers and brands are concerned. Amazon’s dominance of the e-commerce sphere had made Amazon’s private label business more popular.

Amazon’s private label business is – its own branded products or products with third-party brands that are sold exclusively on Amazon. Though Amazon benefits from Private label brands, all the sellers and brands do not like the decision taken. This decision of Amazon gives bigger brands to cut prices and stay competitive thus giving Amazon better profit margins. Also, Amazon’s Supply chain management becomes easier.

This announcement of Amazon’s private label brands sold exclusively on its website has come at a time when sellers and brands are increasingly reliant on Amazon. Amazon wants to go in its quest to become the “Everything Store” and wants to remain relevant against the retailer’s own products in the fight for the digital shelf.

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