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

Sellers and brands may not like it, but Amazon is clearly doubling down on its private label business. This is where Amazon sells its own branded products, or products with third-party brands that are sold exclusively on Amazon.

Private label brands benefit Amazon in many ways. They expand product selection while giving Amazon better profit margins. Supply chain management becomes easier too. It can also pressure bigger brands to cut prices on Amazon to stay competitive.

Last week, CNBC reported that Amazon is more aggressively growing its private label business, having launched a new "accelerator" program for third-party sellers to become part of the "Amazon family of brands," and a special feature that promotes its own brands at the bottom of competitor listings. That followed recent reports of Amazon having significantly ramped up the number of private label brands sold exclusively on its website.

This comes at a time when sellers and brands are increasingly reliant on Amazon, where almost half of all online sales take place. More Amazon-owned brands mean they will have to directly compete with Amazon for consumer wallet share.

https://www.cnbc.com/2018/10/06/amazon-doubling-down-on-private-label-sellers-see-huge-fear.html