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Inside Amazon’s “Our Brands” Initiative

Amazon has rolled out a program targeting brand manufacturers who are willing to produce new items to be sold exclusively on Amazon. Get the details here. By IT February 21, 2019
Inside Amazon’s “Our Brands” Initiative

According to Amazon, when consumers see the “Our Brands” message above certain items on the platform, the item is either an Amazon private label brand or from a curated selection of brands exclusively sold on Amazon. Through the initiative, Amazon’s goal is to bring “high-quality products at great prices to [their] global network of consumers both directly (B2C) and commercially (B2B).”

Through an accelerator program targeted at brand manufacturers, Amazon is seeking out retailers that are willing to manufacture new items to be sold exclusively on Amazon and will become part of Amazon’s growing collection of private label brands, which has rapidly grown to over 125 brand names. For Amazon, the program helps maintain market share, diversify their product selection, and drive incremental growth to their retail arm.

Participating brands receive onboarding support to help them effectively illustrate their brand’s value proposition and track performance, a suite of marketing services from Amazon’s merchandising team, and a strategic approach to testing new products and receiving feedback to optimize from there. Brands partaking in the program are selling items in a variety of Amazon product categories, such as Apparel & Accessories, Baby, Beauty, Electronics, Food & Beverage, Health & Wellness, Sporting & Outdoors, Toys, and more.

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Brands that have successfully launched products through the program include the makers of Equal sweeteners and GNC supplements, as well as mattress company Tuft & Needle. The Equal sweetener manufacturing team created a new brand called Sugarly Sweet by Equal, GNC created two brands of supplements known as Informed Nutrition and Challenge, and Tuft & needle created a brand called Nod — all exclusively for Amazon and to fulfill various business goals. According to a Gartner L2 study, there are now over 220 brand partners participating in the program.

These brands are leveraging the program to launch new brands and products specifically for Amazon customers, effectively getting in front of and standing out to an ever-increasing audience. This information supports Feedvisor data that 97% of brands on Amazon and 84% of brands not currently on Amazon concur that the most compelling benefit to selling on the expansive platform is acquiring new customers.

By selling exclusive products, Amazon can generate stronger profit margins and exert an additional level of control over the supply chain for sourcing new inventory, while also carving out and solidifying their position as an innovative retailer that brands want to work with.

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