Dive Brief:
-
Amazon has added to its stable of branded products with the launch of its own line of one of the most popular consumer goods: diapers. Diapers and wipes will be sold under the label “Amazon Elements,” according to Re/Code.
-
The retailer already offers private-label goods, including electronics equipment like batteries and USB cords under its AmazonBasics label, and sheets under its Pinzon label. Re/Code’s Jason Del Rey noticed a year ago that the e-retail giant had job openings indicating that it was stepping up its store-brand activity.
-
Amazon Elements, which could expand beyond diapers, will be available exclusively to the retailer’s Prime members, who pay $99 annually for perks like no-minimum free shipping on many items and video and music streaming services.
Dive Insight:
This move is hardly new in retail, with many like Target, Costco, and supermarkets offering private label products from groceries to consumer goods that in recent years have increased in quality and reputation among consumers.
But, as noted in Re/Code’s piece, Amazon’s ambitions in this area could add to its sellers’ frustration about the company’s competition. Now Amazon will be producing and selling its own lines of consumer goods for much less cost than the branded diapers it already sells. This is just another example of Amazon’s penchant for disruption, and its competitors should probably brace themselves for more.