To cut expenses, Amazon is getting rid of many of its brands.
As part of a larger attempt to control costs in its brand operations and increase revenues, Amazon is doing rid of dozens of its in-house brands.
Amazon has developed dozens of private labels over the years in a variety of business segments, such as Goodthreads for clothing, Rivet for furniture, and Presto for paper towels. Amazon Basics also sells a variety of home goods and tech accessories, the majority of which are sold under their own brands other than Amazon.
Amazon decided to keep Amazon Essentials, Amazon Collection, and Amazon Aware while discontinuing 27 of its 30 apparel brands, including Lark & Ro, Daily Ritual, and Goodthreads. The business is also discontinuing some of its furniture brands, such as Rivet and Stone & Beam.
Although the business did not specify how many of its brands it intended to retire, dozens of them are anticipated to do so, leaving Amazon with less than 20 well-known names. Clothing and furniture brands on Amazon are being substantially reduced, however, some will still be available there until supplies are depleted.
According to Matt Taddy, vice president of Amazon Private Brands, "the company sought to get rid of some in-house products after ensuring they didn't resonate with customers." a good deal with premium goods at affordable costs.
The action was taken as part of Amazon's larger cost-cutting plans and in preparation for a possibly long-awaited antitrust complaint by the Federal Trade Commission.
Additionally, Amazon's CEO Andy Jassy is actively reducing expenses across the board as the retailer anticipates a slowdown in the economy and revenue growth.
As Amazon freezes employment and delays warehouse expansion, Jassy has targeted several of its bets, including grocery and hardware. As part of the largest layoffs in corporate history, 27,000 other employees were also let go by the corporation.
After third-party merchants complained that Amazon officials had inappropriately accessed merchant data to create rival products, the company's brands made it a target for antitrust regulators.
Amazon has been accused by the companies of replicating their items and pricing them such that there is little room for rivalry. The issue surfaced after a 16-month inquiry into Amazon's and other major digital companies' competitive tactics by the House Antitrust Subcommittee.
When asked about the practice, Jeff Bezos, the founder and CEO of Amazon, replied, "What I can say is that we have a policy against using seller data to help our brand, but I can't guarantee that that policy will never be violated."
According to reports, the Federal Trade Commission may sue Amazon this month after waiting so long to do so. The FCC is looking at how Amazon is using its retail clout to coerce independent vendors on its marketplace, among other things.
Amazon stated that only 1% of all retail sales are made by its brands. According to the firm, "We currently have more than 158,000 products across 45 brands in our store, as well as some products from other brands sold on our Amazon Fresh online grocery service," in 2019.
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