Amazon has been ramping up its private label business over the last few months. A report that was released this week by 1010data showed that some Amazon brands have continued to report outstanding growth recently including Fire TV, Echo, Kindle, and AmazonBasics among others. The report was generated from the analytics firm 1010data, a company that has been tracking Amazon’s private label business. According to the report, over the first 6 months of the year, Amazon’s private labels accounted for only 2% of the total units that were sold. This figure did not include the marketplace and subscriptions. However, the report found that during Prime Day, the figure rose from 2% to nearly 12%.
The report noted that AmazonBasics was the top performer in this whole story. For many analysts, this was not a surprise at all especially when you consider that the private line includes a wide variety of everyday essentials as well as electronic accessories, pet supplies, office accessories, home based goods etc. The AmazonBasics line accounted for nearly 2,000 different products and is the largest private label at the site. The label was responsible for $200 million in sales for the first 6 months of 2017 according to the report released by 1010data.
The Amazon electronics line was also not bad coming second to the AmazonBasics private label. Data showed that products within the line did relatively well. The Amazon Echo saw sales of $120 million with Fire TV raking in $110 Million. Amazon Kindle recorded sales of $75 million for the first 6 months. The electronic lines when combined accounted for more than half of the total private label sales standing at 55% of total sales. Echo, in particular, has been viewed as a big mover after doubling sales year on year to date. Amazon Element, another important private label was also a good performer. seeing sales of about $9.5 million.
There were also a few newer private labels that showed very good performance too. For example, Pinzon bedding and bath products reported sales of little above $6.6 million with Happy Belly, a snack line that came into the market last year seeing sales hit $2 million over the last 6 months. Recently, Amazon has extended its private label business into fashion too and while there’s nothing substantive to report in this area at the moment, the line has gained significant traction over the last few months.
Despite all these successes on the private label lines, there were some products that didn’t really perform according to the standards. Pinzon bedding and bath, in particular, has been singled out. Although the line pulled about $6.6 million in sales, the units sold so far were relatively less compared to the same time last year. This was a 28% drop in year on year growth. There’s no doubt that Amazon is keen on expanding its private label business even more and while there will be challenges along the way, it seems like the online giant retailer is on the right course.
