Amazon is preparing to make a move that has been used by traditional retailers for years. The company is on the verge of launching its own brand of snacks, detergent, and diapers.
The e-commerce giant will sell its branded products exclusively to Amazon Prime members. The products will include names such as Happy Belly and Mama Bear, according to a report in the The Wall Street Journal.
This isn’t a first for Amazon, the company already brands a lineup of electronic accessories. office supplies, and clothing under its own brand names. This will, however, mark the first time that groceries and household products are sold under the e-tailers own brand lineup.
With Amazon accounting for more than half of all online sales growth in the United States, launching more of its own branded products is a big deal.
Unlike traditional retail locations, Amazon has the option to undercut name brand pricing while giving its products better placement in the spots customers are likely to search for various items on its website.
The biggest advantage for Amazon is its ability to create more value for the company’s $99 a year Amazon Prime platform. Customers already receive free two-day shipping, Amazon Prime Video, Kindle book lending, and Amazon Music services, alongside a growing list of other options.