CHINA TOPIX

11/21/2024 11:58:43 pm

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Amazon to Launch New Private Label of Groceries

Amazon plans to launch its own-brand of food and baby products through a series of new private labels.

These new products will include perishable goods and non-perishables stuff. These products will live under brand names like Happy Belly, Wickedly Prime, and Mama Bear. Happy Belly will handle basics like nuts, tea, and cooking oils; Wickedly Prime, which will package snack foods; and Mama Bear, which will sell baby products.

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The new plan of the online retailer giant appears to be like the strategy of several major retailers, including Costco, Walmart and Target, which have recognized the lucrative nature of selling groceries. Private-label portfolios tend to have higher profit margins than brand-name goods because the companies save on marketing and brand development.

Those products will apparently only be available to Prime members, and could start appearing on the site as soon as this month. If the quality and price of the goods show competitiveness, it could attract shoppers to sign up for the $99 per year membership.

The e-commerce giant already sells some private-label goods under its Amazon Basics line, which is mainly comprised of consumer electronics devices such as USB cords and disposable batteries. The company also recently launched multiple in-house clothing brands, further showing their willingness to diversify their private-label offerings.

This new move of Amazon shifts the company toward becoming the new mega supermarket and convenience store for the connected generation. However, it is not yet clear how expensive each line will be. Amazon has no official announcement yet regarding the matter.

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