Monday 25 April 2016

Digital private label - your new competitor from Amazon

How its best-selling brands are driving AmazonBasics...

Bloomberg reports that the e-tailer is gleaning insights from it’s Amazonian product portfolio to produce own label equivalents of its best-sellers at up to 50% off.

It's AmazonBasics private label offering now includes more than 3,000 products based on their best-selling branded lines - from women’s blouses and men’s khakis to fire pits and camera tripods, all perfectly tailored to consumer demand.

Shoppers increasingly start on to search for products, bypassing Google and traditional chains’ websites.

So not only can Amazon track what shoppers are buying; it can also tell what merchandise they’re searching for but can’t find, allowing them to spec ideal products for their AmazonBasics offering.

The important issues for FMCG NAMs have to be how soon their turn will come, and what to do about it.
  • Amazon are obviously working down a ‘best-selling’ league table, cherry-picking based on a combination of their sales and consumer searches
  • They also have the luxury of trying single products, and discontinuing where necessary
  • Suppliers would be unwise to miss any selling opportunities by refusing to supply Amazon
  • Key for brand owners is to make their entire offering, access and fulfilment so attractive that they optimise direct purchase, without losing any potential via the Amazon route
  • The difficult part has to be optimising your own data to bond with your consumer-shopper base, using Amazon as a standard…   

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