Over the last couple of years Amazon have released over 100 private label products. From sports supplements to microwaves and even mattresses…
My personal view is that they must analyse the results of their market-place re-sellers & pick products they believe they can offer a financial competitive advantage & make more profit too. Read the article I wrote about it here.
Even Lord Sugar agreed with me that Amazon are monopolising the global business market and are having a massive effect on our high streets.
In a recent Mirror interview headlined ‘Amazon is killing our businesses’. Lord Sugar said “I don’t think there is a way we can revitalise the high street. It’s a difficult task. The companies that are getting bigger like Amazon are online. Amazon for example, worldwide is killing every single business.” You can read the full article here.
Personally I can see the same thing happening in the digital world as happened to our high streets. I can foresee many independent digital re-sellers around the world going to the wall. Because Amazon are and will encroach on their turf, learn about their products, manufacturer them for less & simply undercut them.
I’ve just learnt some new things about Amazon this week too. Through a new report released by One Click Retail which confirms there are two different types of Amazon house brands, though the distinction may not be immediately apparent to you.
First, there are Amazon’s private labels, which are wholly owned by the retailer. These brands either include ‘Amazon’ or ‘Prime’ in the brand name, such as Amazon Basics, or are explicitly stated as an Amazon brand.
Second, there is a growing assortment of Amazon exclusive brands, such as Basic Care (manufactured by Perrigo) and Earth+Eden (manufactured by First Quality). These brands are advertised by Amazon as ‘Our Brands’ (see below) but are not owned by Amazon.
In the report One Click Retail’s conclusion is ‘Amazon’s strategy is (as embedded in its logo: A to Z) it truly wants to be a part of its customers’ spending and while it offers the manufacturers its platform to sell on Amazon, it is also on the lookout for opportunities that allow it to expand into new sectors.’
And they go on to say. ‘While Amazon has the ability to displace smaller brands, it understands the value of the loyalty consumers feel toward long-established brands in attracting those shoppers to the platform. Some may think that becoming the #1 bestseller in every category is Amazon’s endgame, but it’s much more likely that Amazon is primarily interested in working with brands for the mutual benefit of all parties.’
I agree with much of what One Click Retail say in this report. But I’m not convinced that Amazon’s end game is ‘not’ to be #1 bestseller in every category.
And we won’t sitting idle doing nothing. Thinking Amazon have our best interests at heart (like our high streets). No. We are making conscious efforts to move our business into providing service based products to business like photocopiers, monthly printing schemes, small organisation print solutions & broadband telephones. Which require personal relationships and feet on the street to deliver guaranteed certainty of cost & support.
Yes, we will still provide some traditional office products like printer cartridges, stationery & office furniture too. Where I’ve no doubt we will come under attack from Amazon. But even here, we will provide our customers with a very personal experience & they won’t just be a number in a massive global business like Amazon.
I stand by my previous pledge. From this day forward ‘I for one’ will not knowingly buy another product from Amazon. And I do this to support every single independent inventor, product development specialist, retailer & manufacturer in the world.
Last week my 12 year old wanted some new head phones, passed me £20 & asked me to purchase them off Amazon on his behalf. And after 20 minutes of listening to me trying to educate (this is what I call it) him why I’m not going to do it & why he should buy them from an independent store (even if they cost a little more). He got bored & went to ask his mother. Our youth have been brought up with Amazon & it’s going to be difficult to change their beliefs too.