Amazon slashing private-label selection amid weak sales: report
Amazon's recent Prime Day event was the biggest in company history with more than 300 million items sold
Amazon.com has been reassessing its private-label brand business and has discussed exiting that business completely as sales sag.
The company has drastically reduced the number of items it sells under its own brands, according to the Wall Street Journal.
As of 2020, Amazon's private-label business offered 45 house brands accounting for 243,000 products.
Amazon warehouse. (Getty Images / Getty Images)
The business has been a source of controversy because it competes with other sellers on its platform.
AMAZON PRIME DAY ARRIVES AS COMPANY SUFFERS SLOWDOWN IN ONLINE SALES GROWTH
The company has been criticized in recent years by lawmakers and others accusing Amazon of favoring its products at the expense of products sold by other vendors on its site.
Packages run along a conveyor belt at an Amazon logistics center. (Bodo Schackow/picture alliance via Getty Images / Getty Images)
The private-label team reportedly was told to slash the list of items and not to reorder many of them, according to people familiar.
AMAZON'S PRIME DAY SPARKS RIVAL SALES
Amazon’s private-label business started in 2009 with consumer electronics products such as cables and expanded into other categories. It now encompasses everything from vitamins and coffee to clothing and furniture.
An Amazon delivery truck. (Reuters/Carl Recine / Reuters Photos)
A spokeswoman declined to comment on whether it has discussed the possibility, or to say how many private label items it is cutting.
AMAZON PRIME DAY SKIRTS INFLATION
Amazon just completed its biggest Prime Day event in history this week.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 210.71 | +2.82 | +1.36% |
The e-commerce giant said Prime members purchased more than 300 million items worldwide during this year's two-day event, saving a record $1.7 billion. Customers spent over $3 billion on more than 100 million small business items. The company did not disclose the event's total sales.
