Amazon ramps up private label offerings ahead of annual sales

E-commerce giant Amazon is preparing to step up its private label offering in multiples of thousands for the Great Indian Sale 2017 next month.

Amazon’s private labels — AmazonBasics, Solimo, Myx and Symbol — currently contribute 5,000 stock keeping units (SKUs) to the 100-million-plus products on its platform. The e-tailer is preparing to unveil a range of private label products that will take its total tally to 100,000 SKUs.

While that number may be miniscule compared to the total selection of products on Amazon.in, they are being introduced to fill a genuine customer need that could not be fulfilled by any other source, a top executive from Amazon.in told

BusinessLine . “While offline retailers launch private labels to rake in better margins on high-demand product categories such as phenyl, for instance, where the market is huge, Amazon’s private label philosophy revolves around fulfilling a genuine customer need that no one else fulfils, even though the product falls under a small niche market” said Manish Tiwary, Vice-President, Category Management, Amazon India.

Private Label strategy

Stating that, the e-tailer assesses two major requirements before introducing a private label product, he said: “We identify their need when customers come to our marketplace and search for a product range at a price range and can’t find it. For example, a lot of customers were searching for dry fruits from a quality brand.

“Then, we first approach brands such as Nestle and ask if they would like to sell dry fruits for us, and if the brand says no, then we go ahead and launch it ourselves. We now sell Solimo dry fruits. Second, all of our private label products must receive product ratings of 4, which is a very high standard as the best rating is 5; failing which the product will be discontinued.”

Catching trends early

Amazon introduced ‘Fidget Spinners’ a stress busting toy last year, long before others caught on. “We noticed people searching for Fidget Spinners on our site and checked with our China marketplace, which confirmed it’s a big rage. So, we introduced them... Similarly, people kept searching for ‘tadka pans,’ so, we introduced it in our Solimo range,” said Tiwary.

The e-tailer sells 60-70 derivatives of large appliances including refrigerators, air-conditioners and washing machines made exclusively by brands for Amazon, based on what customer demands through its search.

“Most of our private labels are the top two brands within the sub-category they are launched in, like bean bags which is a sub-category of furniture” said Tiwary, adding that along with the Amazon guarantee of quality products, the idea is to offer the best pricing and value to customers.