Home > Latest News > Distributors, & Aldi Set To Benefit If Amazon Pulls Out Of House Brands

Distributors, & Aldi Set To Benefit If Amazon Pulls Out Of House Brands

Australian distributors could be in for a bonus as Amazon cuts back on their own brand products, a move that could open the door for importers of CE products, also set to benefit are retailers such as Aldi and Coles who battle each other in the specials marketplace.

There is even speculation that Amazon could exit the private-label business entirely in an effort alleviate regulatory pressure, as US authorities ramp up investigations into the competitive nature of Amazon.

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 batteries and coffee to clothing and furniture, with brand names such as Amazon Basics, Goodthreads and Solimo.

The growing scale of its own offerings increasingly put Amazon in competition with other sellers on its platform, angering those sellers and resulting in antitrust scrutiny.

Amazon’s private-label business consists of 243,000 products across 45 different house brands with local suppliers of house brand products tipped to benefit if Amazon pulls out claim’s analysts.

The Wall St Journal claims that Amazon’s decision to scale back house brands resulted partly from disappointing sales for many of the items, the people said.

It also came as the retail-and-technology giant has faced criticism in recent years from lawmakers and others that it sometimes gives advantages to its own brands at the expense of products sold by other vendors on its site.

Back in 2020, Amazon was accused of collecting data from third party sellers using the Amazon marketplace, to boost their own house brand products.

Some major brands also got upset with Amazon accused of copying their designs to bolster their own sales.

Amazon at the time said it was opening an internal investigation into how its private-label employees use seller data and if they were violating a company policy not to use such data.

In testimony to Congress, then-CEO Jeff Bezos said, “I can’t guarantee you that policy has never been violated.”



You may also like
Amazon Ups Services As Temu, Shein Sales Surge Ahead
Apple Facing New Lawsuit Over AirTags
Amazon’s New AI Tool Requires URL For Seller’s Pages
Drivers Wanted For Amazon Last Mile Initiative As They Move To Take On OZ Post
Why Does Casio Stay With A Struggling Shriro?