Amazon has made its decision Get rid of some of your own brands with the aim of reducing costs, according to CNBC. «We always make decisions based on what our customers want and have learned that customers are looking for our most popular brands such as Amazon Basics and Amazon Essentials.“, he said matt dad, Vice President of Amazon Private Brands.
It is currently not known for certain which and how many brands Amazon intends to eliminate. However, the Andy Jassy-led company is expected to do so, according to the Wall Street Journal keep about 20. Currently, Amazon is significantly reducing its clothing and furniture brandssome of which will remain online until they no longer exist, the American newspaper says, citing sources familiar with the matter.
This measure is part of the cost reduction policy that Amazon is pursuing. The company Recently 27,000 workers were laid offthe largest job cuts in its history.
Possible antitrust lawsuit
However, acc wsjthe possible antitrust lawsuit United States Federal Trade Commission (FTC). could have been another triggering factor for this decision. The FTC began investigating Amazon during President Donald Trump’s administration Criticism of alleged preference for own products and discrimination against external providers on its market among other allegations.
In addition to selling third-party products, Amazon also sells its own products, similar to a trademark. Over the years, the number of the company’s own brands has grown, including some like good threadsspecializing in clothing; rivetsdedicated to the sale of furniture; only, encompassing everything from coffee to personal care products; either Presto, specializing in household cleaning products. According to Amazon, Own brands account for only 1% of total sales.