Amazon Triples Down on its Private‑label Product Portfolio

29th May, 2020

 

By DataWeave

Among Amazon’s most prominent and decisive steps in achieving retail dominance over the last few years has been its focus on expanding its private label portfolio.

The most recent collaborative report between DataWeave and Coresight Research determines that Amazon’s private label assortment in early 2020 has grown three-fold over the previous two years, most of which is in categories outside of apparel and accessories.

In addition, the report covers various facets of Amazon’s private label penetration and strategy. These include the size of Amazon’s private label portfolio, the distribution of private label products by category, the product ratings and number of reviews, the average price points across products and brands, and more.

Our detailed and proprietary Amazon private label dataset includes information on over 20,000 products and 111 brands.

Some of our key findings are:

  • Amazon’s private-label offering spans 22,617 products across 111 identified private labels.
  • Around half of the private-label products are in clothing, footwear and accessories, which is lower than the three-quarters found in our similar research from June 2018, indicating Amazon’s push into a broader range of categories.
  • The average Amazon private-label product generates a customer rating of 4.3 out of 5, representing positive customer feedback overall.

Amazon’s Private-Label Offering Spans 22,617 Products across 111 Identified Private Labels

The number of private-label products—22,617—is more than triple the total of 6,825 from June 2018 (see our previous report). The number of private-label brands also increased substantially (up 50% versus June 2018), indicating that the e-commerce giant has stepped up its private-label strategy.

Around Half of Private-Label Products Are in Clothing, Footwear and Accessories

Just over half of Amazon’s private-label products are in “clothing, footwear and accessories,” versus almost three-quarters when we undertook similar research in June 2018, indicating Amazon’s push into a broader range of categories. Other categories that feature more than 1,000 private-label products include “home and kitchen,” “grocery and gourmet food” and “tools and home improvement.”

Source: DataWeave/Coresight

The Average Amazon Private-Label Product Generates a Customer Rating of 4.3 out of 5

We examined feedback provided by Amazon’s private-label customers: Customer satisfaction can be measured by the average star rating that customers have left in reviews. We chart both average star rating and average number of customer reviews per product in the graph below.

The average Amazon private-label product generates a customer rating of 4.3 stars out of 5, suggesting overall solid customer satisfaction levels.

Source: DataWeave/Coresight

The full report is available for Coresight’s premium subscribers. It includes further details of categories and subcategories that suggest longer-term implications—including how Amazon targets a niche customer base through specific category labels but appeals to broader consumer needs by offering multicategory labels.

To access DataWeave’s proprietary database on Amazon’s private label brands and products, reach out to us today!

- DataWeave Marketing
29th May, 2020

Amazon Brands E Commerce Strategy



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