“Perhaps what Amazon is trying to do as it rapidly expands into new businesses—especially business areas where it might not have forged partnerships with well-known brands—is to give the impression to customers that there are tons of options to choose from, when in fact, they’re really just choosing between different Amazon brands,” wrote Quartz reporter Mike Murphy.
“Similarly, shoppers looking to support niche brands — of which there are many on Amazon’s site — might not be thrilled to learn Amazon is behind that all-natural granola or that fair trade coffee,” he wrote.
FoodDive reported last month that private label now has a 17% market share in the U.S. (about half of what it is in Europe) and is expected to pick up share through 2022.
On a post at Forbes earlier this week, before the Quartz story was published, retail and merchandizing expert Greg Petro suggested there were two primary motivations for Amazon to buy Whole Foods. First, it was about more consumer data. But secondly, and just as important, it was about increasing its private label offering; Whole Foods has a strong private label business thanks to its 365 brand.
rivate and exclusive brands create a reason for the consumer to buy through Amazon as opposed to going elsewhere,” he wrote.
“If Amazon has the best shopping experience, the fastest delivery, the best prices, and now unique products, why would you shop anywhere else?”