Some Amazon own-brand products could be discontinued as e-commerce giant sees lackluster sales

Some Amazon own-brand products could be discontinued as e-commerce giant sees lackluster sales

Some Amazon (AMZN) branded products may be discontinued, as the company has already begun phasing out items and plans to exit the store altogether.

Sales for Amazon's private label business accounted for 243,000 products in 2020. Those numbers are spread across 45 different brands, according to a Wall Street Journal report.

Amazon began offering its own brand of products in 2009, with products ranging from electronics to vitamins, coffee, clothing and furniture, sold under the Amazon Basics, Goodthreads and Solimo names.

The Journal report says Amazon is cutting its own-brand products due to regulatory pressure as it competes with its third-party vendors in its market. Additionally, the e-commerce giant has seen a drop in product sales, leading to a reduction in non-out-of-stock items.

A Journal source said the company had considered cutting its U.S. private label inventory by more than half, with a focus on maintaining top-selling products and removing less popular rental items.

But Amazon has come under fire for putting its brands ahead of its third-party vendors, leading it to face antitrust scrutiny, the outlet said. It also caused dissatisfied sellers on its platform who complained about similar products developed by Amazon.

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Amazon is under investigation by the Federal Trade Commission for its competitive practices and has come to the attention of other regulators like the Securities and Exchange Commission, according to the Journal. In response, Amazon argued that it provides access to nearly 2 million small and medium-sized businesses for sale on its platform and also competes fairly for the benefit of its customers.

Amazon responded to the Journal's report on its decision to exit its private label business: "We never seriously considered closing our private label business and we continue to invest in this space, like our many selling competitors. retail have done so for decades and still do so today,” the statement read.

In 2021, Amazon made $469.8 billion in revenue. Its house brands accounted for only about 1% of total retail sales.

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