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Amazon Cuts Dozens of House Brands as It Battles Costs, Regulators (wsj.com) 47

Amazon is jettisoning dozens of its in-house brands as part of a significant reduction of its private-label operation as it works to fend off antitrust scrutiny and shore up profit. From a report: The Seattle-based company in the past year has decided to eliminate 27 of its 30 clothing brands, such as Lark & Ro, Daily Ritual and Goodthreads, according to people familiar with the matter. Some of the brands remain on Amazon's site for now as the company sells off remaining inventory, but when completed its house-label clothing division will have just three brands: Amazon Essentials, Amazon Collection and Amazon Aware.

Amazon also is dropping private-label furniture, phasing out its Rivet and Stone & Beam brands once its stock of those items are gone, some of the people said. Exact numbers for brands being cut in other parts of the business couldn't be learned, but Amazon Basics, which sells a range of home goods and tech accessories, will remain a focus for the company.

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Amazon Cuts Dozens of House Brands as It Battles Costs, Regulators

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  • heh (Score:4, Funny)

    by nomadic ( 141991 ) <nomadicworld@@@gmail...com> on Thursday August 10, 2023 @10:16AM (#63755842) Homepage

    Definitely sounds like someone at Amazon hit the Hipster Business Name Generator...http://www.hipsterbusiness.name/#

    • At least the names are.... names.

      The Alibaba reseller names are just random capital letters strung together.

  • Translation (Score:2, Insightful)

    by RitchCraft ( 6454710 )

    "Crap, the jig is up. We made a butt-ton of monopoly money but it's time to get rid of all the shell companies that don't contain our name for clarity."

  • by MpVpRb ( 1423381 ) on Thursday August 10, 2023 @11:01AM (#63755940)

    ...is troublesome
    There are LOTS of returns as customers find the color, texture and fit to be not what they wanted
    Same with some furniture. My wife bought two chairs online and hated them. She finally went to a physical store and sat in a lot of chairs before finding one she liked

    • by antdude ( 79039 )

      This is why I still prefer shopping in personal to see, try, etc. first. I can buy online AFTER I do these if they are cheaper and the same exact model.

  • by bickerdyke ( 670000 ) on Thursday August 10, 2023 @11:19AM (#63755972)

    So what is the significance of this? The are dropping 27 out of 30 clothing brands..... why did they have 30 "brands" to begin with? Does this mean they are producing less clothes? Or are they producing the same number of clothes - just stick less different labels on them.

    They could have 100 "brands" or a different "brand" for each T-Shirt-design.

    There is no meaning anymore to a brand if you just buy stuff from the cheapest manufacturer and just slap a named label on it.

    • by mjwx ( 966435 )

      So what is the significance of this? The are dropping 27 out of 30 clothing brands..... why did they have 30 "brands" to begin with? Does this mean they are producing less clothes? Or are they producing the same number of clothes - just stick less different labels on them.

      They could have 100 "brands" or a different "brand" for each T-Shirt-design.

      There is no meaning anymore to a brand if you just buy stuff from the cheapest manufacturer and just slap a named label on it.

      The whole point of having 100 or so different brands is to reach out to separate sections of the market. Similar to large clothing retailers, you'll have what are essentially the same clothes under different labels but with different advertising/descriptions to appeal to different age, lifestyle or cultural groups. It's something that is mostly dying in the internet age as fewer people are making decisions based on catalogues and in store posters. Even larger retailers are abandoning the concept as those th

  • by williamyf ( 227051 ) on Thursday August 10, 2023 @11:51AM (#63756062)

    For years Amazon promoted a plethhora of private lables to see what stuck to the wall and what did not. Does a brand with a catchy name that has no connection to amazon will dupe customers? Does the amazon name has enough gravitas to convey "decent quality at decent prices" to customers? Is this product line interesting? What about this other product line? And this thrid one, can we make inroads here? But in the end, even with competing (amazon) brands, all the products were made under contract by the same factories somewhere...

    Now, enough time has elapsed that Amazon pretty much knows most of the answers they wanted...

    Underperforming Items and SKUs of the diying brands willbe phased out, and the good performing ones will have their current labels removed, and a new sticker with the surviving brands slapped on.

    Meanwhile, underperforming items from the surviving brands will phased out.

    This is just a cost adjustment thing, and also a way to put more (marketing) wood behind less (product) arrowheads

    The "regulator" angle is just clickbait titling and fluff.

    • by kriston ( 7886 )

      The "regulator" angle is just clickbait titling and fluff.

      Did you actually read the article?

      • The "regulator" angle is just clickbait titling and fluff.

        Did you actually read the article?

        I am glad you have a WSJ subscription. But for me, the article was paywalled, so no, I did not read specficially TFA from the WSJ.

        Nonetheless, the news has been covered in some other outlets, and I did read there. Was there something transcendent or groundbreaking from the WSJ?

        Do not blame me, blame clueless submitters that submit* paywalled links, and lazy editors that did not search for alternative non-paywalled coverage :-P

        * Redundancy intended

  • Wouldn't it be better for them to kick all the cheap copycats and fraudsters off the platform?
    • Wouldn't it be better for them to kick all the cheap copycats and fraudsters off the platform?

      Belive you me that Amazon would want to do that, but...

      Kicking all the cheap copycats and fraudsters of the platform would invariably lead to a lot of false positives (i.e. kicking out of the platform legitimate small businesses and/or amazon's private labels competitors).

      This will then lead to a PR nightmare, and possible problems with the legislators. Couple that with the fact that Amazon makes money from those copycats and fraudsters, and you understand why they are taking baby steps in that direction.

  • Do you mean to tell me that I won't be able to buy an Amazon Basics toothbrush?!

    Next, you'll tell me they are coming for my Amazon Essentials socks.

    When will this end? These regulators won't be satisfied until they get my Amazon Essentials shirt off my back.

  • Comment removed (Score:5, Insightful)

    by account_deleted ( 4530225 ) on Thursday August 10, 2023 @12:28PM (#63756192)
    Comment removed based on user account deletion
    • I'm sure you already know this, but it's on purpose, plus "featured" items pay Amazon to get ranked higher.
      It's easier to hit google and search for the item you want and add site:amazon.com at the end

  • Now that it drove off all the original brands they stole designs from

  • If you are not already treating Amazon as the resource of last and final resort, more likely to do without than buy it,
    you just like paying 50%+ more for 95% less.

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