Amazon’s Fresh delivery service is only the tip of the online retailer’s grocery iceberg. According to a report from The Wall Street Journal, Amazon will soon sell private-label goods on its website, including perishable food, starting as early as the end of May.
Happy Belly, Wickedly Prime, and Mama Bear are among the names of new brands Amazon will sell, and the company will stock items such as nuts, spices, baby food, and coffee. According to the report, Amazon has been developing private-label products for many years. The company reached out to branding consultants and manufacturers like TreeHouse Foods, Inc. to get ready for the launch.
Amazon is following in the footsteps of many large brick-and-mortar retailers like Walgreens and Sephora, who have their own private-label brands and products. Amazon already sells some private-label goods under its Amazon Basics brand, but those items are mostly limited to electronics like HDMI cables, batteries, and power strips. The company’s currently private-label products have had some issues in the past. In 2014, Amazon had to recall its Elements diaper brand because of a design flaw. Undoubtedly, branching out into food, particularly perishable food, will pose its own unique challenges for Amazon.
At first, Amazon private-label products will only be available to Prime members, and no pricing information has been released yet. However, it’s likely that will Amazon experiment with prices of household necessities to see what customers are willing to pay for. If Amazon’s private-label products offer good value to consumers, it’s possible that they could attract new Prime subscribers as well.