"They will put it next to the national brand with whom they are trying to compete, with a me-too packaging, a similar look and then even have a big sign that says, 'Buy basically the same product or better at 30% lower price,'" Ailawadi said. "Some of the practices around private label that are now under scrutiny by Congress and other people have not only been around a long time, they are perfectly acceptable practices.
Amazon also has more power to steer shoppers to particular products than a typical brick-and-mortar retailer. How private labels are made is often shrouded in mystery, leading to speculation around certain products. For instance, Grey Goose has had toAilawadi said some private labels are made by national brand manufacturers, who use their excess capacity to make products for others. Then there are specialty firms that only do private labels, and some store brands have their own devoted manufacturing facilities. Although Amazon releasedAmazonBasics batteries are shown on September 29, 2022.
that found Amazon drastically reduced the number of private-label items on its site in the first half of this year. The Journal reported that executives had discussed exiting the private-label business entirely to ease antitrust scrutiny."We never seriously considered closing our private label business, and we continue to invest in this area, just as our many retail competitors have done for decades and continue to do today," the company said.
Ailawadi says private-label goods bring in around 25% higher profit margins for retailers than national brands, because of savings on things such as packaging, marketing and promotion."There is nothing anti-competitive about comparing one product with another and saying that these products are very similar, and I'm selling you one at a lower price," Ailawadi said. "That is as competitive as it gets.
KatieTarasov Everything on Amazon is sourced from Alibaba & re-labeled. The sellers are lazy too -- they use the same stock photos from Alibaba. Try it out yourself -- find a random product on Amazon, then look it up on Alibaba.
KatieTarasov Boycott Tesla
KatieTarasov Corporate evil
KatieTarasov The unelected pedo squatting in office will give tens of billions to Ukraine while cutting tax refunds to needy families here by 60%. Treason! NUREMBERG!
KatieTarasov That's no why I've been doing that for 5 years I've been doing that
KatieTarasov I have lots of stories and represent a multitude of sellers. Please reach out if you need comments!
KatieTarasov Oh. Are you saying Walmart, Safeway bunch of these folks dont have the data on what are best sellers All retailer chains have best sellers data.