Amazon Is Cutting Back on Its Private Label Brands: Report

Amazon.com Inc. (Seattle) is “drastically” cutting back on the amount of products it sells under private label brands, according to Retail Dive and a report from The Wall Street Journal, which cites anonymous sources.

In a statement to Retail Dive, Amazon says, “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.”

Recently, congressional investigators said Amazon’s brands were a conflict of interest for the online behemoth, which often compete with other brands and third-party sellers on its site. A House of Representatives subcommittee also accused Amazon execs of lying about whether Amazon prioritizes its own private label brands above others being sold on its site.

In 2020, shortly after a report was released by the House of Representatives, Amazon said in a statement, “Amazon and third-party sellers have a mutually beneficial relationship, and our interests are well aligned.” In that report, the House claims it apparently found that internally at Amazon, third-party sellers were referred to as “internal competitors.”

Reportedly, some of Amazon’s private labels represent less than 1 percent of all sales for the company; apparel represents a reported 9 percent of its sales.