Report: Amazon reducing private label assortment — may exit business

Amazon may be rethinking private label.

The online retail giant has begun “drastically” reducing the selection of products its sells under its own brands, reported the Wall Street Journal. It also has discussed exiting the private-label business, the report said. As of 2020, Amazon had 45 different house brands, offering some 243,000 items across a wide range of categories.

The decision to cut back comes amid disappointing house brand sales, according to the report, and also as Amazon has faced mounting criticism that it favors its own products versus the products sold by other sellers on its site.

Amazon Prime members purchased more than 300 million items worldwide during Prime Day 2022, the most in Amazon’s history.

To read the full Wall Street Journal story, click here.