One Click Retail: Amazon primed to add new categories to private label brand
Pets accessories and patio heaters could be among the next big private label offerings for Amazon — and more products could follow.
Based on increased consumer spending in specific categories, Amazon is expected to expand its AmazonBasics private label offering across its pet accessories and lawn and garden categories. However, it is also keeping a keen eye on diapers and over-the-counter medicine, according to One Click Retail’s new report, “Private Brands: Where Will Amazon Go Next?”
According to the study, the expansion of these categories is based on interested when sample products are released. After Amazon monitors performance for approximately a year, the highest performing product lines receive a full category release.
For example, sales of AmazonBasics Pet Carriers are on the rise. While the line is still in the monitoring stage, the category generated an estimated $2 million in sales in 2017 sales. This was 80% growth year-over-year, and was among the top four bestselling pet carriers of 2017.
According to One Click, the brand is only No. 4 in this space because there are too few items available across the category — which is worth an estimated $16 million.
"The introduction of new sizes and varieties of pet carriers is a major growth opportunity for Amazon, and we expect the expansion could happen any day now," said Millerberg.
Meanwhile, Amazon lacks a strong lawn and garden foothold in its private brands lineup. To bolster the deficit, the online retailer released a sample of AmazonBasics patio heaters. Since introducing a small set of heaters in 2014, the line generates steady sales of about $3 million per year, and a gradual growth of 10% year-over-year.
Of these sample products, the strongest is an outdoor stand heater available in three styles. However, more options are on the way.
"In an effort to expand into lawn and garden, we expect Amazon to introduce a new line of patio heaters this coming fall to capture seasonal purchases," said Spencer Millerberg, CEO at One Click Retail. "The expansion will likely introduce new styles to the AmazonBasics line, such as tabletop heaters and wall hangers.”
One category to watch is over-the-counter medicines. Amazon’s latest investment is the August 2017 launch of Basic Care, an over-the-counter medicine brand created in partnership with Perrigo. Basic Care launched with 60 individual SKUs, a larger count than almost all of Amazon's past sample product lines. In the first quarter of 2018, the brand sold only $20,000 in estimated revenue, and has not yet been supported by a kick-start promotion, according to the study.
Similarly, Mama Bear diapers is increasingly gaining traction among Amazon customers. Amazon has already collected a lot of data on diapers, and it has become a major category for AmazonBasics, with an estimated $530 million in sales in 2017.
To fuel the momentum of its Mama Bear diapers, Amazon hosted a month-long 20% promotion in February, 2018. The promotion was successful, as it lifted estimated weekly sales from $20,000 to $100,000. However, the long-term lift is still uncertain, according to the report.
Based on increased consumer spending in specific categories, Amazon is expected to expand its AmazonBasics private label offering across its pet accessories and lawn and garden categories. However, it is also keeping a keen eye on diapers and over-the-counter medicine, according to One Click Retail’s new report, “Private Brands: Where Will Amazon Go Next?”
According to the study, the expansion of these categories is based on interested when sample products are released. After Amazon monitors performance for approximately a year, the highest performing product lines receive a full category release.
For example, sales of AmazonBasics Pet Carriers are on the rise. While the line is still in the monitoring stage, the category generated an estimated $2 million in sales in 2017 sales. This was 80% growth year-over-year, and was among the top four bestselling pet carriers of 2017.
According to One Click, the brand is only No. 4 in this space because there are too few items available across the category — which is worth an estimated $16 million.
"The introduction of new sizes and varieties of pet carriers is a major growth opportunity for Amazon, and we expect the expansion could happen any day now," said Millerberg.
Meanwhile, Amazon lacks a strong lawn and garden foothold in its private brands lineup. To bolster the deficit, the online retailer released a sample of AmazonBasics patio heaters. Since introducing a small set of heaters in 2014, the line generates steady sales of about $3 million per year, and a gradual growth of 10% year-over-year.
Of these sample products, the strongest is an outdoor stand heater available in three styles. However, more options are on the way.
"In an effort to expand into lawn and garden, we expect Amazon to introduce a new line of patio heaters this coming fall to capture seasonal purchases," said Spencer Millerberg, CEO at One Click Retail. "The expansion will likely introduce new styles to the AmazonBasics line, such as tabletop heaters and wall hangers.”
One category to watch is over-the-counter medicines. Amazon’s latest investment is the August 2017 launch of Basic Care, an over-the-counter medicine brand created in partnership with Perrigo. Basic Care launched with 60 individual SKUs, a larger count than almost all of Amazon's past sample product lines. In the first quarter of 2018, the brand sold only $20,000 in estimated revenue, and has not yet been supported by a kick-start promotion, according to the study.
Similarly, Mama Bear diapers is increasingly gaining traction among Amazon customers. Amazon has already collected a lot of data on diapers, and it has become a major category for AmazonBasics, with an estimated $530 million in sales in 2017.
To fuel the momentum of its Mama Bear diapers, Amazon hosted a month-long 20% promotion in February, 2018. The promotion was successful, as it lifted estimated weekly sales from $20,000 to $100,000. However, the long-term lift is still uncertain, according to the report.