Dozens of Private Label Brands to be Removed as Part of Amazon Cost-Cutting Strategy
To cut big costs, Amazon is slashing down a dozen of private label brands that did not resonate well with customers.
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To cut big costs, Amazon is slashing down a dozen of private label brands that did not resonate well with customers.
As a potential FTC antitrust lawsuit looms in the background, Amazon plans to reduce its in-house brands. According to The Wall Street Journal, the retailer will eliminate 27 of its 30 clothing brands and all of its private-label furniture lines. It isn’t clear how many other areas the cuts could affect, but the Amazon Basics brand appears to remain largely, if not wholly, intact. The retailer told the WSJ that it looks to eliminate products that “aren’t resonating with customers.”
The move was first reported by the Wall Street Journal, which said the company has decided to eliminate 27 of its 30 in house-label clothing division, leaving it with just Amazon Essentials, Amazon Collection and Amazon Aware.
The cost-cutting development comes as the agency is said to be preparing an antitrust case against the Everything Store.
Amazon's cost-cutting efforts now include removing in-house private-label brands. Here's what Amazon Private Brands VP shared.