The Wall Street Journal this morning reports on how, as Amazon looks to offer proprietary and exclusive brands on its site, it is pushing its suppliers “to do most of the work.”
According to the story, “the online retail giant is asking consumer-goods companies to create brands exclusively for Amazon after finding that developing them on its own is too costly and time-consuming, according to people familiar with the strategy.
“Equal sweeteners and nutrition brand GNC are among the first to launch products through an accelerator program Amazon launched last year to outsource the work. Mattress maker Tuft & Needle also recently created a new brand called Nod exclusively for Amazon.”
The Journal writes that this is just the latest example of Amazon flexing its considerable muscle as it seeks “the lowest prices and widest selection,” not to mention “a bigger piece of market share.” Suppliers are happy to go along, the story says, not just because Amazon is such a behemoth, but also because “brands get help launching their products on Amazon.com, faster customer feedback when testing new products, marketing support and revenue from the sales.”
According to the story, “the online retail giant is asking consumer-goods companies to create brands exclusively for Amazon after finding that developing them on its own is too costly and time-consuming, according to people familiar with the strategy.
“Equal sweeteners and nutrition brand GNC are among the first to launch products through an accelerator program Amazon launched last year to outsource the work. Mattress maker Tuft & Needle also recently created a new brand called Nod exclusively for Amazon.”
The Journal writes that this is just the latest example of Amazon flexing its considerable muscle as it seeks “the lowest prices and widest selection,” not to mention “a bigger piece of market share.” Suppliers are happy to go along, the story says, not just because Amazon is such a behemoth, but also because “brands get help launching their products on Amazon.com, faster customer feedback when testing new products, marketing support and revenue from the sales.”
- KC's View:
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Anyone surprised by this? Not me.
