Amazon’s private label sales could exceed $4.3bn this year

By Pouyan Broukhim

According to research conducted by SunTrust Robinson Humphrey, an investment banking firm, Amazon’s private label sales could generate as much as $4.3bn in sales in this year, with the firm having increasingly put an emphasis on the growth of its own-brand products.

These figures have largely been inflated of late by Amazon’s acquisition of Whole Foods, with the grocery retailer expected to add $700mn in sales with its own label products, including brands such as Whole Foods Market, Whole Paws and 365Everyday Value.

Amazon has gone from having no private labels 10 years ago to owning a number of brands spanning the fashion, baby clothing and food industries that will bring the company billions of dollars in revenue.

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"One of the highly underappreciated trends within Amazon is the rise of private labels, which should give the company a strong competitive advantage overtime," said SunTrust Robinson Humphrey’s Youssef Squali having conducted the research.

Over 70% of the company’s private sales are expected to come from Amazon’s electronic products, with the company having released its new range of voice interactive echo devices, as well as offering kindle and Fire TV products.

However, apparel is an area that Amazon’s private label is expected to grow, having launched nine new fashion brands in 2017 alone.

"We estimate that Apparel sales on Amazon will account for ~2% of overall private label sales but will grow at very robust triple digit pace over the next few years," said Squali.


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