Amazon to sell private label groceries

Amazon to sell private label groceries

INGLEWOOD, CA - JUNE 27:  A man walk past an Amazon Fresh truck parked at a warehouse on June 27, 2013 in Inglewood, California. Amazon began groceries and fresh produce delivery on a trial basis to select Los Angeles neighberhoods free of charge for Amazon Prime members. AmazonFresh lets you order groceries and have them delivered on the same day.  (Photo by Kevork Djansezian/Getty Images)

US-based retailer Amazon is preparing to expand its fledgling line-up of private-label brands to include an array of grocery items such as milk, cereal, and baby food as well as household cleaners, reports The Wall Street Journal. It is expected the goods will be sold through Amazon’s Fresh grocery delivery service, which is available in a handful of U.S. cities.

Amazon has sought trademark protection for more than two dozen categories under its Elements brand, including coffee, soup, pasta, water, vitamins, dog food and household items like razors and cleaning products.

The retailer has long dabbled in private labels. Besides diapers and wipes, it has offered batteries, USB cables, backpacks and even ceramic plates under the Basics label, noted for its spartan black-and-white colour scheme. Amazon also sells patio furniture and linens under its Strathwood and Pinzon brands.

Amazon FreshMarket researcher Information Resources Inc. estimates private-label packaged goods was a $120 billion market in the U.S. in 2014, up 2.1% from a year earlier. Private-label merchandise represented about 18% of money spent on all packaged goods in the U.S. last year.

Amazon, which last year reported a $241 million loss on $89 billion in sales, has been pushing to expand sales of food online, including through its Fresh grocery delivery. And last year it rolled out Prime Pantry, which allows customers to order small items that the company generally only offered in bulk, such as a single shampoo bottle or bag of potato chips.

Source: The Wall Street Journal

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