Amazon begins slashing private-label items

People familiar with the matter said that Amazon has begun to significantly reduce the number of private-label products and has discussed the possibility of completely withdrawing from the private-label business to reduce regulatory pressure.

Data shows that as of 2020, Amazon's private label business has a total of 243,000 products, involving 45 different private brands . The business has been controversial due to competition with other sellers on the Amazon platform.

Amazon’s decision to downsize its private-label brands is partly due to disappointing sales of many products , and partly because Amazon has been accused in recent years of sacrificing other Amazon.com suppliers for its own-brand dominance, the people said. interests .

Over the past six months, Amazon executives have instructed private-label teams to cut back on their product listings and not reorder some of them, it was revealed. Amazon executives discussed the possibility of cutting private-label products in the U.S. by more than half, sources said.