(Reuters) – Amazon.com Inc. has begun reducing the number of items it sells under its own brands amid weak sales, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
The report said the company has also discussed the possibility of exiting the private-label business entirely to ease regulatory pressure. However, Amazon said it has never considered shutting down the private label business.
“We continue to invest in this area, as many of our retail competitors have done for decades and continue to do so today,” its spokesperson said.
The WSJ report said the decision was made to partially scale back, partly frustrated by the sales of several in-house brand items. (https://on.wsj.com/3aMjXIW)
The company’s leadership has directed its private-label team over the past six months to cut down on inventory of items and not reorder many of them, while cutting its in-house label assortment in the United States by more than half. Reducing is also discussed. according to the report.
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The report said the decision was made after a business review by longtime Amazon executive Dave Clark, who took over as head of its global consumer business in January 2021.
The company’s house-brand business has courted controversy with the European Commission in 2020, accusing Amazon of using its size, power and data to advance its own products and gaining an unfair advantage over rival merchants. those who use its platform.
The US online retail giant has now offered to refrain from using sellers’ data for its own competing retail business and its private label products.
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