Amazon decided to start their own private label brand back in 2009 called AmazonBasics. At first, the product line started off quite small and was focused on producing items such as various cables and batteries and was pretty much limited to those products. However, in a short space of time, the line grew to include a much wider variety of accessories, gadgets and other products that have become quite popular in recent times.
Because Amazon has direct access to it’s own (very popular) online retail store, as well as all the user data (and therefore the clearest idea of how the market is working), they can essentially undercut other brands and replicate or better their designs at a fraction of the price. Which is great news for Amazon and for us as consumers, but has some sellers worried – or even angry.
In terms of starting a private label brand, Amazon couldn’t have made a better decision. They have all the tools at their disposal to make products that they know there is a need for and sell them at a cheaper price (usually) because they can afford to manufacture the products on a large scale.
In a sense, this is not the traditional approach to forming a private label brand – and should rather be thought of as some kind of hybrid. Amazon is not the first retailer to do this though, and I’m quite sure that the idea will become an industry standard in the future, if it is not already moving in that direction at the moment. So we decided to get a better understanding of what AmazonBasics is and how it came to be, and hope to shed some light on how they could be changing the private label model as we know it. We’ve discussed selling private label products on Amazon in the past, but now it’s time to dive in to Amazon’s own private label game.
What is AmazonBasics? Why Does Amazon have a Private Label Brand?
AmazonBasics Logo
As I mentioned in the introduction, AmazonBasics is an in-store, off-brand label not uncommon to the food and household product in-store brands you’ll find in most supermarkets or food retailers. The best way to illustrate this is with Frosted Flakes.
A strange metaphor, but also the easiest one to grasp. If you take a look in the cereal aisle at your local supermarket next time, you’re bound to find an off-brand, no-name box of cereal (usually frosted flakes, a cornflakes knock-off, oats and even puffed rice) that do not have a brand as such.
These are in fact made by the supermarket themselves and are sold as a cheaper alternative to the brand-related items you’ll find on all the other shelves in the aisle. This is how supermarkets try to undercut brands and offer you, the consumer a cheaper option – and hopefully make some money out of it. We’ve covered private label brands in the past, from Walgreens, to Up & Up, to Ride Aid, to Walmart and Equate – all of the big brands are private labeling.
Amazon is essentially an all-inclusive supermarket that exists online. They stock other companies or brands products and charge them a small amount for each sale for stocking them. However, because they ‘own the shelves,’ so to speak, they can monitor which brands or products are selling well – much like a supermarket. This gives them a comprehensive idea of how the market is working.
Once they have this information, they can essentially analyze the products individually and determine whether or not they would be able to replicate (but not infringe upon) the design and produce the product themselves. Due to the fact that they’re a large retailer, Amazon has the means to create a product (once they find a suitable one) in bulk with cheaper materials and therefore sell it at a lower price than products produced by other companies.
The fact that they have their own supply chain, as well as a popular point of sale (the Amazon website) means that they can rank their products freely on the website and market them more than other products, reaching the target market sooner than the other brands or private label products available on the site. This strengthens brand awareness and can increase revenue substantially.
In the case of Amazon, it’s not so much a question of ‘why’ they have a private label brand – it was always a matter of ‘when.’ Looking at the Amazon business model, it was only a matter of time. In short, AmazonBasics is designed to offer consumers affordable alternatives to the everyday products they might be shopping for and focuses on replicating cheaper or generic products, accessories and equipment for the mass market.
Amazon’s private label brand started primarily with their venture into smaller electrical accessories such as audio cables, chargers and general miscellaneous products. However, in more recent times they have expanded their range to more serious gear and appliances to start competing on a wider scale and increase their reach into the market.
Their audio range now includes portable speakers, chargers, various cables, instrument cases and even headphones. The main aim of this brand is to produce quality products that are cheaper than most of the brand-made items on the Amazon store.
While they might not be suitable for professional use in the audio industry, they’re great retail products for the mass market and everyday consumer who’s simply look for a cost-effective product to fulfill a more simple, user-based need.
Both novice and professional photographers have taken an interest in the AmazonBasics line of camera gear and accessories because they are strong, durable and well priced – making the line a force to be reckoned with.
Almost every kind of DSLR accessory and gadget can be found in the range from remote controls, bags and all the necessary cables to rechargeable battery packs, tripods and lens filters. AmazonBasics is fast becoming a one-stop-shop for photographers of various levels of experience.
Batteries are small and often go unnoticed when it comes to buying the right brand, but making the wrong choice in terms of selecting a battery can have a serious effect on the quality of your experience with your electronic appliances. So it’s always a good idea to invest in a good brand, and better yet – to buy in bulk. AmazonBasics seems to have a pretty good grasp on this idea and provide a variety of different battery types in bulk packages for either intensive use or general domestic use.
For those who use battery operated equipment or appliances on a regular basis, investing in a set of rechargeable batteries could save you time and money in the long run, as well as provide you with a constant and reliable source of energy.
AmazonBasics have their own range of rechargeable batteries that come with their own charging kit and cost less than most brand-produced rechargeable batteries. They are available in both AA and AAA formats and last a long time once charged. They also come in packs of 16 or more, so you’ll be sure to have a constant supply ready and waiting, thus reducing the amount of time you’ll be waiting in between charges.
In the past, stocking an office was a tiresome and costly experience, having to physically go to retailers or office supply stores and pick out what you want or need individually and then have them shipped to your office at a high cost or deliver them yourself – if you were trying to cut down on the overall cost.
Thankfully, the arrival of Amazon changed the nature of furnishing an office forever – and made life a whole lot easier too. On top of that, the advent of the AmazonBasics range made it much more cost-effective to get good quality office supplies delivered straight to your door.
The range consists of all the basic items you may need in the office environment (hence the addition of ‘Basics’ in the name) from chairs and shredders to supplies and accessories of all sorts, the AmazonBasics range is your one-stop supply of all of the essentials needed for an efficient office.
AmazonBasics Coffee Pod Storage Drawer for K-Cup Pods
Over the course of your life, you’re bound to gather a bit of a clutter in your household – especially if you’re an avid collector, work in the garage or have a hobby that depends on various parts and pieces.
The best means of keeping your home clean, neat and clutter free is to invest in good storage containers and organizers. This can also help to instill an aspect of feng-shui in your home – which can even have a direct effect on your health and lifestyle.
The AmazonBasics range of storage and organizational products have been specially designed to remove clutter, store and organize different items in and around your household – or even in the office. The storage range is one of the widest in the AmazonBasics line and includes everything from coffee pod containers to clothing and kitchen storage units. You won’t have to worry about living a disorganized life or having a home in clutter ever again with the AmazonBasics line of storage products.
Does AmazonBasics Offer Warranties?
AmazonBasics 1 Year Limited Warranty
One of the main reasons I would recommend buying products from the AmazonBasics line is because all of the products are ensured with a basic 1 Year Limited Warranty that will cover your product should it become defective within the first year of use.
This is obviously conditional, though, and will only apply to the product if it malfunctions of it’s own accord. In other words, you can’t break something and claim it stopped working in order to get your money back.
Another great feature about this line is that when it comes to certain electrical products, the warranties are expanded to suit the product in specific. A good example of this is the AmazonBasics Surge Protector Outlet. This product has an additional warranty that insures your electrical appliances against any damage sustained by a malfunction with the product for up to $20,000.
This is easily one of the best warranties I’ve ever heard of and is definitely a good indicator of how important user experience is to Amazon as a company. You can rest assured that you’re in good hands when you buy AmazonBasics.
Conclusion
The AmazonBasics range is both a blessing and a curse. It is a blessing to people like you and me, who are looking for good quality products at an affordable price and a good warranty to boot. However, other major manufacturers are starting to worry because the AmazonBasics line could start cutting into their market.
While the market adjusts to a strong private label brand, it would be best for you to get what you need from the line before the prices start to go up over time – although AmazonBasics was started to keep costs as low as possible, so you don’t have to worry about any immediate price changes. All in all, AmazonBasics is a great, affordable line that is suitable for a variety of uses and purposes and their products would make a great addition to any home or office.
