Most Amazon Brands Are Duds, Not Disrupters, Study Finds (bloomberg.com)
An anonymous reader shares a report: The explosion of Amazon's private-label products -- batteries, baby wipes, jeans, tortilla chips, sofas -- has prompted concern that the world's biggest online retailer could use its clout to promote these house brands at the expense of merchants selling similar products on the web store. The issue even surfaced in Senator Elizabeth Warren's recent proposal to break up big technology companies. Turns out most Amazon-branded goods are flops that don't threaten other businesses at all, according to Marketplace Pulse. In a study, the New York e-commerce research firm examined 23,000 products and found that shoppers aren't more inclined to buy Amazon brands even when the company elevates them in search results. The study suggests popular political and media narratives about Amazon's market power are overblown, despite the company capturing 52.4 percent of all online spending in the U.S. this year, according to EMarketer.
The study used sales rankings and the number of customer reviews as indicators of sales volume for different products, including Amazon's own brands and brands sold exclusively on the site. Amazon's success has been limited to basic products like batteries where shoppers are inclined to seek generic alternatives to save money, the study found. But when competing against such categories as apparel, where household names have an entrenched position, such Amazon brands as "A for Awesome" children's wear don't stand out, the study found.
The study used sales rankings and the number of customer reviews as indicators of sales volume for different products, including Amazon's own brands and brands sold exclusively on the site. Amazon's success has been limited to basic products like batteries where shoppers are inclined to seek generic alternatives to save money, the study found. But when competing against such categories as apparel, where household names have an entrenched position, such Amazon brands as "A for Awesome" children's wear don't stand out, the study found.
In other news: dog bites man.
How is this news? It is the normal way of things. Most companies are duds, few are disruptors.
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I've enjoyed AmazonBasics mice, keyboards, and USB cables. Can't speak for the rest of their line.
Secession is the right of all sentient beings.
Seriously who paid for this study? I bet if you look hard enough somewhere the money trail will lead back to Amazon.
Depends on the product. I buy their batteries because in all the tests I have seen while they are not the highest capacity they offer near the top of the list in mah/$ value and easy to order.
They don't need to compete on merits, they just need to slowly stop allowing competition onto the amazon store. Bit by bit, starting with the higher profit and more lucrative items, and creep towards a future where everything on the "virtual shelves" is amazon branded.
The same way just about everything on wal-mart shelves is now "Great Value" branded.
Amazon is big enough to win the war via attrition.
Who cares what some shill silicon valley horseshit mill was paid to "research"?
AmazonBasics stuff may or may not be any good, lots of people have examples of stuff they like. But the Amazon Basics add-on items I've tried have been pure trash. For example, a camp toaster that smelled horribly of machine oil even through several heat cycles. No idea if the steel was pickled in oil to begin with, or it was inundated with oil during the manufacturing process, but either way I don't need my toast contaminated with oil. That stuff should be thrown away, not sold at a discount.
"You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
Amazon's men's clothes - for normal clothes, like trousers and t-shirts are simply superior to non Amazon alternatives. They're constructed fine, but more importantly, they have all the sizes and leg lengths available. This is not true for pretty munch any other brand. Either they don't make it or they don't have the combinations for whatever size you need, unless you land right in the middle of the population distribution.
It's cheap too.
I should use this sig to advertise my book ISBN-13 : 978-1501515132.
I feel a heartattack from not being surprised coming on...
So because an attempt to monopolise the entire product chain from web order to delivery has so far been unsuccessful, we shouldn't worry about it? Doubtless Amazon will be bust long before the competition because they aren't winning yet /sarcasm
Just shows that Advertising works on most people. They want what they have seen advertised (on TV, elsewhere on the Internet, at sporting events, on billboards, etc) which are usually from brand name companies.
Me on the other hand will always purchases the cheapest option when products are exactly the same. Paying more for the same thing is just stupid.
Amazon's market power are overblown, despite the company capturing 52.4 percent of all online spending in the U.S. this year
Now say it again without laughing.
You are being ripped off every second of every day, so that advertisers can help rip you off even more tomorrow.
People have a lot of inertia when it comes to how they spend their money. I buy amazon batteries, but that is about it. How wants Amazaon shampoo or whatever.
"She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
The study used sales rankings and the number of customer reviews as indicators of sales volume... what in the absolute fuck? So basically the study was totally pointless and the conclusion may or may not be true. Does anyone trust the reviews on amazon, knowing that many reviews are fake? Also the sales rankings, I presume, would be reported by amazon and not likely a reliable indication of sales volume, especially since amazon may or may not have a vested interest in preventing itself from being broken up /s.
What I mean is retail stores are carrying less and less items I'm interested in purchasing. I would like to purchase direct from a company but many either don't sell direct or if they do their purchasing site is difficult to use (you need a specific type of browser and a specific type of OS, or get some kind of scripting error message). Amazon makes it easy (I've never run into problems, only the product i.e. discontinued item or used items don't look appealing), probably too easy (can easily go into debt). So whether you love them or loathe them, Bezos figured out how to beat his competitors by making it easy to purchase. Like Musk did with Paypal and cornered the market for transferring money (I could never get online transactions of regular banks to work). Of course the downside with Amazon and Paypal is if something goes wrong (bad product, lost transaction) then you are stuck with the product or lost the transaction (fortunately I've been lucky so far).
mfwright@batnet.com
Maybe Amazon doesn't create it's own brand for a product until that product hits a certain threshold of popularity or sales performance. Remember, Amazon knows what is selling well on their site and what isn't. Of course they would prefer to make off label versions of popular products that sell well instead of versions of products that don't. And, since they ARE the middleman, they don't have to worry about giving someone else a cut, which allows them to have reduced costs compared to other sellers, allowing them to price their products lower. Most sellers would love to cut out the middleman. In this case, the middleman is simply cutting out the seller.
The only thing necessary for evil to triumph is for it to be pitted against a slightly greater evil
Cables ordered online seem really hit or miss generally, but so far the Amazon cables seem to have decent build quality and have not failed.
"There is more worth loving than we have strength to love." - Brian Jay Stanley
... don't buy Amazon Basics batteries! Most of them leak a clear liquid after a few weeks of use. They ruined a few of my electronics. Never again.
Having a kid, their baby wipes are solid, and their paper products are as well (well, at least the paper towels which seem to be basically the same as a name brand in strength and design).
I haven't strayed from the more name brand in other areas as I've found even semi-named brand can really suck depending on what you're looking for (like trash bags that rip too easy, batteries that don't last near as long as one of the two big name brands, etc)
From TFA:
”Kaziukenas (note: founder and owner of Marketplace Pulse) is scheduled to present his findings Monday at the Prosper Show, an annual meeting of 1,500 Amazon vendors, merchants and consultants in Las Vegas.”
Hmm... I’d like to know more regarding who suggested and/or paid for this study. There’s quite a “pay no attention to the man behind the curtain!” vibe to it.
#DeleteChrome
I have no problem with people making competing products but I do have a problem with how Amazon goes about it. The fact that their resulting products aren't highly successful does not excuse their tactics. I'm certain the companies which have been driven out of business would agree.
You might as well argue that attempted murder is no big deal because nobody died.
Anons need not reply. Questions end with a question mark.
They should focus their energies on in-house smarthome products. It's annoying that most of the Alexa-integrated products out there are 3rd party, and reading the reviews the reliability is suspect (or they're more tuned for Google, or worse owned by them as is the case with Nest). Amazon makes plugs and the echo itself, but that seems to be about it.
People don't tend to buy store/no-name brand. They always seem to be a hit or miss proposition with poor quality control.
Aah, change is good. -- Rafiki
Yeah, but it ain't easy. -- Simba
Amazon is one of the most powerful Companies in the market. They will use those billions of dollars to crush and fake any information they need to. This will allow them to continue to get their Huge tax incentives and be able to fool people dumb enough to trust every single study out there to keep their business in the multi million to billion dollar range. Simply don't trust every study released until you see at least multiple studies about the same thing from multiple groups and some groups that are non profit or have a neutral aspect. where they pinpoint both the good and the bad equally.
Two things : One, that AC seems to agree with you, and was replying to me calling you a moron for saying Amazon brands are "superior" to all others. Two, your original assertion is retarded on its face, and hilarious thus.
I won't assume your primary language but reading and comprehending the above should not be beyond your capacity, if you take your time and sound it out.
Where Amazon white labels the same products that any other company can they win. When they try to create their own brand for something that is not already white labeled by another brand, they are unable to compete in that product space.
Bottom line - your commodity electronics and other doodads are ripe for the Amazon picking but building a brand on stand alone products is hard.
Amazon's success has been limited to basic products like batteries where shoppers are inclined to seek generic alternatives to save money, the study found.
Oh, so they can only dominate in basic stuff that everybody needs. Well, what a yawner then ...
As the old saying goes, "you get what you pay for".
90% of everything is crap, even when it's pushed by Amazon. The difference is that they have enough resources to keep trying until they get that 1-in-10 success and then smash a market with it.
How is the Riemann zeta function like Trump rallies? Both have an endless number of trivial zeros.
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"Both those brands put a lot of effort into convincing us that they are better" In fact there ARE empirical studies proving this, you're just not looking. Amazon is famous for undercutting pricing by using second-tier brands.
They're not premium products with maximum quality, they're knock-off quality batteries sold @ volume because of the Amazon platform for which Amazon extracts 15-25% of the gross depending. You're being played.
For the record, I didn't mention Duracell, Energizer. I push zero products, only the reality of the situation = that Amazon badges 2nd tier products and Amazon fanbois (YMMV) are inclined to defend their purchases = ego.
The pricing is a secondary consideration to overall quality metrics. I'll grant you that Amazon sells cheaper products. Duh. You're making my point for me without realizing it. That's ok by me.
Walmart has similar die-hard flag-waving fanbois, it's not just Amazon. You're in good company on a site filled overwhelmingly by low-info consumer whores like slashdot.
And the biggest thing missing from this entire study is sales data. How many units of Amazon owned brands have been sold? Who cares how often someone searched for an Amazon product or what the average review score is. How many units did Amazon and the companies selling the same product sale?
When people are buying, they're measuring their trust of the product vs. the price they're paying. For cheap commodities like batteries and cables, the price is really low, and people don't need to place high trust into the products. As price rises for clothing and furniture, etc., people need to trust the brand to not be crap due to the relative investment they're making. If a $0.50 battery lasts only 85% as the $0.57 battery, who really cares or measures it, but for a $50 sweater or a $400 sofa, it should perform to those levels, and you're more likely to go with a name brand in those instances.
I have twice looked for products that have an Amazon branded item in the mix.
According the the buyer reviews, the Amazon items are rather shoddy. Getting a larger percentage of 1 scores than other products in the category. For specified reasons like not working on arrival, or breaking soon after.