Amazon's self-operated business is "slimming down", and 90% of its clothing brands alone have been cut

Over the years, Amazon has created multiple private brands in different categories. As of 2020, the company has more than 45 private brands and approximately 243,000 products on sale.

Yesterday, foreign media reported that Amazon cut 27 of its 30 private-label clothing brands, leaving only Amazon Essentials, Amazon Collection and Amazon Aware. It is reported that these cut brands are clearing out their final inventory and will be removed from the market once all existing products are sold out.

In addition to its clothing brands, Amazon is also phasing out some of its own furniture brands, Rivet and Stone & Beam.

According to Matt Taddy , vice president of Amazon's private brands , the company's choice of private brands is "thoughtful" and the company will eliminate any products that "do not resonate with customers" and look for other opportunities to better meet customer needs. The company will make decisions based on customer needs, and customers are more accustomed to looking for the company's largest brands, such as Amazon Basics and Amazon Essentials , to get high-quality products at a good price.

Some people believe that Amazon's move is related to the sluggish e-commerce sales in the post-epidemic era. A year ago, there were reports that Amazon might withdraw from the brand-only business, which only accounts for 1% of its sales. One of the reasons was poor profitability, and the company has been working hard to cut unprofitable businesses to reduce operating costs. Another reason is to get rid of antitrust regulatory pressure in the United States and Europe.

Although Amazon did not link the move to reduce its own brands to a possible lawsuit filed by the FTC (Federal Trade Commission), it seems hard not to think too much about it at this point in time.

Especially since the two sides will meet next week, according to foreign media, this will be Amazon’s “last chance”. It is reported that if the FTC really files an antitrust lawsuit against Amazon and the lawsuit is found to be established, Amazon’s business will face the possibility of restructuring.

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