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DIGITAL MARKETING NEWS

Amazon makes a move into households

Two decades since Amazon emerged as a small online book shop with big dreams, the company will soon expand its private-label range to foods and other household goods.

Stock up on essentials

Years of research and development are reportedly set to culminate with a June launch that will only be available to the company's Prime members, who pay US$99 per year for unlimited free postage and more.

Amazon has chosen the names Happy Belly, Wickedly Prime and Mama Bear for its new brands, with nappies and laundry detergents just some of the products on offer.

Baby food, tea, coffee, nuts and vitamins will also feature as the company looks to capitalise on products with high profit margins in a growing category; American consumers bought over US$118 billion private-label goods last year – US$2 billion more than the 12 months prior.

Lessons learned

Amazon has been involved in selling its own related goods in the past, but it hasn't always been successful.

In 2014 its Elements range of nappies was available for just a few weeks before being pulled due to apparent design flaws.

Although updated nappies never returned, the Elements range of baby wipes remain successful alongside a Basics range of technology accessories, and a new line of dresses and scarves.

But in the case of food and other everyday items, Amazon must bank on the trust between Prime members and its brand for this move to work.

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