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A peek inside Amazon

Jeff Bezos gave his annual report to shareholders recently. He pointed out that some of the Amazon investments had failed, but the lessons have helped grow the company. The next big investment will be to increase its TV streaming services. According to Marketplace Pulse’s recent study based on customer reviews, Amazon’s structure is very defuse: – Amazon’s top 10 private labels got 81% of all the customer reviews that the e-tailer’s private brands received. 57.8% of reviews for all of its brands belong to AmazonBasics, Amazon’s private label for household goods and electronics, making it the leader before the Amazon Collection brand (7.8%). Beyond the top 10 private labels, however, the shares of total reviews are much lower, especially for brands that do not feature the word “Amazon” in their name. For context, Amazon had 135 private-label brands and more than 330 exclusive brands on its retail sites around the world at the end of 2018, according to data from the TJI Amazon Brand Database.

Additionally, Amazon’s private label products account for approximately 1% of its total sales. Much of the discrepancy in popularity may be due to differences in catalogue size. Of all of Amazon’s private-label brands, only 3 have more than 1,000 products: AmazonBasics, Amazon Collection, and 365 Everyday Value brands, while a serious majority of Amazon’s private labels have below 100 products (89.3%) and 25% even have fewer than 10 products.

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Shahrain Coovadia

Shahrain Coovadia is a Cyber Security Consultant at Deloitte, South Africa. Prior to joining Deloitte she started a web-design studio, and worked at the University of Cape Town as a teaching facilitator. Shahrain graduated from the University of Cape Town with a Bachelor of Commerce Honours specialising in Information Systems. She currently facilitates web & database management for Ecommerce Forum South Africa (EFSA).

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