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EcommerceBytes-NewsFlash, Number 2121 - September 21, 2009 - ISSN 1539-5065     Previous | | Next
Amazon.com Expands Private Label to Consumer Electronics
By Ina Steiner
EcommerceBytes.com
September 21, 2009




Amazon.com announced the launch of AmazonBasics on Saturday, a new private-label collection of consumer electronic accessories created for "customers who want exceptional value." The AmazonBasics line currently includes audio video cables and blank DVD media, with additional accessories and other items to be added in the coming months. AmazonBasics products are eligible for free Super Saver Shipping and include a one-year warranty.

Amazon.com Vice President of Consumer Electronics Paul Ryder said, "We saw an opportunity to create a line of consumer electronics basics that combine quality and low prices for an overall focus on value. We drew on our history of developing other private-label brands and combined that with our mission to give customers the ultimate in selection and value. AmazonBasics is the result. We will continue to gather input from customers and evaluate opportunities for new products under the AmazonBasics brand. We aim to offer our customers as wide a selection as possible, and we think AmazonBasics makes a great addition to the brands we already carry."

Amazon.com has plans to introduce the line on Amazon's international sites over the coming months.

The move got mixed reviews from industry observers. One tech publication questioned the value of the Amazon brand and said the pricing is no cheaper than regular shops.

The Wall Street Journal wrote, "Private label products help retailers increase their profit margins by cutting out the middlemen" - and that is what will likely have Amazon.com's third-party merchants concerned. "Amazon's site offers merchants great exposure to shoppers - but also gives Amazon access to a lot of information about their business and customers," wrote the Journal's Geoffrey Fowler.

Another question raised is just how far Amazon.com will go. Selling cables and disks could evolve into gadgets and devices, with one blogger speculating that Amazon is eyeing HDTV - certainly another concern for online merchants.

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