The public has grown accustom to Amazon’s private label products over the last several years. The company’s Alexa line of smart devices and other Amazon-branded items have become ubiquitous across American homes. Now, businesses are getting in on the action as well.
Amazon recently announced its first private label brand for businesses, under its B2B arm AmazonCommercial. However, this does not necessarily mean the retailer plans on taking over the office supply space entirely.
“My personal hypothesis is that Amazon doesn’t want to become a house of brands or a manufacturer. My viewpoint is that they are across all of these private labels that they’ve created, they are simply filling in their assortment,” Kiri Masters, Founder of Bobsled Marketing and Forbes contributor said.
Masters’ company helps retailers bring products to Amazon to reach more consumers.
The business-to-business marketplace is significantly larger than the business-to-consumer market, and Amazon is keen on increasing its presence there. Its first product roll out is an assortment of paper items like tissues and paper towels.
“Amazon is always scanning their environment, looking at their assortment and figuring out, ‘we don’t really have a middle of the road option in this category’. That’s why they looked at this specific paper products category and recognized that people are interested in value of course, but they also want to be buying from a brand they trust,” Masters noted.
Amazon recently announced a split with Fed Ex’s Ground services. Instead, it will rely more on its own fleet of delivery vehicles moving forward. Deliveries to offices offer higher margins per stop, something that may be yet another growth opportunity for the company.