Amazon is gradually removing some of the private label brands as part of its cost-cutting strategy. The move will also look forward to addressing the antitrust concerns from the regulators.
Amazon Plans to Eliminate Some Home Brands
To cut big costs, Amazon is slashing down a dozen of private label brands that did not resonate well with customers.
As first reported by The Wall Street Journal, some of the household brands in Amazon are expected to leave anytime soon.
From third-party products to private label brands, the e-commerce giant will cut wider costs.
27 out of 30 clothing brands will be axed in the latest move. These include Goodthreads, Lark & Ro, and Daily Ritual. With this, Amazon Aware, Amazon Essentials, and Amazon Collection will be the only house-label brands that will stay in the clothing division.
According to the Vice President of Amazon Private Brands Matt Taddy, the affected house brands are those that did not resonate well with the buyers.
"We always make decisions based on what our customers want, and we've learned that customers seek out our biggest brands - like Amazon Basics and Amazon Essentials - for great value with high-quality products at great price points," Taddy said.
As of writing, Amazon did not specify the exact number of private brands that will be leaving soon. However, it only indicated that a dozen of brands are expected to be exiting from the e-commerce website.
Aside from the cost-cutting plans, Amazon is doing this action to keep up with the Federal Trade Commission's (FTC) antitrust lawsuit against the Seattle firm.
Amazon is Facing FTC Antitrust Lawsuit
In another report by CNBC, Amazon CEO Andy Jassy said that the company has been continuously engaging in cost-cutting strategies to combat the economic swing.
The company also slowed down the expansion of its warehouse and froze corporate hiring in the meantime. Just recently, Amazon fired 27,000 workers which is regarded to be the biggest tech layoff that happened in its history.
Some third-party sellers accused Amazon executives of copying products from the seller data. The tech titan denied the claims thrown by the lawmakers.
Previously, the House Antitrust Subcommittee launched an investigation that operated for 16 months. The agency uncovered that Amazon and other Big Tech firms have been engaging in such unfair practices in the market.
Former Amazon head Jeff Bezos responded that the company has a special policy that opposes the use of seller-specific data in their private-label operations.
According to the third richest person in the world, while this policy has been existing, he could not guarantee that the said rule has never been violated.
FTC is finalizing its move to shut down Amazon through the ground-breaking lawsuit. The organization looks forward to investigating other issues including the company's retail dominance.
In other news, Tech Times reported that a woman from British Columbia, Canada has been receiving over 50 Amazon packages she never ordered.
According to the report, the United Parcel Service (UPS) has already sent her more than $300 because of the unsolicited shipments. The woman claimed that the deliveries came even though he did not request them.
