Amazon.com is breathing new life into its Elements label. Originally launched last December with a line of diapers – pulled from production only a month later after customers’ quality complaints – Amazon Elements is the corporation’s own line of “everyday essentials with transparent origins.”
They’ve sought out trademark protections for various categories under this brand, including water, vitamins, pasta, coffee, milk, cereal, soup, razors, baby food, cleaning supplies, and household goods. But, this isn’t Amazon’s first go at the private label game, selling batteries, backpacks, even ceramic plates under the Basics label, furniture and linens under its Strathwood and Pinzon brands respectively. According to Information Resources Inc., private-label packaged goods was a $120 billion market last year in the US (up 2.1% from the year prior), taking up 18% of US merchandize spending.
This time around, Amazon Elements is stepping up its game. The corporation is seeking partnership opportunities with some big-name private-label food manufacturers, like TreeHouse Foods Inc. out of Illinois. Venturing into the perishable goods sector is high-risk (because of quality control concerns and because the items are, well, perishable), that could potentially yield in high reward (in the form of higher profit margins).
Amazon Elements will only be available to Amazon Prime members, who pay $99 annually. And offers consumers all the information regarding when/where items were made, why each ingredient was included, and where ingredients were sourced, at their fingertips —showcasing Amazon’s recognition of their consumers’ desire to make informed decisions to buy premium products that meet high standards.
Anyone ready for Amazon pasta?
Steph is a native New Yorker with a love of culture, creativity, and communications. She’s a foodie, nutrition junkie, yogi, wine-lover, bookworm, world traveler, style-addict, and people person. She also runs her event planning company, Orchard + Broome.