What Amazon can (and can’t) do with its jewelry brands – JCK

Last September, Amazon registered two new brands for online jewelry products: For Keeps by Amazon and Mia Noir. They could join the online retail giant’s extensive private label jewelry brand, Amazon Collection, which now includes more than 3,000 items.

Amazon has been in the private label business for about a decade. According to TJI Research, it now has a stable of 138 names and 427 exclusive brands. And he clearly sees more potential in the world of jewelry. A new job posting seeks a jeweler “to own an end-to-end product lifecycle from ideation to execution.” A lab-grown diamond manager just told me that Amazon wants to get into this business.

The site’s private label offerings have been the subject of much speculation and controversy recently. In January, a spokesperson said they accounted for less than 1% of its total sales.

This has led data firm Marketplace Pulse to suggest that its private label brands aren’t as successful as many think.

“The brands launched by Amazon are weak from the perspective of traditional branding practices, have little brand recognition, no presence outside of Amazon, and rely on low prices and high ratings,” wrote Marketplace Pulse founder and CEO Juozas “Joe” Kaziukėnas. in a full blog post. “The brands launched by Amazon are not brands. This is a collection of products for when brand doesn’t matter.

Yet the post also calls jewelry line Amazon Collection the second-best performing e-tailer label, next to Amazon Basics. He estimates that Amazon Collection now accounts for 8% of its private label sales, based on the number of products it offers and the reviews it receives.

Jewelry is “the perfect environment for a private label,” says Kaziukėnas JCK. “When there is no clear category leader, [the private-label brands do] Good. People go to Amazon for a product. They don’t necessarily know what the product will be.

Having Amazon in the name seems to help: all of its top-performing brands include it. Perhaps that’s why it was added “by Amazon” to the more traditional “For Keeps”.

For now, Amazon’s private label jewelry is mostly low-end. Amazon Collection deals start at $10 and go up to $25,000, but the average price is $221.

Kaziukėnas thinks the company wants to stay in the low-end range, because even the so-called “everything store” knows that it doesn’t sell all items to everyone. It showed little ability to deliver an elevated or even enjoyable experience, he says.

“Shopping on Amazon is boring and uninspiring. But for some people, that’s what they need. People want an experience. They just can’t afford it. And that’s what Amazon is all about. as a business.

As malleable as the Amazon platform is, Kaziukėnas feels it has struggled to conquer new territory. He points out that the introduction of Amazon Handmade has apparently not put a damper on Etsy’s business.

Amazon’s foray into private label has raised antitrust concerns, with the European Union’s competition commission launching an investigation. Some have suggested that given its access to data and resources, Amazon can dominate other sellers by making cheaper copies of its products.

A Bloomberg article from 2016 told the story of Rain Design, whose best-selling Amazon laptop stand was dethroned by a cheaper lookalike produced by the site. “Do you have a hot seller on Amazon?” read the title of the story. “Be prepared for the e-tailer to make one too.”

But Kaziukėnas, while calling the Rain Design saga “scary”, doesn’t see this happening often.

“Amazon is less concerned with copying what others are doing than asking for keywords. Amazon generally sells by product type. The reason Amazon sells batteries is because it’s one of the most searched categories on Amazon.

He thinks it doesn’t make sense for Amazon to turn brands into enemies because it “will kill their platform.”

“I don’t think proprietary brands are the future of Amazon,” he adds. “It will be a testing ground, but I don’t think it will be a major part of his business. It will be a percentage of their sales, but I don’t think it will be a higher percentage than at Walmart or Target.

He sees that instead of producing items itself, Amazon will increasingly partner with existing suppliers for private label products.

“They are very good at making batteries. But fashion and clothing items, they don’t know how to do very well.

In the long run, he predicts, instead of producing its own merchandise, Amazon will strive to be a platform for other businesses, a role now mostly played by Instagram.

“All direct-to-consumer brands were built on Instagram. If you’re Nike and you’re releasing a new sneaker, how do you communicate that to Nike consumers? Through Instagram. Currently, there is no way to do this on Amazon. I’m sure that’s something they’re considering.

(Image courtesy of Amazon.com)

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