If you buy stuff on Amazon, you might know about Amazon's brands like Amazon Basics. But if you sell stuff on Amazon too, having Amazon Basics sell the same things as you might make you worried. As a seller, should you be concerned about Amazon selling stuff like yours?
Highlights
- Amazon Basic is a private label line renowned for offering budget-friendly everyday essentials.
- With over 100 private-label brands, Amazon Basics stands out for its affordability and quality, catering to diverse needs.
- Amazon Basics has over 57.8% of Amazon brand reviews, outperforming competitors like Amazon Collection.
- Sellers face challenges like heightened competition and lower visibility, which are made worse by Amazon's strict pricing strategy.
- Leverage Amazon's advertising tools and expand marketing efforts to differentiate from Amazon Basics' focus on price.
Why We Wrote This?
We want to inform sellers about Amazon Basics (a private label brand) and its significance in e-commerce. With Amazon Basics dominating a substantial portion of customer reviews and offering a wide array of products at competitive prices, sellers must understand its influence to navigate the marketplace effectively.
Therefore, in this guide, we’ll discuss what is Amazon Basics products and brands and how sellers can compete with Amazon Basics.
What Is an Amazon Basic?
Amazon Basics constitutes Amazon's private label. It predominantly presents various inexpensive and necessary items, including different categories. These items provide customers with everyday essentials typically utilized in households, workplaces, and daily routines.
Amazon Basics items generally retail at a lower price than branded counterparts, yet they maintain a reputation for high quality. In addition to Amazon Basics, Amazon boasts over 100 other private-label brands.
What Is Amazon Basics Products?
AmazonBasics is a private-label product line that offers a wide range of everyday consumer goods. These products include various categories, such as electronics, home and kitchen essentials, office supplies, etc.
Below are some categories along with products available under the Amazon Basics brand:
- Electronics and Accessories: Includes HDMI cables, laptop sleeves, phone chargers, batteries, wireless mice, and more.
- Home and Kitchen Essentials: Offers bed sheets, cookware sets, dinnerware, vacuum cleaners, and water filters.
- Office Supplies: Provides paper shredders, writing pens, desk organizers, calculators, and binder clips.
- Sports and Outdoors: Catering to sports enthusiasts, it offers exercise mats, camping tents, yoga blocks, bike covers, and resistance bands.
- Apparel and Accessories: Features luggage, backpacks, hangers, umbrellas, and travel pillows.
- Beauty and Personal Care: Ideal for beauty and makeup needs with brushes, microfiber towels, hairdryers, razors, and travel toiletry bags.
- Automotive: Offers car floor mats, jump starter cables, tyre pressure gauges, sun shades, and windshield wipers.
- Pet Supplies: Provides pet beds, cat scratchers, dog waste bags, pet food bowls, leashes, and collars.
- Home Improvement: Includes LED light bulbs, extension cords, power strips, door handles, and safety goggles.
- Audio and Entertainment: Offers headphones, portable Bluetooth speakers, microphone stands, camera tripods, and laptop stands.
What Is Amazon Basics Brand And How Does It Impact Amazon Sellers?
Amazon's basic brand is a private label owned by Amazon. According to BusinessInsider, more than half (57.8%) of all reviews across Amazon's brands are attributed to Amazon Basics, its private label specializing in household goods and electronics. This positions Amazon Basics as the leading brand, surpassing the second-place brand, Amazon Collection, which accounts for 7.8% of reviews.
The impact of Amazon's private label brands on Amazon sellers is a significant concern. Here are some ways Amazon's private label brands can affect a seller's business:
Increased Competition: Regardless of where you sell your products, competition is inevitable, even from Amazon. Entrepreneurs must adapt to competing brands vying for sales and focus on enhancing their brand and products.
Reduced Visibility: Amazon's private label brands often receive higher visibility in search results than third-party sellers. This can pose challenges for Amazon sellers in getting their products noticed by potential customers.
Lower Prices: Amazon's products are renowned for their lower prices than competing brands. Amazon's scale allows it to procure large quantities at the lowest cost of goods sold (COGS), a feat not easily attainable for small sellers.
6 Ways to Compete Against Amazon Basics and Other Brands
To effectively compete against Amazon Basics and other Amazon brands, it's crucial to recognize that simply being a competitor doesn't guarantee their products will dominate in sales or quality. Sellers must focus on their business and ensure they offer the best items on Amazon.
Now you know what is Amazon Basics, here's how Amazon sellers can compete with Amazon's private label brands:
- Focus on Niche Products: Amazon's private label brands don't cover every product on the platform. There are still opportunities for sellers to offer unique products that Amazon doesn't provide. Use SwiftStart Amazon Oddit reports to discover niche products on Amazon.
- Create Appealing Listings: Showcase why potential customers should choose your brand by prioritizing Amazon product photography, infographics, unique product videos, and compelling A+ Content. Also, you can hire our SwiftStart Amazon agency for Amazon listing optimization.
- Establish Unique Branding: Even if a product is available from Amazon's private label, differentiate by branding it uniquely, making it memorable for customers.
- Leverage Amazon Advertising: Use Amazon's customer engagement tools to reach potential customers effectively, particularly if enrolled in the Brand Registry.
- Market Products Outside Amazon: Expand marketing efforts beyond Amazon PPC by utilizing email, social media marketing, or paid advertising strategies on platforms like Facebook or Google.
- Provide Exceptional Customer Service: While challenging to compete with Amazon Basics on price, sellers can excel in customer service by promptly addressing queries and concerns and offering a lenient Amazon return policy.
Summary
Knowing what is Amazon Basics lets you explore a vast selection of affordable, high-quality products across various categories. Its dominance in customer reviews underscores its significance, posing seller challenges and opportunities.
By understanding Amazon Basics and its impact, sellers can devise effective strategies to compete, differentiate their offerings, and thrive in the dynamic marketplace. Through adaptation, innovation, and a keen focus on customer needs, sellers can surpass Amazon's private-label brands.
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Frequently Asked Questions
What Is Amazon Basics?
Amazon Basics is a private label brand line of budget-friendly products developed by Amazon, offering a wide range of everyday essentials and electronics.
