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Amazon Has Reduced Private-Label Selection Due To Weak Sales

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Amazon Has Reduced Private-Label Selection Due To Weak Sales

(CTN News) – The Wall Street Journal reported on Thursday that Amazon has been reducing the number of items it sells under its own brands due to weak sales.

In addition, the company has discussed exiting its private-label business entirely to relieve regulatory pressure, according to the report. However, Amazon has never considered closing its private label business.

The company’s spokesperson said it continues to invest in this area, just as its many retail competitors have done for decades.

WSJ report said disappointing sales led to the decision to scale back in-house brand items.

Over the past six months, the company’s leadership has instructed its private-label team to reduce the list of items and not reorder many of them, and has also discussed reducing its in-house label assortment in the United States by well over half.

In January 2021, long-time Amazon executive Dave Clark took over as the company’s head of global consumer business, triggering the decision.

The European Commission charged Amazon shopping in 2020 with using its size, power and data to push its own products and gain an unfair advantage over rival merchants that also use its platform.

A U.S. online retail giant has offered to cease using sellers’ data for its own private label products and competing for retail business.

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