Companies that join Our Brands get access to marketing support and tools that track performance and customer feedback. Amazon lists over a dozen categories it’s targeting with the program, ranging from toys and shoes to lawn and gardening products. After signing up for the program, participants get redirected to a page with the address “amazon-accelerator.com,” according to a seller who applied.
The SunTrust Robinson analysts said that by selling exclusive products, Amazon can generate better profit margins and can control the supply chain for sourcing inventory. It can also put more pressure on bigger brands to reduce their prices on Amazon to stay competitive.
“This trend should not only differentiate Amazon’s offering, improve the user experience and help grow retention, but also prove accretive to margins, which through reinvestment, should reinforce Amazon’s moat,” the note said.
The accelerator could also help Amazon improve the quality of its private label products. Amazon’s exclusive brand portfolio in the apparel category had the lowest customer satisfaction score versus the largest U.S. apparel makers, according to a recent report by research firm CFRA.
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