Daily Insights

It’s a Brand’s World

By: Lakshmi Kalluri | Apr 15, 2019

Low prices aren’t everything. Amazon’s private label and exclusive brands are struggling to extend their success in price-sensitive areas like household goods to the health care and pet food categories, where quality and loyalty concerns drive most purchases, according to Gartner L2’s Amazon Intelligence: Private Label report. 

Pet food brands are closely monitored by consumers for ingredients and quality, and discerning “pet parents” are unlikely to experiment with a brand they don’t know much about. This is likely why Amazon’s acquisition and integration of Wag.com into its private label roster hasn’t seen the traction that the retailer might have anticipated. 

The same is true for Solimo, another Amazon private label brand. While Solimo captured Best Seller share in categories related to home and personal care, its line of dog treats failed to excel. That’s because it had to face off with legacy manufacturers like Purina, which alone accounts for 35% of Best Sellers in the pet food category.

Amazon’s private label brands have struggled even more in the health care category, where consumers either place their trust in traditional name brands or seek out niche products for specific ingredients. Basic Care, Amazon’s venture into over-the-counter (OTC) pharmaceuticals, hasn’t yielded the high-performing results of Amazon brands in other categories.

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