Amazon.com Inc is executing a plan to reduce the sale of items under its own brands after facing weak sales. The Wall Street Journal reported the matter on Thursday.
The company also carried out discussions regarding the exit of private-label business completely. The WSJ report stated that this would be done to alleviate regulatory pressure. However, Amazon asserted that it has never considered shutting down the private label business.
Amazon’s spokesperson mentioned that they continue to invest in that area, just as many of their retail competitors have done for decades.
Many of the in-house brand items experienced disappointing sales. The WSJ report mentions that this partly caused the decision to scale them back.
According to the report, the Company’s leadership has also asked its private label team over the past six months to cut the list of items. Additionally, they also instructed them not to reorder many of them. The company also discussed reducing its in-house label assortment in the United States by more than half.
Dave Clark, a long-term Amazon executive reviewed the business and soon after these decisions were triggered. The report mentioned that Dave Clark took over as the head of its global consumer business in January 2021.
The controversy was drawn by Amazon’s house-brand business with the European Commission in 2020. The controversy charged Amazon with using its size, power and data to push its own products and gain an unfair advantage over rival merchants that uses the platform.
At present, the online retail company has decided to refrain from using sellers’ data for its own competing retail business and its private label products.
