More Products May Carry The Amazon Elements Brand

Reports indicate that Amazon is set on adding more grocery items in its Amazon Elements brand as it prepares to go up against major retailers. The company may add cereals, milk and baby food into its own Elements brand.

The brand was launched by the online retail giant last year. It is currently selling a number of items to Amazon Prime customers, who fork out $99 each year to get a free two-day shipping service. The company is asking for trademark protection for over two dozen product categories for its brand. These products include sugar, pasta, coffee, cleaning supplies, and razor blades. The company is also working on getting a partnership with a number of food manufacturers.

The move to increase the products offered through the Amazon Elements brand is similar to the move of other major retailers that recognized the value of selling groceries to consumers. Private-label portfolios normally offer bigger profit margins compared to brand-name products due to lower brand development and marketing expenses.

More Products May Be Included In Amazon Elements Brand - image credit: latimes.com

Information Resources revealed that around $120 billion were spent by consumers in the US in 2014 on private-label product, which an increase of 2.1 percent compared to the year before. It remains uncertain how the expansion would be rolled out or whether these items will be offered to Amazon Prime customers only.

There is also the possibility that the Amazon Elements brand items will be sold together with AmazonFresh, the grocery delivery service of the company.

AmazonFresh allows customers living in San Francisco, Seattle, Los Angeles, San Diego, New York, and Philadelphia to order products online and have them delivered to their homes.

Posted by Melanie Mendoza on Friday May 29 2015, 11:22 AM EDT. All trademarks acknowledged. Filed under Shopping. Comments and Trackbacks closed. Follow responses: RSS 2.0