Amazon: Private Label Products Represent <1% of Sales, Excluding Whole Foods

Last week, Axios’ David McCabe did a story on some of the regulatory efforts looking at Amazon’s private label initiatives. Apparently in response to that post, Axios says Amazon issued it the following statement:

“Amazon’s private label products are less than 1% of our total sales. This is far less than other retailers, many of whom have private label products that represent 25% or more of their sales,” the spokesperson said in an additional statement after this story was published. The company added that private-label products accounted for a greater percentage of sales at retailers like Costco, Walmart and Kroger, as well as major European brands, than they do at Amazon. (The “less than 1%” figure does not include sales at the Amazon-owned Whole Foods grocery chain.)

Depending on how you want to guesstimate total private label sales (Amazon reported $177 billion in total sales in 2017, including about $6 billion from its physical stores), that would put the number below about $1.7 billion for 2017. That is a good bit lower than estimates we have seen from various analysts. Amazon will report its year-end 2018 results in a few weeks, which should include full-year numbers for physical stores.

By comparison, CNN’s Nathaniel Meyersohn recently pointed out that Costco’s Kirkland Signature private label brand generated nearly $40 billion of revenues in 2017. Costco reported about $126 billion in sales for FY 2017, which would put Kirkland at about 30% of sales.

So, it seems like there may be some room for growth for Amazon’s private label efforts.

EU regulators have been looking at Amazon’s marketplace efforts in greater depth recently. In addition, Indian regulators recently passed new rules that go into effect February 1 which apparently limit marketplaces from selling products they have an ownership interest in, amongst other new restrictions.

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