Amazon Launching AmazonCommercial Brand of Private Label Business Supplies

As Amazon continues to expand its portfolio of private label brands and products — it has launched 140 private label brands globally to date, we count — we are seeing a new private label brand incorporating the “Amazon” name for the first time in a long while.

Based on multiple items that recently went live on Amazon.com, we believe Amazon is planning to launch a new line of private label commercial and industrial products under the AmazonCommercial private label brand.

While Amazon has been selling some professional products under its other private label brands for some time — such as its expanding AmazonBasics line of professional cleaning and janitorial supplies — this marks the first time Amazon has created a new product brand just for commercial and industrial supplies that we have seen.

The new AmazonCommercial items we are seeing are in the industrial lighting category. For example, this AmazonCommercial Linkable Motion Sensing LED Utility Shop Light with Bypass Switch is now listed for sale at $104.99 with shipping starting in a month. “Create a bright, efficiently lit work environment with the AmazonCommercial Linkable LED Utility Shop Light,” the product description reads. A number of similar AmazonCommercial lighting products are also now listed for sale on Amazon.com.

AmazonCommercial items are currently listed under AmazonBasics, despite having a different title. That could change, or AmazonCommercial could remain a sub-brand of the AmazonBasics brand, one of Amazon’s broadest private labels.

While AmazonCommercial is the first Amazon private label brand in the industrial supplies space, several other Amazon Exclusive “Our Brands” have launched in the category. These includes brands like Simply Floors, Simply Deliver, SupplyMaster, and more. A full list can be found within our TJI Amazon Brand Database.

Amazon continues to ramp up its B2B selling efforts. Amazon said last fall that its Amazon Business marketplace was on pace to do $10 billion in revenues in 2018. Amazon currently says it has 1 million worldwide Amazon Business customers and 150,000 Amazon Business sellers. Competing top commercial suppliers include Grainger, ULINE, and many more.

Amazon has worked hard in recent years to integrate Amazon Business into dozens of e-procurement/ERP purchasing systems in order to make it easier for customers to buy from Amazon as an approved vendor using existing purchasing tools. This effort could help Amazon continue to displace traditional wholesale distributors across verticals. Amazon says it has integrated with the following 75 purchasing systems as of today:

  • Adelpo
  • Aptafund
  • Aquiire-Vinimaya
  • Ariba
  • Ariett
  • Basware
  • Bellwether-BPM
  • Bellwether-ePMX
  • BirchStreet
  • Bookbyte
  • B-Pack
  • BuyerQuest
  • BuySpeed
  • Coupa
  • Direct Commerce
  • Elcom
  • Epicor
  • ePlus
  • EqualLevel
  • eRequester
  • Escape Technology
  • ESM Solutions
  • ExpenseWatch
  • Fourth
  • Hybrent
  • Infor Lawson
  • IOS Corp, Envi
  • iPayables
  • ISS – iPurchase
  • Ivalua
  • JAGGAER
  • Keysone Information Systems
  • LabCloud
  • Lab Fellows
  • Microix
  • MikroFax
  • Oncare
  • Online Purchasing System (OPS)
  • Oracle Fusion
  • Oracle iProcure
  • Oracle Supplier Network
  • Paramount Workplace
  • Payback
  • PeopleSoft
  • Point Systems
  • PowerSchool, BusinessPlus
  • PowerSchool, eFinancePlus
  • PowerSchool, eSchoolPlus
  • PowerSchool, Superion
  • Prendio
  • Proactis
  • Procurement Partners
  • Procurify
  • Prodigo Solutions
  • ReQlogic
  • SAP-Fiori
  • SAP-SRM
  • Simeno
  • Skyward
  • SMARTbyGEP
  • Sollod Technologies
  • Spectrum
  • SpendBoss
  • SpendBridge
  • SpendMap
  • Taulia
  • Transcepta
  • Tyler – Infinite Visions
  • Tyler – Munis
  • Unimarket
  • Verian (Basware)
  • VITG Global
  • Vroozi
  • Workday
  • Zycus

Just as Amazon’s B2C private label efforts are still relatively young compared to many other retailers, its B2B private label efforts are even younger.

Nevertheless, the launch of AmazonCommercial brand items shows Amazon intends to invest more in this direction. We’ll continue tracking its growth as Amazon’s efforts evolve.

11 Amazon Exclusive “Our Brands” Added to TJI Amazon Brand Database

We’ve added 11 Amazon Exclusive “Our Brands” to the TJI Amazon Brand Database. The new brands we’re seeing are across electronics, home goods, baby, and apparel.

The new brands are:

  1. Amazing Baby – swaddles and bibs
  2. Eclipse Photo Group – camera accessories
  3. Elvira – grow lamps
  4. Highland Village Reserve – coffee
  5. HomePop – furniture
  6. Lutrovita – vitamins
  7. Morgenhaan – measuring cups
  8. Panvbo – socks
  9. Staraxy – raincoats
  10. Texas Linen Co – bed sheets
  11. Tunter – phone accessories

To track Amazon’s ongoing private label and exclusive brand efforts, Subscribe to the TJI Amazon Briefing.

Amazon Launches The Drop, a New Private Label Women’s Clothing Brand

As it continues to expand its portfolio of private label brands and product categories, Amazon has just launched a new private label women’s clothing brand called The Drop, we are seeing.

Currently 3 items are listed under The Drop brand:

Amazon describes these items as “wardrobe-essential,” “classic,” and “perfect for everyday wear.” Like many other (but not all) Amazon private label brands, the items are described as “An Amazon Brand” on their product detail pages.

Amazon sells a variety of women’s clothing lines under its portfolio of private label brands. The Drop has been added to the TJI Amazon Brand Database.

1st Amazon Go Store in New York, #12 Overall, Opens

Three weeks after Amazon opened Amazon Go #11, its third store in San Francisco, Amazon has just opened Amazon Go #12, its first store in New York City.

The newest Amazon Go is located in Brookfield Place, formerly known as the World Financial Center, in the Battery Park City neighborhood. It’s a large complex across from the World Trade Center. Rumors of the store first surfaced back in October.

This Amazon Go location accepts cash, after Amazon faced backlash over discrimination concerns. It’s about 1,300 square feet, so close to the “standard” store format, compared to the 450 square foot version Amazon is testing in one location in Seattle.

Overall, Amazon continues to roll out its Amazon Go food stores primarily in corporate urban centers, focusing on the grab-and-go use case that most capitalizes on the efficiencies afforded by the computer vision technology that enables the Amazon Go experience.

The TJI Amazon Physical Retail Map has been updated with this latest opening.

Amazon Launches Amazon Freight, a New Freight Brokerage Platform

Just a few weeks after we covered the expansion of Amazon Shipping, Amazon is shaking up the freight brokerage industry with the launch of Amazon Freight, a new digital freight brokerage offering substantial discounts to market rates. FreightWaves broke the news.

We do not yet know what portion of trucks available for booking on the service are Amazon owned versus owned by others in Amazon’s logistics partner network.

Given its scale, we think Amazon is already one of the largest freight operations in the US purely through the management of its own supply chain. Amazon ships goods coming in via ocean freightliners as well as between its fulfillment centers using both its fleet of trucks and trailers and others’ as needed.

The launch of Amazon Freight follows a pattern we’ve seen from Amazon over the years. First, Amazon invests in its own infrastructure as a way of creating a sustainable competitive advantage. (For example, Amazon’s own fulfillment centers/FBA infrastructure and AWS.) Then, having invested large sums into these systems, Amazon opens them up for third parties to pay to use, both in order to recoup costs and over time perhaps even earn some margin — in the process continuing to invest in the systems, leading to an even greater competitive advantage.

A larger Amazon Freight system will also likely offer Amazon some insulation against the price volatility of using third party freight services, particularly around the holidays when Amazon volume spikes. Now, Amazon could let third parties fund a larger fleet throughout the year, and then potentially just take over more of that capacity itself in November and December.

Per Freightwaves, Amazon’s rates are 25 to 33% lower than typical contract rates offered on routes out of Connecticut, Maryland, New Jersey, New York, and Pennsylvania. So, it appears Amazon is willing to run this business at little to no margin or at a loss in order to gain market share and ramp up the flywheel on its freight marketplace.

Ultimately, it was just a matter of time until Amazon opened this up, and we generally expect Amazon to become a meaningful marketplace for third party freight capacity in North America over the coming years.