How Amazon is adding new exclusive brands

Seattle-based Amazon has been using an accelerator program to add new brands to its exclusive brand collection.

According to the Motley Fool, the company has been running the program for about a year, offering merchants and manufacturers marketing and sales support in exchange for exclusivity on its website. The accelerator program contract goes beyond exclusivity and reportedly gives Amazon the rights in acquiring a brand for a fixed price on 60 days' notice, according to a report by The Wall Street Journal, reported by the Motley Fool.

Based on the report, exclusive brands aren't the same as private brands. With private label products, Amazon is in charge of developing the product and getting it manufactured. With exclusive brands, all of that work is passed on to the brand owners. 

The company’s willingness to advance other brands in exchange for potential exclusivity makes sense, given the reported lack of success with its own private brands, such as AmazonBasics and Amazon Essentials. Of the 100 private label brands Amazon launched in 2018, none are category leaders, according to Marketplace Pulse, reported by the Motley Fool. 

To read the Motley Fool article, click here.