Get All Access for $5/mo

Amazon Slashes Dozens of In-House Brands. Did Your Favorite Line Get Cut? Amazon is trimming in-house brands in its private-label business, including going from 30 to three clothing labels.

By Madeline Garfinkle Edited by Jessica Thomas

Key Takeaways

  • Amazon slashes in-house brands amid antitrust probes.
  • It aims to boost profitability, focusing on value-driven essentials and shedding non-performers.

Opinions expressed by Entrepreneur contributors are their own.

Amazon is significantly reducing its number of in-house brands amid antitrust concerns and a slowdown in revenue growth, The Wall Street Journal first reported.

Over the past year, the company has decided to eliminate 27 out of 30 clothing brands alone, including private labels such as Lark & Ro, Daily Ritual and Goodthreads. As the brands phase out, only Amazon Essentials, Amazon Collection and Amazon Aware will remain in the clothing sector.

Amazon is also discontinuing private-label furniture brands like Rivet and Stone & Beam.

"We always make decisions based on what our customers want, and we've learned that customers seek out our biggest brands — like Amazon Basics and Amazon Essentials — for great value with high-quality products at great price points," Matt Taddy, vice president of Amazon Private Brands, told Entrepreneur.

Taddy added that the company is getting rid of products that "aren't resonating with customers," and looking "for other opportunities to better meet their needs."

Related: How Amazon Got Americans to Spend $12.7 Billion in 2 Days Without Lifting a Finger

The reduction of in-house brands aligns with Amazon's broader efforts to cut costs, particularly in response to the economic impact of the pandemic. Amazon's private-label sector had 243,000 products across 45 brands at the end of 2020, a number that has now been reduced to less than 20 private-label brands overall, according to the WSJ.

The changes come after Amazon was criticized for using data from its platform to develop products that competed with third-party sellers in a 2020 WSJ investigation, which resulted in then-CEO Jeff Bezos testifying before a Congressional antitrust committee. As a result, Amazon's practice of giving its own brands preferential treatment in search results has been curtailed, impacting its visibility and sales, people familiar with the matter told the outlet.

Amazon has also been accused of selling products similar to those of other brands. In 2018, Williams-Sonoma sued Amazon for allegedly copying its designs; the suit was settled in 2020 for an undisclosed amount.

Related: Own a Small Business? A New Amazon Program Could Help You Make an Additional $27,000 a Year.

Madeline Garfinkle

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

Alexis Ohanian Says This Is His Best Investment So Far: $10,000 Turned Into More Than $17 Million

Ohanian has backed 40 unicorns, but one investment stands out the most.

Data & Recovery

Solopreneurs Can Take Advantage of This 15-Month Norton 360 Subscription for Only $10

It comes with a VPN, firewall, password manager, and pro quality security tools business owners rely on.

Business News

'Carefully Crafted Charade': Billionaire Media Mogul Rupert Murdoch, 93, Loses Legal Battle to Change Family Trust

A Nevada commissioner ruled that Murdoch and his chosen successor had acted in bad faith.

Management

AI is the Coworker of the Future — 3 Ways Employers Can Get Ready

Companies are eager to embrace AI, but many employees are not fully prepared for it. To turn their AI aspirations into reality, businesses must first foster a company culture where employees feel comfortable with the new technology.

Business News

Amazon Pulls Merch Celebrating Alleged UnitedHealthcare CEO Killer Luigi Mangione

Apparel and home goods featuring the phrase "deny, defend, depose" have been pulled from Amazon.