Amazon Launches Private-Label 'AmazonBasics' Electronics Brand

Amazon just launched a new private-label electronics brand, “AmazonBasics.” The move could increase Amazon’s sales and margins and customer satisfaction and loyalty.

AmazonBasics is a small line for now, including USB and A/V cables, ethernet cables, and blank recordable media, such as DVD-R discs. But Amazon says it will add “additional accessories and other items” in the coming months.

Related slideshow: 10 Amazon private-label products you didn’t know existed, from a Snuggie knockoff to a tool kit →

The consumer’s most obvious advantage: Lower prices for what should be adequate electronics — mostly in commodity categories. For instance, Amazon’s spindle of 100 blank DVD-R discs is priced at $18.39, while the best-selling rival spindle from Maxell is going for $25.79. Amazon is offering a 29% discount here.

Amazon’s advantage: In addition to getting a better cut of sales, it can also tailor packaging to its needs as an e-commerce store.

This is most obvious in Amazon’s “frustration-free” packaging, which is easy to open, and likely cheaper to produce, cheaper to ship, and more eco-friendly. Because Amazon doesn’t have to compete with other brands on store shelves, packaging can be simple and unattractive — mostly brown cardboard, it appears.

AmazonBasics is Amazon’s latest private-label brand. Others include Pinzon kitchen gadgets, Strathwood outdoor furniture, Pike Street bath and home products, and Denali tools.

 

Related slideshow: 10 Amazon private-label products you didn’t know existed, from a Snuggie knockoff to a tool kit →

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