Amazon’s private-label products pull in nearly $450M in 2017
Private label has become big business for Amazon in 2017 — and momentum continues to grow.
The online giant used 2017 to refine its private-label strategy — a move that helped the company launch over 30 new brand names across highly competitive categories. As a whole, these private-label brands generated roughly $450 million in sales in this year, according to “Amazon Private Brands: Year-End Review,” a study from One Click Retail.
Momentum is being driven by the company’s AmazonBasics brand, a line primarily known for affordable home tech accessories, including computer cables, batteries and home office supplies. However, this line has expanded to include an assortment of products from linens and luggage to pet supplies and water filters. Overall, AmazonBasics makes up about 85% of Amazon’s total private-label sales, and accounts for over $400 million in sales.
The online giant’s fastest-growing private-label line is the Amazon Elements brand, which primarily sells baby wipes. The wipes are so successful that sales nearly doubled 2016 estimated sales, with a growth of 94% year-over-year (YoY). The estimated $15 million sold in 2017 across baby wipes alone makes up the vast majority of the Amazon Elements products, supplemented by just over $1 million in estimated sales of Vitamins and Supplements.
A great deal of private brand growth can be traced back to Amazon’s acquisition of Whole Foods. In late August, Amazon’s release of Whole Foods’ 365 Everyday Value brand on the platform has had a major impact. It has consistently sold as the No. 2 private brand – behind only AmazonBasics – and currently ranks as the fourth top-selling private brand year-to-date (YTD), despite being available for just over three months. The line has an estimated $10 million in sales since its launch and an average weekly growth of 9%, according to One Click.
“2017 was Amazon’s most successful year yet, both as a platform and as a manufacturer, this should be an eye-opener for competitors,” Spencer Millerberg, One Click CEO, said in the report. “The basics are key, such as keeping Amazon Standard Identification Numbers (ASINs), a 10-character alphanumeric product identifier assigned by Amazon, on site longer is critical. For example, the top-selling printer is now three years old.”
And at a time when over 50% of product-related searches begin on Amazon, search promotion is no longer optional. “Over 90% of purchases begin with search, so optimizing your pages for organic search (eComm SEO) is critical,” he said. “Amazon is an amazing platform – and more than ever we must think of Amazon as both a partner and a competitor.”
FDA approves expanded indication for Pfizer’s Bosulif
The Food and Drug Administration has approved a new indication for Pfizer’s Bosulif (bosutinib). The drug is now indicated to treat patients with newly diagnosed chronic-phase Philadelphia chromosome-positive chronic myelogenous leukemia, or Ph+ CML. The approval marks the third approval for hematology in five months for Pfizer, the New York City-based company said.
“Bosulif was Pfizer’s first treatment for hematologic malignancies, and has since become an important treatment option for Ph+ CML patients who are resistant or intolerant to previous therapy. This expanded indication has the potential to make an even greater impact on the lives of patients with CML,” Pfizer Oncology global president Liz Barrett said. “Today’s news marks the third FDA approval for a Pfizer hematology medicine in just five months, a significant achievement that reinforces our commitment to patients living with blood cancers.”
Bosulif was first approved in September 2012 to treat patients with chronic-, accelerated- or blast-phase Ph+ CML with resistance or intolerance to prior therapy.
Walmart, CVS Health execs to address NRF 2018 convention
Executives from Walmart and CVS Health will be among the biggest names addressing the National Retail Federation’s 107th annual convention in mid-January 2018. Walmart president and CEO Doug McMillon and Helena Foulkes, CVS Health executive vice president and president of CVS Pharmacy will address the conference on its first and second days, respectively.
McMillon will join Washington, D.C.-based NRF’s president and CEO Matthew Shay to talk about retail strategies concerning the changing face of retail on Jan. 14, 2018, and Foulkes will speak to attendees about empowering customers to improve everyday health care on Jan. 15., 2018. Foulkes also will offer insight about CVS Health’s purpose-driven culture and how that informed the company’s pending acquisition of Aetna, NRF said.
“The retail industry is going through a transformation, and that’s the theme you will hear from all of our speakers at this year’s show,” NRF Senior Vice President for Retail Strategy Cristina Ceresoli said. “These are strong industry leaders with expertise and insights that will inspire, challenge and encourage others to enhance their brands through customer service, technology and constantly embracing the change driven by the consumer.”
Also added to the list of speakers was Tommy Hilfiger, founder and principal designer at his eponymous company, who will close out the conference on Jan. 16, 2018. Hilfiger, Foulkes and McMillon round out a roster that includes executives from Alibaba Group, Apple, Facebook, Chobani and various other leading companies.
NRF 2018 will take place Jan. 14-16, 2018. The organization said it adds speakers and breakout sessions weekly on its website.