Why Branding on Amazon is key for success in 2019

By Chris Dawson January 17, 2019 - 11:08 am

If you are an Amazon merchant then 2019 is the year that you need to get serious about Branding on Amazon. Many sellers have built hugely successful businesses on Amazon as traders – sourcing products, listing them on Amazon and taking a cut. Amazon is however becoming ever more cut throat with increased competition from Amazon Retail and from an ever increasing pool of merchants from home and abroad, all competing for the same pot of money from consumers.

It’s been revealed that there are now over 10,000 ‘quality’ sellers on Amazon from China alone. There are many times this number of merchants from China who are not ‘quality’ sellers. If your business model is sourcing products from a Chinese supplier then you’re probably competing with a seller sourcing the same products but living right next door to the factory.

Differentiating your offer is the only way to remove the competition. By having your own branded products you can own the ASIN and at the same time have a brand story to appeal to consumers. Amazon themselves are doing this and now have over 450 known Amazon Own Brands or Amazon Exclusives.

Amazon Own Brands are Amazon Private Label products. Amazon Exclusives are brands owned by a third party but sold exclusively on Amazon. Both Amazon Own Brands and Amazon Exclusives are marketed under Amazon’s ‘Our Brands’ labelling on the site.

In the UK and Europe, Amazon have around 95 Own Brands and Amazon Exclusives. They are broken down into 42 Clothing brands, 31 household brands, 7 food, 5 furniture, 4 pets, 4 furniture, 1 industrial and 1 health product. These 95 brands boast tens of thousands of products which all appear to the casual consumer to be more desirable than an unbranded product.

Just yesterday, Amazon expanded their clothing brand Find to unveil a small range of cosmetics products under the Find Beauty banner.

The merchants that you compete with are also creating their own product brands and this is especially so for Chinese merchants who build a whole back story for their brand to make it appear a British or European label. To see just how far they go to build a brand story take a look at our case study of Grace Karin.

Competition on Amazon will only increase over the course of 2019 and starting to set yourself aside from competitors as well as perceived added value for consumers will pay dividends. And of course (unless you sign a deal to become an Amazon exclusive) your branding on Amazon and brand story can be ported to other marketplaces you sell on as well as your own website and social media sites.

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