Some of the top Amazon-native brands have ballooned to such a size that they are ready to transition beyond the platform. Amazon sellers are achieving enough scale that they can stand alone as public-facing brands. IPOs and SPACs offer a path toward ubiquity.
Opinion
Much of the discussion in this article will remind animal health pros of events over the last two or more decades as vertical integration has occurred through merger and acquisition.
The challenges of adding fulfillment expertise cost-effectively is one dynamic we can expect to continue as transportation capacity remains taxed. Efficiencies are easily lost when a single brand creates an order separate from the rest of the shopping list. This remains true in direct-to-consumer and B2B channel models.
We also noted Amazon will promote its own private label brands in its upcoming physical stores likely making Amazon department stores a source of tension. Sound familiar?
Source: Modern Retail, September 23, 2021. Link.
Reliance on a specific channel has different components, different risks to it. It’s definitely a consideration, but it’s not everything.” – Adam Pressman
INSIGHTS: As Amazon native-brands achieve mass that tempts independence and as Amazon private labels work toward brand dominance, it is a story worth monitoring.