Amazon Plans to Streamline In-House Brands Amid Potential FTC Antitrust Scrutiny

Amazon Inc. plans to axe several of its in-house private labels, streamlining its vast product lineup. Amidst rapid expansion and antitrust concerns, the e-commerce giant's move prioritizes customer favorites like Amazon Basics. The decision may impact dozens of brands, leaving fewer than 20 standing as antitrust probes intensify.

Amazon confirmed to CNBC that it will eliminate some of its private labels. The company explained that its brands have expanded rapidly over the years. So it has been offering various goods such as apparel under its Goodthreads label, furniture by its Rivet brand, Amazon Basics, and Presto! paper towels.

The vice president of Amazon Private Brands, Matt Taddy, said they are looking to reduce the number of their in-house products so some labels are set to be stamped out. They will pick the products that customers do not really patronize, and these will be removed from the lineup.

The online retailer did not say how many private brands it intends to eject. However, it was suggested that dozens may be cut, and fewer than 20 private labels remain.

“We always make decisions based on what our customers want, and we have 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,” Taddy explained.

Meanwhile, the company’s private label unit is also facing antitrust scrutiny after third-party sellers claimed that some Amazon executives unnecessarily accessed merchant data to create their own products. Several brands alleged that the company has been copying and selling their items at lower prices, making it hard for them to compete.

According to Reuters, Amazon is considering its exit from the private brands business as a means of concession if the U.S. Federal Trade Commission (FTC) files an antitrust lawsuit against the company.

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