blog-headBy: Daniel Audunsson

Amazon Sees Private Label Business Soar

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Did you hear?

Amazon’s private label business was projected to boost revenues to $25 billion by 2022. Private label brands are actually the fourth most bought clothing or footwear ‘brand’ on the platform (they were beat out only by Nike, Under Armour and Hanes).

$25 billion. That’s huge. And this obviously exciting news for shareholders and private label sellers alike.

Recently, analyst Tom Forte of D.A. Davidson said he also thinks that Amazon’s private label venture will add huge revenue in coming years. He actually analyzed 100 items that were branded by Amazon (like dog bowls, diaper-rash cream, and more) based on their ranking in product searches.

What did he find?

24% of the items ranked first, 56% were in the top 10%, and 65% ranked in the top 20. He even guessed that, thanks to private labels, Amazon’s revenue could bump up over a whopping 8 billion by 2020 [R].

Advertising sales, too, he added, would benefit from that part of the business. This forecast by Forte came just before another nice hike in Amazon stock on June 14. 

There’s even more good news.

For those of you looking to strengthen or start your private label brands on Amazon, Forte added that are still a ton of opportunities to grow even more with the number of possible products and categories that could be added.

If you’re not already thinking it, now’s your chance to really take advantage of this money-making beast before your competitors do. As more of us see opportunity in Amazon, that window of opportunity will keep closing.

Resources and References

[+] CNBC

[+] Barron’s

[+] MarketWatch

[+] Learn to sell on Amazon with our Infinity Code program