With so much focus placed on building a strong sense of loyalty with customers, marketers sometimes don’t know how to most effectively leverage this brand strength when they achieve it. As it has in so many other respects, Amazon is blazing a trail in leveraging its near-omnipresent branding to provide strength to its private label products.
Recent data out of 1010data shows the dominance that the retailer has achieved in multiple products lines, primarily thanks to the strength of the Amazon brand. AmazonBasics, for instance, has become a juggernaut in battery sales, accounting for one-third of all online battery purchases. Even more impressive is the line’s extraordinarily rapid proliferation, with 93 percent growth year-over-year.
By positioning itself as the go-to online retailer for millions of consumers, Amazon has the platform and the data to target customers first with unmatched accuracy and relevance. This trend can also be seen in speakers sold online, a market that Amazon took by storm when it released the Amazon Echo nationwide last June. The Echo brand has become a powerhouse in its own right, now holding a 45 percent market share in the space.
“No matter the market, the challenge for brands in an increasing number of categories is that Amazon is the top online channel,” said Jed Alpert, senior vice president of marketing at 1010data. “And Amazon is leveraging its dominance to sell its own private-label brands which compete with traditional suppliers. Reasons for Amazon’s success across different markets vary. In batteries, they have a price-competitive product in a largely commoditized market with little brand loyalty. In speakers, they’ve developed truly innovative products that are redefining the market. The bottom line for brands is they can no longer view Amazon as solely a channel and need to acknowledge Amazon as a competitor.”
The ability for Amazon to continually innovate, even as a globally embraced presence, speaks to its incredible internal alignment. The retailer knows what it is, and more importantly, it knows the places it can go. By building a brand recognized the world over, Amazon has created not only a prosperous present but an unlimited future.

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