In 2021, Amazon registered 470 billion US dollars.
In 2022, Amazon’s brand value hit a record $705.65 billion.
The company reported 200 million paid Prime members worldwide in 2020.
The economic crisis in the world continues to cause many moves in all industries in the world market. This Friday it was announced that Amazon has begun to reduce the number of items it sells under its own private label brands, such as Amazon basics, amid weak sales.
Amazon is the most important company in the e-commerce industry, where according to information shared in its annual report, Amazon’s net revenue and service sales recorded 470 billion US dollars, vs. US$386 billion in 2020.
Likewise, Amazon is one of the American companies that is successful all over the world and with that it has a large number of collaborators on its staff. The company founded by Jeff Bezos became an employment machine during the Covid-19 pandemic, registering, according to results published by the company itself, 500 thousand new jobs worldwide in 2020, and another 170 thousand were added in the first nine months of 2021.
Amazon could remove Amazon basics
Amazon has started reducing the number of items it sells under its own brands like Amazon basics, amid weak salesreported on Thursday the Wall Street Journal.
The report also disclosed that the company has also discussed exiting the private-label business altogether to alleviate regulatory pressure.
However, he never considered closing his private label business: “We continue to invest in this area, just as our many retail competitors have done for decades and continue to do today,” his spokesman said.
According to the WSJ report, disappointing sales for many of the private-label items partly caused the decision to scale back. In that sense, the report mentioned that the company’s leadership has also instructed its private label team over the past six months to reduce the list of items and not reorder many of them, at the same time that it discussed reducing its in-house label assortment in the United States by more than half.
This decision was triggered after a review of the business by Dave Clark, a longtime Amazon executive who took over as head of its global consumer business in January 2021.
This decision of the company comes after in 2020 the private label business generated controversy with the European Commission, accusing Amazon of using its size, power and data to push its own products and gaining an unfair advantage over rival merchants who also use its platform.
The online retail giant has now offered to refrain from using sellers’ data for its own competing retail business and private-label products.
This case of changes due to regulation by governments around the world has also touched the technology industry very closely, where just this week it was announced that it is expected that Justice Department Files Antitrust Lawsuit Against Alphabet’s Google in the coming weeks for its dominance in the online advertising market.
Case dating back to 2020 when the Justice Department sued Google, accusing the company of illegally using its market power to coerce rivals, in the biggest challenge to the power and influence of Big Tech in decades.
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