Amazon is releasing its own line of privately manufactured edible goodies soon.
The December prophesy came true: Amazon would adapt the private-label business model used by successful retail brands, such as Walmart and Costco.
According to The Wall Street Journal, the e-commerce giant is expanding its lineup of in-house products under the growing Amazon brand, aiming to include a broad roster range of food items.
"Following the playbook of countless retailers, Amazon.com Inc. is preparing to broadly expand its fledgling lineup of private-label brands to include an array of grocery items such as milk, cereal, and baby food as well as household cleaners," WSJ reporter Greg Bensinger wrote.
Amazon already sought legal trademarks for over 24 product categories. Fox Business reported that in the official trademark document, the online retail titan filed for trademark not only food, but also for drinks and medicines.
"In a filing with the U.S. Patent and Trademark Office, Amazon listed water, coffee, cereals, snacks and vitamins, as well as pet food, razors and cleaning products," Fox Business writer Matthew Rocco said.
Moreover, Amazon is aggressively looking to team up with a big food manufacturer, meeting up with a bunch of popular names in the field.
One of Amazon's prospects is multinational food provider TreeHouse Foods (THS) who refused to disclose information about the issue. With a whopping $3 billion revenue in 2014, the food company claimed that they work with the country's chief retailers in 15 grocery classifications.
With the known failures of some of Amazon's private-label enterprises, we don't know if this move would bring prosperity to the e-commerce genius, albeit it's highly probable that a wide range of private-label edibles may result in a significant marginal profit surge.
Despite concrete news, Amazon is still yet to release an official launch date. In the meantime, Amazon's stocks increased by one percent with $430.72 value per share.
