Home » Amazon is reportedly dropping its Amazon Basics brand to avoid further lawsuits

Amazon is reportedly dropping its Amazon Basics brand to avoid further lawsuits

We recently discovered that Amazon was taking steps to avoid taking a large penalty fee in Europe. And it is that this has been accused of anti-competitive practices where he took advantage of the data of his sellers to position himself. This happened shortly after celebrating the biggest first day in its eight-year history, which is shocking given its sales policies. Now Amazon is tempted to quit Amazon Basicsit’s fashionable white label productsto avoid future requests.

It appears that the measures taken by Amazon regarding the use of its sellers’ data have not been sufficient. And it is that just a few days ago he decided that he would treat his sellers fairlyfor that I would add a second buy box and would let shipping companies other than Amazon choose. Apparently that was not enough and Amazon wants to avoid at all costs paying the big fine that amounts to 10% of your annual turnover. Therefore, it’s going to implement more drastic changes, like getting rid of its Amazon Basics product line, which we know for its balance of quality and low price.

Amazon Basics and Amazon Essentials could disappear

Amazon Essentials Clothing Could Be Disappearing

Before the to research from which Amazon suffers UNITED STATES and the EU, with the requests and related fines; Amazon is making many changes to prevent further issues. Since last year, the CEO Amazon Retail Sales, Doug Herrington and his general counsel, David ZapolskyThey argued about what to do about it. Together they came to the conclusion to take one more step radical to protect yourself from regulators, eliminate your private label business altogether.

That means remove amazon branded products, including Amazon Basics, which is in almost every product, and Amazon Essentials, which is its clothing line. Not only that, but it would also include non-corporate brands like happy belly Yes good sons. Luckily, this wouldn’t apply to Amazon devices like To light up, amazon echo That is Fire TV. However, this measure is only one of Amazon’s ideas to get rid of lawsuits and investigations.

According Betsy Hardenspokesperson for Amazon, the company did not seriously consider closing down entirely white labels and continues to invest in them. During, the wall street journal reported last Friday that Amazon had indeed reduced your selection of White marks. Therefore, we can see that there is a trend right now to reduce the Amazon Basics product catalog to avoid future problems.

Amazon assures that its white labels only represent a figure of total sales

Amazon Basics Total Sales Reduced Price

Amazon products corresponding to this sector are generally always distinguished by a quality similar to other products but with a reduced price. In addition, with products from the Amazon Basics range, the company itself saves the advertising expenses, compared to an external mark. Although it seems that the company does not bring him much Advantageskeep in mind that Amazon has downplayed Amazon Basics over the years.

And it is that, since 2019, the Federal Trade Commissionone of the main agencies antitrust of United States, investigated Amazon. A lawsuit has not yet been filed, but if it is, it will be a blow to the company. Moreover, Amazon is one of the targets of the Law of Innovation and Online Choice of the United States, which allows large companies like Amazon to be prosecuted for using their data for their own profit.

Something similar happened in Europewhere if there had been a huge fine to Amazon that would cost the 10% of your worldwide sales. As in the United States, in the EU was sued for antitrust practices and use of the “non-public” data of its sellers to boost sales. In view of this, Amazon acted with a series of measures, among which it promised not to use the data in its favor any longer. Going forward, we’ll see if US and EU regulators come together to shut down Amazon or if it can come out alive with the recent changes.

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