AmazonBasics love your Data
Most retailers have their own brands. It’s the same thing for Amazon. AmazonBasics is a brand which guarantees high quality at a low price. How ? Amazon has your Data, and it loves them.
What is AmazonBasics ?
AmazonBasics is Amazon’s private brand. It offers basics stuff, such as electronics, batteries, cables and basics necessities such as sheets. The products prices are lower than third-party sellers in the marketplace.
How does AmazonBasics work ?
Search « batteries » on Amazon search. The platform puts its private label products first. AmazonBasics products appear quickly at the top of the page. They are good-rating and they have some badges as « Amazon’s choice » or « Best seller ».
« Amazon has access to data that nobody elsa has », said James Thomson, a former Amazon executive who now works at Buy Box Experts.
Amazon collects your data. The platform processes the consumers’ and vendors’ data. It gathers huge amount of data to analyse them. It’s the Big Data. The data miners extract information to find the major market trends. The volume of purchase data available gives all informations Amazon needs to provide basics products. The platform knows what products the customers are searching for. It knows what they finally purchase. It analyses the reviews to know why the customers were satisfied ou dissatisfied with a product.
Amazon competes its own sellers
Amazon analyses data to know what is the best-seller product in each type of categories. When it has enough informations about a certain market, it creates its own products. Amazon competes with its own third-party sellers in the marketplace. The third-party sellers sign a contract with the platform. The agreement gives to Amazon the monopoly to collect data. The sheer amount of data collected by Amazon gives it a advantage to anticipate the demand.
AmazonBasics products’ prices are lower than third-party vendors. By selling its products cheaper, Amazon cuts its sellers’ profits. The sellers should create higher quality products to competes Amazon basics version.
Amazon launched AmazonBasics in 2009 to sell batteries. Now, Amazon has several dozens of private labels and thousands products.