Amazon considering private-label apparel

Amazon (NASDAQ:AMZN) is close to launching a private-label apparel line as the retailer seeks to grow Amazon Fashion.

Roughly 40 million consumers shop the retailer's fashion selection, but that's not enough to meet the company's financial goals. The fashion and apparel categories have proved more difficult for Amazon than books, electronics and consumables.

"While women's, men's and children's apparel are some of the e-tailer's fastest growing product categories, Amazon is simply not the first place most people think of when it comes to buying clothing," according to the Business of Fashion.

Amazon has purchased existing online retailers including Zappos and the fashion website Shopbop. Adding a private label could help grow the category and margins.  

"For Amazon, we know our customers love brands, many of the brands in this room…and that's where the lion's share of our business comes from," said Jeff Yurcisin, VP of clothing at Amazon Fashion and CEO of Amazon's Shopbop unit, at the WWD Apparel and Retail CEO Summit. "When we see gaps, when certain brands have actually decided for their own reasons not to sell with us, our customer still wants a product like that."

And gaps are there to be filled, quite possibly, by an Amazon private label. It's a strategy that has worked in several product categories, including e-books and more recently home goods.

Of course, not all private-label products have been a runaway success for the online retailer. The Amazon Fire Phone flamed out fast after an enthusiastic launch.

For more:
-See this Buzzfeed story 
-Read the Business of Fashion article

Relates stories:
Amazon fires back at The New York Times
Amazon sues Fiverr writers for fake reviews
Amazon launches crowdsourced delivery Flex
Amazon limits free, two-day shipping
Amazon expands Prime Now to Seattle, delivers booze

Suggested Articles

Costco changes up its menu items, and Alibaba and Guess partner for a physical store.

Janey Whiteside, Walmart's new chief customer officer, is well acquainted with the importance of customer service in modern retail.

Whole Foods will offer deals on Amazon's Prime Day, and tariffs against China are causing pricing hikes.