Amazon Upping The Ante With Elements Brands
By Christine Kern, contributing writer
E-retailer is seeking trademarks for food items and household products
Earlier this month, Amazon sought trademark protection for a host of new products to be sold under its “Elements” store brand and is in talks with major store-brand manufacturers, according to the Wall Street Journal.
The e-retailer is seeking trademarks for items including food items like coffee, soup, pastas, vitamins, dog food, and household products like razors and cleaning products.
Amazon already sells Elements items exclusively to Prime members, including electronics accessories like cords and baby wipes. Prime memberships cost $99 a year for unlimited shipping of selected items.
Amazon’s planned Elements expansion mirrors the model of more traditional retailers, who often sell name-brand products beside their own store-owned labels. The Wall Street Journal explained that private labels are big business for mass-market retailers, “generating stronger margins and building loyalty with consumers who no longer view generic products as lower quality.”
The Wall Street Journal reported that one of the private-label food manufacturers that Amazon has been in discussions with was TreeHouse Foods Inc, of Oak Brook, Ill, which a company spokesman confirmed does “business with all of the nation’s top retailers and operates in 15 grocery categories.”
Amazon has been open about its desire to move into the grocery business, USA Today noted, and its grocery shopping service, Prime Pantry, was introduced a year ago, in which Prime members can add items to their online cart and have them delivered to their homes for $5.99 a box.
The Verge speculates that the new products would be available via the AmazonFresh service, which is currently available in Seattle, San Francisco, Los Angeles, and New York. The company is already being aggressive with its Prime delivery service; it recently announced that it would partner with local stores in Manhattan to delivery groceries, baked goods, and meals.