Amazon is trying to drive customers to use its "Amazon Prime" service.
Amazon is launching a new brand of diapers and baby wipes it is calling “Amazon Elements” as it seeks to expand its reach as an online retailer.
Priced at about 19 cents cheaper than other diaper brands, that could save new parents a lot of money over time as Amazon continues its push to take advantage of its already strong retailer position to produce its own lower-priced staples to keep shoppers from going elsewhere, according to Forbes.
Elements are available only to Amazon Prime members, pushing customers into using its service, which typically offers cut-rate shipping in exchange for a fee.
It’s certainly not the first time Amazon has released its own products, as the Kindle and Fire electronics lines show, but its decision to start selling its own consumables — products that must be replenished frequently — could be lucrative for the online retail giant. It could also place customers on the hook for a regular delivery schedule as stores run low.
Baby items are often the most frequently used consumable, and it is a product where consumers are particularly price sensitive, which is why Amazon holds a distinct advantage. Young mothers are also more likely to shop online.
While discount retailers offer their own brands of products like this at lower price points as well, brick and mortar retailers can’t heavily promote these products because they rely on the name brands for financial support, as advertising dollars from giants like Pampers and Huggies can help with revenues and drive traffic to the store. Amazon, on the other hand, can focus exclusively on price.
Diapers may seem like small potatoes to such a huge retailer, but really it drives consumers to Amazon Prime, and could lay the groundwork to similar moves to expand the company’s brand.
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