Why customers love store brands like AmazonBasics
Is your home stocked with store brands? Perhaps you’re using Costco's Kirkland Signature olive oil or Aldi's Mamia baby wipes. Your garage may be stocked with Home Depot's Husky tools, or your closets with Walmart's George jeans. Maybe you use your pharmacy's generic version of ibuprofen. If you enjoy store brands, you’re not alone. When customers want more bang for their buck, they often turn to store brands known to offer high quality at prices that are generally lower than national brands. Retailers have been offering store brands for a long time—often jumping on the latest trends to provide lower cost alternatives even on the newest, most popular products.
Many customers choose where to shop on the strength of the store brand products available. In a recent survey, more than half of millennials say that their choice of store is influenced by its own brands. It’s not surprising then that store brand sales in the U.S. are growing faster than national brands. In Europe, too, the prominence and popularity of store brands continue to soar. Retail is fiercely competitive, and in many categories Amazon needs store brands to match the breadth of store brand selection available through other retailers and to provide timely, high quality options at a great value to our customers. That's why many of Amazon's most popular store brand products are the everyday staples you can expect to find in other stores too, like toilet paper, batteries, and t-shirts.
Store brands make up a very small portion—around 1%—of sales in our store and do not replace the incredible selection of products offered by our selling partners. By comparison, store brands from many large, national retailers make up anywhere from 15% to 90% of products sold in their stores. Customers like our store brands—on average, they have higher customer review ratings, lower return rates, and higher repeat purchase rates than other comparable brands in our store. This is why they keep our customers coming back to buy more from Amazon and independent sellers and why, like other retailers, we prominently feature store brand products in our store.
We’re excited to bring new options to our customers and will keep working hard to offer store brands where we believe Amazon store brands can provide great value and improve our selection of products.
Sources for charts
- Amazon store brand sales are approximate 2019 sales through Amazon branded stores worldwide. Store brand percent of sales is calculated as a percent of all physical product sales in Amazon branded stores worldwide for 2019, rounded to nearest percent.
- Aldi store brand percent of assortment has been reported at 90%; revenues from store brand estimated by multiplying 90% by 2019 revenues estimated by Euromonitor.
- Carrefour store brand percent of sales estimated by Morningstar; store brand estimated by multiplying this percentage by net sales from FY 2019 Carrefour financials.
- Costco store brand percent of sales estimated by Morgan Stanley; revenues from store brand estimated by multiplying this percentage by net sales less ancillary category from FY 2019 Costco financials.
- Home Depot store brand percent of sales estimated by Credit Suisse; revenues from store brand estimated by multiplying this percentage by net sales from FY 2019 Home Depot financials.
- Kroger store brand sales reported in FY 2019 corporate financials; percentage estimated by dividing reported store brand sales by total sales, excluding fuel from Kroger financials.
- Target percent of sales from store brand reported in FY 2019 Target financials; store brand sales revenues estimated by multiplying this percentage by total sales from Target financials.
- Tesco store brand percent of sales estimated by Morningstar; revenues from store brand estimated by multiplying this percentage by net sales excluding fuel from FY 2020 Tesco financials.
- Trader Joe’s has reported that more than 80% of its sales are from its own label; revenues from store brand estimated as 80% of 2019 revenues estimated by Euromonitor.