Amazon became the largest Internet retailer in the U.S. by selling millions of other manufacturer's items—now, it's expanding its own.
Amazon previously introduced its Elements brand of products last year, featuring everyday essentials available for Prime subscribers. But now the e-commerce giant is expanding its brand to include food staples, such as milk and cereal, and household products, according to sources cited by The Wall Street Journal.
Amazon sought to expand trademark protection under its Elements brand earlier this month to include items such as coffee, pastas, and vitamins, as well as sundries like cleaning and sanitary products, according to the WSJ report.
Nearly all the big retailers, from Target to Costco, offer their own branded goods using third-party manufacturers. Amazon has approached similar partners including one of the leaders in the private-label space, TreeHouse Foods, WSJ reported, citing sources familiar with the talks. Both Amazon and TreeHouse Foods declined to comment to WSJ.
Amazon's first foray into its own branded of goods ran into problems when customer complaints over design flaws and quality issues forced the retailer to pull its diapers from the site. Quality-control in the food space is likely to be less forgiving.
The move has huge potential if Amazon can provide cheaper options for consumers, capitalizing on the growing value category in the packaged goods space.
Amazon did not release whether or not its new products under the Element brand name will also only be available exclusively for Prime subscribers.