It’s now undeniable: Amazon is aggressively pushing its own private-label brands—like AmazonBasics, Solimo, and Amazon Essentials—on its global marketplace, often at the expense of third-party brands and sellers. This strategy, which has generated record profits for the tech giant, is now under scrutiny by regulatory authorities in the U.S., the EU, and the UK.
But how exactly does Amazon promote its own products over others? What are the consequences for consumers, sellers, and competition?
Let’s break it down.
Amazon’s private-label brands are goods designed, manufactured, or sourced by Amazon and sold under Amazon-owned labels.
These include:
These brands are presented as lower-cost, high-value alternatives to national or niche brands sold by third-party vendors.
Amazon’s competitive advantage lies in its control of both the marketplace infrastructure and the merchandising experience. Here are the key tactics Amazon uses to steer consumers toward its own brands:
Amazon-owned products regularly appear at the top of search results, even when a shopper types in a branded product name. For instance, when customers search for “Duracell batteries”, AmazonBasics batteries often occupy the first result or “sponsored” slot.
Right above the “Add to Cart” button, shoppers are prompted with a lower-priced Amazon alternative—usually one of its private labels—through a box titled “Featured from our brands”. This design leads many buyers to switch brands at the last second.
In France, for example, search queries like “piles” (batteries) return AmazonBasics products with aggressive advertising, pushing other brands like Energizer far down the page.
Amazon’s control over ad inventory lets it dominate competitive categories with minimal cost.
These tactics are not without fallout:
This ecosystem creates a conflict of interest : Amazon is both the platform and a competitor, with the ability to steer consumer behavior invisibly.
In September 2023, the Federal Trade Commission (FTC) and 17 state attorneys general filed a lawsuit against Amazon for monopolistic practices. Central to the case is how Amazon uses its dominance to:
Source : FTC.gov – Amazon Lawsuit
The European Commission investigated Amazon for:
In 2022, Amazon made binding commitments to change how it treats data and to ensure fair competition in the Buy Box and Prime eligibility.
Source : EU Commission Antitrust Decision
The UK’s CMA launched an inquiry into whether Amazon favors its own retail business and Fulfilled by Amazon (FBA) sellers over others. The investigation also examines whether Amazon’s use of seller data gives it an unfair advantage.
Source : The Guardian – CMA Investigation
Amazon argues that promoting its own brands is common practice in retail, no different from supermarkets pushing store-label products. A spokesperson stated:
“Like all retailers, we promote our own brands in our stores. They offer customers high-quality products at great
prices.”
However, critics argue that Amazon’s role as both platform and player gives it unfair control, especially when it sets rules that only it can bend.
In 2023–2024, multiple reports suggested that Amazon may scale down some private-label operations. According to a report from Retail TouchPoints, Amazon has cut back hundreds of private-label SKUs, possibly in anticipation of tighter regulation or reputational risk.
Source : Retail TouchPoints – Amazon Scaling Back Private Labels
Amazon’s private-label strategy showcases data-driven retail innovation, but it also raises serious concerns about fairness, transparency, and monopolistic behavior. As regulators dig deeper and brands reconsider their reliance on Amazon, the coming years will be pivotal in defining the future of marketplace competition.
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