Amazon launches new store on its marketplace for “popular and upcoming brands”
12 Mar 2015
Amazon has launched a new store on its marketplace called Amazon Exclusives, which features innovative new products from "popular up-and-coming brands" and inventors.
However, the store would not feature any item sold by third-party merchants. Nor would users see the items in Amazon Exclusives carried by other retailers or marketplaces.
The items showcased would include products featured on the US reality competition television series Shark Tank and products from Kickstarter successes.
According to Amazon, it worked with select brands in launching the store and wanted a lock on their products - items in the Amazon Exclusives store would be only available on Amazon or directly from the brand's website or physical stores.
In the company's announcement, vice president of its marketplace Peter Faricy said, "Our mission on behalf of customers is to make Amazon the destination for brands and innovators to launch and sell their products, providing our customers early access to new products. We understand that helping brands gain exposure for their award-winning new products is beneficial to customers that desire to be the first to have the hot new item."
According to commentators, the new store may be especially helpful in netting marketplace sales during the fourth quarter as holiday shoppers looked for unique giftss.
Though Amazon is the biggest online marketplace in the US, the new store on Amazon, reports say, would be highly customer friendly.
The online store deals in unique products created by small businesses including a range of Jackery mini phone chargers, $70 Hot Chocolate Design's Chocolaticas, Mariquita shoes and $75 Zackees LED turn-signal gloves that alert cars when a cyclist makes a hand signal to turn.
The items would be eligible for free two-day shipping for members of Amazon's $99 annual Prime loyalty program.
The new store came as the latest bid by the company to expand into different areas and reach new customers. The company's strategy had long been to spend huge chunks of the money it made to grow and expand into new areas like cloud computing, streaming video, hardware and adding services for its Prime loyalty members.
The company last year opened a store on Chinese e-commerce company Alibaba's Tmall retail platform to reach more Chinese customers.
The Seattle-based company's shares were up $1.12 to $370.63 in midday trading.
