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Amazon supplements launch will “undoubtedly disrupt” category, analysts say

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Amazon has launched a small range of dietary supplements under its ‘Amazon Elements’ label.

The range – comprising Vitamin D2, Vitamin K2, Turmeric Root Extract and Calcium Complex – is on sale on the amazon.com website, although it is currently available only to Amazon Prime members.

The Amazon Elements label was launched in 2014, initially as a diapers and baby wipes brand. The diapers line didn’t work for the internet giant and it quietly discontinued the range in 2015.

While the current product mix – baby wipes and supplements – is unusual, and the supplements range limited, analysts believe Amazon has serious ambitions for expanding its private label activity in the health and wellbeing space.

Dr Kurt Jetta, founder of FMCG analytics specialist TABS Analytics, told nutraingredients-usa.com: “Private label supplements carry extremely high margins and Amazon needs to finds ways to improve their margins in e-commerce. Private label has major traction with vitamin customers already (over 20% of sales) and e-commerce is a significant and growing piece of the vitamin category (over 15% of dollars with Amazon controlling about 35% of that).”

“Private label vitamin and supplement sellers are absolutely going to be worried about what the future holds for them”

Meanwhile, Pat Petriello, head of market place at retail analysts CPC Strategy, says that Amazon’s move into private label supplements “will undoubtedly disrupt the supplement market on Amazon.”

In a blog, he writes: “Private label vitamin and supplement sellers are absolutely going to be worried about what the future holds for them. It will be really interesting to see how quickly Amazon’s products rise up the rankings for key search terms once they become available for sale.”

 

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