By now, you’ve likely heard that Amazon launched their own brand called Amazon Elements, starting out with diapers as their first product. It is almost certain that they will continue to release other products under this brand, and we know for those of you who are ASMers, that might sound troublesome.
We have a message straight from Jason Katzenback on A) why you should focus on building a physical product business and B) why you shouldn’t get worried about it affecting your success:
I think this is exactly why you want to be building a “physical products business” and NOT an “Amazon selling business”.
It is my opinion that Amazon never intends to only sell their own products but they are looking at markets (such as diapers) that they can go into. It makes perfect sense and diapers are consistently the top sellers on Amazon but that does not mean they are now going to be sourcing millions of other products. Walmart has their own brand of products as well, but not every product type in the world.
This is certainly not something that in my opinion will be aggressively put in place anywhere near concerning for the next five years and in that time there is plenty of opportunity to leverage Amazon to launch your product brand that you also sell off Amazon (make Amazon the smallest of your fortune). That is not saying in 5 years there will be any, but they never cease to amaze me with what they plan to do.
Please share your thoughts or questions with us in the comments.
Matt Clark is the Chairman and Co-Founder of Amazing.com, a serial entrepreneur, and investor. He’s been featured on Forbes, CNBC, and Entrepreneur.com.