E-commerce
September 18, 2026
Are you wondering if Amazon's private label brands can squeeze small brands out of the marketplace? The answer is yes, but there are ways to fight back. Amazon uses its access to sales data to launch cheaper products, often to the detriment of independent sellers. However, not all brands are doomed: some choose to become exclusive brands, while others focus on differentiation. So, how can you face this competition? On the agenda:
Why is Amazon developing so many private label brands?
Which sectors are most affected by this strategy?
How can small brands fight back against Amazon?
What role does data play in Amazon's dominance?
How does Qstomy help strengthen the customer relationship?
Let's get started.
Summary
Why is Amazon multiplying its private labels?
Amazon is no longer content to just be a marketplace: it wants to sell its own products. The strategy is simple: offer quality items at unbeatable prices, often lower than those of third-party brands. By monitoring the sales of independent sellers, Amazon identifies which products perform well, analyzes customer reviews, and then launches its own version.
This approach allows Amazon to control the entire chain: production, pricing, and visibility. As a result, small brands with only one or two flagship products quickly find themselves facing competition. Amazon can afford to sell at a loss temporarily to capture market share, something small sellers cannot do.
For Shopify merchants, understanding this dynamic is essential. If you sell on Amazon, you are potentially in the crosshairs. Diversifying your sales channels and strengthening your own brand becomes a priority.
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What are Amazon's private labels?
The phenomenon is not marginal. According to TJI Intel's Amazon Brand Database, Amazon offered no fewer than 132 private brands and 265 exclusive brands in December 2018. And the pace is accelerating: at least 60 new brands have been launched since the beginning of 2017. These brands cover a variety of sectors: clothing, furniture, groceries, pet supplies, etc.
Clothing alone accounts for 86% of Amazon's private brands, with more than 100 brands for men, women, and children. Vitamins and dietary supplements are also a playground, with the Amazon Elements brand. Even basic household products, like paper towels, are involved.
This massive expansion means that small brands are no longer just competing with other sellers, but with Amazon itself. A seller who does not monitor these trends risks seeing their sales drop sharply.
Which sectors are the most affected?
Some sectors are more exposed than others. Fast-moving consumer goods, such as diapers, paper towels, and food, are prime targets. Amazon sees high volume potential and low brand loyalty there. Clothing and shoes are also highly targeted, with private labels covering all segments.
Vitamins and dietary supplements are another battleground. Amazon Elements offers competitively priced products, directly competing with established brands. Even furniture and pet supplies are not spared, with more than 12 furniture lines and 8 pet brands.
If you sell in these categories, it is crucial to monitor Amazon's launches. A sudden drop in your sales may be due to the arrival of a competing private label. Anticipating these moves allows you to react quickly.
What role does data play in Amazon's dominance?
Amazon possesses a decisive advantage: access to unparalleled sales and customer behavior data. By analyzing third-party products that sell well, Amazon identifies opportunities. It examines reviews, ratings, internal searches, and then designs a similar product, often with improvements.
This analytical capability allows Amazon to set highly precise prices, choose winning features, and position its products at the top of search results. Third-party sellers do not have access to this data, which creates a glaring imbalance.
For small brands, this means they must double down on ingenuity. Using keyword analysis tools, tracking search trends, and constantly innovating can help maintain competitiveness. However, it is also necessary to consider channels where Amazon does not have this stranglehold, such as your own Shopify site.
How do private label prices compare?
Amazon's private labels are slashing prices. For example, Presto! brand paper towels are sold for $1.28 per 100 sheets, compared to $1.54 for Bounty or Viva brands. This price difference is a powerful argument to attract price-sensitive customers.
In diapers, the gap is even more striking: the Mama Bear brand is 33% cheaper than The Honest Company and 47% cheaper than Bambo Nature. These gaps are made possible thanks to economies of scale and control over distribution.
Small brands cannot compete on price. They must therefore focus on perceived value, quality, customer service, and loyalty. A satisfied customer is willing to pay more if they feel heard and supported.
How are major brands reacting?
Major brands like Procter & Gamble or Kimberly-Clark have the means to fight back. They invest heavily in sponsored advertising on Amazon, promotions, and marketing. They can afford to temporarily lower their prices to maintain market share.
Amazon is not trying to eliminate them, but rather to attract non-loyal customers, those who buy at the best price. Major brands have a level of awareness and trust that private brands do not yet possess. They can also negotiate agreements with Amazon to remain visible.
For small brands, this price war is a direct threat. They do not have the advertising budgets of the giants. It is therefore vital to find niches where Amazon is not present, or to create a brand so strong that customers search for it directly.
What are the options for small brands?
Faced with this pressure, several options are available to small brands. The first is to become an Amazon-exclusive brand, meaning selling only on Amazon and using Fulfillment by Amazon. This may seem counterintuitive, but it allows them to benefit from Amazon's visibility and logistics.
Some brands choose this path, such as GNC, which launched an exclusive brand "Challenge by GNC" for its performance drinks. Others prefer to diversify by selling on their own Shopify site, on other marketplaces, or in physical stores.
The key is not to put all your eggs in one basket. By developing your own sales channel, you reduce your dependence on Amazon and maintain control over your customer relationship.
How to differentiate yourself from Amazon?
Differentiation is your best weapon. Amazon's private labels are generic and lack innovation. You can stand out through quality, design, your brand story, or exceptional customer service. Highlight your values, your expertise, and your ecological commitment.
Customers are increasingly sensitive to authenticity. A brand that tells a story and interacts with its community creates an emotional connection that Amazon cannot replicate. Use social media, emailing, and your website to build this relationship.
Offer customizable products or limited editions. These exclusives are not profitable for Amazon, but they build customer loyalty. Remember that your brand is your best shield against price competition.
How to improve your visibility outside of Amazon?
On Amazon, visibility is king. Amazon can position its own products at the top of search results, which gives them a huge advantage. Small brands must therefore invest in search engine optimization (SEO) and sponsored advertising to get noticed.
But visibility is not limited to Amazon. By developing your presence on Google, social media, and your own website, you create additional touchpoints. A customer who finds you via Google is less likely to compare with Amazon.
Use content strategies, customer reviews, and product videos to strengthen your online presence. The more visible you are outside of Amazon, the less you depend on its algorithms.
What is the future for small brands?
The future is not so dark. Amazon cannot conquer everything. More and more consumers are supporting small businesses, by ethical choice or by desire for unique products. Brands that know how to tell their story and offer a memorable customer experience have bright days ahead of them.
Furthermore, Amazon itself needs third-party sellers to offer an immense choice. Private labels coexist with third-party brands, and some categories remain too complex or too specialized for Amazon to tackle.
The key is to remain agile, to innovate, and to never stop listening to your customers. By cultivating a relationship of trust, you create a barrier to entry that even Amazon cannot cross.
How does Qstomy strengthen customer relationships?
Faced with the pressure of Amazon, customer relations are your differentiator. Qstomy, the Shopify AI agent, helps you guide your buyers throughout their journey: personalized recommendations, upselling, package tracking, and after-sales support. This creates a smooth and human shopping experience that marketplaces cannot offer.
With Qstomy, you can answer your customers' questions in real time, reassure them about their orders, and build loyalty. A well-supported customer is more likely to return and recommend your brand. This is a decisive competitive advantage against the giants.
By integrating Qstomy into your Shopify store, you transform every interaction into an opportunity for sales and satisfaction. You don't compete on price, but on the quality of the experience. This is how you protect your brand.
Checklist for facing Amazon private labels
Here is a checklist for dealing with Amazon private labels:
Diversify your channels: do not rely solely on Amazon, create your Shopify site.
Strengthen your brand: work on your storytelling, your visual identity, and your values.
Offer impeccable customer service: use Qstomy to respond quickly and efficiently.
Monitor Amazon's launches: adapt your offer if necessary.
Build customer loyalty: loyalty program, exclusive offers, personalized content.
In brief
Amazon's private labels represent a real threat, but not an inevitability. By differentiating yourself, diversifying your channels, and taking care of your customer relationships, you can not only survive, but thrive.
FAQ
Can I sell on Amazon and Shopify at the same time? Yes, it is even recommended to reduce risks.
How do I know if Amazon is launching a competing brand? Monitor new releases in your category and price changes.
Is Qstomy compatible with Amazon? Qstomy is designed for Shopify, but you can use it to manage customer relations on your independent site.
To go further: How to handle customer questions on web offers not available in-store - Qstomy, Shipping Strategies: Reducing Costs and Increasing Sales - Qstomy, How to integrate Shopify with Amazon for products, inventory, and reviews? - Qstomy, Can you use Wix for an e-commerce site? - Qstomy, How to optimize an e-commerce site for Google (step-by-step guide) - Qstomy, How to handle customer questions on member-only sales - Qstomy, How to handle customer questions on web-exclusive products - Qstomy.
Enzo
September 18, 2026
