Amazon is trying hard to become omnipresent when it comes to consumers daily shopping needs. The company recently ventured into grocery segment and has also revealed a conceptual store which is completely automated without the need for a storekeeper or even a cashier. Amazon has now started a new brand of pet products called Wag and thus it now has private labels across batteries, clothing, electronic accessories and household goods.
The Wag Brand is currently only available for Amazon Prime subscribers. It is noteworthy that Amazon is trying to add as many privileges as possible for the Prime subscribers. As of now the Prime subscribers will not only get free fast delivery but can also enjoy movies, tv shows, and music.
Amazon will directly compete with other players in the market like Petco Animal Supplies and PetSmart Inc. Generally, sellers don’t prefer to sell dog food online due to the logistic fees and the size of the package. However, Dog food is a major staple for grocery stores and biggies like Walmart already have a private label dog food called Ol’Roy.
Amazon purchased Quidsi after the first owner closed it down since they couldn’t profit. Apart from Wag, the Quidsi also used to own diapers.com and soap.com both of which are now purchased by Amazon as part of a $545 million deal in 2011. This is a tell-tale sign of how Amazon is interested in having a large chunk of FMCG business and thus compete better with the offline retail chains.
The Petfood market is a sizeable chunk at $30 billion every year in the US. Amazon is selling all the private branded labels under the AmazonBasics brand. With the AmazonBasics, buyers will be getting a quality and other assurances by Amazon and this generally includes discounted or free delivery.