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by bigjimmyk3 2814 days ago
You are correct that more stores are mixing their house brand in with "national" brands (or whatever term you want), and that stores have discovered the good ROI that comes from upping their house brand game (which is the point of the linked article).

I want to add that there is a hidden benefit for name brands to having the house brands there, at a lower price point. There's plenty of fascinating reading on "price positioning" and how having a lower house brand right next to the national brand results in increased sale of the national brand.

My main point was that I don't think Amazon sees its relationship with vendors the same way that older retailers do. WMT has a deserved reputation for being very aggressive with their suppliers, but I believe that their culture still sees the relationship goal as win-win (they would argue that they are helping their suppliers achieve better efficiency, or often licensing the national brand's stock to make their house brand so more sales for all). I know nothing about Amazon's buyer culture, but their own brand activity does not seem to give much consideration to supplier health.

It's also interesting to note that their own brands are immune to the commingling problem, which gives them a perverse incentive to let that problem ride. That makes me very uncomfortable.