AmazonBasics is pretty much like any other private label brand item. Their products compete with many similar offers from third-party sellers.
Some merchants struggle when dealing with the Basics program because these products usually have priority on the platform. That only makes product competition harder.
Competing with Amazon Basics can be challenging due to its wide range of affordable and well-reviewed products. However, there are effective strategies you can use to stand out.
What is AmazonBasics?
In 2009, Amazon decided to offer a private label range of products, just like Target and Walmart. AmazonBasics launched with the main goal of offering small and mostly inexpensive products, consumable on a repetitive basis.
Some customers don’t really care about the brand they choose when buying basic items. They just want considerable quality and a low price. That’s the idea behind the program: boast a competitive price tag, and also Amazon’s name. Thus, these items fly off the virtual shelves in a matter of seconds.
Most of the AmazonBasic items are basic products that people use on a daily basis, that they’ll buy at least once, and some will purchase again. With these basic items, customers don’t expect fancy offers, but reliable products at an accessible price.
Product Categories
As with any other private label brand, AmazonBasics has its own storefront. Here, users can check all their product categories and even some rending items to add to their cart.
The Amazon Basics program includes both various products and different categories:
- Electronics. Chargers, cables, batteries, and more.
- Home and Kitchen. Cookware, utensils, bedding, and home improvement tools.
- Office Supplies. Stationery, paper, and office furniture.
- Sports and Outdoors. Camping gear, fitness equipment, and accessories.
- Pet Supplies. beds, toys, and grooming products for pets.
Pricing and Quality
Basics products are usually cheaper than well-known brands. For example, a 20-pack of AmazonBasics AA batteries costs about half as much as a 24-pack of Duracell batteries. This makes it easier for customers to buy what they need without spending too much.
So, AmazonBasics is affordable, but their products are also known for being of good quality because Amazon ensures they meet certain quality standards. For instance, their USB cables often have thousands of positive reviews, showing they work well and last long.
The AmazonBasics Strategy
AmazonBasics, just like any other superstore private label, poses a real threat to third-party sellers. Below are the main reasons for concern.
Big Data
Amazon collects a lot of information about what people buy. They use this data to find out which products are popular. When they see a product selling well, they create an AmazonBasics version of it.
This means AmazonBasics can offer exactly what people want, often at lower prices. Because of this, it’s become one of the most popular brands in the marketplace.
Cost-Effective Manufacturing
Amazon has a great system for researching and making products quickly and cheaply. This allows the Basics program to sell items at lower prices than other sellers.
By offering good products at cheaper prices, AmazonBasics can easily attract customers and take a large share of the market.
Amazon Choice Badge
The Amazon Choice badge shows customers which products are highly recommended. Such items appear higher in search results and are often suggested by Alexa.
AmazonBasics products often get this badge, giving them more visibility and making them more likely to be bought.
Hidden Brands
Amazon sometimes sells its products under different brand names. These hidden brands look like any other brand, making it tough to know when you’re up against Amazon.
Competing with Amazon-branded products can be challenging because they have a big advantage in terms of price and visibility.
How to Compete with AmazonBasics
If you sell products on Amazon, you’ll often compete with AmazonBasics. This can make it harder for you to be seen. That said, third-party sellers can still compete by offering even higher-quality products and competitive prices.
Here are five detailed tactics to help you compete with Amazon Basics.
Focus on Unique and Niche Products
AmazonBasics covers many categories, but there are still numerous niches they haven’t explored. For instance, if AmazonBasics sells standard yoga mats, you can offer eco-friendly mats made from sustainable materials or ones with unique designs.
By focusing on specialized products, you can attract customers looking for something different.
You can also focus on personalization, as this is one of the areas that Amazon basics can’t compete with.
No matter what you choose to focus on, the idea is to match Amazon on shipping, returns, refunds, etc. Then, add some icing on the cake!
This is how you can stand out and build trust in your brand for repeat purchases and organic referrals.
Emphasize Product Quality
While AmazonBasics products are known for their good quality, there’s always room for improvement. For example, if you sell kitchen knives, ensure they are made from high-grade stainless steel that stays sharp longer and has ergonomic handles for better grip.
Highlight these features to showcase the details. Superior quality can justify a higher price and attract customers looking for the best products available.
You can also bundle your items for discounts or run other types of promotions to provide greater value.
Before you offer random stuff, however, make sure that you know your customers’ pain points and go from there.
Optimize Your Product Listings
Making sure your product listings are optimized is crucial for visibility and sales.
- Start with a clear, keyword-rich title that accurately describes your product.
- Use bullet points to highlight the main features and benefits.
- Write a detailed description that answers common questions and addresses potential concerns.
- High-quality photos from multiple angles, including close-ups, can significantly enhance your listing.
- Consider adding a video to demonstrate how your product works or its key features.
- Encourage satisfied customers to leave positive reviews, as these can greatly influence potential buyers.
Develop a Strong Brand Identity
Creating a unique brand can set you apart from AmazonBasics. Build a compelling brand story that resonates with your target audience and communicate this through your product listings, website, and social media channels.
Invest in attractive packaging that reflects your brand’s identity. For example, if your brand focuses on eco-friendly products, use recyclable materials for packaging and emphasize this in your branding.
Strong branding helps build customer loyalty and makes your products more appealing.
Utilize Strategic Marketing
Effective marketing can significantly boost your visibility and sales. Use social media platforms to promote your products. Share engaging content, run contests, and interact with your followers to build a community around your brand.
Consider influencer partnerships to reach a wider audience. You can also use email marketing to keep your customers informed about new products, special offers, and upcoming sales.
Paid advertising on Amazon and other platforms can also increase your product’s visibility: if you have the money to invest in this, use Amazon’s sponsored products, sponsored brands, and display ads to target relevant customers.
Also,keep an eye on Amazon Basics and other competitors. Check what new products they are launching and read customer reviews to understand what people like or dislike about these products.
This information can help you improve your offerings and fill gaps in the market. For example, if you notice many customers complaining about the durability of Amazon Basics office chairs, you can emphasize the superior durability of your chairs.
Should You Dropship AmazonBasics Products?
You might think dropshipping AmazonBasics products is a smart move, but it’s important to know what you’re getting into.
- Low-Profit Margins. AmazonBasics products are already priced very low. This leaves you with very little room to add your own markup and still make a profit.
- Policy Restrictions. Amazon has rules against reselling their own products unless you add value to them, like bundling them with other items or private labeling. If you don’t follow these rules, you could face penalties, or even an account suspension.
Final Thoughts
AmazonBasics is not the end of profitability for third-party sellers. It simply requires a combination of unique product offerings, superior quality, optimized listings, strong branding, and strategic marketing.
By focusing on these areas, you can attract customers looking for something beyond what AmazonBasics provides. Plus, you’ll also build a loyal customer base.
Don’t try to take the bull by the horns – instead, look at what AmazonBasics is doing and work around that. You know that there’s a market there, and you can certainly still make good profits by choosing your battles wisely.
Authors
Antonella Fleitas is a freelance content writer from Argentina. Antonella worked with many projects to create fact-based, evergreen content about science, language learning, and culture. Her main goal is to build a strong content foundation for her clients, based on meaningful stories that people can learn from.
Julia Valdez is a professional teacher and long-time lover of the art of words on paper and the stage. She has an entrepreneurial heart and spends most of her time doing marketing and management, freelance content writing, volunteer work, and sharing lots of laughs over little crazy things.
