Amazon Drops In-House Clothing Brands As it Doubles Down on Amazon Basics





Amazon is streamlining its in-house fashion business as it doubles down on its Amazon Basics line.

The online retail giant will eliminate 27 of its 30 clothing brands, which range from Daily Ritual to Goodthreads. The three surviving brands are Amazon Essentials, Amazon Collection and Amazon Aware, The Wall Street Journal reported. Amazon confirmed the elimination to Cord Cutters News.

The move follows other cuts made around the business as Amazon looks to reduce costs after years of rapid expansion. But it also comes amid heightened scrutiny from regulators over how it juggles its own in-house businesses and other retailers on the same platform.

The Federal Trade Commission is expected to level an antitrust suit against Amazon, charging the company with prioritizing its own retail options over other companies on a platform it controls.

Amazon has denied the allegations of abusing the power of its platform. The company is reportedly meeting with the FTC next week to lay out its case before the commissioners vote on whether to pursue the lawsuit.

The company, meanwhile, pointed to the change fashion brand as a move in response to shifting consumer preferences.

“We’re thoughtful about our private brand selection, and if there are products that aren’t resonating with customers we deprecate those items and look for other opportunities to better meet their needs,” Matt Taddy, vice president of Amazon Private Labels Brands, said in an emailed statement.

Taddy noted that customers are seeking out its biggest brands — calling out Amazon Basics and Amazon Essentials. Many of the popular items under the discontinued brands will be moved over to Basics and Essentials.

Both are expected to play a role in the second Prime Day, officially known as Prime Big Deals Days, in October.

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