Amazon ‘R’ Us: Amazon now makes its own toys. Will it kill off toy stores?
Amazon started producing its own toys under its AmazonBasics private label, stepping into the giraffe-sized hole Toys ‘R’ Us left in the American toy market.
Private-labeling, Amazon’s next step on its march to ultimate e-commerce efficiency, sent shivers down the spines of toymakers from Mattel to the North Pole. But what would a future without toy stores look like?
The next chapter in Amazon’s playbook
We all know how the story starts: Amazon targets an industry, undercuts existing sellers until they fold, and adds the leftovers into its marketplace (RIP Borders, Tower Records, Circuit City, Sears…).
Amazon started private labeling in 2009 with AmazonBasics. But it’s only recently taken off: The number of Basic items for sale jumped from 252 in 2013 to more than 1.5k in 2017.