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Amazon might have another plan in the works to make money off fashion. BuzzFeed reports that the online retailer is mulling over selling its own private-label clothing brands.
"For Amazon, we know our customers love brands, many of the brands in this room…and that’s where the lion’s share of our business comes from," Amazon's Jeff Yurcisin said at the WWD Apparel and Retail CEO Summit on Tuesday, according to BuzzFeed. Yurcisin is Amazon Fashion's vice president of clothing and Shopbop's CEO. "When we see gaps, when certain brands have actually decided for their own reasons not to sell with us, our customer still wants a product like that," he said.
Private label products typically have higher profit margins, which would explain the allure for Amazon to create its own lines. Amazon's been testing a variety of strategies for its apparel and accessories departments, and back in July, the retailer told Business of Fashion that it wasn't interested in entering the luxury market but was committed to fashion. "We’re in it for the long haul," Amazon exec Jennie Perry told BoF. "We’re really invested in this industry."