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Amazon to sell its own fashion line
November 8, 2015, 4:34 pm

Amazon has tried its hand at selling difficult products in crowded marketplaces, like smartphones and speakers. Now the online retailer may soon add clothing to the list. Amazon Fashion's vice president of clothing Jeff Yurcisin said the company is considering producing its own clothing lines to fill “gaps" in the marketplace.

Amazon Fashion is the company's division dedicated to courting big-name clothing lines to sell on the e-commerce site. Yet some retailers and clothing manufacturers have been reluctant to work with Amazon due to its reputation for low margins and aggressive cost cutting. If a brand does not want to sell on Amazon, the company appears ready to sell its own version of their product and sell it under a different name. This approach, known as private labeling, generally allows for higher profit margins.

"We know our customers love brands, and that’s where the lion’s share of our business comes from," he said. "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."

However, Yurcisin tried to reassure fashion retailers by saying that its Fashion division, which draws around 40 million US customers a year, follows standard trends in the retail industry. "We work just like any other retailer — we buy at full price, try super-hard to sell at full-price," he said.

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