According to sources familiar with the matter, Amazon.com Inc is planning to decrease the number of products it offers under its own private-label brands. This decision comes as a result of lackluster sales performance in this area. In addition, there have been internal discussions within the company about the potential of completely exiting the private-label business in order to alleviate regulatory pressure that they have been facing.

The Wall Street Journal reported this development on Thursday. Reuters attempted to reach out to Amazon for comment, but no immediate response has been received.

Private-label brands are products that are manufactured or sourced by a retailer and then sold under the retailer’s own brand name. Amazon has been expanding its portfolio of private-label brands in various product categories such as apparel, electronics, and household goods.

However, the decision to reduce the number of private-label items suggests a shift in Amazon’s strategy as they reassess their approach due to weak sales performance. Additionally, talks about completely exiting the private-label business indicate a potential move to address regulatory concerns surrounding Amazon’s market dominance and potential anti-competitive practices.

Amazon’s potential shift in strategy could have significant implications for the company’s overall product offering. Private-label brands have played a crucial role in their efforts to diversify their product lineup and capture a larger market share. If Amazon were to completely withdraw from the private-label business, it would have implications not only for the company itself but also for the broader retail industry.

It remains to be seen how this potential shift in strategy will impact Amazon’s future growth and success. As one of the world’s largest online retailers, Amazon’s every move is closely watched and can have far-reaching effects on the retail industry as a whole.

In conclusion, Amazon’s decision to decrease the number of private-label items demonstrates their continuous effort to adapt and adjust their business strategies in response to market dynamics and regulatory challenges. It will be interesting to monitor how the company navigates this potential shift and the consequences it will have.