Amazon lets slip plan to destroy Aus retail

Customers browse aisles Amazon Books, the first brick-and-mortar retail store for online retail giant Amazon, in Seattle. Photo / AP

Amazon has just let slip a major plank of its plan to destroy Australian retail.

The ecommerce company has moved to trademark its private label brand ahead of its local launch, heralding a whole new category of bargains for local shoppers.

AmazonBasics, which has already made waves in the US, sells no-name versions of more than 1200 products, ranging from cheap batteries and yoga mats to backpacks, umbrellas, computer cables, iPhone chargers and bedding.

The four trademarks registered with IP Australia last week are currently pending, with the results of the applications due in August.

They cover a broad range of product categories, including kitchenware, pots and pans, razor blades, beard trimmers, nail clippers, screwdrivers, drills, gardening tools, pruning sheers, dog kennels, pet playhouses, litter boxes, food storage containers, squeegees, bins, salt and pepper grinders, cosmetic brushes, candle holders, aquariums, cleaning products, bath towels and curtains.

If Amazon does opt to launch AmazonBasics in Australia, it is expected to impact retailers such as Kmart, Aldi, Myer, and Kogan, which have their own private label offerings, Queensland University of Technology Business School's Gary Mortimer told SmartCompany.

"As Amazon enters with both Marketplace and their private label offering, if you have your own private label, the consumers who buy that will likely trial Amazon's offering," Mr Mortimer said. "I don't think anyone's safe."

An analysis of AmazonBasics' private label smart speaker, the Amazon Echo, in the US last year found that the brand had gobbled up 45 per cent of the market.

The hands-free, voice-controlled device works with Amazon's AI assistant, Alexa, to play music, control smart home devices, make calls or send and receive messages.

AmazonBasics also sells its own, organic fair-trade coffee brand under the label Happy Belly, plus organic baby food under the label Mama Bear.

Not all of its private label launches have been a success. Amazon's foray into selling baby nappies in 2014 was a flop, CNET reported - unlike Aldi where the product is a cult item among Australian mums.

News of Amazon's potential private label plans comes after the online giant finally confirmed its long-rumoured move down under, sending bricks-and-mortar retailers into a tailspin.

Uncertainty around how Amazon will impact the local market has spooked investors so badly that Wesfarmers pulled the pin on its A$1.5b (NZ$1.6b) Officeworks IPO, which had been billed as "the share market float of the year".