Amazon sells low cost items under its own brand, AmazonBasics. Checking now, there were over 2,000 items that fell under this brand. If a low cost commodity is selling at a high enough volume and there’s not a lot of differentiation, it makes sense for Amazon to go the route of moving the product under its own label to capture additional margin. This is a play done by many retailers.
In searching for Alexa-enabled speakers and seeing devices like the Eufy driving down the price of voice-first product (at one point, it was under $20), I’m wondering when AmazonBasics might have its own Alexa-powered device. Or is it that the Echo brand can’t be tainted with a lower cost brand (and thought of as “basic”)?
However, at some point, the cost of Alexa powered devices needs to come to near nil to reach ubiquity. Maybe we won’t see Alexa under AmazonBasics but we will likely see other device makers push products with Alexa at very low price points. Maybe they’ll be able to find their own services to offset the hardware cost with Alexa enablement as an added sweetener.