Amazon has a new private label brand, with many items under $5

Amazon Grocery, the ecommerce giant's new private label brand, aims to tap into shoppers' growing preference for private label grocery products.

Amazon is launching its own private label brand, Amazon Grocery, a move to challenge Costco and Walmart in the growing cost-conscious sales competition.

Shoppers have continued to opt for more private label, or store brands , over name brands, with private label brands accounting for about one out of every four grocery products purchased in the U.S. last year, according to the Private Label Manufacturers Association .

Amazon, which had already been selling its own Amazon Fresh and Happy Belly brand products on Amazon.com and in Amazon Fresh stores, said consumers purchased 15% more private-brand products in 2024, compared to the previous y