In a move that consolidates its CPG businesses under its own branding, Amazon is shutting down the company’s Quidsi unit, including Diapers.com, Soap.com and Wag.com.
The ecommerce giant acquired Quidsi in 2011 for about $500 million. An Amazon spokesman said that Quidsi was not profitable.
“With everything that Amazon’s doing with AmazonFresh Pickup and Dash buttons, it makes sense to get rid of the separate brand and organization,” said eMarketer analyst Yory Wurmser. “There wasn’t a lot of brand equity in Diapers.com or Soap.com that would be lost by folding them into Amazon itself.”
But this is not a precursor to other brands necessarily being folded under the Amazon brand. “A brand like Zappos has a distinct identity,” Wurmser said of the footwear retailer, which Amazon acquired in 2009. The same is true of the fashion brands bought or created by Amazon, such as Lark & Ro.
Packaged goods like diapers, cleaning products and pet supplies have been seen as having ecommerce potential, yet they have struggled for traction.
IRI estimates that nonfood ecommerce sales totaled $7 billion in 2015, a figure that is expected to grow to $27 billion by 2020. Food and beverage sales trailed those numbers.
Additional research by The Harris Poll shows that more US internet users polled in June 2016 had purchased food items online than nonfood household care items.