Amazon is launching its own line of diapers and baby wipes exclusively for its Prime members to get more shoppers to sign up for the $99 annual program.
The new line, Amazon Elements, will mean tougher competition for traditional consumer product companies, said Bernstein Research analyst Carlos Kirjner, and they may have to change the way they sell and price their own goods.
Amazon, the largest U.S. e-commerce company, already sells other store-brand products, including bedding and bath items and patio furniture. Its Amazon Basics line includes home and office products. It also sells Kindle tablets and e-readers, the Fire phone and set-top video streaming devices.
The Seattle company has been investing heavily in services for its loyalty program, Prime, which has an estimated 40 million members. It has expanded Sunday delivery, added a grocery delivery service and music streaming for Prime members aand offers original TV shows such as the critically acclaimed "Transparent."
Seattle-based Amazon also said Thursday that Amazon Elements items will include information on where they were made and where their ingredients were bought. Each product has a code that can be scanned by Amazon's app for more details. The company said it created the line because some customers were asking for more details on what ingredients products contained.
Amazon shares rose 58 cents to $317.08 in afternoon trading.