Amazon launches a grocery brand with most products under $5

Amazon on Wednesday announced the debut of Amazon Grocery, a new private-label brand that offers a range of grocery items, most of which are priced under $5. The brand offers everything from milk and olive oil to fresh produce, meat, and seafood. Amazon Fresh grocery items will be available online and at Amazon Fresh stores.

The new label combines the Amazon Fresh and Happy Belly lines into one grocery essentials collection, Amazon says.

“During a time when consumers are particularly price-conscious, Amazon Grocery delivers more than 1,000 quality grocery items across all categories that don’t compromise on quality or taste – from fresh food items to crave-worthy snacks and pantry essentials – all at low, competitive prices that help customers stretch their grocery budgets further,” said Jason Buechel, Vice President of Amazon Worldwide Grocery Stores and Chief Executive Officer at Whole Foods Market, in a press release.

The line will compete with other companies’ private label brands, like Walmart’s Great Value and Target’s Favorite Day.

Amazon says the Amazon Grocery line includes new items such as fresh bakery cinnamon rolls, refrigerated pizza dough, bottled spring water, and more. In the coming months, Amazon will debut new frozen pasta meals, pie fillings, granola, sliced loaf cakes, expanded selections of deli meat, and more.

It’s worth noting that this isn’t the first time that Amazon has rolled out a price-conscious brand, as the company launched its “Amazon Saver” brand last year to offer budget-friendly staples like canned goods and condiments at low prices.

Amazon says that its private-label brands continue to gain momentum, with customers purchasing 15% more private-brand products in 2024 compared to the previous year across Amazon.com, Whole Foods Market, and Amazon Fresh.

The company last month announced that it was now letting shoppers in 1,000 cities across the U.S. order perishable food items through its Same-Day Delivery service. The move meant that users could order fresh grocery items, including produce, dairy, meat, seafood, baked goods, and more, alongside everyday household products, electronics, and other items.