Called Amazon Elements, the line of diapers and baby wipes will
only be available to customers who belong to the Amazon Prime
membership program, adding another item to the growing list of
membership perks. By working directly with a manufacturer, Amazon
will be able to price the brand aggressively, with a 40-count
package of diapers starting at $7.99. That works out to about 19
cents a diaper, compared to competitor prices that mostly range
from 24 cents to 34 cents.
As a result, some people will view the launch as a shot across the
bow at the big diaper brands, Huggies and Pampers, that sell their
products on Amazon. Sellers on Amazon already gripe that Amazon
sells the same products as they do. Now it is building a direct
relationship with a supplier that allows it to undercut some of
its own partners in a more significant way.