Amazon Basics is incredible in this regard, they’ve optimized SKU identification down to a pipeline. They’ll essentially randomly pick items off their internal list of highest netting sales and test them to see how dependent they are on brand name recognition and price-quality signalling. To do this as efficiently as possible, they simply purchase a few hundred units of a high quality product in the space, stick it in an Amazon Basics box and list it on their site under their Amazon Basixs brand at a price they feel they can achieve via white labeling, and wait to see how it sells. The use of high quality items (with quality above what can actually be had at the listed price point for the duration of the experiment) means they are really only testing the user base’s willingness to forgo a brand name for the category in exchange for a discount. If it sells well, they then work on sourcing it in bulk as a white labeled item “for real”, while if it sells poorly they simply delist and move on.

I (used to) buy pre-spliced/terminated fiber optic cables with some frequency from Amazon and came to be familiar with the brands and their quality. One time while shopping for some fiber optics, I saw Amazon Basics-labeled OM-3/OM-4 MMF cable at a very tempting price, so I purchased some to see if it was any good.

To my utter shock and surprise, when I received the trademark plain cardboard boxes with the Amazon Basics label on them and proceeded to open them, I found that I was sent boxes of cables still factory wrapped with labels that clearly read “Corning Optical” – which if you know anything about optical fiber, was pretty much the premium brand in the game. I should have stocked up because the next time I went to order I found out their experiment had ended and they no longer sold “Amazon Basics” finer cables.