NEW YORK – Amazon is planning to step further into the private-label arena with its new Elements brand, reports The Wall Street Journal. The new line will include perishable products such as milk, cereal and baby food.

The news source notes that in early May, Amazon sought trademark protection for more than two dozen categories under its Elements brand, including coffee, soup, pasta, water, vitamins, dog food and household items like razors and cleaning products. While the retailer isn’t new to offering private-label merchandise, such as batteries, USB cables and backpacks under the Basics label, this is Amazon’s first venture into perishable goods.

Amazon’s competitors – ranging from Costco to Target and Walgreens – already offer an array of private-label products. Last year, notes the news source, Target’s Archer Farms private-label products made up about a third of the company’s $73 billion in sales.

“It makes a lot of sense for any retailer to get into private label,” Eddie Yoon, a principal at The Cambridge Group, told the Journal, adding, “Private label has a lot of room to grow in terms of sales and can attract a new value-focused customer.”

Yoon continued that despite the lower price points, private-label merchandise tends to have higher margins than brand name products for both retailers and manufacturers because of savings on marketing and brand development.

The news source notes that Amazon will likely be transparent about where its Elements products come from. The trademark filing mentions the slogan, “Every pack has a story” and Amazon’s page for baby wipes details how they are produced by Nice-Pak Products Inc.