New research from 1010data shows how Amazon is leveraging its size as a retailer to introduce private-label brands
NEW YORK – October 20, 2016 – 1010data, Inc., offering the only integrated platform that combines self-service data management and analytics at scale with ready-to-use data, today released an analysis showing how Amazon has been extremely successful in taking market share from established brands in key product categories. By leveraging its online shelf space to introduce new private-label Amazon products, Amazon is changing the dynamic for category leaders as it is putting itself in direct competition with these suppliers.
Amazon now sells its own products in more than a dozen categories ranging from home goods to pet supplies to computer accessories. Using consumer spending data representing millions of consumers, the 1010data Market Insights team analyzed sales trends from September 2015 to August 2016 for three key online categories -- batteries, speakers and baby wipes -- and found Amazon heavily competing with category leaders and in certain cases even becoming the online category leader.
Amazon is charging ahead in the online battery category with their AmazonBasics brand. Estimated online battery sales were approximately $113 million this past year, and 94 percent of all batteries sold online are sold through Amazon sites. Among the top 10 battery brands, AmazonBasics, accounts for about one-third of battery sales online and boasts 93 percent year-over-year growth. With an online conversion rate that is 1.5 times greater than the category average, consumers are more likely to buy Amazon batteries once they view them online. Click here to see the complete batteries online market analysis.
At the end of 2014, Amazon introduced Amazon Elements as a new product line. This new line includes baby wipes and is exclusive to Amazon Prime members. Despite the limited audience, Amazon Elements is now cleaning up market share as one of the top brands online for baby wipes with 16 percent market share based on total dollars sold among the top 10 brands, just behind Huggies (33 percent) and Pampers (26 percent). Furthermore, sales of the Amazon Elements baby wipes have grown 266 percent year over year, and customers who view Amazon’s product are three times more likely to purchase than the category average. Click here to see the complete baby wipes online market analysis.
The online speaker market generated an estimated $1 billion in sales this past year. According to 1010data Market Insights research, Amazon.com accounts for a booming 89 percent of total online speaker sales, and Amazon Echo as a brand holds a 45 percent market share among the top 10 brands based on dollars sold. The data shows that Amazon Echo is the most popular speaker sold online, and sales have grown 67 percent year over year. Click here to see the complete speakers online market analysis.
“No matter the market, the challenge for brands in an increasing number of categories is that Amazon is the top online channel. And, Amazon is leveraging its dominance to sell their own private-label brands which compete with traditional suppliers,” said Jed Alpert, Senior Vice President of Marketing at 1010data. “Reasons for Amazon’s success across different markets vary. In batteries, they have a price competitive product in a largely commoditized market with little brand loyalty. In speakers, they’ve developed truly innovative products that are redefining the market. The bottom line for brands is they can no longer view Amazon as solely a channel and need to acknowledge them as a competitor.”
1010data utilizes a number of sources of consumer spending data representing millions of consumers to provide an accurate assessment of online and offline retail sales, market share and more. This data enables clients to track consumer behavior using high-quality, granular datasets that are often difficult to source, cleanse and consolidate.
Gaining actionable insight requires the best analytical tools and access to all relevant data. 1010data offers a complete solution that provides both, with the only out-of-the-box, self-service, cross-enterprise insights platform. More than 850 of the world’s largest companies trust 1010data to manage, share and analyze over 32 trillion rows of data because of the company’s proven ability to deliver results more quickly, easily and accurately than any other solution. Please visit www.1010data.com for more information.