Top 4 product groups on Amazon account for $23B in 2017, new report estimates
SALT LAKE CITY, Jan. 3, 2018 /PRNewswire/ -- 2017 was a very big year for Amazon filled with major acquisitions, international expansions and technological innovations. The company also managed to be responsible for an estimated 44% of all U.S. eCommerce sales in 2017 and fully 4% of the country's total retail sales, a figure in the area of $200B.
In a new report that looks back at a full year of Amazon sales data, eCommerce analytics firm One Click Retail explores the five biggest trends that have shaped Amazon in 2017:
Automated Marketing: Amazon spent 2016 quietly building its automated marketing system, then doubled down with some major upgrades to the system in 2017. An increased level of sophistication now allows brands to bid on a far broader range of keywords, targeting mobile, desktop, and/or app users, and even integrate with email marketing and vendor-powered coupons.
Consumables and Private Brands: In the first half of 2017, sales of Consumables on Amazon (including Grocery, Health & Personal Care, Beauty and Pet products), were on FIRE with over 35% YoY growth. Then to add fuel to the fire, Amazon announced the acquisition of Whole Foods, and along with it what is now its second-largest private brand: 365 Everyday Value, with over $10M in estimated 2017 sales.
Gadgets and Home Automation: Taking existing everyday items and making them SMARTER has proven to be a huge competitive advantage for brands, and of course Amazon has found a way to capitalize on this. Amazon's Alexa, the voice-activated personal assistant originally developed for the Echo smart speaker, has helped drive a boom in home automation.
China and No-Name Brands: In 2017, the trend is the strongest in the electronics space, with most white label products currently coming out of China, but it's quickly spreading across product groups and is a major growth opportunity for emerging brands in 2018.
Millennials: Every major trend we see across 2017 can be explained by the fact that more of Amazon's core demographic (millennials) are growing up: they're increasingly owning homes, raising children, and buying a TON of stuff to go with it. The bulk of the estimated $5.5B in Home & Kitchen sales comes from young people – those who shop from Amazon the most – investing in their homes and in their families.
"Ultimately, success – for both Amazon itself and for brands that sell through the platform – comes down to knowing your audience," explains Spencer Millerberg, CEO at One Click Retail. "It's clear that Amazon catered to the right crowd in 2017, and the brands that correctly understood who their products were for – and who they were most useful to – are the ones that had a very good year."
To view the full report, visit: http://oneclickretail.com/amazon-year-in-review-the-5-biggest-trends-of-2017/
About One Click Retail
One Click Retail is a leader in eCommerce data measurement, sales analytics and search optimization for brand manufacturers in North America and Europe. Using a combination of website indexing, machine learning and proprietary software to estimate weekly online sales and traffic figures with 90%+ accuracy down to the SKU level, One Click Retail has developed one of the most accurate, trusted and reliable data platform in the marketplace. The One Click Retail Product Suite provides 1st and 3rd party business intelligence across the largest online retailers such as Amazon, Walmart, Tesco, Sainsbury's, Macy's, and Home Depot. The world's top brands—such as Procter & Gamble, Panasonic, Nestle, Philips, and Sony—rely on One Click Retail insights to drive sales and profitability across eCommerce.
One Click Retail was acquired by Ascential plc in 2016.
SOURCE One Click Retail
Related Links http://oneclickretail.com
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