Amazon Private Brands Gaining Market Share

A new report from 1010data, Inc. shows that 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 Amazon private brands, 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 report presents 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-elements-batteriesAmazon 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% 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% 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.

amazon-elements-wipesAt 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% market share based on total dollars sold among the top 10 brands, just behind Huggies (33%) and Pampers (26%). Furthermore, sales of the Amazon Elements baby wipes have grown 266% year over year, and customers who view Amazon’s product are three times more likely to purchase than the category average.

amazon-echoThe online speaker market generated an estimated $1 billion in sales this past year. According to the research, Amazon.com accounts for a booming 89% of total online speaker sales, and Amazon Echo as a brand holds a 45% 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% year over year.



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Christopher Durham
Christopher Durham is the president of My Private Brand and the co-founder of The Vertex Awards. He is a strategist, author, consultant and retailer who built brands at Delhaize-owned Food Lion, and lead strategy and brand development for Lowe’s Home Improvement. He has consulted with retailers around the world on their private brand portfolios including: Family Dollar, Petco, Staples, Office Depot, Best Buy, Metro (Canada), TLW (Taiwan) and Hola (Taiwan). Durham has published five definitive books on private brands, including his first book, Fifty2: The My Private Brand Project. In 2017, he will debut his newest book, Vanguard: Vintage Originals, a visual tour of innovation and disruption in private brand going back to the mid-1800’s. Dynamic in his presentation while down to earth and frank in his opinions, he has presented at numerous conferences, including FUSE, The Dieline Conference, Packaging that Sells, Omnishopper and PLMA’a annual trade show in Chicago. Durham lives in Charlotte, NC with his wife, Laraine, and two daughters, Olivia and Sarah.