The State of the Amazon Era

Marketing intelligence and analytics platform Jumpshot, today released the State of the Amazon Era Data Report for Q1 2018. Although the report is definitely targeted at the increasingly irrelevant big CPG “national brand” marketer it does reveal some insights on Amazons private brands.

The report explores whether Amazon is a friend or a foe for brand marketers. The answer is not so clear as Amazon continues to eat market share, claiming more than 80% of conversions against other eCommerce sites across diverse product categories.

Jumpshot studied anonymous consumer actions within 500 online eCommerce sites and marketplaces in Q1 2018 and analyzed visits and conversions of different brand categories across these sites.

“I predict in the next few years that Amazon will own over 75% of all product searches online,” said Deren Baker, CEO of Jumpshot. “But it’s virtually impossible to get a clear picture of what your target customer is doing online, especially within walled garden sites like Amazon. Unbiased data products can help show your target customers’ entire online journey — understanding how and if to work with Amazon, how your brand stacks up against competitors, and what other eCommerce sites and marketplaces are worth investing. This is all critical to think about in the Amazon Era.”

Report findings:

  • Amazon continues to eat market share, at over 80% across diverse product categories.
  • Amazon has the highest market share with one-click commodity product categories such as batteries and cleaning supplies.
  • Even branded product categories like men’s athletic shoes, are dominated by Amazon.
  • Amazon continues to grow market share at up to 14% quarter over quarter.
  • Commodity product categories like batteries show highest quarter over quarter growth.
  • Higher priced product categories, such kitchen & dining, show smaller growth.
  • With some pretty obvious analysis the report declares: Amazon doesn’t have private labels cracked, only 7% market share when their leading line, Amazon Basics, isn’t counted. And, Amazon leads private label market share only in the Electronics category.
    • Amazon Basics makes up 88% of Amazon’s private label products.
    • Amazon owns 61% of private label conversions. But without Electronics, Walmart, Target and Macy’s have 74% share of conversions.
    • Excluding Amazon Basics – electronics, office, pets and home categories – Walmart, Target and Macy’s have 93% market share.
  • Brands are neck and neck to win market share on Amazon, with no clear leader.
  • The close market share between competitors suggests that Amazon shoppers do not have brand loyalty.
  • Brands can learn about their competition by tracking and analyzing their market share on Amazon.

To view and download the full Report, visit http://go.jumpshot.com/q1-data-report.html.

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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.