Amazon Killing It With Its Own Products

1010data released Thursday (Nov. 3) new analysis that shows that, by leveraging its online shelf space to introduce new private-label products, Amazon has had success in stealing market share from established brands in a lot of product categories.

In a press release, 1010data said Amazon is changing the dynamic for category leaders because it is putting itself in direct competition with the suppliers of products. According to 1010data, Amazon currently hawks its own products in more than a dozen categories, including everything from home goods to pet supplies. 1010data found that, from Sept. 2015 to Aug. 2016, in batteries, speakers and baby wipes, Amazon is competing aggressively and, in some cases, becoming the category leader online.

“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,” said 1010data in the press release. “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.”

Researchers found that Amazon Elements, the product line it launched at the end of 2014 that includes baby wipes and is exclusive for Prime members, has become one of the top brands for baby wipes online. “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),” wrote 1010data.”Furthermore, sales of the Amazon Elements baby wipes have grown 266 percent year over year, and customers who viewed Amazon’s product are three times more likely to purchase than the category average.”

As for online speakers, 1010data showed Amazon is killing it, accounting for 89 percent of total online speaker sales. Amazon Echo as a brand holds a 45 percent market share among the top 10 brands based on dollars sold, 1010data said.



About: Accelerating The Real-Time Payments Demand Curve:What Banks Need To Know About What Consumers Want And Need, PYMNTS  examines consumers’ understanding of real-time payments and the methods they use for different types of payments. The report explores consumers’ interest in real-time payments and their willingness to switch to financial institutions that offer such capabilities.

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