Amazon’s Household Item Sales Rise As Superstores, Drug Stores Feel The Pain

Amazon’s revenue from everyday household items is booming, and sales don’t appear to be slowing down, as the online retailer continues to take business away from superstore, grocery and drug store channels.

According to data from One Click Retail (OCR), Amazon’s combined average year-over-year growth (YoY) rate in household items is 38 percent, compared to the total retail market’s combined growth average of 6 percent. That means Amazon’s growth rate in this market is three and a half times that of the U.S. domestic market. Everyday household items include housewares (home and kitchen), health and personal care and beauty.

Chain Store Age reports that much of Amazon’s growth in this area can be attributed to millennials who prefer to shop online. The housewares product group accounted for 15 percent of the company’s YoY total sales growth in 2016, with housewares generating almost $7 billion in sales last year. And while retail market growth of beauty and cosmetics sales in the U.S. is at a low 2 percent, Amazon sales have skyrocketed by 47 percent YoY.

Another factor in Amazon’s success is the growth of Prime Pantry, which proves that subscription-based eCommerce services can be successful. In fact, the OCR report explained that the success of drug stores and supercenters will depend on whether they decide to sell on Amazon, come up with their own online sales strategy or do nothing.

“What we’re currently witnessing is eCommerce finally beginning to disrupt everyday household products, with Amazon leading the pack,” said Spencer Millerberg, OCR’s CEO. “Consumers benefit from buying these items in bulk and having them delivered right to their doorsteps. Our numbers continue to demonstrate just how significant these everyday items are in helping to drive Amazon’s exponential YoY growth.”