Study: Amazon’s market share is on the upswing cross-category — but not all of them

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Study: Amazon’s market share is on the upswing cross-category — but not all of them

By Deena M. Amato-McCoy - 05/31/2018
Amazon continues to eat market share across diverse product categories, especially commodities.

The online giant has more than 80% of conversions in the first quarter of 2018 compared to other e-commerce sites across diverse product categories, according to the “State of the Amazon Era Data Report, Q1 2018,” from Jumpshot. (The company studied anonymous consumer actions within 500 online e-commerce sites and marketplaces in the first quarter of 2018, then analyzed visits and conversions of different brand categories across these sites.)

According to the data, Amazon has the highest market share for the quarter with one-click commodity product categories, such as batteries (97%) and cleaning supplies (88%). Cleaning supplies specifically, shows the highest quarter-over-quarter growth, at 13%, the study said.

Amazon also dominated across branded product categories, including men’s athletic shoes (74%).

One area that Amazon has yet to crack compared to other brands is private label. The company’s Amazon Basics line comprises 88% of Amazon’s private label merchandise. Excluding this line however, the online giant only had 7% market share of private label sales in Q1.

Amazon lead private label market share only in the electronics category. Among AmazonBasics, electronics made up 45% of private label conversions. The rest of the company’s private label conversions are comprised of home, office and pet merchandise, according to the study.

When it comes to private label conversion share, Amazon is responsible for 61%. The remaining 39% is comprised of sales from Walmart, Target and Macy’s. However, without the electronics category, Walmart, Target and Macy’s have 74% share of conversions.

The area where these players are focusing their private label efforts are in women’s clothing and home. For example, 34% of Walmart’s Q1 private label conversions were in the home category, and 4% in women’s clothing, while Macy’s had 52% conversions in women’s clothing. Target trailed behind with 39% of conversions across both women’s clothing (17%) and home (16%) (the children’s category made up the remaining 6%).

“Amazon, Walmart, Target and Macy’s are placing bets in different product categories,” the study explained.

“In the Amazon Era where consumers continually shop and purchase across various e-commerce sites, the big players like Amazon, Walmart.com and Target have an unfair advantage,” the study continued. “They have customer insights and data across all brands — that marketers may not have access to –- and are making decisions of where to invest and build private labels. In order to build powerful products and brands, and grow market share, marketers should have access to the same kind of data and insights from within these walled garden e-commerce sites.”

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