SALT LAKE CITY, April 6, 2017 /PRNewswire/ -- Research from One Click Retail, a market leader in eCommerce data measurement, sales analytics and search optimization for global brand manufacturers, released a series of reports showing how Amazon has gained a significantly larger share-of-wallet for everyday household items. This is demonstrated by a combined average year-over-year growth (YoY) rate of 38% on Amazon, compared to the total retail market's combined growth average of 6%, for U.S. housewares, health & personal care and beauty industries.
As is the case across most traditional retail product groups, Amazon is on track to cause serious disruption to the U.S. superstore, grocery and drug store channels. According to One Click Retail's "The Amazon Effect" industry reports, which break down specific product groups and compares Amazon's category sales performance to the total retail market's, Amazon far outpaces total retail growth (YoY) in American household purchases. This can be credited to millennials who are spending more than twice as much as other demographics when purchasing household items online.
OCR data shows that Amazon's growth rate in Housewares is three and a half times that of the total U.S. domestic market. The Housewares product group proved to be one of the main drivers of Amazon's 2016 success, accounting for 15% of the company's YoY sales growth in 2016. Housewares, including Home and Kitchen, generated almost $7 billion in sales for Amazon in 2016, a significant increase over 2015's $5 billion plus.
Health & Personal Care
Health & Personal Care sales on Amazon are growing close to 5 times faster YoY than the total domestic market, with significant increases in Nutrition & Wellness (+ 40%), Baby Care (+ 30%), Household Consumables (+ 55%), and Health Care (+ 45% YoY growth). Amazon Prime Pantry's immense growth this year illustrates the success of subscription-based eCommerce initiatives. Items that historically struggled online can now be packed alongside other Pantry items and shipped in a single box, bringing shipping costs down.
Despite the fact that total retail market growth of beauty and cosmetics sales in the U.S. is a stagnant 2%, Amazon sales have skyrocketed by 47% YoY. Skincare products and men's products are the drivers behind Amazon's Beauty product group growth. OCR's findings suggest that Amazon's success in this product group is driven by the sale of a very large volume of small, inexpensive items.
The future success of drug stores and supercenters will be dependent upon whether they consider selling on Amazon, introducing their own online sales strategy or choosing to do nothing at all.
"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."
One Click Retail uses a combination of website indexing, machine learning and proprietary software to estimate weekly online sales figures at the SKU level on Amazon.
About One Click Retail
One Click Retail is a market leader in eCommerce data measurement, sales analytics and search optimization for brand manufacturers in North America, Europe and Asia. Thanks to their proprietary sales calculations that are 98.5% accurate down to the SKU level, OCR's accuracy is unrivaled in the marketplace.
The OCR Product Suite provides 1st and 3rd party business intelligence across the 30 largest retailers such as Amazon, Walmart, Target, Staples and Home Depot. The world's top brands, such as Procter & Gamble, Panasonic, Nestle, Hamilton Beach and HP, rely on OCR insights to drive sales and profitability across eCommerce.
One Click Retail was acquired by Ascential plc in 2016.
Apothecary Communications for One Click Retail
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SOURCE One Click Retail