SALT LAKE CITY, Oct. 12 2017 /PRNewswire/ -- Already experiencing steady double-digit growth, in the third quarter of 2017 Amazon's sales of consumables ramped up significantly. As the grocery and health & personal care markets stagnate in the brick and mortar space, Amazon sales have picked up the slack, according to a new report by One Click Retail. Amazon Q1 to Q3 2017 sales of consumables have totaled $2.4B in the US (up 60%), £180M in the UK (up 45%), €175M in Germany (up 62%), $50M in Canada (up 113%) and €40M in France (up 124%).
Health and Personal Care
Across all five countries, Health & Personal Care was the largest of the four product groups, accounting for more than a third of Amazon's total consumables sales. The largest growth rates again took place in the smaller markets of Canada and France. Still, in Amazon's most developed markets – the US and UK – growth continues to increase, rising from 30% in Q1 and 40% in Q2 in both countries to 49% and 46% respectively in Q3.
Traditionally, high-end beauty brands would focus sales initiatives on specialized brick-and-mortar outlets, whereas sales on Amazon would be for inexpensive, mass market cosmetics. Data from the report shows this remains a factor – in 4 out of 5 of our measured countries Skin Care is the leading category – however, the tide finally seems to be turning. Prestige products grew fastest in both the UK and Germany and two of the major growth categories in the US were Luxury Cosmetics (69% growth) and Luxury Skin Care (37% growth). In Canada, Luxury Skin Care earned $300,000 in Q3, a far cry from the $25M earned by the category in the US but more than double the sales over the same period in 2016.
With Amazon Fresh, Amazon made a commitment to competing in the perishables space. In Q3 2017, Amazon Fresh generated $90M in sales in the US, consistently growing at an average of 3% per week during the quarter. Findings from the report reveal that half of Fresh sales were split between dairy products and produce, followed by meat (including deli meats and seafood) with 18% of sales. The US, France and the UK experienced the highest growth rates in this category up 93%, 167% and 65% respectively. The more recent purchase of Whole Foods is also bound to make a major impact on Amazon Grocery. However, it is still too early to see a meaningful effect.
Consistent with Q2, Pet Food & Feeding Supplies continues to be the fastest-growing category in both the US and France where it makes up two thirds of total product group sales, and Pet Food now ranks as the top category in all five countries. Health Care, which drove growth in Q3 across all countries, was the fastest-growing category in both the UK and Canada, and Organic Pet Food, which earned $2M in sales, a 180% increase over the same period in 2016.
"Emerging eCommerce categories, such as spirits and luxury cosmetics, are capturing more of the buying public, and brands adopting Amazon as a primary sales channel are experiencing great success," explains Spencer Millerberg, One Click Retail CEO. "While the effect of Whole Foods on the Grocery product group will not be fully understood until our Q4 review, Amazon's sales and growth in consumables is already a major success story."
Additional One Click Retail quarterly reports on Amazon Consumables:
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 and Europe. Using a combination of website indexing, machine learning and proprietary software to estimate weekly online sales and traffic figures at the SKU level, OCR has developed the most accurate, trusted and reliable data platform in the marketplace. The OCR Product Suite provides 1st and 3rd party business intelligence across the largest online retailers such as Amazon, Walmart, Tesco, Sainsbury’s, Macy’s, and Home Depot. The world's top brands, such as Procter & Gamble, Panasonic, Nestle, Philips, and Sony, 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
SOURCE One Click Retail