The Five Categories Where Amazon Will Increase its Ecommerce Sales Share
Amazon, the undisputed winner of online retail, continues its march towards e-commerce dominance. Already accounting for nearly 40% of US online sales, it shows no signs of slowing down. But where will its next wave of conquest unfold ? Lets see five categories where we will see Amazon doing its bests.
Health and Personal care: From Band-Aids to Beauty Products
This diverse category, encompassing everything from over-the-counter medications to cosmetics, represents a lucrative opportunity for Amazon. Driven by the increasing comfort with online healthcare purchases and Amazon’s strategic partnerships with major beauty brands, its share in this category is projected to jump from 7.4% in 2020 to a staggering 11.0% by 2024.
Several factors fuel this growth. Firstly, consumers, accustomed to the convenience of online shopping, are readily embracing e-pharmacies and online beauty retailers. Secondly Amazon’s Prime memberships program, offering fast and free delivery, becomes all the more appealing for essential personal care items. Finally, strategic partnerships with players like Procter & Gamble and L’oreal give Amazon access to a wider range of products and brand recognition.
Furniture and Home Furnishings: Redecorating the Online Landscape
Traditionally a brick-and-mortar stronghold, furniture and home furnishings are witnessing a significant online migration. Amazon, capitalizing on this shift, is expected to see its share climb from 11.9% in 2020 to 15.5% in 2024.
Several factors contribute to this surge. Firstly, the convenience of browsing and comparing furniture online, coupled with Amazon’s augmented reality tools for visualizing furniture in-home, remove the friction associated with traditional furniture shopping. Secondly, Amazon's vast logistics network ensures efficient delivery of even bulky furniture items, a major pain point for traditional retailers. Finally, Amazon’s private label furniture brands offer budget-friendly options, further enticing cost-conscious consumers.
Apparel and Accessories: Dressing Up the Ecommerce Game
While online apparel shopping is well-established, Amazon faces stiff competition from established players like Walmart and specialty retailers. However, its share is predicted to rise from 12.2% in 2020 to 14.6% in 2024, indicating steady progress.
Amazon’s success in this category hinges on several key strategies. Firstly, its Prime Wardrobe program, allowing customers to try on clothes before committing to purchase, mitigates concerns about size and fit. Secondly, its curated selection of private-label and name-brand apparel caters to diverse styles and budgets. Finally, strategic partnerships with fashion influencers and brands further augment its appeal.
Groceries and Consumables: Filling Pantries, One click at a Time
Groceries, once deemed unlikely candidates for online shopping due to perishability and delivery concerns, are now witnessing a digital revolution. Amazon, a pioneer in online grocery delivery, is expected to see its share jump from 20.5% in 2020 to a remarkable 24.0% in 2024.
Several factors drive this growth. Firstly, Amazon’s robust Prime membership program incentivizes online grocery shopping through free delivery and discounts. Secondly, its efficient last-mile delivery network and partnerships with local stores ensure a quick and convenient grocery delivery network and partnerships with local stores ensure quick and convenient grocery delivery. Finally, its innovative offerings like Amazon Fresh and Whole Foods Market integration provide a seamless brick-and-mortar-to-online experience.
Toys and Baby Products: A Playground of Ecommerce Growth
The toys and baby products category driven by high purchase frequency and brand loyalty, represents a fertile ground for Amazon’s expansion. Its share is predicted to increase from 17.2% in 2020 to 20.1% in 2024.
Several factors contribute to this growth. Firstly, parents, accustomed to online shopping for themselves, readily embrace online toy and baby product purchases. Secondly, Amazon’s Prime membership program, offering free shipping and discounts on subscriptions like Amazon Kids+, makes it a cost- effective choice. Finally its vast selection of toys and baby products caters to diverse needs and budgets, further solidifying its appeal.
