Amazon Era: When People Shop Online, They’re Most Likely to Start on Amazon
State of the Amazon Era Data Report: Amazon Owns Over 80 Percent Market Share Across Product Categories
Amazon is the most competitive battleground for brands to showcase their legitimacy and increase customer reach. The leading ecommerce platform continues to eat into market share and offer the highest product label conversions. To stay on top of the Amazon Era, marketing teams must know the pulse of present ecommerce trends. To help marketing teams and brands understand the marketing on Amazon, Jumpshotrecently released the State of the Amazon Era Data Report for Q1 2018. The report explores whether Amazon is a friend or a foe for brand marketers.
Amazon continues to eat market share, claiming more than 80 percent of conversions against other eCommerce sites across diverse product categories.
Jumpshot studied anonymous consumer actions within 500 online ecommerce sites and marketplaces in Q1 2018 and analyzed visits and conversions of different brand categories across these sites.
Amazon Will Own over 75 Percent of All Product Searches Online
At the time of this announcement, Deren Baker, CEO of Jumpshot, said, “I predict in the next few years that Amazon will own over 75 percent of all product searches online. But it’s virtually impossible to get a clear picture of what your target customer is doing online, especially within walled garden sites like Amazon.”
Derek added, “Unbiased data products can help show your target customers’ entire online journey — understanding how and if to work with Amazon, how your brand stacks up against competitors, and what other ecommerce sites and marketplaces are worth investing. This is all critical to think about in the Amazon Era.”
Amazon is the King of Online Shopping Choices
- Brands are neck and neck to win market share on Amazon, with no clear leader.
- The close market share between competitors suggests that Amazon shoppers do not have brand loyalty.
- Brands can learn about their competition by tracking and analyzing their market share on Amazon.
- Amazon continues to eat market share, at over 80 percent across diverse product categories.
- Amazon has the highest market share with one-click commodities product categories such as batteries and cleaning supplies.
- Even branded product categories like men’s athletic shoes are dominated by Amazon.
The Market is Fattening with Rich Opportunities for Daily-Use Commodities
- Amazon continues to grow market share at up to 14 percent quarter over quarter.
- Commodity product categories like batteries show the highest quarter over quarter growth.
- Higher priced product categories, such as kitchen & dining, show smaller growth.
The Go-To Choice for Electronics Labels
- Amazon doesn’t have private labels cracked, only seven percent market share when their leading line, Amazon Basics, isn’t counted. And, Amazon leads private label market share only in the Electronics category.
- Amazon Basics makes up 88 percent of Amazon’s private label products.
- Amazon owns 61 percent of private label conversions. But, without Electronics, Walmart, Target and Macy’s have 74 percent share of conversions.
- Excluding Amazon Basics – electronics, office, pets and home categories – Walmart, Target and Macy’s have 93 percent market share.
Currently, Jumpshot delivers digital intelligence from within the Internet’s most valuable walled gardens. The company’s real-time, opt-in global panel tracks five billion actions a day across 100 million devices to deliver insights into online consumer behavior. Jumpshot works with customers including Condé Nast, Kantar, TripAdvisor, Moz, SEMrush, IRi, and GFK, among others.