According to e-commerce analytics firm One Click Retail, Amazon was responsible for around 44% of all online retail sales in the United States last year. The e-commerce giant was also responsible for around 4% of the combined retail sales, both online and offline, in 2017.
Some of the most product categories that grew the fastest last year on Amazon included luxury beauty which was up by 47% year-over-year. Pantry items grew by 38% year-over-year while grocery and furniture were both up by 33% year-over-year. According to the chief executive officer of One Click Retail, Spencer Millerberg, the growth of Amazon in 2017 could partly be attributed to the growing incomes and needs of its core demographic.
“Every major trend we see across 2017 can be explained by the fact that more of Amazon’s core demographic (millennials) are growing up: they’re increasingly owning homes, raising children, and buying a TON of stuff to go with it,” wrote Millerberg in a report.
The consumer electronics unit of Amazon, which stocks items such as headphones, laptop, mobile devices and various computer components, recorded the most dollar sales as it exceeded the $8 billion mark. Other top-grossing categories included sports and outdoors, publishing as well as Home and Kitchen.
Last year Amazon rolled out a system to automate marketing catering to brands sold on its website. The Seattle, Washington-based online retail giant also introduced more private-label products. According to Millerberg this year will see Amazon increasing its private-label offerings as the online retail giant also begins to enjoy the synergies provided by Whole Foods which it acquired last year.
By the end of last year, the sales generated by the private-label brands of Amazon had reached close to $450 million. Most of the items were under the AmazonBasics brand which sells products that include computer cables and batteries.
This comes in the wake of a report that Amazon is carrying out experiments with a view to offering advert placements on its Echo range of smart speakers. This will be viewed as an intrusion on a space currently dominated by Google and Facebook.
Per research firm eMarketer, Google and Facebook dominated digital advertising having garnered about 63.1% of all online advertising revenues last year. eMarketer also estimates that Google’s market share in online search advertising could exceed 80% by next year. If Amazon does get into digital advertising its advantage would be its consumer purchase history as well as it already attracts an audience that has a high buy intent.