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Amazon Q1 2017 Sales of Consumables See Double-Digit Growth as Total Market Experiences Decline, New Report Finds

One Click Retail research finds Americans and Europeans are increasingly relying on Amazon for purchases of health and personal care, baby and grocery items.

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SALT LAKE CITY, June 5, 2017 /PRNewswire/ — Amazon’s sales of consumables in the Health & Personal Care, Baby and Grocery groups saw double-digit growth in Q1 2017, while the total HPC and grocery markets experienced declines of 1% and 10%, respectively. As consumers shift away from brick and mortar towards eCommerce for consumables, the popularity of Amazon’s services such as Prime, Pantry and Fresh is gaining ground. This is according to research from One Click Retail, a leader in eCommerce data measurement, sales analytics and search optimization for global brand manufacturers.

Health & Personal Care

One Click Retail’s Health & Personal Care report reveals that Amazon is the best growth opportunity for HPC brands, given that US total HPC sales increased only about 1% in Q1 2017. Amazon already earned $1.3 billion, or 27.5% of the total annual sales, in 2016.  The real MVP of Amazon’s HPC product group continues to be Prime Pantry. With more shoppers buying into exclusive Amazon Pantry access, the rate of growth for HPC (and most other product categories) is much higher in Pantry than in the general marketplace, with top categories multiplying by hundreds of percentage points. The leading Amazon HPC category is Hair Care in the U.S. (85% growth), and Household Consumables (440% growth) in the UK.

Baby Products

In the Q1 2017, total US baby products revenues dropped 10%. Most of this decrease took place in offline sales, allowing eCommerce market share to rise from 20% to 22%. The Baby Products category enjoyed the highest eCommerce CPG penetration, with Amazon having 43% of the total. Q1 Amazon US sales of diapers increased 30%, baby food 15%, and baby formula 80%. In both the US and the UK, Amazon saw triple-digit growth of top brands like Pampers (700% increase).

Grocery

One Click Retail reports 30% growth in Amazon Grocery averaged across the US, UK and Germany, driven by the growing adoption of Amazon Prime in Q1 2017. Traditionally, grocery has been less susceptible to the shift towards eCommerce (in 2016, only 5% of U.S. grocery sales occurred online). According to Amazon sales data calculations for Q1 2017, Amazon’s grocery sales outpaced that of the total market fifteen-fold.

“The popularity of perishables is growing rapidly, not only because consumers are becoming more comfortable with buying their groceries online but also because Amazon is improving its delivery times and offering more fulfillment options,” explains Spencer Millerberg, One Click Retail CEO. “There are now more than 65 million Amazon Prime subscribers and they are more likely to buy their groceries online than non-subscribers. Last year’s sharp rise in Prime membership has continued into Q1 2017. With more shoppers buying exclusive access to Amazon Pantry, the rate of growth for most consumables is much higher in Pantry than in the general marketplace, with top categories multiplying revenue by as much as 5 times. As Amazon continues to corner the market, CPGs in the U.S., U.K. and Germany would be smart to engage with Amazon Prime members as their target audience.”

Methodology

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One Click Retail uses a combination of website indexing, machine learning and proprietary software to estimate weekly online sales figures with 98.5% accuracy down to the level of the individual SKU 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, OCR’s accuracy is unrivaled in the marketplace.

The OCR product suite provides 1st and 3rd party business intelligence across the 30 largest retailers. The world’s top brands, such as Procter & Gamble, Panasonic, Nestle, Hamilton Beach and HP, rely on OCR to drive sales and profitability across eCommerce.

One Click Retail was acquired by Ascential plc in 2016.

For more information, visit the company’s website, www.oneclickretail.com, and visit One Click Retail on Twitter and LinkedIn.

Media Contact:

Pola Hallquist
Apothecary Communications for One Click Retail
phallquist@apothecarycommunications.com
1-866-213-9210 x801

SOURCE One Click Retail; http://www.prnewswire.com/news-releases/amazon-q1-2017-sales-of-consumables-see-double-digit-growth-as-total-market-experiences-decline-new-report-finds-300468772.html

Related Links

http://www.oneclickretail.com

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