Amazon may call itself the “everything store,” but a growing chunk of that “everything” is now made by Amazon. A new report gives some idea just how much the online giant is making from its store brand products, and a hint at the potential market for everything from electronics through apparel.
According to a new report from analytics firm 1010data, Amazon’s many house brands — which include AmazonBasics, Amazon Essentials, Fire, Kindle, Echo, Goodthreads — are already bringing in hundreds of millions of dollars for the company.
How exactly 1010data gets this information is a bit of a mystery that it describes as, “a number of sources of consumer spending data representing millions of consumers to provide an accurate assessment of online and offline retail sales, market share, and more.” Okay.
What the company has been able to find out while watching what Amazon shoppers buy is that Amazon’s consumer packaged goods are growing steadily in popularity, and its recent proliferation of brands means that an even bigger proportion of the merchandise Amazon sells will be from its own products.
Only 2% of sales for now
The analytics firm also notes that around 2% of Amazon’s sales are normally its own branded products. That’s sure to grow as the brands increase their scope, from baby products to snacks to fashion. This year, house brands comprised about 12% of the company’s sales during the Prime Day shopping festivals.
It probably helped that the company discounted its voice-activated devices significantly on Prime Day. Speaking of electronics…
Gadgets lead the pack
The report shows how the Everything Store now wants to sell everything under its own brands, but most of the store-brand merchandise that it sells right now are electronics.
Specifically, the Fire TV is the top item, and Kindle and Echo products are also in the top ten. AmazonBasics, the company’s brand for commodity gadgets and accessories like smartphone cords and 48-packs of alkaline batteries, is the top brand by far, selling $210 million in the first half of 2017, compared to $120 million of the next most popular brand, Echo smart speaker products.
Fashion & Ampersands
Amazon fashion brands have proliferated in the last year. The “Amazon Essentials” brand is sort of the AmazonBasics of polo shirts, but otherwise, they have names that sound like real fashion brands, like “Lark & Ro” and “James & Erin,” or “Goodthreads.”
If you’re wondering what kind of growth these brands could be looking at, the children’s clothing brand Scout + Ro has been around for a few years, giving 1010data some past data to compare, and it showed that sales were up 542% from the first half of 2016 to the first half of 2017.