The Amazon Seller's Week in Review, May 16th, 2017

In this Amazon Seller's Week in Review, Kiri Masters, our CEO and founder, shares her take on recent news highlights and what these could mean for brands selling on the Amazon marketplace.

 

1. Baby products are booming on Amazon. 

According to new research from One Click Retail, Amazon is receiving a disproportionate amount of sales growth in this shopping category. In the US, 20% of all Baby Product sales are made online - this is 10X the eCommerce market share for all consumer packaged goods. Amazon.com is responsible for 43 cents on every dollar spent online on Baby Products in America.

Here are some other highlights from the report: 
• $30 billion: The total value of the U.S. Baby Products market.
• $2 billion: Amazon.com’s Baby Products sales.
• 7%: The YoY growth of U.S. Baby Products.
• 20%: The YoY growth of Amazon.com’s Baby Products.

amazon baby sales products ecommerce 2017 - amazon  news- bobsled marketing.jpg

 

2. Amazon Lowers Free-Shipping Minimum to $25 to compete with Walmart.

This continues a tit-for-tat war between the two retailers, initiated by Walmart, which offers free shipping on orders from an assortment of 2 million items for orders of $35 or more.
Recently, Amazon lowered the minimum for shoppers who are not members of its Prime subscription program. These changes indicate that Amazon does not view the free shipping component of its Prime program as the single reason for customers to sign up. Instead, Prime now offers so many valuable features for consumers that it can afford to lower the free shipping threshold for non-members.

 

3. Amazon doubles down on furniture. 

Amazon has expanded its merchandise assortment and custom designs in the furniture category, and sources have said that Amazon is building at least 4 warehouses focused on fulfilling and delivering bulky items in this category.

According to a Marketwatch report, the furniture general manager at Amazon said that “Furniture is one of the fastest-growing retail categories here at Amazon. The company is expanding its selection of products, with offerings including Ashley Furniture sofas and Jonathan Adler home décor, and it is adding custom-furniture design services. Amazon is also speeding up delivery to one or two days in some cities.”

Barclays estimated in the Marketwatch report that 15% of the $70 billion U.S. furniture market has transitioned online.

 

4. Amazon is top-rated for "brand intimacy".

MBLM’s Brand Intimacy 2017 Report found Amazon placed first in the retail category, followed by Whole Foods Market. Brands high in this intimacy index are "exemplars in building emotional bonds and deep connections with their customers and creating stronger attachment and engagement."

Amazon specifically "provides countless ways to seek out new information and purchases of all kinds".

This is one of many reports which places Amazon in the top tier for customer trust and other emotional markers of satisfaction.
 

Let me know what Amazon has been doing lately that has you puzzled or excited. Until next week's round of Amazon Seller's Week in Review, join us in our private community for brand owners and Channel Managers on Facebook: Amazon Chanel Mastery for Brands. We share insider tips about e-commerce and selling on Amazon.