Amazon continues to dominate e-commerce and claims 80% of market share across multiple product categories. According to data company Jumpshot, in a recent report looking at the first quarter of 2018, Amazon has the highest market share with one-click commodity product categories.
And Amazon is still growing, as the company's e-commerce market share is up 14% quarter over quarter. Product categories that grew the most are lower-priced items, as higher-priced commodities such as kitchen and dining saw smaller growth.
However, the e-commerce giant has yet to dominate in the world of private label. So far, Amazon Basics owns 7% of the market share. It only leads in private label in the category of electronics.
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AmazonBasics accounts for 88% of Amazon's private-label conversions, while Amazon's private labels account for 61% of overall private label conversions. Discounting electronics, Walmart, Target and Macy's have 74% of conversions.
According to Deren Baker, CEO of Jumpshot, Amazon is currently the default choice for almost any retail category. And once on the site, Amazon leads almost every other retailer on converting traffic. But other brands have been able to get a foothold in the market.
For example, he cites Chewy.com, which has strengthened its share through the use of paid search.
"And our data shows they're creeping ahead of Amazon in the category of dog food through a big AdWords campaign," Baker told FierceRetail. "And sites like Wayfair have shown that once you've carved out a place in the minds of customers, you can capitalize on that loyalty by replicating the Amazon model. When Wayfair ran their Way Day promotion, mirroring Prime Day, they picked up 20% of market share in the home decor category, pulling sizable traffic and purchases away from Amazon."
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In addition, Baker recommends that retailers and brands look closely at consumer habits when on their own site and once they leave the site.
"Many retailers and brands we speak with have not been aware that these consumer insights behind walled garden sites exist. It's a game changer for retailers and brands in this increasingly competitive e-commerce landscape," he said.
Moving forward, retailers will need to keep close table on where Amazon will focus its private labels.
"Amazon has an advantage over other retailers and brands because they have access to all their own consumer insights—but now, we're helping at Jumpshot by providing digital intelligence from Amazon and the most valuable walled gardens," Baker added.