Amazon’s sales of consumables in the first quarter of 2017 saw double-digit growth. Specifically, growth was strong for Amazon in the sales of health and personal care (HPC), baby and grocery, far outpacing the general market, where HPC and grocery declined 1% and 10%, respectively.
According to research from One Click Retail, the HPC sector in general in the United States grew only about 1% in the first quarter, but the greatest growth lies in partnering with Amazon, which continues to grow due to the success of Prime Pantry. The rate of growth for HPC for brands in Pantry is much higher than in the general marketplace. Hair care was in the lead with an 85% growth.
"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," explained Spencer Millerberg, CEO, One Click Retail.
Throughout the U.S., the first quarter was tough on baby products, with revenues dropping 10%. However, online sales grew, making up 22% of all baby product sales. Amazon captured 43% of online baby product sales. Specifically, first-quarter Amazon U.S. sales of diapers increased 30%, baby food 15%, and baby formula 80%.
And, of course, Amazon Grocery experienced a big quarter, rising 30% in the U.S. According to Amazon sales reports for the first quarter, Amazon's grocery sales outpaced that of the market in general by fifteen-fold.
“While Amazon's overall growth is impressive, there are some categories where growth is even more explosive,” Millberg told FierceRetail. “The brick-and-mortar landscape of brands does not hold true on Amazon with new entrants and small brands now on equal footing. Branded manufacturers have under 24 months to deploy their Amazon strategy before the die is cast and it becomes very difficult to unseat the new incumbent.”