Market research firm Numerator analyzed Amazon private label initiatives, and the company’s 135 own and 330 exclusive brands, determining that consumables are primed for growth even if 58% of sales occur in electronics, with Alexa-enabled products leading the pack.
However, sales of Amazon-branded electronics fell about 10% in 2018, while private label sales in the e-tailer’s core CPG categories, including household, pet, baby, grocery and health & beauty, advanced significantly. Combined, those categories gained about 81%. AmazonBasics dominates the consumables own-brand lineup with 39% of company private label CPG sales. Still, Numerator stated, up-and-coming private labels such as Presto! and Solimo have established themselves as key players as well, driving 47% of Amazon private label CPG growth.
Presto! enjoyed significant growth in 2018 when it expanded beyond laundry detergent and began offering a variety of household products like paper towels, bath tissue and garbage bags. Amazon capitalized on the 78% of Presto! buyers already purchasing paper and plastic items on Amazon prior to the new own-brand item launches in 2018. For the other 22%, Presto! represented a first paper and plastic category purchase on Amazon.
If Amazon is able to get shoppers signed on for repeat purchases of its own branded items, Numerator maintained, they have the potential to grow private label share exponentially.