On Prime Day 2019, the biggest winners were known brands and Amazon devices, as Amazon-owned private label brands took a back seat, according to Marketplace Pulse research. Over a million products were available with a Prime Day deal, but as competing retailers like Walmart and Target launched their shopping events, Amazon shifted focus to exclusive products and new product launches.
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The number of AmazonBasics best-sellers has grown by fifty percent in a year - from just over 700 in July 2018 to surpassing 1,000 this July. Amazon continues to launch new products, validate demand for them, and stop selling those which fail to attract customers.
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Less than 24% of the top Amazon third-party sellers are large resellers, each representing hundreds of brands on Amazon. Their share of the top sellers has been decreasing by two percentage points a year - down from 26% in 2018, 29% in 2017, and 31% in 2016 - indicating the challenges of growing a reseller type business on Amazon.
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More than three-quarters of Amazon searches are unbranded, seeking for generic products rather than name brands. Search terms highlight how Amazon shoppers' behavior is shifted from a brand-driven world observed elsewhere to a needs-based decision process.
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Amazon has single-handedly - and permanently - raised the bar for convenience in online shopping. However, across the digital sector, some people are asking what the long-term negatives of convenience are. This convenience driving the Amazon flywheel hides some severe issues.
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Amazon's retail platform is built on legacy principles of the wholesale past. As it slowly readjusts to offer more data and better tools for brands, brands are innovating outside of Amazon, leaving it, together with the rest of retailers, watching from the sidelines.
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In the headphones category on Amazon, 2,435 different products from 766 brands were one of the top 100 best-sellers in the last twelve months. That’s seven new products from two new brands every day replacing previous products in the top 100 list.
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The anecdote answer to the question “How do you feel about the data you’re getting from Amazon?” is “What data?” Brands and merchants often critique Amazon for the lack of data available. However, the limited data it does provide is enough to reverse engineer the supply and demand matrix.
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According to Marketplace Pulse research, Amazon-owned private label brands are not nearly as successful as many paint them to be. Amazon has been successful in creating generic items at low prices, but only when using the Amazon brand name (i.e., AmazonBasics and Amazon Essentials). Otherwise, the hundreds of brands and tens of thousands of products launched are not resonating with customers.
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The majority of top Amazon sellers joined the platform years ago and despite growing competition, changing Amazon fees, shifting brands focus, and the explosion of private label, they are still at the top.
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