Amazon's Private-Label Brands 'Extremely Successful' Taking Market Share, Says Study

Amazon’s private-label brands are challenging its traditional suppliers, said a 1010data report Thursday based on consumer spending data collected September 2015-August 2016. Amazon brands have been “extremely successful” in taking market share from established brands in key product categories, and by leveraging its online shelf space to introduce new private-label Amazon products, the company is "changing the dynamic for category leaders" and putting itself in "direct competition with these suppliers,” the report said. The retailer sells its own products in more than a dozen categories, including computer accessories, batteries and speakers. 1010data found Amazon “heavily competing” with category leaders and in some cases “becoming the online category leader,” it said. The data company estimated online battery sales were $113 million in the past year and that 94 percent of all batteries sold online are through Amazon sites. The AmazonBasics battery line accounts for roughly a third of battery sales online, up 93 percent, said 1010data. The online speaker market generated an estimated $1 billion in sales over the year, and Amazon rang up 89 percent of total online speaker sales, said the analytics firm. Amazon Echo products have 45 percent market share in dollars among the top 10 speaker brands. “No matter the market, the challenge for brands in an increasing number of categories is that Amazon is the top online channel,” said Jed Alpert, 1010data senior vice president-marketing, and the reasons vary by category. In batteries, Amazon has a “price-competitive product in a largely commoditized market with little brand loyalty,” said Alpert. In speakers, “they’ve developed truly innovative products that are redefining the market,” he said. Brands can no longer view Amazon “as solely a channel and need to acknowledge Amazon as a competitor,” said Alpert. Reports from 1010data use consumer spending data sources representing millions of consumers to provide an assessment of online and offline retail sales.