Amazon had an impressive 2017 — and for retailers looking to keep up, the battle remains an uphill fight.
The e-tailer was responsible for 44 percent of e-commerce sales, or 4 percent of all retail sales, according to a report from One Click Retail.
Amazon’s increased success is spurred in large part by millennials. As the demographic “grows up” and has more earning power — and as millennials have families of their own to shop for — the cohort continues to spend more online.
Amazon’s burgeoning private label business — another area of interest for younger consumers — is also likely adding to its clout. While the e-tailed sells a large chunk of goods through third parties, the company has expanded through private labels across numerous retail categories.
According to One Click Retail, Amazon netted nearly $450 million in sales from its private labels alone last year, with the bulk made up of sales from Amazon Basics, which sells computer cables and batteries. And Whole Foods, which Amazon purchased in June, is already the second-largest private brand for the e-commerce giant.
The success of these private labels is augmented by Amazon’s strong holiday season, which the company dubbed its “biggest” ever. Surging Prime memberships and increased use of Amazon’s mobile app helped drive sales throughout the holiday season.
Some struggling traditional retailers have already reported strong 2017 holiday sales, with e-commerce sales becoming a bigger component of their balance sheet. But with its eggs spread out across many different baskets, Amazon remains a difficult beast for traditional retailers to keep up with.
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