How threatening are Amazon’s own brands to brands that rely on Amazon.de sell? The Amazon analytics specialist emax digital has taken a closer look at the online giant’s own-brand business exclusively for “D2C radar”. […]
It’s no secret that in addition to established branded products, Amazon now offers more than 100 of its own brands with thousands of mostly cheaper products. Amazon analytics specialist emax digital has taken a closer look at the online giant’s own-brand business exclusively for D2C radar and combined its own analyses with Amazon’s reporting.
Overall, the average share of sales of “Amazon Basics” products in the search for “vacuum cleaners” in the fourth quarter of 2020 was 20 percent (c) emax digital
For example, the sales in the category “vacuum cleaners” were considered. Overall, the average share of sales of “Amazon Basics” products in the search for “vacuum cleaners” in the fourth quarter of 2021 was 20 percent, i.e. only one percent higher compared to the previous year. By the end of January 2022, however, the value had skyrocketed to over 30 percent. The dip just before Christmas is probably due to the increased advertising volume of the traditional brand manufacturers Bosch, Siemens, Philips and also Miele, who have boosted their Christmas business with search advertising.
Promotional activities by Bosch, Siemens, Philips and Miele just before Christmas caused Amazon’s conversion share to drop (c) emax digital
It was also evaluated how often Amazon private labels are among the three most clicked and bought products of the 10,000 most frequently used search terms. Sorted by categories, a mixed picture emerges. Amazon’s own products are particularly successfully represented in “electronics”, “Smart home” and “Clothing”, i.e. categories in which the company launched its own products years ago. From the strong growth rates compared to the same period last year, it can be seen which categories Amazon is trying to penetrate with its own brands: “Accessories”, “Office”, “Gaming” and “Jewellery”.
In “Electronics”, “Smart Home” and “Clothing” Amazon Basics are strong (c) emax digital
Amazon scores especially with generic search terms
It becomes clear: Amazon is massively expanding its own brand program in very different categories. However, since Amazon first has to build up its own brand awareness and it is also questionable whether the e-commerce giant can build really strong brands, the successes are especially evident with generic search terms. In particular, brands that rely heavily on generic search / categories are at risk. Strong brand manufacturers are probably not affected to a relevant extent in the short to medium term.
emax digital therefore advises brand manufacturers to keep an eye on the ranking of their products for generic search terms in order to see whether Amazon-owned products are increasingly appearing. Then the paid search helps to keep Amazon at a distance. On the other hand, you can also use the success of your own brands for yourself and advertise on Amazon product detail pages. As a rule, customers do not know the Amazon brands and are often happy to be offered a brand alternative. However, the prerequisite is that your own product can withstand a comparison with the competition.