The home category is now one of Amazon’s key product groups according to the Amazon H1: Home report from e-commerce sales data resource One Click Retail. The firm, which doesn’t detail its methodology, released a report that the home category earns Amazon more than $1 bn per quarter and that, as of the first half of 2018, year-over-year growth of this group is 16 per cent, which translates to hundreds of millions of dollars.
One Click has indicted in the past that it uses a combination of data collected from websites and machine learning that includes information such as market share, competitive sales, category growth, traffic and conversions, ratings, reviews and pricing analytics.
This new report indicates that the home environment category, which includes air conditioning units, air purifiers and dehumidifiers, is the fastest growing subcategory under home. That is followed by home storage and organisation, including items like trash cans, shelving units, hangers and hampers. Vacuums are currently the third highest-selling subcategory, and One Click reports that seven of the 10 bestselling home items on Amazon are vacuums, with the Roomba iRobot brand leading the pack. Bedding is the fourth highest selling home category with a 10 per cent growth rate year-over-year and earnings in excess of $290 mn. This includes accessories such as bed linens, pillows, and mattress and pillow protectors.
One of the largest growing brands in the home space is AmazonBasics, which is Amazon’s equivalent of a store brand. Similar to other store brands, consumers can often find cheaper versions of products, ranging from bedding to case goods and even home office furniture. The report indicated that AmazonBasics controlled about 5 per cent of the home storage and organization market on its site in the first half of this year, compared with just 1 per cent in 2017.
According to the report, “It’s no wonder that Amazon is becoming one of America’s major home and housewares retailers. Its voice-activated personal assistant, Alexa, has been embraced by the home automation industry as a key technology. Home is already one of Amazon’s biggest product groups, and there is still plenty of room for growth, competition and innovation.”