The Top Ten Categories That Amazon is Winning In
Long gone are the days when Amazon only sold books online. Its largest categories now are computer & consumer electronics followed by apparel & accessories and then books, music and video.
Amazon’s fastest growing category is food & beverages with a growth rate of 40.1%. While the category is growing fast it is starting from a low base. Food & beverage only represents 1.8% of Amazon’s eCommerce sales. People still like to go into stores to touch, feel and select their produce. But with heightened competition and innovation within the online grocery delivery sector this category is poised for growth.
The real eCommerce breakout star for Amazon is apparel & accessories. With a 38.2% growth rate apparel & accessories is Amazon’s second fastest growing category. Last year Morgan Stanley predicted that by the end of 2018 Amazon would become the number one retailer of apparel in the US ahead of Walmart and Target. According to an eMarketer report within a six month period, 63% of Gen Z and 57% of millennial shoppers bought apparel from Amazon. Initiatives such as Prime Wardrobe’s “try before you buy” service is an indication of Amazon’s commitment to reducing friction in online clothing shopping.
Amazon’s US Retail eCommerce Sales Growth by Category (2018 % Change)**
Food & beverage – 40.1%
Apparel & accessories – 38.2%
Health, personal care & beauty – 37.9%
Furniture & home furnishings – 37.2%
Toys & hobby – 30.7%
Other categories – 30.4%
Auto & parts – 29.4%
Office equipment & supplies – 29.4%
Computer & consumer electronics – 23.0%
Books, music & video – 18.9%
Amazon’s US Retail eCommerce Share by Category (2018)*
Computer & consumer electronics – 25.5%
Apparel & accessories – 15.4%
Books/music/video – 11.9%
Furniture & home furnishings – 9.0%
Toys & hobby – 6.7%
Health & personal care and beauty – 6.2%
Auto & parts – 3%
Office equipment – 2.9%
Food & beverage – 1.8%
Other – 17.6%
*Note: Includes: products ordered using Amazon.com regardless of method. Excludes: travel, event tickets, Amazon Web Services, advertising services and credit card agreements. Source eMarketer, June 2018
**Source: eMarketer, June 2018
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