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Mary Meeker report shows Amazon holds 90% market share in 5 categories

The recently released Mary Meeker report from Kleiner Perkins has highlighted the dominance that Amazon has built within ecommerce. Such is Amazon’s dominance, they hold over 90% of the online market share in five separate product categories; batteries, skin care, home improvement tools, kitchen and dining accessories and golf.

Not only is Amazon dominating these categories, but in a report from Jumpshot, they managed to feature strongly in all seven of the product categories included in the report with the five listed above joined by ‘cleaning supplies’ and ‘men’s athletic shoes’ of which they feature above 70% in both.

Amazon’s rapid growth is highlighted by an 8% rise in ecommerce gross merchandise value since 2013, a period in which the rest of ecommerce players’ value shrunk.

It is also becoming evident that it is not just the well-known brands that are helping Amazon to dominate the market with its range of private labels also performing well when compared to the ecommerce sales of Walmart, Target and Macy’s.

The ecommerce giant’s private label conversion rates equate to approximately 50% more than that of the aforementioned department stores. Most notably it is electronics that account for the majority of the share as when the conversion share of electronics is taken away, there is a 35% shift in the share of private label conversions to Walmart, Target and Macy’s.

Much of the reasoning behind this is because the majority of electronic equipment purchased on Amazon includes things like chargers, cables and batteries that are purchased far more frequently than devices like TVs.

Department stores like Macy’s, Target and Walmart will continue to remain competitive in private labels but will struggle to maintain competition in categories involving high frequency purchases. The data shows that for these businesses, consumers are purchasing their private labels in the Home and Women’s clothing categories with Amazon already dominating the others.

It is important to note that ecommerce as a whole is growing rapidly due to the convenience and time-friendly nature of online service. Amazon’s rise can be attributed to its diversity of offerings and the comprehensive delivery services that it offers to its customers. However, with a long way still to go with ecommerce sales only at 13% of total retail sales as of last year, it is clear that Amazon holds the upper hand in a growing market.