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Amazon’s Private-Label Brand Is Gobbling Up Market Share

Amazon is successfully taking market share from established brands in several product categories, analysis from market-research firm 1010data purports.

Using consumer spending data representing millions of consumers, the research firm said it analyzed sales trends from September 2015 to August 2016 for the batteries and portable speaker categories, two of the categories that the e-tailer sells its private-label products.

According to 1010data, estimated online battery sales were approximately $113 million this past year, and 94 percent of all batteries sold online were sold through Amazon sites. Among the top 10 battery brands, the private-label AmazonBasics brand accounts for about one-third of battery sales online, which is up 93 percent from the prior-year period.

The online speaker market, meanwhile, generated an estimated $1 billion in sales this past year. The Amazon Echo is the most popular speaker sold online, said 1010data, which also noted that Amazon and its third-party sellers command 89 percent of total online speaker sales. The Echo brand reportedly holds a 45 percent market share among the top 10 brands sold on the Internet based on dollars sold.

The reasons for the e-tailers success vary, said aid Jed Alpert, 1010data marketing senior VP. The AmazonBasics batteries are extremely price competitive and exist in a market with very little brand loyalty, he noted, while the Echo speakers are “truly innovative products that are redefining the market.”

“The bottom line for brands,” he concluded, “is they can no longer view Amazon as solely a channel and need to acknowledge Amazon as a competitor.”