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Amazon cleans up household items market

News, 10 April 2017

SALT LAKE CITY, UT: Amazon, the e-commerce giant, is experiencing sales growth in the market for household items that is far outpacing other retailers, according to a new report.

Data measurement firm One Click Retail said the online retailer has a combined average year-on-year growth rate of 38% for US housewares, health and personal care, as well as beauty products and cosmetics.

That compares to the total retail market’s combined growth average of 6%, according to One Click Retail's estimates of weekly sales in the US.

It said the wide gap can be attributed to millennials, who are spending more than twice as much as other generations when purchasing household items online.

Looking at the market in greater detail, the report found Amazon's growth rate in the housewares sector is three and a half times that of the total US domestic market.

Housewares, including home and kitchen, generated almost $7bn in sales for Amazon in 2016 and accounted for 15% of the company's year-on-year sales growth.

When it comes to health and personal care sales, Amazon is seeing a year-on-year growth rate that is almost five times faster than the total domestic market.

And it has seen significant increases in nutrition and wellness (+40%), baby care (+30%), household consumables (+55%) and healthcare (+45%).

Meanwhile, even though total retail market growth of beauty and cosmetics sales in the US is stuck at a low 2%, Amazon sales have shot up by 47% over the year.

"What we're currently witnessing is e-commerce finally beginning to disrupt everyday household products, with Amazon leading the pack," said Spencer Millerberg, CEO of One Click Retail.

"Consumers benefit from buying these items in bulk, and having them delivered right to their doorsteps. Our numbers continue to demonstrate just how significant these everyday items are in helping to drive Amazon's exponential YoY growth."

Data sourced from One Click Retail; additional content by WARC staff