Jumpshot also tracked private label conversions on Amazon, Walmart, Macy’s and Target — and found that Amazon also leads in this area, just not quite as decisively.
Amazon accounted for 61 percent of online private label conversions tracked during the first quarter of 2018, while Walmart, Target and Macy’s owned a combined 39 percent.
2018 Q1 private label conversion share
Amazon’s private label AmazonBasics represents 88 percent of the company’s private label products, says Jumpshot.
Electronics played a huge role in Amazon’s lead in private label conversions. Excluding electronics conversions from the private label numbers, Amazon’s share drops from 61 percent to 26 percent, with Walmart, Target and Macy’s taking 74 percent of private label conversions.
Jumpshot explained to Marketing Land, “The electronics category includes products like cables and rechargeable batteries, which, because they’re purchased a lot more and in higher quantities, provide Amazon an incredible amount of purchases — far more than any other category where they have private labels, and far more than any of the nearest competitors. We see, for instance, AmazonBasics cables outselling Anker cables at a rate of nearly 3-1.”
Private label purchases from Walmart, Macy’s and Target, on the other hand, are somewhat concentrated in the home and/or women’s clothing categories. More than a third of Walmart’s online private label sales came from the Home category last quarter. Women’s clothing accounted for more than half of Macy’s private label conversions. Combined, women’s clothing and home made up 39 percent of Target’s e-commerce conversions in Q1.
As Meeker points out in her report, e-commerce continues to accelerate and gain as a percentage of overall sales — reaching a 13 percent share of retail sales in 2017. Jumpshot’s data shows retailers still have opportunities in private labels and other categories, but they will have a hard time competing on commodity products particularly.