Amazon has been introducing its own products to take a bigger share of the market it already controls, and the strategy is working.
Of speakers sold on Amazon, the Amazon Echo accounts for 45 percent. Bose is next with just 16 percent. Those Amazon sales cover 89 percent of all online speaker sales.
And it’s not just the Echo. A new report from the data analytics group 1010data analyzed Amazon’s private label products. The firm examined consumer spending data from “millions” of consumers from September 2015 to August 2016.
“Amazon owns most of the online market’s ‘shelf space’ and is leveraging this in an attempt to gain market share for its own branded products,” 1010data explained in its report.
Amazon took the biggest share of the market for both batteries and diapers. Amazon gets 31 percent of battery sales to Duracell’s 21 percent, and 46.9 percent of baby wipe sales to Huggies’ 15.9 percent.
The Echo, though, is Amazon’s biggest seller in this report and the product at the center of the company’s attempt to turn Amazon shoppers into Amazon devotees.
If people buy the Echo, then they can shop more on Amazon just through voice command. Even though the Echo does much more than a traditional speaker, it’s still eating up sales of some competitors. (Although Amazon’s market share could be threatened by the forthcoming Google Home.)
The speakers sold online examined by 1010data covered $1 billion in sales, the firm said. Even the batteries sold through Amazon made up $113 million in purchases.
The Echo has seen 67 percent year-over-year growth between August 2015 and August 2016, 1010data said.