Amazon’s private label brands stole the show during this year’s $1 billion-plus Prime Day event—a 30-hour online shopping spectacle that offers steep discounts on products exclusively for Prime Members.
L2 measured the visibility of brands participating in Prime Day by ranking their positioning on deal pages in three major categories—Electronics, Fashion, and Beauty.
In Electronics, historically the best-selling category on Prime Day, Amazon’s collective portfolio of Echo, Echo Dot, Kindle, and Fire tablet devices, accounted for 26% of all eligible deals and 44% of page one deals, according to L2 data.
Amazon’s devices were also among the most aggressively priced during the 30-hour promotional event, with the Echo discounted by 50%, the Fire 7 tablet by 40%, and its Kindle E-Reader by 38%. The steep discounts seem to have paid off as the Echo and Echo Dot speakers were the top-selling items of the event, with orders coming in by the “thousands per minute” at times.
Prime Day’s draw has helped accelerate adoption of Amazon’s voice assistant speakers. Based on industry estimates, L2 forecasts that the number of Americans using a voice-assistant device will increase 129% this year to 36 million, with Amazon capturing 70% share of the market. The retailer’s early lead in the voice platform wars should give Google, Apple, and Alibaba cause for concern, particularly as Amazon has proven its willingness to subsidize distribution of its Alexa devices in order to increase its installed base.
Of the top-10 most visible brands across all deals in Electronics, Amazon ranked number one (56) followed by a slew of upstart brands such as CyberpowerPC (20), Anker (19), iClever (13), Brother (12), and Havit (11).
Although traditional brands Bose, Sony, and Motorola had relatively low visibility overall, nearly all their deals appeared on page one of the Electronics deals section of Amazon during Prime Day giving them elevated exposure to shoppers.
Introducing Amazon Fashion
Apparel items—particularly those manufactured by Amazon’s own private label brands–had a far larger presence during this year’s Prime Day event than last year’s which is consistent with the retailer’s 2017 initiatives.
Apparel e-commerce reached a tipping point this year, and Amazon has been capitalizing by launching low-price private label brands in both men’s and women’s fashion that target traditional department store shoppers.
The Prime Day fashion deals section (as seen in the image below) was almost exclusively Amazon’s private label brands, such as Buttoned Down (men’s dress shirts), Mae (women’s lingerie), and Goodthreads (casual men’s shirts and pants). Amazon’s private label fashion brands have been gaining traction (particularly Buttoned Down which currently has products in the Men’s Dress Shirts top-20 Best Seller ranking), and the visibility of these brands on Prime Day will further increase consumer awareness around their products.
Beauty and the Beast
In Beauty, a category which Amazon has yet to crack into with a private label of its own, indie brands were the most visible on Prime Day. Independent hair and skincare brand Acure ran the most number of deals (51) and also had the most featured deals on page one of the category.
L’Oréal was the top-performing enterprise company in Beauty with its brands The Body Shop and L’Oréal Paris capturing a combined 5% of all deals in the category.
As a result of Amazon not having a private label brand in the category, Beauty deals are evenly distributed among sellers with no single brand accounting for a disproportionate number of offers. With a relatively level playing field, Beauty brands can leverage Prime Day to boost their visibility and use discounts to incentivize consumers to try their product with the hopes of creating ongoing customer loyalty throughout the year.
Across all categories, the urgency and depth of deals on Prime Day lures more shoppers to sign up for a Prime membership which in turn uses free two-day shipping to incentivize increased spending on Amazon. Prime members have a higher lifetime customer (spending $1,500 annually) than non-Prime customers (who spend about $600 a year), allowing Amazon and by extension sellers to capture a greater share of customers’ wallets that they otherwise would have spent at competing retailers.