L2 released today the Intelligence Report: Amazon, which examines 27,517 Amazon listings from 315 brands in six verticals including Beauty, Hair Care & Color Home Care, Fashion, Personal Care, and Watches & Jewelry. The report finds that prestige categories (Fashion, Watches & Jewelry, and prestige Beauty) tend to shy away from official distribution on the platform. Only 13% of prestige Beauty brands officially distribute Amazon (L’Occitane, Perricone MD, Marc Jacobs Beauty are a few), and many such as Estée Lauder and LVMH have a zero engagement policy with the online retailer.

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For CPG brands, it’s a different story. Amazon is not a threat to their brand image. Instead, it is an opportunity to capture new, young, and potentially loyal consumers. It is estimated that 40 million U.S. households will purchase groceries online in the next year, and 25% of those are likely to continue repurchasing groceries online. Furthermore, much of what is in those first baskets is likely to remain there for future purchases.

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CPG brands are eager to with Amazon, who has gotten a head start on online grocery with Amazon Pantry. It is one of the few retailers that has figured a way to make shipments of CPG products profitable despite their high ship-to-weight ratios. With Pantry, consumers can select up to 45 pounds or four cubic feet of eligible items for a $5.99 flat shipping fee. All Home Care and 95% of Personal Care brands in the study distribute on Amazon, and Procter & Gamble has gone as far as allowing Amazon to ship from its warehouses to make more of its products eligible for prime shipping.

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