By Deena M. Amato-McCoy for ChainStoreAge
The online giant had sales just shy of $3-billion across the office supplies segment, and these sales are growing at over 30% year-over-year.
Printers performed very well for Amazon in 2017, generating over $300-million in estimated sales last year. These sales also boosted high growth in ink, toner and paper (74%, 51%, and 56%, respectively). When researching the performance of ink and toner, the two largest office products categories, there was higher growth in sales of inkjet as compared to laser printers (26% and 15%, respectively), which correlated to higher growth in ink compared to toner, the study reported.
Office organisation is a broad category which includes file folders, binders, labellers and labelling tape, among other things. It is also the next largest category after ink and toner (both valued at an estimated $390 million in 2017 sales), with an estimated $330 million in sales, and a steady growth of 24%.
Bulk buying of consumables is also driving growth for a couple of Amazon’s office categories. Exceeding the high growth rates of ink and toner were casepack cut sheet paper (90% year-over-year growth) and glue and adhesives (76% growth annually), led by the brands Georgia-Pacific and Elmer’s, respectively.
Amazon also has a high-performing private label offering in the office supplies category. AmazonBasics is the category leader for shredders, with eight out of 10 bestsellers — and two of them rank in the top 20 office products of 2017. The top competitor, Fellowes, markets high-end shredders and holds the remaining two top 10 items, both of which sell for over $450 each.
By marketing a low-cost alternative (the top model sells for $30), AmazonBasics has become the largest shredder brand on its namesake platform, and earned more than 40% of the total category sales in 2017, the study explained.
“While leading retail chains struggle to stay afloat, Amazon is seeing strong growth across the board in sales of office appliances, like printers, scanners and shredders, as well as consumables and office accessories,” says Nathan Rigby, VP sales and marketing, One Click Retail.
“Amazon’s latest efforts in this area, including their upcoming credit card for small business owners, reveals the company’s commitment to finding the same success as a B2B marketplace as they have as a B2C retailer,” he added. “With more and more of the Office Product market moving away from brick-and- mortar in favor of Amazon, there’s no better time for brands to embrace it as their primary sales channel.”