Research firm, Slice Intelligence, which collects data from actual digital receipts of over 4.7 million online shoppers, revealed that Amazon owns more than 16% of online clothing sales by millennials (18-35 year olds).
The clothing sales are tallied from digital receipts, not a browser, app, or software installed by the end user, and includes everything from dresses, jeans, shirts, to baby clothes, but not footwear.
Even more interesting for SMB eCommerce sellers is how dominant Amazon (16.6%) has become in this segment by more than doubling the market share it has gained over #2 on the list, Nordstrom.
To round out the top 5 (or 6 to be accurate), Slice Intelligence calculated the following market shares for other online retailers:
- Nordstrom (8.1%)
- Old Navy (5.1%)
- J.Crew (4.2%)
- Vicoria’s Secrect and Macy’s (tie at 3.6% each)
The millennials market demographic for fashion sellers is important for eCommerce as this is the first real generation that grew up around a modern eCommerce environment, including mobile purchases.
Millennials are highly unlikely to change their shopping habits away from eCommerce and if trends continue, they will further embrace new technologies for shopping.
While Slice Intelligence did not break out sold by Amazon and Marketplace sales, the fact that Amazon has such a huge lead over its competitors should be enough incentive for any eCommerce fashion business to develop an Amazon Marketplace strategy.
There is no doubt that fashion sales thrive on Amazon because Amazon makes it easy for buyers to buy and if necessary return or exchange at no cost.
Therefore, the heart of any successful Amazon strategy must include the use of Amazon FBA to take full advantage of a known and seamless integration with current Amazon sales.
If you are a fashion business and are not selling on Amazon, what is stopping you? Is there something we can help you answer to get your sales onto this marketplace?