One Click Retail: Another hot Amazon category hit an all-time high in 2017

Amazon’s housewares pulled in $8 billion in sales in 2017.

Sales across Amazon’s housewares merchandise were 20% higher than in 2016, making it the online giant’s second-hottest category — only sitting behind consumer electronics, according to One Click Retail.

While Amazon’s housewares segment has long been populated by items from certain high-performing brands, such as Keurig coffee makers and Magic Bullet blenders, the mix is changing. Recent growth was driven by innovative kitchen appliances, such as air fryers, sous vide cookers, and the Instant Pot, and emerging product categories, such as floor care and home environment.

While the category’s growth rate is beginning to level off, the category is still considered one of Amazon’s “bread-and-butter product groups.” To hone in on untapped potential, early last year, the company launched Amazon Home, a dedicated store which offers browsers the ability to shop by category or room, seasonally curated "gift guides.” This service also focuses on the logistics of delivering large furniture and appliances, and the release of several Prime-exclusive private brands.

The online giant is bolstering the category with video recipes, among other competitive features and services, the report explained.

Amazon expects to leverage these new sales through its key demographic: millennials. As the oldest members of this group enter their late thirties and the youngest graduate college, this customer base is entering homeownership in record numbers — factors that will continue to drive sales across the category, according to the report.

“The year-over-year growth rate of 20% is slower than in prior years, but if Amazon's investments work as intended, that growth is likely to shoot up again in 2018,” said Nathan Rigby, VP sales and marketing at One Click Retail. “Amazon is pushing housewares hard, and they're backed by the world's most comprehensive consumer behavior data. They are ready and waiting for brand manufacturers who want to share in the profits.”