Amazon is doing big business in toys — especially in games.
Sales in the group hit an estimated $510 million in the third quarter, up 30% from the year-ago period, according to a report by Edge by Ascential. The research revealed that outdoor play, toys for adults (games) and automotive toy trends will carry Amazon into the new year as one of the biggest toy sellers in America.
Additionally, Edge predicted that 2019 will be the year Amazon expands its private brand strategy to include the toys category.
"In our previous Toys report, we predicted that the Amazon.com 2018 holiday season would be all about games, and that prediction has been supported by the very strong growth experienced in Q3 2018," said Chris Perry, VP at Edge by Ascential. "The games category also represents one of the larger trends evident on Amazon.com: toys for adults. Because both adult and family-friendly board and card games are group activities, their popularity soars when family and friends to get together and celebrate the holidays, so we expect this category to continue this strong growth through Q4."
In the quarter leading up to the crucial holiday period, Edge found that games grew by 65% to reach an estimated $100 million in sales, made up of mostly 'analog' games such as board and card games, puzzles, and other group games like Jenga. Toys and games marketed to adults made up eight of the top 50 toys during Q3 2018 and most of those products were board or card games.
According to Edge by Ascential's Price + Promotion research, compared to previous years, retailers this year appear to have placed greater emphasis on the promotion of toys during the Black Friday through Cyber Monday period.
To get the latest Q4 update on Amazon's private and exclusive brands sales and strategy, read Edge by Ascential's report here: Amazon.com Private Labels & Exclusive Brands Q4 Update.