When you have the corner on a market, you’d expect some of your numbers to dip from time to time, but like stock in guns and gold, Amazon keeps growing it’s consumer electronics. This year, they were able to grow this sector by 4%. That is a $340 million increase in one year.
What explains such a massive increase over the course of a year? Amazon has been doubling down on their name brand electronics like the Echo and Echo Dot. The Echo Dot sold in record numbers on both Cyber Monday and Prime Day, but that doesn’t account for all of the money. Amazon has also been doubling down on it’s branded electronics accessories including batteries, computer accessories, and cables.
Name brand computers like the Acer Aspire and Samsung 850 EVO were among the top 10 selling items on Amazon last year. Google’s WiFi system and Bose’s QuietComfort 35 Wireless Headphones were also in the top 10 best selling items for 2017.
Home automation is also a huge driver behind growth in consumer electronics. The more things in a person’s home that Alexa can talk to, the more need they have to shop online. Combined with older Millennials driving sales across the board on Amazon and that same demographic outfitting their homes and apartments with smart devices and the picture of sustainable growth in consumer electronics becomes a bit clearer.
For the time being, it looks like Amazon has no real reason to fear a drop off in Consumer Electronics sales. After all, it’s not like technology and the need for more and better technology is going away overnight. The more and better that Amazon gets to know it’s target consumer, the more we can expect to see continued growth.
By targeting Millenials, Amazon has found a market that is both familiar with technology, reliant on it even, and whose income is growing. Millennial families could be responsible for keeping Amazon growing as they order more and more items offline.
An interesting note on mobile orders, trust, and Millennials is this: the increases in mobile phone purchases speaks on two levels – that of trust in secure checkout, and that of demographic use. It seems to follow that a generation that has mostly grown up with quickly evolving technology would be helping drive changes in the way that purchases are made online.