Consumer packaged goods’ e-commerce sales skyrocketed by 42 percent in 2015, with most of that growth fueled by Amazon Prime sales. That same year, Amazon’s Subscribe & Save grew 200 percent year over year and accounted for more than 20 percent of all CPG growth.
But that’s not all: Last year, Amazon sales made up nearly half of all online sales — and more than half of online sales growth. And that’s before the wide adoption of Alexa, which promised frictionless voice-controlled shopping.
New York University professor and L2 Inc Founder Scott Galloway recently argued that “Amazon is out to destroy brands” as it evolves to dominate retail. While Amazon will undoubtedly keep evolving, there’s space for CPG brands to leverage the personalization and customization of their products to compete in the direct-to-consumer space. More importantly, as Amazon continues to grow, brands need to make sure they start to own a piece of the conversation and connect directly with consumers.
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