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Amazon Has Made Big Gains in This Surprising Area

By Daniel B. Kline - Apr 17, 2020 at 10:33AM

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It's probably not what you expect.

Amazon.com (AMZN -1.76%) sells seemingly everything. You can get food, workout gear, pet supplies, books, electronics, and clothing. In fact, while it may seem odd to buy clothes from a retailer that doesn't let you try things on, more people have been doing just that, according to research by Coresight.

The online retailer has gained traction with its private labels, according to a report on the data from RetailDive. "More than 70% of apparel shoppers bought clothing or footwear on Amazon in the past 12 months, up 10 percentage points from last year and almost 25 percentage points from 2018," according to the website.

Two people at an Amazon delivery van.

Amazon makes getting anything delivered very easy. Image source: Amazon.

Amazon for clothes?

The online retailer sells clothing under a variety of different brands. That has allowed it to thrive despite having some name brands (including Nike) decide to not sell on the platform.

"Amazon's apparel private labels are showing significant momentum, jumping from the fourth most bought brand in 2019 to second this year," Coresight researchers said. "Brands can no longer view Amazon as solely an online intermediary but need to acknowledge the company as a competitor."

What does this mean for retail?

Amazon offers a threat to struggling chains including Macy's, J.C. Penney, and its own partner, Kohl's. The online giant's ability to easily meet needs keeps customers from going to stores (when stores are open).

Think of it this way, you need a basic shirt and aren't worried about sizing because you have purchased similar pieces before. If you buy it on Amazon you don't visit a department store and can easily avoid the temptation to make other purchases that stores have built their businesses around. 

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