Amazon's Sales Growth, AOV & Top Categories for 2023

In the world of e-commerce, Amazon has once again proven its dominance with an impressive performance in Q2 FY2024. Vumonic Datalabs deep dive into Amazon's data from July to September 2023 paints a fascinating picture of consumer behaviour and market trends. Today, let's unravel this story of growth, consumer choice and market strategy.

Amazon Growth Performance

The headline-grabbing fact: Amazon's sales in the second quarter of FY2024 soared to 2.3 times the same quarter a year earlier, with electronics leading the way. In particular, sales in July and August were almost 1.4 times higher than in September. This spike can be attributed to key sales events such as the Prime Day sale in July and the Friendship Sale and Great Freedom Festival in August.

What is Average Order Value on Amazon?

One interesting aspect of this increase in sales is the decrease in the average order value - from INR 1600 in Q2 FY 2023 to INR 1000 in Q2 FY 2024. This drop, despite the overall increase in sales, could indicate a shift in Amazon's strategy towards attracting more customers by making products more accessible.

What is the Average Discount Amazon gives to users?

Another key factor in driving sales was the average discount of around INR 120. This strategic use of discounts seems to have played a crucial role in attracting customers, especially in a market where price sensitivity is a significant factor. 

What are Top Converting Categories on Amazon? 

Digging deeper, we see consistency in consumer preferences. Beauty & Personal Care, Electronics and Home & Kitchen remained the top-selling categories in both fiscal years. This trend reflects a broader consumer focus on wellness, technology, beauty and home improvement, areas that have seen a surge in interest, especially in the post-pandemic era.

What are Top Converting Brands on Amazon? 

Brands like boAt, Philips, One Plus, and Himalaya have emerged as top sellers during this period. These brands have effectively capitalised on the surge in specific categories, further fueling Amazon's overall growth.

Conclusion

The insights from Vumonic Datalabs for Amazon's Q2 FY 2024 performance offer a clear picture of a company that knows its market well. In the face of changing consumer behaviours and economic challenges, Amazon has not only adapted but thrived. As we look forward to this year, it's exciting to think about what Amazon will do next.

To see more in-depth data driven insights & consumer behaviour in the ecommerce vertical, Feel free to reach us here.

‍

Disclaimer: The information provided in this blog is based on the data analysis conducted by Vumonic Datalabs and is subject to market dynamics and fluctuations. 

---------------------------------------------------------------------------------------------------------------

Written by: Samiksha Mulik

Date: 3 January 2024

‍

Vumonic Datalabs is a global consumer intelligence platform. We provide high-quality, deterministically linked, large structured data that can be used to derive deep consumer,  business, and market insights. Our proprietary data pipelines deliver unbiased actual transaction data collected in a privacy secure manner via large global panels.