Markets

The Pandemic Economy: What are Shoppers Buying Online During COVID-19?

Published

3 months ago

April 8, 2020

Katie Jones

Ecommerce category growth during covid-19 pandemic

The Fastest Growing and Declining E-Commerce Categories

The COVID-19 pandemic is having a significant impact on every aspect of life, including how people shop for their necessities, and their not-so-necessities.

With online retail sales estimated to reach an eye-watering $6.5 trillion by 2023, the ecommerce sector was already booming. But since the outbreak, online shopping has been catapulted into complete overdrive. Even the largest retailers on the planet are struggling to keep up with the unprecedented consumer demand—but what exactly are people buying?

To answer this question, retail intelligence firm Stackline analyzed ecommerce sales across the U.S. and compiled a list of the fastest growing and declining ecommerce categories (March 2020 vs. March 2019) with surprising results.

The Frenzy of Buyer Behavior

As people come to terms with their new living situations, their buying behavior has adapted to suit their needs. While panic buying may have slowed in some countries, consumers continue to stock up on supplies, or “pandemic pantry products”.

Many consumers are also using their newfound time to focus on their health, with 85% of consumers taking up some kind of exercise while in social isolation, and 40% of them saying they intend to keep it up when restrictions are lifted.

These changing behaviors have resulted in a number of product categories experiencing a surge in demand — and although a lot of them are practical, others are wonderfully weird.

The Fastest Growing Categories

While the below list features several shelf-stable items, it seems as though consumers are taking matters into their own hands, with bread making machines sitting in second place and retailers selling out of their top models.

It’s clear from the list that consumers are considering positive changes to their lifestyle while in isolation, as fitness, smoking cessation, and respiratory categories are all experiencing growth.

Explore the 100 fastest growing product categories below:

Rank	Category	% Change in March (2020 vs. 2019)
#1	Disposable Gloves	670%
#2	Bread Machines	652%
#3	Cough & Cold	535%
#4	Soups	397%
#5	Dried Grains & Rice	386%
#6	Packaged Foods	377%
#7	Fruit Cups	326%
#8	Weight Training	307%
#9	Milk & Cream	279%
#10	Dishwashing Supplies	275%
#11	Paper Towels	264%
#12	Hand Soap & Sanitizer	262%
#13	Pasta	249%
#14	Vegetables	238%
#15	Flour	238%
#16	Facial Tissues	235%
#17	Allergy Medicine	232%
#18	Women’s Health	215%
#19	Cereals	214%
#20	Power Generators	210%
#21	Laundry Supplies	200%
#22	Household Cleaners	195%
#23	Soap & Body Wash	194%
#24	Toilet Paper	190%
#25	Jerky & Dried Meats	187%
#26	Chips & Pretzels	186%
#27	Crackers	184%
#28	Health Monitors	182%
#29	Popcorn	179%
#30	Computer Monitors	172%
#31	Fitness Equipment	170%
#32	Single Vitamins	166%
#33	Nut & Seed Butters	163%
#34	Cat Food	162%
#35	Fruit Snacks	162%
#36	Baby Care Products	162%
#37	Refrigerators	160%
#38	Baking Mixes	160%
#39	Toilet Accessories	160%
#40	Dog Food	159%
#41	Diapers	154%
#42	Yoga Equipment	154%
#43	Bottled Beverages	153%
#44	Baby Meals	153%
#45	Cookies	147%
#46	Digestion & Nausea	144%
#47	Snack Foods	141%
#48	Herbal Supplements	136%
#49	Cooking Oils	135%
#50	Water	130%
#51	Incontinence & Tummy	129%
#52	Mutivitamin	126%
#53	Cat Litter	125%
#54	Training Pads and Trays	125%
#55	Juices	125%
#56	Smoking Cessation	122%
#57	Dried Fruit & Raisins	120%
#58	Salt & Pepper Seasoning	118%
#59	Craft Kits & Projects	117%
#60	Batteries	116%
#61	Trash Bags	116%
#62	Nuts & Seeds	116%
#63	Hair Coloring	115%
#64	Sauce & Gravy	115%
#65	Deli Foods	114%
#66	Syrups	114%
#67	Breads & Bakery	114%
#68	Minerals	113%
#69	Condiments	111%
#70	First Aid	108%
#71	Nail Care	108%
#72	Humidifiers	105%
#73	Art Paint	104%
#74	Office Chairs	104%
#75	Deodorant	103%
#76	Jams, Jellies & Spreads	102%
#77	Coffee	101%
#78	Spices & Seasoning	100%
#79	Skin Care	99%
#80	Pain Relievers	99%
#81	Cooking Vinegars	98%
#82	Air Purifiers	97%
#83	Granola & Nutrition Bars	97%
#84	Pudding & Gelatin	97%
#85	Toy Clay & Dough	95%
#86	Single Spices	95%
#87	Bird Food & Treats	91%
#88	Lab & Science Products	90%
#89	Eczema & Psoriasis	90%
#90	Ping Pong	89%
#91	Chocolate	86%
#92	Baking Ingredients	84%
#93	Energy Supplements	84%
#94	Respiratory	82%
#95	Office Desks	82%
#96	Potty Training Supplies	82%
#97	Herbs, Spices & Seasonings	82%
#98	Keyboard & Mice	80%
#99	Body Lotion	79%
#100	Safes	69%

Interestingly, toilet paper has seen more growth than baby care products, and cured meats have seen more growth than water. But while some categories are experiencing a drastic increase in demand, others are slumping in the pandemic economy.

The Fastest Declining Categories

An unprecedented wave of event and vacation cancellations is having a huge impact on the products people consume. For instance, luggage and suitcases, cameras, and men’s swimwear have all seen a dip in sales.

See the full list of 100 fastest declining categories below:

Rank	Category	% Change in March (2020 vs. 2019)
#1	Luggage & Suitcases	-77%
#2	Briefcases	-77%
#3	Cameras	-64%
#4	Men’s Swimwear	-64%
#5	Bridal Clothing	-63%
#6	Men's Formal Wear	-62%
#7	Women’s Swimwear	-59%
#8	Rash Guards	-59%
#9	Boy’s Athletic Shoes	-59%
#10	Gym Bags	-57%
#11	Backpacks	-56%
#12	Snorkelling Equipment	-56%
#13	Girl’s Swimwear	-55%
#14	Baseball Equipment	-55%
#15	Event & Party Supplies	-55%
#16	Motorcycle Protective Gear	-55%
#17	Camera Bags & Cases	-54%
#18	Women’s Suits & Dresses	-53%
#19	Women’s Boots	-51%
#20	Cargo Racks	-51%
#21	Women’s Sandals	-50%
#22	Drones	-50%
#23	Boy's Active Clothing	-50%
#24	Lunch Boxes	-50%
#25	Store Fixtures & Displays	-50%
#26	Automotive Mats	-50%
#27	Men’s Outerwear	-49%
#28	Watches & Accessories	-49%
#29	Cargo Bed Covers	-48%
#30	Track & Field Equipment	-48%
#31	Ceiling Lighting	-47%
#32	Camera Lenses	-47%
#33	Girl’s Coats and Jackets	-47%
#34	Women’s Hats & Caps	-47%
#35	Women's Outerwear	-47%
#36	Video Cameras	-46%
#37	Wheels & Tires	-46%
#38	Motorcycle Parts	-45%
#39	Women’s Wallets	-45%
#40	Shocks & Struts	-44%
#41	Transmission & Parts	-44%
#42	Girl’s Athletic Shoes	-44%
#43	Women’s Shoes	-44%
#44	Telescopes	-44%
#45	Sunglasses & Eyeglasses	-43%
#46	Men’s Tops	-41%
#47	Video Projectors	-40%
#48	Men’s Athletic Shoes	-40%
#49	Marine Electronics	-40%
#50	Hand Tools	-40%
#51	Wine Racks	-40%
#52	Men's Shoes	-40%
#53	Clocks	-39%
#54	Baby Girl’s Shoes	-39%
#55	Bracelets	-39%
#56	Men’s Boots	-39%
#57	Tapestries	-39%
#58	Camping Equipment	-39%
#59	Men’s Bottoms	-38%
#60	Cell Phones	-38%
#61	Tool Storage & Organizers	-38%
#62	Necklaces	-38%
#63	Swimming Equipment	-37%
#64	Men’s Hats & Caps	-37%
#65	Girl’s Shoes	-37%
#66	Industrial Tools	-36%
#67	Juicers	-36%
#68	Desktops	-35%
#69	Classroom Furniture	-35%
#70	Bar & Wine Tools	-35%
#71	Glassware & Drinkware	-35%
#72	Musical Instruments	-34%
#73	Power Winches	-34%
#74	Home Bar Furniture	-34%
#75	Office Storage Supplies	-34%
#76	Girl's Active Clothing	-34%
#77	Women’s Tops	-34%
#78	Braces, Splints & Supports	-34%
#79	Car Anti-theft	-34%
#80	Rings	-34%
#81	Blankets & Quilts	-33%
#82	Women's Athletic Shoes	-33%
#83	Kitchen Sinks	-33%
#84	Golf Clubs	-33%
#85	Equestrian Equipment	-33%
#86	GPS & Navigation	-32%
#87	Recording Supplies	-32%
#88	Home Audio	-32%
#89	Boy's Accessories	-32%
#90	Earrings	-32%
#91	Dining Sets	-31%
#92	Calculators	-31%
#93	Boy's Shoes	-31%
#94	Volleyball Equipment	-31%
#95	Strollers	-31%
#96	Coolers	-30%
#97	Sanders & Grinders	-30%
#98	Men's Activewear	-29%
#99	Living Room Furniture	-29%
#100	Climbing & Hiking Bags	-28%

Regardless of which list a product falls under, it is clear that the pandemic has impacted retailers of every kind in both positive and negative ways.

The New Normal?

Officially the world’s largest retailer, Amazon has announced it can no longer keep up with consumer demand. As a result, it will be delaying the delivery of non-essential items, or in some cases not taking orders for non-essentials at all.

This presents a double-edged sword, as the new dynamic that is bringing some retailers unprecedented demand could also bring about an untimely end for others.

Meanwhile, the question remains: will this drastic change in consumer behavior stabilize once we flatten the curve, or is this our new normal?

Related Topics:amazon walmart ecommerce pandemic covid-19 panic buying retail industry essential services consumer need states

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Technology

How Big Tech Makes Their Billions

The big five tech companies generate almost $900 billion in revenues combined, more than the GDP of four of the G20 nations. Here’s how they earn it all.

Published

5 days ago

July 6, 2020

Omri Wallach

How Big Tech Makes Their Billions

The world’s largest companies are all in technology, and four out of five of those “Big Tech” companies have grown to trillion-dollar market capitalizations.

Despite their similarities, each of the five technology companies (Amazon, Apple, Facebook, Microsoft, and Alphabet) have very different cashflow breakdowns and growth trajectories. Some have a diversified mix of applications and cloud services, products, and data accumulation, while others have a more singular focus.

But through growth in almost all segments, Big Tech has eclipsed Big Oil and other major industry groups to comprise the most valuable publicly-traded companies in the world. By continuing to grow, these companies have strengthened the financial position of their billionaire founders and led the tech-heavy NASDAQ to new record highs.

Unfortunately, with growth comes difficulty. Data-use, diversity, and treatment of workers have all become hot-button issues on a global scale, putting Big Tech on the defensive with advertisers and governments alike.

Still, even this hasn’t stopped the tech giants from (almost) all posting massive revenue growth.

Revenues for Big Tech Keep Increasing

Across the board, greater technological adoption is the biggest driver of increased revenues.

Amazon earned the most in total revenue compared with last year’s figures, with leaps in almost all of the company’s operations. Revenue from online sales and third-party seller services increased by almost $30 billion, while Amazon Web Services and Amazon Prime saw increased revenues of $15 billion combined.

The only chunk of the Amazon pie that didn’t increase were physical store sales, which have stagnated after previously being the fastest growing segment.

Big Tech Revenues (2019 vs. 2018)

Company	Revenue (2018)	Revenue (2019)	Growth (YoY)
Apple	$265.6 billion	$260.2 billion	-2.03%
Amazon	$232.9 billion	$280.5 billion	20.44%
Alphabet	$136.8 billion	$161.9 billion	18.35%
Microsoft	$110.4 billion	$125.8 billion	13.95%
Facebook	$55.8 billion	$70.8 billion	26.88%
Combined	$801.5 billion	$899.2 billion	12.19%

Services and ads drove increased revenues for the rest of Big Tech as well. Alphabet’s ad revenue from Google properties and networks increased by $20 billion. Meanwhile, Google Cloud has seen continued adoption and grown into its own $8.9 billion segment.

For Microsoft, growth in cloud computing and services led to stronger revenue in almost all segments. Most interestingly, growth for Azure services outpaced that of Office and Windows to become the company’s largest share of revenue.

And greater adoption of services and ad integration were a big boost for ad-driven Facebook. Largely due to continued increases in average revenue per user, Facebook generated an additional $20 billion in revenue.

Comparing the Tech Giants

The one company that didn’t post massive revenue increases was Apple, though it did see gains in some revenue segments.

iPhone revenue, still the cornerstone of the business, dropped by almost $25 billion. That offset an almost $10 billion increase in revenue from services and about $3 billion from iPad sales.

However, with net income of $55.2 billion, Apple leads Big Tech in both net income and market capitalization.

Big Tech: The Full Picture

Company	Revenue (2019)	Net Income (2019)	Market Cap (July 2020)
Apple	$260.2 billion	$55.2 billion	$1.58 trillion
Amazon	$280.5 billion	$11.6 billion	$1.44 trillion
Alphabet	$161.9 billion	$34.3 billion	$1.02 trillion
Microsoft	$125.8 billion	$39.2 billion	$1.56 trillion
Facebook	$70.8 billion	$18.5 billion	$665.04 billion
Combined	$899.2 billion	$158.8 billion	$6.24 trillion

Bigger Than Countries

They might have different revenue streams and margins, but together the tech giants have grown from Silicon Valley upstarts to global forces.

The tech giants combined for almost $900 billion in revenues in 2019, greater than the GDP of four of the G20 nations. By comparison, Big Tech’s earnings would make it the #18 largest country by GDP, ahead of Saudi Arabia and just behind the Netherlands.

Big Tech earns billions by capitalizing on their platforms and growing user databases. Through increased growth and adoption of software, cloud computing, and ad proliferation, those billions should continue to increase.

As technology use has increased in 2020, and is only forecast to continue growing, how much more will Big Tech be able to earn in the future?

Technology

Visualizing the Size of Amazon, the World’s Most Valuable Retailer

Amazon’s valuation has grown by 2,830% over the last decade, and the tech giant is now worth more than the other 9 largest U.S. retailers, combined.

Published

1 week ago

July 2, 2020

Dorothy Neufeld

Visualizing the Size of the World’s Most Valuable Retailer

As brick-and-mortar chains teeter in the face of the pandemic, Amazon continues to gain ground.

The retail juggernaut is valued at no less than $1.4 trillion—roughly four times what it was in late 2016 when its market cap hovered around $350 billion. Last year, the Jeff Bezos-led company shipped 2 billion packages around the world.

Today’s infographic shows how Amazon’s market cap alone is bigger than the nine biggest U.S. retailers put together, highlighting the palpable presence of the once modest online bookstore.

The New Normal

COVID-19’s sudden shift has rendered many retail outfits obsolete.

Neiman Marcus, JCPenney, and J.Crew have all filed for bankruptcy as consumer spending has migrated online. This, coupled with heavy debt loads across many retail chains, is only compounding the demise of brick-and-mortar. In fact, one estimate projects that at least 25,000 U.S. stores will fold over the next year.

Still, as safety and supply chain challenges mount—with COVID-19 related costs in the billions—Amazon remains at the top. It surpasses its next closest competitor, Walmart, by $1 trillion in market valuation.

How does Amazon compare to the largest retailers in the U.S.?

10 Largest Public US Retailers*	Market Value July 1, 2020	Market Value July 1, 2010	Normalized % Change 2010-2020	Retail Revenue
Walmart	$339B	$179B	90%	$514B
Costco	$134B	$24B	458%	$142B
Amazon	$1,400B	$50B	2,830%	$140B
The Kroger Co.	$26B	$13B	107%	$118Be
Walgreens Boots Alliance	$36B	$26B	38%	$111B
The Home Depot	$267B	$47B	466%	$108B
CVS	$84B	$40B	112%	$84B
Target	$60B	$37B	64%	$74B
Lowe's	$102B	$29B	251%	$71B
Best Buy	$23B	$14B	59%	$43B
Combined value of retailers (without Amazon)	$1,071B

Source: Deloitte, YCharts
*Largest public US retailers based on their retail revenue as of fiscal years ending through June 30, 2019, e=estimated

With nearly a 39% share of U.S. e-commerce retail sales, Amazon’s market cap has grown 2,830% over the last decade. Its business model, which aggressively pursues market dominance instead of focusing on short-term profits, is one factor behinds the rise.

By the same token, one recent estimate by The Economist pegged Amazon’s retail operating margins at -1% last year. Another analyst has suggested that the company purposefully sells retail goods at a loss.

How Amazon makes up for this operating shortfall is through its cash-generating cloud service, Amazon Web Services (AWS), and through a collection of diversified enterprise-focused services. AWS, with estimated operating margins of 26%, brought in $9.2 billion in profits in 2019—more than half of Amazon’s total.

Amazon’s Basket of Eggs

Unlike many of its retail competitors, Amazon has rapidly diversified its acquisitions since it originated in 1994.

Take the $1.2 billion acquisition of Zoox. Amazon plans to operate self-driving taxi fleets, all of which are designed without steering wheels. It is the company’s third largest since the $13.7 billion acquisition of organic grocer Whole Foods, followed by Zappos.

Accounting for the lion’s share of Amazon-owned physical stores, Whole Foods has 508 stores across the U.S., UK, and Canada. While Amazon doesn’t outline revenues across its physical retail segments—which include Amazon Books stores, Amazon Go stores, and others—physical store sales tipped over $17 billion in 2019.

Meanwhile, Amazon also owns gaming streaming platform Twitch, which it acquired for $970 million in 2017. Currently, Twitch makes up 73% of the streaming market and brought in an estimated $300 million in ad revenues in 2019.

Carrying On

Despite the flood of online orders due to quarantines and social distancing requirements, Amazon’s bottom line has suffered. In the second quarter of 2020 alone, it is expected to rack up $4 billion in pandemic-related costs.

Yet, at the same time, its customer-obsessed business model appears to thrive under current market conditions. As of July 1, its stock price has spiked over 51% year-to-date. On an annualized basis, that’s roughly 100% in returns.

As margins get squeezed and expenses grow, is Amazon’s growth sustainable in the long-term? Or, are the company’s strategic acquisitions and revenue streams providing the catalysts (and cash) for only more short-term success?