New parents have limited time and high standards when it comes to their baby’s health and hygiene. This means the convenience of buying high quality products with just a click is becoming more and more appealing. As Amazon’s most loyal customers, the millennial generation, transition into parenthood, it is no surprise that this sector is on an increasingly upward trajectory.
There is no doubt that shoppers in the baby category are among the toughest audiences for sellers. Parents will not sacrifice the safety of their children and are therefore willing to pay a lot for high quality products, but they have limited time to search and are also more likely to only buy from trusted brands. Sellers are therefore focusing more on quality and innovation and expanding their product lines because parents are willing to pay a lot for the best in the market.
The Baby category is understandably one of the most highly regulated sectors on Amazon. Due to shoppers’ tendency towards brand loyalty, it is also highly dominated by big brands. However, while this can be daunting to newcomers and smaller brands, Amazon offers sellers a variety of tools to gain visibility and educate their customer in order to build trust and establish loyalty.
The Toys & Baby category is showing undeniable growth, with a global revenue of US$91.95 billion in 2021 and predicted US$101.00 billion in 2022, according to Statista. Over half of the market share is occupied by Amazon, likely thanks to its convenience and established trust and with a predicted category annual growth rate (CAGR 2022-2025) of 10.80% and a projected market volume of US$137.40 billion by 2025, now is the time to jump in to selling on the e-commerce giant.
