Over the past 12 months, Amazon sellers of shampoo and conditioner brought in a collective $500 million in revenue, a huge increase from the prior year’s revenue of $340 million. Evidence shows that much of this jump can be attributed to the new life e-commerce has taken on as a result of COVID-19 pandemic.
According to Adobe Digital Insights, COVID-19 accelerated e-commerce growth by 4 to 6 years. This sentiment is corroborated by ClearCut Analytics’ own data on Amazon seller revenues. However, as ClearCut has seen, growth has not been distributed evenly to all Amazon sellers. How have some smaller brands like Botanic Health seen YoY growth top 90%, while most small and large brands alike have seen less than less than half of that?
The answer lies in so-called duo products. When you walk down the shampoo aisle in any store, your go-to brand of shampoo will have its accompanying conditioner product sitting right next to it on the shelf. This makes it fast and easy to buy shampoo and conditioner products at the same time. Yet, until recently, this phenomenon of convenience had largely been lost on online retailers.
Newly popular duo products allow consumers to purchase matching shampoo and conditioner products online in one easy bundle. They allow consumers to bypass the added difficulty of searching for a conditioner of the correct brand, size, and scent after purchasing a shampoo online.
Duo products have seen an enormous 207% increase in revenue on Amazon over the past 12 months, mainly driven by sales increases in March – May 2020. Other products that solve a similar problem of convenience also performed exceptionally well during the COVID era. Mixed kits, which offer an even larger basket of haircare and/or bath products, have seen revenues rise by 120% year over year. Also, 2-in-1 products have seen 59% year over year revenue growth.
In May 2020, duo products accounted for 8% of shampoo and conditioner revenues on Amazon, up from 3% in May 2019. This suggests that the product group has seen significant gains in consumer preference.
Will the popularity of duo products last? In an interview with Forbes, Taylor Schreiner, Director of Adobe Digital Insights, stated that he’s seen indications that “online purchasing trends formed during the pandemic may see permanent adoption”. Based on early sales indicators, ClearCut agrees – duo products are likely here to stay.
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