Welcome to Basilio Inc. Guide to Selling Sports & Outdoors Products on Amazon. If you’re thinking about starting up your own business as an Amazon seller, stick around, because you’ve come to the right place.
Basilio Inc’s data reveals the remarkable surge in growth within the Sports & Outdoors category, with an astounding 80% year-over-year increase in Amazon sales. As consumers adapted to new lifestyles, home fitness and outdoor activities became the norm, reshaping consumer behavior indefinitely. Our book explores the changing habits of consumers, the rise of at-home fitness providers, and the thriving community of outdoor enthusiasts turning to Amazon for their adventure gear needs.
Chapter 1 – Category Landscape
Two Divisions:
The Sports & Outdoors category on Amazon is a dynamic realm encompassing a diverse array of products catering to fitness enthusiasts and outdoor adventurers alike. To navigate this vast category effectively, it’s helpful to consider two main subdivisions: Sports & Fitness and Outdoor Recreation. Each division hosts a wide range of products, and pricing can vary significantly both between and within these segments. While some brands specialize exclusively in one division, larger brands often offer products that cater to both segments, capitalizing on their diverse customer base.
A Saturated Channel:
Sports & Outdoors stands as one of the most fiercely competitive and saturated product categories on Amazon. The relatively low barriers to entry for many product types contribute to the constant influx of sellers in this space. For instance, a set of dumbbells from one brand may bear little difference from those offered by another. Amidst this crowded landscape, prominent brands like Adidas, Under Armour, Columbia, Coleman, and Black Diamond reign supreme, making it a challenge for new brands to establish a foothold and gain visibility.
Strategies for Success:
Thriving in the Sports & Outdoors category demands a well-crafted and strategic approach to effectively differentiate your brand and products. Brands must focus on various critical aspects to stand out from the fierce competition, including offering unique product offerings, incorporating innovative features, setting competitive pricing, and developing compelling branding. Among these factors, branding emerges as a key differentiator, given the intense competition on product features and pricing. Establishing a robust brand identity and cultivating customer loyalty become critical drivers of success in this highly competitive landscape.
Opportunity in the Sports & Outdoor Category
In the competitive realm of Sports & Outdoors, many brands fail to fully capitalize on the vast potential that the Amazon channel offers. Instead of recognizing Amazon as a primary sales platform, they treat it as a secondary option. Consequently, their Amazon strategies may lack the optimization required to achieve maximum results. Listing content often falls short of its potential, and Amazon advertising is underutilized, with insufficient thought or budget allocation.
This less-than-optimal approach inevitably leads to missed opportunities, leaving substantial potential revenue untapped. However, for the discerning few who recognize this untapped potential, seizing the opportunity can result in a significant increase in market share on Amazon.
To succeed in the highly competitive Sports & Outdoors category on Amazon, brands must adopt a strategic and comprehensive approach. Optimizing product listings with relevant keywords, high-quality images, and compelling content is essential for attracting and engaging potential customers. Furthermore, embracing Amazon advertising to its full potential is crucial for maximizing brand visibility and driving conversions.
COVID-19 & It’s Impact on the Industry
The outbreak of the COVID-19 pandemic brought about unprecedented changes in consumer behavior, and the Sports & Outdoors category on Amazon was not exempt from this shift. As people sought alternatives to gym memberships and indoor fitness facilities, there was a notable surge in the demand for home fitness solutions. This led to a substantial increase in sales of sports equipment, such as resistance bands, dumbbells, and yoga mats, as consumers embraced the concept of working out from the comfort of their homes.
Moreover, the restrictions on social gatherings and travel limitations encouraged individuals to explore outdoor recreational activities. From hiking and camping gear to biking and water sports equipment, the Sports & Outdoors category experienced a remarkable boost in sales during this period. Many people turned to outdoor activities as a safe and enjoyable way to stay active and entertained while adhering to social distancing guidelines.
The graphs presented vividly demonstrate the dramatic sales growth in various product types within the Sports & Outdoors category during the COVID-19 pandemic. Fitness enthusiasts and outdoor enthusiasts alike contributed to this surge in demand, transforming the landscape of sports and outdoor products on Amazon.
The Sports & Fitness industry has seen unparalleled growth, both within and beyond the realm of Amazon. Among the key players that took center stage during the pandemic, Peloton, the at-home fitness brand, shone brightest. In 2020, Peloton’s total revenue reached a staggering $1.8 billion, showcasing a remarkable 100% year-on-year increase. Their subscription revenue soared as well, reaching $121.2 million with an incredible 99% year-on-year growth.
While Peloton soared to new heights, the overall fitness industry faced formidable challenges. The International Health, Racquet & Sportsclub Association (IHRSA) reported a staggering $20 billion loss for the sector in 2020. The downturn led to at least eight national gym networks filing for bankruptcy within the same year.
However, amidst the storm, the Outdoor Recreation industry emerged as a beacon of hope. Reports from the NPD Group revealed remarkable growth in various outdoor activities. For instance, dollar sales of bicycles witnessed an impressive 63% surge in June 2020 compared to the previous year. Similarly, golf equipment sales recorded a substantial 51% increase during the same period. Paddle sports experienced a significant boost as well, with a remarkable 56% increase in dollar sales, while camping equipment sales surged by 31% during the same period.
Meet the Author
