In a dominating presence within the consumer electronics market, Best Buy and Amazon collectively account for over 50% of consumer electronics sales, with Best Buy capturing 31% and Amazon close behind at 27%, according to the latest Numerator Consumer Electronics Tracker. Walmart trails in third place with 14.3% of sales.
Despite a slight decline in household penetration and buy rates across most consumer electronics categories over the past year, there were exceptions. Computer monitors and peripherals saw a household penetration growth to 34.2%, while video game consoles and accessories grew to 30.2%.
The report, which provides quarterly insights into omnichannel consumer buying behavior, highlights that Gen X and millennial shoppers are the most active buyers of electronics throughout the year.
November and December are the peak months for electronics purchases, followed by July, driven by holiday sales and mid-year deals.
Other takeaways from the report include:
Amazon’s significant sales spikes during its summer and fall Prime Day events, peaking at 39.2% of sales in July and 31.4% in October. These events momentarily overtook Best Buy’s market share and caused dips for other major competitors.
Over half (53.9%) of electronics buyers reported that the price of their purchased items matched their expectations, while 25% found the items to be cheaper than anticipated.
The primary ways consumers discovered their electronic items were in-store (32.8%), on retailer websites (26.1%), through recommendations from family or friends (22.2%), and online customer reviews (11.9%).
In recent electronics-related developments, Walmart has been aggressively expanding its online presence and has introduced new technology in stores to streamline the shopping experience. Their Walmart+ subscription service aims to compete directly with Amazon Prime.
Newegg, a major online-only electronics retailer, has been capitalizing on the growing trend of PC gaming and DIY computer building. Their targeted marketing and specialized inventory cater to tech enthusiasts, while Micro Center's focus on high-end electronics and computer components has earned it a dedicated following. Their in-store experience and knowledgeable staff set them apart from larger chains.
Known for its competitive pricing and bulk buying options, Costco maintains a steady presence in the electronics market. Their member-exclusive deals and robust return policy continue to draw in a loyal customer base.
Target holds a smaller share of the consumer electronics market but has been focusing on enhancing its eCommerce platform and same-day delivery services to attract more customers. Their recent partnership with Apple to create dedicated Apple sections in stores has shown positive traction.
While primarily a product manufacturer, Apple’s direct-to-consumer sales through its online store and physical Apple Stores make it a significant player. Apple's market share is bolstered by its loyal customer base and innovative product launches.
As the consumer electronics landscape evolves, these retailers continue to adapt and innovate, aiming to capture a larger share of a highly competitive market.
