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BCG Infographic: The Myth of Unlimited Shelf Space

June 6, 2016
Jannie Cahill
Written By
Jannie Cahill

According to Boston Consulting Group (BCG) partner and managing director Gabrielle Novacek, Amazon has become the 800-pound gorilla in the retail room and the retailer for ‘which every CPG company needs a strategy.’

Novacek believes that an effective digital strategy has to address Amazon. The e-tailer is not only the biggest US online store, it is also where shoppers in traditional stores go to compare products, deals, and prices, and has outsize influence throughout the consumer goods sector.

As this new infographic from BCG shows, half of all CPG growth to 2018 will be online.  But no matter how big a brand’s share is offline, this does not automatically translate into online brand leadership.

Being discoverable and on page one of Amazon search results is increasingly pivotal to success. Profitero recently analyzed sales for a key category search term on Amazon and found that products on page one of search results accounted for approximately 50% of the total sales (for the top 150 search results). Furthermore, products in the top 6 positions accounted for approximately 15% of the total sales (for the top 150 search results).

To find out where your products ranked in Amazon’s best seller lists in April, download your complimentary FastMovers report.

BCG-Myth-Unlimited-Shelf-Space-670-wide

Source: BCG

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