Internet of Things and CPG…a match made in digital heaven

Consumer packaged goods (CPG) saw the third-highest volume of digital commerce sales on desktop and mobile in Q1 2015, putting the category just below apparel & accessories and computer hardware, according to comScore. The industry is still largely dominated by in-person purchases but online sales are growing rapidly, increasing 21% year-over-year (YoY) in 2014 — 14x the rate for the CPG market overall. Continued online growth in the CPG is helping fuel the success of sites like Amazon, Walmart, and Target.

Recently major e-commerce players have made bigger bets on the CPG category:

  • Amazon has a new product called the Dash Button, a plastic controller no bigger than a pack of gum that bears the logo of a single product. Consumers push the button and an order is placed through Amazon for delivery to their home.
  • Jet, a membership-based online marketplace, will also debut soon and offer CPG products and other goods, potentially priced lower than on Amazon  

With more retailers going after the space, comScore estimates that CPG online sales, including groceries, healthcare products, and home and cleaning supplies, could become a $40 billion a year industry this year.


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