How YipitData Helps Mattress Brands Navigate Growing eCommerce Competition

Challenge

In 2021, eCommerce grew faster than ever before, growing 18% YoY and making up 13%+ of total sales in the $26+ billion retail industry. As retail sales have been historically tracked via POS or credit card data, leading mattress brands & retailers have had no ability to contextualize their performance against competitors.

Solution

In the early pandemic days, DTC mattress brands (Amazon, Resident, Purple) capitalized on consumer desire to purchase online, stealing share from market leader Mattress Firm. However in more recent periods (1Q22 vs 1Q21), DTC brands Casper and Purple have both lost over 1 percentage point. In the same period, Amazon has seen the greatest gains in mattresses market share, continuing to cement their growth in the home goods space.

Taking a deeper look into the drivers behind Amazon’s strong GMV share growth, we find that Amazon wins with volume of low-cost items. Amazon’s mattress average order value has remained fairly consistent at ~$200 from 2020-2022, less than half of any other mattress brand. Alternatively, craft brand parent company Resident has increased their average order value by nearly $400 in the last year, suggesting an increase in sales on higher-priced items.

But, what types of consumers do these brands resonate with? DTC brands are the clear winner among millenials, with nearly 30% of Purple’s GMV, and 25% of Resident’s GMV in Q1 2022 from consumers 34 and under. Amazon is the leading brand for Boomers, with 35%+ of GMV from consumers 55-64.