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Analysis: 3 Reasons Why Lego Wins on Amazon

The Secret Tactics Lego Uses to Blow Away the Competition on Amazon Sales

By Ryan Faist

Originally printed by our friends at Global Toy News

Ryan Faist is the Content Marketing Manager for Channel Key, a full-service Amazon and Walmart Marketplace consulting agency. A nationally published and award-winning journalist, Mr. Faist writes about the latest developments in ecommerce, marketplace strategies, changes in consumer shopping trends, retail industry disruptions, and the overall shift toward online shopping. For daily Amazon news and e-commerce updates, follow Channel Key on LinkedIn.

Selling toys on Amazon is big business. The e-commerce giant generated $5.6 billion in toy sales in 2020, making Amazon the top online toy retailer in the U.S. With over 2 billion monthly visitors, it’s no surprise that many of the world’s leading toy brands sell on Amazon, including Fisher-Price, Disney, Nerf, Barbie, and Pokémon. Despite the commanding presence these heavyweights maintain on Amazon, there is but one clear winner in the toy category: Lego.

From September 2020 to August 2021, Lego generated $916 million in revenue on Amazon, according to estimated data from digital intelligence provider SimilarWeb. To put this into perspective, the second-ranking toy brand during this same time period was Funko at $174 million. Coming in third was Melissa & Doug at $135 million.

What puts Lego so far ahead of the competition? Some might argue it’s because Lego is the largest toy manufacturer in the world. The fault in this logic is that it doesn’t explain the disproportionate gap between Lego’s Amazon performance and the rest of the top toy brands when compared to total sales. It is only on Amazon that Lego blows everyone away – and the reason why comes down to three factors.

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