Lifetime Brands, a houseware maker best known for its FarberWare and KitchenAid product lines, used to finish most of its holiday shipments by the end of October. As a traditional brick-and-mortar wholesaler, Lifetime Brands shipped the products to retailers in advance of the holiday season so the stores could fill their racks in time.
But this year, its warehouses remain busy deep into December. That's because Amazon is ordering huge quantities to meet the growing demand from online holiday shoppers. Dan Siegel, president of Lifetime Brands, says, at this pace, he wouldn't be surprised if Amazon became its biggest customer in three years (Amazon wasn't even in the top 25 until four years ago).
"We've shifted our resources in our warehouse to be competent for Amazon's high demand," Siegel said. "Amazon is really smoking right now."
The change at Lifetime Brands, a public company with roughly $600 million in annual revenue, is illustrative of how even large public companies are starting to become reliant on Amazon's online shopping site. As Amazon has grown its dominance, it's changed the game for many companies in a wide range of industries.
Lifetime Brands — whose stock is down about 5 percent for the past year — doesn't yet generate more than 10 percent of its revenue from Amazon, which requires disclosure, and sells through other retailers like Walmart and Costco as well. But at least 21 public companies have generated 10 percent or more of their revenue from Amazon in their most recent fiscal year, according to FactSet.
The list includes consumer electronic companies like GoPro, Roku and FitBit, but also United Natural Foods, a major Whole Foods supplier. Air Transport Services Group, a freight company that handles parts of Amazon's air cargo shipments, saw 29 percent of its revenue come from the e-commerce giant. Applied Optoelectronics, whose data center equipment helps Amazon sell its AWS cloud service, generated a whopping 58 percent of sales from Amazon.
That's a much deeper list than some of its competitors. Target, for example, only has eight suppliers that passed the 10 percent revenue threshold for disclosure, while Microsoft has just seven. EBay only has two. Companies like Walmart and Apple, meanwhile, still have a longer list of mega suppliers than Amazon.