INDUSTRY REPORT
Q3 2025 Toys & Games industry analysis: Growth amid constraints
E-commerce sales in the Toys category demonstrated strong momentum through Q3, with Ordered Product Sales climbing 16.1% year over year—outpacing the broader market average. This growth reflected sustained consumer demand heading into the critical holiday shopping season, particularly around Prime Day in July.
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Key takeaways
- Strong sales performance: OPS grew 16.1% YoY, significantly outperforming the overall market's 9% growth rate.
- Inventory running lean: On-hand inventory dropped 10% YoY by September, even as brands improved fulfillment reliability to meet demand.
- Margins held firm: Unit margins rose 1.9% YoY as brands increased prices 6% and reduced discounting by 2.4%.
- OOS improved dramatically: Revenue loss from out-of-stock situations declined 31% YoY, with representative OOS down 0.6%.
- Customer engagement steady Glance views and conversion rates remained relatively flat YoY, suggesting stable but not accelerating shopper interest.
- Fulfillment efficiency up PO fill rates improved 8.7% YoY, reaching their highest point in 18 months at approximately 90%.
