Price Consolidates in the 'sports & Outdoor Play Toys' Category
A recap: Consumers are clustering their purchases around a very small number of price points, and 24.6% of the revenue of the top products of the category is now owned by a single brand, creating a new line-up of top performing products. Very few products on amazon.com acquire $1M of revenue per year, when compared to the grand portfolio of all listings on the marketplace. Even fewer are able to perform a $1M+ month. The 'Sports & Outdoor Play Toys' category has several such products, which is rarer still. The 'Sports & Outdoor Play Toys' category has shifted, with 'Average Reviews' changing by -11.4%.
Production Lead: Eric Jackson
Editor:
Sam Bernards
Published July, 2022
Why are so few price points driving so much volume?
Sales within the 'Sports & Outdoor Play Toys' category have converged into a clusters around key price points. They are:
- $0.00 to $12.00 (47.4% of sales)
- $24.00 to $36.00 (20.7%)
- $12.00 to $24.00 (19.8%)
for a total of 87.9% of best selling product sales within the last 30 days. Category competitors which do not have products in these ranges are being penalized by the amazon algorithms.
How did Franklin Sports grow to lead the category?
The brand, 'Franklin Sports', now has a leading share of the revenue of the 'Sports & Outdoor Play Toys' category. With estimated revenue in the last 30 days at $5,831,966, Franklin Sports has 25% of the revenue of the top performing products. Left unchecked, this may give 'Franklin Sports' algorithmic momentum within the category for ASIN B07XKKXQ7D, 'Franklin Sports Outdoor Pickleballs - X-40 Pickleball Balls - USA Pickleball (US...', which has a 4.6 rating and 9,002 reviews.
What is the performance of the top performers?
This Leaderboard shows the top performers within the category during the last 30 days. Typically these 10 products earn significantly more revenue than the other products within the category. The strategy to over-spend on advertising and marketing until one's product achieves a rank within the Leaderboard frequently has a benefit other than a magnitude increase in revenue, which is that organic ranking becomes more likely the closer a product gets to the #1 position in the Leaderboard--at which point paid advertising can become unnecessary. The longer a product can stay at the top of this Leaderboard, the more momentum it achieves.
Revenue share of the top-performing products
Which brands are each earning $1M per month?
3 products within the 'Sports & Outdoor Play Toys' category are official members of the 'Million Dollar Month' club, which is a major accomplishment for products within the E-commerce channel. The club members now include:
- $5.8M/month ASIN B07XKKXQ7D | Franklin Sports Outdoor Pickleballs - X-40 Pickleball Balls ... by 'Franklin Sports' sold at $224.99 with 9,002 reviews and a 4.6 rating
- $1.7M/month ASIN B08H8XFJDQ | SwimWays Inflatable Soft Mesh Twist and Fold Spring Stable R... by 'SwimWays' sold at $47.49 with 4,748 reviews and a 4.5 rating
- $1.5M/month ASIN B01K1K0K6M | Step2 Rain Showers Splash Pond Water Table | Kids Water Play... by 'Step2' sold at $83.99 with 14,936 reviews and a 4.8 rating
What has caused the Average Reviews of the top products to move?
A product's review count is one of the most critical components of the E-commerce search algorithm. The recent change from 7,470 to 6,620, a change of -11.4%, is a signal that the category is somewhat moving towards lower, less intense competition and seasonal change.
Last, the clustering of sales volume around these few high-volume price points is an accelerant for brands with products in those ranges, and an inhibitor for those brands which do not yet cover these critical price points, what Franklin Sports has acquired is excellent. Unchecked, it is on pace to earn an exponentially-higher revenue earner than all other brands. Its competitors must rise to take share or else they risk dwindling over time as Franklin Sports acheives stronger and stronger momentum, the recent performance of ASIN #B098Z9CVF6 ('Bunch O Balloons Neon Colors (10 Pack) b...' by Bunch O Balloons) shows that it is the new benchmark., the milestone that the top 10 products have acquired is a flag that the category is expanding. Brands which acheive category leadership positions now will acquire algorithm momentum, and will likely be able to ride the increasing wave of growth, the recent shift in review count is a call to action for those brands which are under-performing--specifically that a stronger focus on marketing and conversion is increasingly important in order to not be left behind.