The Average Price of 'Wellness & Relaxation Products' is Shifting
The 'Wellness & Relaxation Products' category has moved, with 'Average Price' changing by 62%.
Production Lead: Eric Jackson
Editor:
Sam Bernards
Published July, 2022
Where has the Average Price moved to?
Price is one of the most critical components of a consumer's decision to purchase within the E-commerce channel. The recent change from $24.98 to $40.47, a change of 62%, is a flag that the category is moving towards higher, more mature and customer-supported price points.
What is Fitbit doing that others aren't?
There is a gorilla among the competitors of the 'Wellness & Relaxation Products' category that has gained 63% of the revenue of the category leaders. This is a rising amount of share and a signal that the amazon algorithms are rewarding Fitbit with dominant positions within consumer searches. Fitbit also has an enhanced organic search rank on account of the positive algorithmic bias, which implies that its profit is over-indexing compared to the category products. The hero product which is driving this revenue volume is ASIN B08DFPV5Y2, 'Fitbit Versa 3 Health & Fitness Smartwatch with GPS, 24/7 Heart Rate, Alexa Buil...', with a 4.5 rating and 39,130 reviews. Regarding pricing, this product's price is not within the top 3 highest-volume price ranges, implying a lack of data-driven strategy and weakness that competitors can exploit. This is a product to watch.
Why is the '$0.00 to $11.20' range #1?
Sales within the 'Wellness & Relaxation Products' category have converged into a clusters around key price points. They are:
- $0.00 to $11.20 (42.6% of sales)
- $22.40 to $33.60 (25.8%)
- $11.20 to $22.40 (20.6%)
for a total of 89.0% 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.
Why is the 'Wellness & Relaxation Products' category underperforming?
The 'Wellness & Relaxation Products' category has lodged on the bottom stratum in the E-commerce metric, 'Revenue per ASIN', within the last 30 days, placing its brands and products among the E-commerce amateurs. Currently at $40,085, this is a 67.1% reduction from the recent average 'Revenue per ASIN' of $121,666 within the E-commerce sectors we cover.
Which products are winning?
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.
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Leaderboard Rank
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Product Image
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Product
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Price
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Monthly Revenue
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#1
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B08DFPV5Y2 | Fitbit Versa 3 Health & Fitness Smartwatch with GPS, 24/7 Heart Rate, ...
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$159.49
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$2.0M to $2.4M
|
|
#2
|
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B086Z6LNVS | Theragun Mini - All-New 4th Generation Portable Muscle Treatment Massa...
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$159.00
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$841.9K to $1.0M
|
|
#3
|
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B00V9JP8EE | InnoGear Essential Oil Diffuser, Upgraded Diffusers for Essential Oils...
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$11.99
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$118.5K to $144.9K
|
|
#4
|
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B06XG7YXJ1 | Shower Foot Massager Scrubber - Improves Foot Circulation & Reduces Fo...
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$11.19
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$60.1K to $73.5K
|
|
#5
|
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B01NCWEY2U | Plant Therapy Blue Tansy Essential Oil 100% Pure, Undiluted, Natural A...
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$15.99
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$57.0K to $69.6K
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|
#6
|
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B001EUCWHO | Bach RESCUE PASTILLES, Black Currant Flavor, Natural Stress Relief Loz...
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$8.17
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$55.2K to $67.5K
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#7
|
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B018EBNSBO | WOVTE Bear Claw Black Telescopic Back Scratcher
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$5.29
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$25.4K to $31.1K
|
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#8
|
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B07DWH8VNR | 3DFitBud Simple Step Counter Walking 3D Pedometer with Clip and Lanyar...
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$24.99
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$0 to $0
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#9
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B08MLB2B4H | AERLANG Massage Gun, Deep Tissue Massager, Portable Muscle Massage Gun...
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$35.25
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$0 to $0
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#10
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B01MR4Y0CZ | ASAKUKI 500ml Premium, Essential Oil Diffuser with Remote Control, 5 i...
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$25.99
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$0 to $0
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Revenue share of the top-performing products
In conclusion, a price shift is an opportunity for the astute brand which has a responsive supply chain and a rapid product launch process. This is a call to action to review one's product portfolio for coverage of the top high-volume price points, what Fitbit has performed is incredible. Unchecked, it will continue to persist as an exponentially-higher revenue earner than all other brands. Its competitors must rise to take share or else they risk dwindling over time as Fitbit acheives stronger and stronger momentum, 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, category performance of the top brands and products within 'Wellness & Relaxation Products' shows that it is struggling to gain consumer confidence. While this may be an opportunity for the brands which are willing to persist in marketing the category's presence and products until consumers show a critical mass of conversion, astute brands will round out their product portfolio with other categories instead of being reliant on this one, the recent performance of ASIN #B08DFPV5Y2 ('Fitbit Versa 3 Health & Fitness Smartwat...' by Fitbit) shows that it is the new benchmark.