The Average Price of 'Televisions & Video Products' is Shifting
Condensed: The E-commerce marketplace is dynamic, as can be seen in the 'Televisions & Video Products' category, where the 'Average Price' has just changed by 161.4%. In an ever-changing competitive landscape, these three price points have found solid ground, and here are the best sellers. A group of best sellers within the '' category have each acquired more than a million dollars of revenue within the past 30 days, and the significant metric, 'average reviews' has shifted -17% in the 'televisions & video products' category.
Production Lead: Eric Jackson
Editor:
Sam Bernards
Published July, 2022
What has caused the Average Price of the leaders to change?
Price is one of the most critical components of a consumer's decision to purchase within the E-commerce channel. The recent change from $36.76 to $96.10, a change of 161.4%, is a sign that the category is moving towards higher, more mature and customer-supported price points.
Why are so few price points driving so much volume?
Sales within the 'Televisions & Video Products' category have converged into a clusters around key price points. They are:
- $0.00 to $53.30 (60.5% of sales)
- $159.90 to $213.20 (15.2%)
- $53.30 to $106.60 (12.7%)
for a total of 88.4% 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.
Which products are winning?
This Leaderboard shows the leaders 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?
5 products within the 'Televisions & Video Products' 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:
- $2.6M/month ASIN B0933D3SN6 | 2021 Apple TV 4K (32GB) by 'Apple' sold at $169.98 with 9,920 reviews and a 4.8 rating
- $2.4M/month ASIN B08Z25BH33 | SAMSUNG 65-Inch Class Crystal 4K UHD AU8000 Series HDR, 3 HD... by 'SAMSUNG' sold at $597.99 with 9,057 reviews and a 4.6 rating
- $2.1M/month ASIN B0933D8TNB | 2021 Apple TV 4K (64GB) by 'Apple' sold at $189.98 with 9,920 reviews and a 4.8 rating
- $1.3M/month ASIN B088S3V3R4 | TCL 32-inch 3-Series 720p Roku Smart TV - 32S335, 2021 Model by 'TCL' sold at $148.00 with 12,671 reviews and a 4.6 rating
- $1.3M/month ASIN B094C627M5 | SAMSUNG 86-Inch Class Crystal 4K UHD LED TU9010 Series HDR, ... by 'SAMSUNG' sold at $1,597.99 with 389 reviews and a 4.6 rating
Why is the Average Reviews evolving?
A product's review count is one of the most critical components of the E-commerce search algorithm. The recent change from 22,207 to 18,441, a change of -17%, is a signal that the category is minorly moving towards lower, less intense competition and seasonal change.
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, 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, the recent performance of ASIN #B09BKCDXZC ('Roku Streaming Stick 4K 2021 | Streaming...' by Roku) shows that it is the new benchmark., the milestone that the top 10 products have delivered is a flag that the category is expanding. Brands which acheive category leadership positions now will achieve 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.