Revenue Shape of 'Play Vehicles' is a Spread
The 'Play Vehicles' category has an uncommon shape in the distribution of revenue across leading products.
Production Lead: Eric Jackson
Editor:
Sam Bernards
Published July, 2022
Why is revenue more distributed than other categories?
We commonly witness revenue distribution among the products of any given category is as exponential shape, with the category leaders of the top 10 earning more than the rest of the category, combined. The 'Play Vehicles' category now has an uncommon shape: a broad distribution that spans beyond the top 10 products, with the current top 10 only earning 34.1% of the best sellers revenue. This implies that there may be seasonal factors causing category leaderhip rotation, or possibly a broad range of brands with exceptional performance. One implication is that brands can expect this category to move more fluidly, creating opportunities for good performers to break into the leadership roles and experience the elevated revenue as a consequence.
Why does this brand perform better than all the rest?
As the category leader, 'DINOBROS' is earning revenue that is 210% higher than the average revenue of the other top products in the space, which is significantly more--a signal that this brand has a strong position and good algorithmic performance. It's product rating of 4.7 is 1% higher than the category average. And with 17,875 reviews, it has earned 3% more reviews than the category average.
Which brands are collectively earning $1M per month?
In the rapidly evolving E-commerce sector, the Top 10 products of a category achieving a collective one million dollar month is a milestone. It signals growing adoption and viability for consumers. This just happened within the 'Play Vehicles' category, where the top 10 products collectively earned $1.7M
Finally, the wide-spread revenue that we can see in the 'Play Vehicles' category implies a higher level of leadership change than average, which can be the basis of opportunistic growth for astute brands, the milestone that the top 10 products have acheived is a signal that the category is growing. Brands which acheive category leadership positions now will acheive algorithm momentum, and will likely be able to ride the increasing wave of growth.