The Average Price of 'Home Storage & Organization' is Evolving
The E-commerce marketplace is dynamic, as can be seen in the 'Home Storage & Organization' category, where the 'Average Price' has just changed by 242.3%.
Production Lead: Eric Jackson
Editor:
Sam Bernards
Published July, 2022
What has caused the Average Price of the best sellers to move?
Price is one of the most critical components of a consumer's decision to purchase within the E-commerce channel. The recent change from $20.85 to $71.39, a change of 242.3%, is a sign that the category is moving towards higher, more mature and customer-supported price points.
Why is there a accelerated displacement in the best sellers?
At least one important, leading product is now no longer available to consumers. This may have occured from a seasonal shift, an out of stock, or a decision by the brand to retract the product from the market. Less probable but something that certainly happens is that Amazon may have frozen their account. Regardless of the reason, there is now an opportunity for the savvy competitor to lean in to this category by increasing ad spend, better positioning existing products according to pricing and keyword trends, to introduce products that fill consumer gaps, and other tactics which take advantage of the competitive gap that has recently been created. The key is to drive up conversion momentum during the period of the category leader's absence, such that if the leader returns, it is easier to compete--and win--against them.
Can any brand overtake 'DEWALT' within the 'Home Storage & Organization' category?
As the category leader, 'DEWALT' is earning revenue that is 470% higher than the average revenue of the other top performers 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 1.1% higher than the category average. And with 24,397 reviews, it has earned 3.9% more reviews than the category average.
Why is the Average Reviews moving?
A product's review count is one of the most critical components of the E-commerce search algorithm. The recent change from 24,821 to 6,324, a change of -74.5%, is a sign that the category is slightly moving towards lower, less intense competition and seasonal change.
Finally, 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, regardless of the reason why there is a competitive gap on account of a category-leading product retracting from the market, now is the time to act, 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.