Amazon Best Sellers Tracker: BISS (United States, September 2016)
Amazon Best Sellers Trackers are monthly reports (pdf format) published by ResearchFarm allowing to track the performance of top items (1P and 3P) in various categories and countries on the Amazon websites. This service has been launched in October 2013 and represents the only benchmark available for Amazon.
Amazon operates the most professional online marketplace in the world. Neither FMCG companies or retailers can ignore Amazon and in future every company will have to adjust their strategies in how to cooperate or compete with them. But – Amazon apart – no one really knows what the dynamics of the marketplace actually are.
ResearchFarm tracks on a daily basis the fastest selling products in every category to deliver 100% reliable and unique insights into which products are performing best. Thanks to our solid methodology and unique algorithm, we produce a monthly analysis which allows you to analyse key trends such as seasonality effects, healthy eating, promotional strategies, shopper trends and this in any category (30+ available) on any Amazon platform (United States, United Kingdom, France, Spain, Italy, Canada and Germany).
Section 1: Ranking of the best selling items on the Amazon marketplace
This section of the report features a ranking with 30 to 500 items (depending of the product category) ranked by volume. For this purpose, our analysts have devised a new algorithm to rank Amazon Best Sellers per category and monitor item performance on a monthly basis. This ranking allows you to compare item performances from month to month. You can observe how a best selling item generates interest from more and more sellers over time.
The tracker reports reveal what the most successful packaging sizes are and what the best selling sub categories in the broader category are (coffee capsules in grocery for example). Readers can look up all the items on the relevant Amazon stores to get more details by entering the reference details provided.
The minimum, maximum and average prices we provide allow brand owners and 3P sellers to stay competitive in the market and to understand the pricing strategies running on Amazon. Regarding pricing, the trackers also highlight the biggest price variations of the month (see section 2).
Key questions answered with the rankings from section 1:
The tracker shows what pack sizes are performing best in what category on Amazon, to answer the question whether shoppers prefer to buy in bulk on Amazon
Premium versus mass – learn what sells best on Amazon in what category in which geography
Brand versus Private Label – there are actually some retailer private labels on Amazon, find out which ones
Is Ethical/fair trade a big trend on Amazon?
Gain insights around product category seasonality on Amazon and dynamic developments over longer periods. Questions you could then answer would be: When do people start buying confectionery on Amazon? Are there spikes before Easter and Christmas just in offline retailing?
Find out who sells the products, by clicking through on the sellers pages
SECTION 2: PRICE FLUCTUATIONS. SPOT THE INTERESTING PRICE MOVES.
Every month, we highlight the six biggest price variations in the category. See how brands are running promotions.
ResearchFarm always monitors the lowest new prices, excluding shipping, as offered to the end consumer. Shipping costs have been excluded, as these vary with the shipping zone a customer lives in and hence cannot be represented accurately.
In the price fluctuations section, we highlight the six biggest variations in the category every month. This gives brand owners and 3P sellers insights on the pricing strategies running on Amazon, as the items tracked are Amazon's best sellers.
SECTION 3: RISERS AND FALLERS
In each thirty-day period ResearchFarm monitors the price of a specific item about six to seven times. We then compile a ranking from the Amazon sales performance index and compare this ranking over time. We pick only the Top 10 of risers and fallers and provide you with the relative pricing information as well, showing whether pricing has had an influence on the improvement or deterioration of sales rank.
SECTION 4: MANUFACTURERS RANKING
The top manufacturers rankings show an index of the most visible and successful brands on Amazon for each category in every Amazon geography and each month. On a brand level this ranking shows the most advanced and forward thinking FMCG brands that play in the e-commerce space, often through a direct partnership with Amazon's 1P team (the ranking includes both 1P and 3P). These brands understand that appearing on Amazon is not just about sales levels to be generated online but also about visibility, as Amazon is a powerful platform to advertise on.
SECTION 5: SUPPLIER AND 3P DATA
After having crawled and collected Amazon Best seller data for a whole year, we are now tracking the 'Buy Now' box data of Amazon's Best sellers to enable further insights into the world's leading online ecosystem.
Amazon's share of the 'Buy Now' box shows 3P sellers how difficult it is to win in their respective category and also who of their competitors do well on winning the 'Buy Now' box, as a ranking index is included.
Readers will find out which categories are dominated by Amazon. There is a wide spread in concentration with Amazon having a 100% share of winning the 'Buy Now' box in Amazon devices to having no direct 1P involvement in other categories at all. The trackers also show how these dynamics differ across Amazon geographies.
How many sellers are competing for this 'Buy Now' box?
The number of sellers shows how competitive the category is and how commoditised it has become online. The data also shows which categories are currently underserved by sellers and hence promise more potential in moving transactions in this category online.
In the US for example the health & beauty categories had the highest count of 3P sellers out of all categories, followed closely by grocery. The tracker answers the question in which categories in which markets there is the highest number of sellers and conversely where is the most concentration.
Who are these successful sellers? We provide you with the ranking!
As Amazon's influence over pricing levels becomes more accentuated by the minute, managing 3P relationships becomes paramount. Many 3P sellers will offer product sourced from a variety of channels, perhaps never intended by the brand manufacturer, at a sharp discount to win the 'Buy Now' box. Crucially in some instances this can influence pricing levels on Amazon 1P and then this gets magnified in the offline world (through Amazon's price check app and Amazon price tracking by established bricks and mortar players).
Many companies in the 3P section of Amazon's ecosystem remain relatively obscure, some are only in existence due to their online strategies and relying exclusively on the likes of eBay and Amazon, without selling through their own proprietary sites. In Europe the most successful player in one Amazon geography comes quite often from a different country, with the business benefitting from FBA, the European Fulfillment network and multi country inventory.
This data on the 3P sellers helps brand manufacturers and FMCG companies:
to identify who sells product through 3P
to find out about 3P sellers – and where they appear in the ranking in the category.
to target the major 3P players in the online world and to collaborate with the most important players
to manage pricing strategies and promotions (so that a 3P seller does not undercut the 1P offer)
to establish the legality of channels and where product has been sourced from and to police this better
helps manufacturers to improve terms of sale, product returns and liquidation policies and to move the most important 3P sellers to an authorized seller model
to identify illicit sources through (re)imports, grey market, promotion hacking to outright fakes and theft etc, which can then be shut down
Identify whether 3P is a real threat for your products and if so, is it worth doing something about it?
Who should use these reports:
If you are a brand manager or a FMCG manufacturer, this document will allow you to track and benchmark your competitors' products on the Amazon marketplace. So far, only your own sales numbers were available to you. Now you can identify who the competitors are, what products they are pushing forward, what variants/packaging sizes work best for them and find out where the innovation is. You can cross-reference and benchmark these on the Amazon websites worldwide and anticipate future trends. With the fastest fallers (contained in the movers and shakers section), we show you the items which are falling fastest, so you can review your marketing-mix to face new up and coming competition.
If you are a key account manager at a FMCG manufacturer, this tool will allow you to understand the pricing of your competitors and their resellers, authorised or not, and understand what impact the price changes might have on sales. You can fine tune your pricing strategy by adjusting packaging sizes and prices for every market and every category.
If you are a multichannel retailer, this tool will provide the best benchmark for you to compete with Amazon. You will learn what the best selling products are for each category, including variants and packaging sizes. We show you the items that will be successful tomorrow, and the ones struggling where a price change or some promotional spend might be required.
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