Profitero Blog
Are You Unlocking the Amazon Opportunity?

Fundamental data such as sales and category share is the lifeblood of today’s best performing brands in the brick-and-mortar (B&M) world.

However, despite the exponential growth of the online channel (digital sales are growing by 14.6% year-over-year compared to total retail sales growth of 3.7%), most brand manufacturers have been at a massive data disadvantage online compared with offline.

Data on the total online retail market, such as category size, growth rates, and brand shares are largely unavailable at the level of detail and frequency that brand manufacturers have come to expect for brick-and-mortar retail.

Estimating your share of the category on Amazon.com

As the world’s largest online retailer, Amazon is fast becoming a key account or strategic customer for many global consumer packaged goods (CPG) firms.

Global brands such as Kellogg’s are prioritizing working with Amazon, while major manufacturers such as Hershey’s estimate Amazon’s share of the confectionery category to be as much as 40%.

And new research out this week further illustrates the dominance of Amazon when it comes to searching for products. A survey from BloomReach reveals that more than four in 10 shoppers turn to Amazon first when searching for products online.

“Knowing where we stand on Amazon versus others in our category is critical to attaining a competitive advantage” ~ Garrett Bluhm, Head of eCommerce, Hyland’s

Profitero’s new capability for Amazon vendors, Amazon Sales & Share Estimation, gives consumer brands a competitive advantage this holiday season by enabling them to see:

  • The total size of the categories in which they sell products
  • How fast these categories are growing over time
  • If they’re growing their share in these categories, and by how much
  • How their sales compare with competitors
  • A product’s third-party marketplace sales

Consumer brands can now be equipped with the essential insights to not only know their own sales, but also their estimated share of a category (in their own categorization) versus competitors at the product and brand level.

As an example, see how three categories stack up in terms of overall market share concentration on Amazon.com. Within the cold and flu relief category, the top 10 brands are shown to account for 57% share.

AMS - final

Source: Profitero analysis

Brands can track how their share changes over time and, with our full suite of eCommerce analytics, what may be causing it. They can monitor what shoppers see and buy online and receive insights and strategic recommendations that pinpoint how to improve their daily performance.

Download this short paper to find out more about Amazon Market Share Estimation.