The household cleaning category on Amazon is dominated by a crew of brands in the Niche Performers quadrant. With relatively light marketing and outstanding supply chain execution, these brands have swept the big brands into the Large Leakers and Laggards categories. Only a single brand (Clorox) has elevated, but with a fast follower (Bissell) not far behind.
This BrandIQ Quadrant benchmarks brand performance by the critical disciplines of supply chain operations and marketing. Who is best able to both drive and fulfill demand on Amazon in this category? The metric that underpins marketing is Share of Voice (how often your brand appears in organic or paid search results), and for operations it's revenue leakage (how well are you able to avoid losing sales because shoppers are unable to buy your product because it's unavailable, lost buy box to 3Ps, etc.). Given Amazon's ever-increasing complexity and speed, mastering both is not simple.
High IQ Brands
Clorox is a tale of two quadrants. It's disinfecting wipes brand may be a low performer (see Laggards quadrant below) but its primary offerings are literally cleaning house. In fact, this is the first time we've seen Clorox rise to lead a category. For example, in Paper & Plastic, Cat Litter, and Baby Care Grooming Clorox is generally a formidable, but not leading, competitor.
It's share of voice is #1 in the category at just over 5%, and it's revenue leakage is #11 at just over 6%. This is a strong category on the supply chain side, so even though Clorox has a relatively low rank, anything less than 10% is admirable.
Overall, Clorox is exceptionally balanced with just over 5% share of voice in both organic and paid. For revenue leakage, Clorox is also fairly balanced and loses just over 4% and 2% to availability issues and 3Ps, respectively.
This is the brand Clorox is likely focused on as it accounts for 193 ASINs, vs. just 11 for its disinfecting wipes offerings.
What a quadrant! 13 brands packed into the niche performers category is an unusual sight. It was actually quite difficult to arrange the brands in the quadrant to show their respective positions clearly. But as you might expect there is a very gradual progression of brands on both share of voice and revenue leakage. to see how all brands rank in this category.
Share of voice ranges from 2.4% for Bissell down to 0.9% for Wet Ones (Edgewell). That's not a huge range, and is typical of many CPG categories where even top brands often have a single-digit share of voice. The biggest advertisers are Swiffer (P&G), Therapy and Seventh Generation (Unilever) who come in at 4.7%, 3.2% and 2.9% paid share of voice, respectively.
Revenue leakage is a bit less incremental with top performers Mountain Falls (Amazon), Bissell, Seventh Generation and Amazon Elements all coming in at less than 1% leakage and, at the leakier end of the quadrant, we have 8.6% for Guardsmen and 8.5% for Wet Ones. Guardsman stands our for it's relatively high (8.5%) leakage due to 3Ps, combined with an exceptionally low loss of revenue due to availability issues (0.1%).
Generally speaking, the brands in this quadrant suffer more from loss of the buy box to 3Ps than from availability issues, by a factor of 3x.
Lysol (Reckitt Benckiser) and Weiman (Cortec) are right up there with Clorox as the #2 and #3 marketers in the category. They are well-balanced across organic and paid share of voice.
Lysol and Weiman are both pegged to the y-axis due to their high revenue leakage exceeding 20%. Lysol is actually much better positioned as it's only losing 22% of revenue, while Weiman is losing 90%. For Lysol, availability issues are affecting it a bit more than 3Ps. But Weiman is really struggling with 3Ps and losing over 60% of revenue.
The Large Leakers quadrant is never a good place to be positioned. However, it's feasible Lysol could migrate over to the High IQ Brand quadrant. Weiman has more heavy-lifting to do before it can have such aspirations. to see how each brand ranks in this category (or request a new category too!).
Having seven brands in the laggards quadrant is not unheard of in other categories. However, all these brands are losing between 1/5 and 1/3 of their revenue to leakage, so they are all in there pretty deep. What's interesting is that the brands have a variety of readings on their metrics. For instance, Cottonelle (Kimberley-Clark) is losing 36% of revenue due to availability issues and only 3% to 3Ps. On the other end of the spectrum, Pledge (SC Johnson) is losing only 6% due to availability issues but 20% to 3Ps. This pattern repeats itself with Huggies (Kimberley-Clark), Pampers (P&G) and Arm&Hammer in the same bucket as Cottonelle, while Clorox Wipes are in the same boat as Pledge. Method is the rare case losing almost even amounts with 15% revenue loss due to availability issues, and 19% to 3Ps.
The Baby Care > Grooming category on Amazon is quite similar in structure to the Household Cleaning category. It's Niche Performers and Laggards quadrants are quite full, and with light brand coverage in the High IQ and Large Leakers quadrants. A big difference is the brands in the Household Cleaning category are often pegged to the axis rather than evenly dispersed like in the Baby Care category.
Our data was drawn from an automated, daily analysis of top keywords in the Amazon L3 Household Cleaning category over a one-year period. Our method focused on 1P brands and their associated SKUs. Marketing performance was determined by analyzing Share of Voice which essentially divides how many times a brand appears in search results, by the total available slots in the search results. Our system looked at both organic and paid ads for the top keywords discovered for the Household Cleaning category on Amazon. Our system focused on page 1 search results and the product page for each SKU. Each appearance of the brand in organic search and paid ad slots was given equal weighting. Revenue Leakage was determined by an algorithm that analyzes inventory availability of the SKUs on the product page and translates that into estimated revenue missed for each brand due to things like a SKU being Currently Unavailable, Inventory Encumbrance, Item Under Review, a 3P seller taking the buy box, etc.