Amazon's Paper and Plastics Category is Crumpled
John Rode
on Apr 19 2019

In Amazon's paper and plastic category the brands with the greatest share of voice are also those leaking the most revenue, primarily due to availability issues. Further, the performance of the top four brands (Kimberly-Clark, P&G, Georgia-Pacific, and SC Johnson) are shockingly similar across the board in marketing performance and supply chain execution. This makes for an interesting "arc" within the quadrant that leaves the High IQ Brands quadrant empty. Typically, there's an arc across the quadrants going the opposite way, leaving the Large Leakers quadrant empty.

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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.   


Niche Performers


Similar to the recent Face Skin Care category, the Paper and Plastics category does not have a brand in the High IQ Brand quadrant. That doesn't mean there aren't brands performing reasonably well. Nehemiah, Presto, Amazon and Unilever are putting up quality supply chain metrics and losing minuscule amounts of revenue to the tune of 4.4%, 2.1%, 0.7% and 0.5%, respectively. The challenge is none of the brands are able to emerge from the low single digits in share of voice. Amazon is the closest to elevating into the next quadrant. Should that happen, the Paper and Plastics category will begin to look a lot like the Coffee, Tea and Cocoa category we recently analyzed. 
Large Leakers


This is one crowded large leakers quadrant! It's highly unusual to have four powerful marketing brands leak revenue at this level. On the bright side, were it not for their availability issues, it's quite possible these brands would migrate to the right into the High IQ Brand quadrant. That is, they are all controlling the buy box well to keep out 3Ps. Specifically, SC Johnson, P&G and Kimberly-Clark are losing revenue to availability issues on the order of 21%, 23% and 23%, respectively. That's a heavy leak! Georgia-Pacific is doing a little better on revenue leakage but not enough to pull them off the y-axis.

At the same time, their combined share of voice accounts for almost 40% of the category's. That's fairly high in the consumer goods space. This category is rather binary - either brands have lots of demand and high leakage, or light demand and low leakage.



Reynolds is so close to the Niche Performers quadrant you can literally see their logo bleeding over. What's holding them back? Their revenue loss is divided almost equally between loss of the buy box to 3Ps and inventory availability issues. Youngone is pegged to the axis in the corner. So, it's safe to say they are but a niche player in this category. Clorox is struggling just a bit with inventory availability, but is getting hit pretty hard by 3Ps taking the buy box.



paper_plastic_keyword_selectionOur data was drawn from an automated, daily analysis of top keywords in the Amazon L3 paper and plastic 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 paper and plastic 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. 


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