Amazon MPS Benchmark: How Top Tool Brands Compare in 2021

Burke Alder

February 10, 2021

To win on ecommerce marketplaces, brands need to maintain strong year-over-year revenue growth. But without a holistic view of their current ecommerce health, they’ll never know the blockers stopping them from reaching their full revenue growth potential.

To help brands capitalize on missed revenue growth opportunities and understand the full picture, Pattern’s data analysts developed a rating index called the Marketplace Performance Score™, or MPS™. MPS is a new standard brands can use to take a holistic approach at analyzing their marketplace revenue performance based on three strategic drivers:

MPS: Traffic X Conversion X Price = Revenue Growth

If you are a C-Suite executive (CEO, CFO, VP of Legal, VP of Sales, VP of Marketing, VP of Ecommerce) looking to take a holistic approach to your marketplace ecommerce strategy and revenue results, MPS can help you accurately and quickly gauge your ecommerce performance.

What is a Marketplace Performance Score (MPS)?

MPS is the standard executives use to benchmark their revenue potential and competitive position on ecommerce marketplaces around the world. Pattern’s data scientists developed the MPS score based on key revenue drivers of the fastest growing brands on marketplaces around the world.

This MPS Benchmark Report takes a look at Amazon’s Tools category.

Marketplace: Amazon

Category: Tools Category

We analyzed 10 brands by Marketplace Performance Score (MPS) in Amazon’s Tool category. Here are the top 10.

Marketplace Performance Score Report, Top Amazon Tool Brands 2021 | Pattern Blog

To determine MPS, we analyze a variety of metrics related to traffic, conversion, and price to determine individual subscores that then tally into the total MPS score. Here’s a breakdown of the Amazon Tools MPS scores by traffic, conversion, and price.

Traffic: Top 10 MPS Rankings in Amazon's Tool Category

MPS Report, Overall Traffic for Top Amazon Tool Brands 2021 | Pattern Blog

The top three MPS scores for traffic in Amazon's Tool category are:

  1. BLACK + DECKER
  2. Klein Tools
  3. Metabo

Traffic is the first strategic lever to drive revenue on marketplaces. The MPS score on traffic breaks it into three key areas:

  • Paid Traffic
  • Organic Traffic
  • Marketplace Coverage

Paid Traffic takes into account advertising efforts—analyzing the keyword strategy, ad program(s), and ad tactics being leveraged. Organic Traffic looks at how well the brand is currently capturing organic traffic in the category and the potential to grow organically vs. its upside for organic growth. Marketplace Coverage refers to how many global marketplaces (Amazon, eBay, Walmart, etc.) the brand’s products are being sold in. The more marketplace coverage, the higher the score.

Conversion: Top 10 MPS Rankings in Amazon's Tool Category

MPS Report, Overall Conversion for Top Amazon Tool Brands 2021 | Pattern Blog

The top three MPS scores for conversion in Amazon's Tool category are:

  1. BLACK + DECKER
  2. Greenworks
  3. Cartman

Conversion is the second strategic lever to drive revenue on marketplaces. The MPS score on conversion breaks it into five key areas:

  • Listing Titles, Bullets, Descriptions
  • Images and Videos
  • Content
  • Ratings & Reviews
  • Competitiveness

Listing Titles, Bullets, Desc looks at the degree to which the brand is utilizing best practices on its products pages in titles, bullet points, and descriptions. Images and Videos looks at how well the brand is using quality and optimized images and videos to help convey product features and benefits.

Content is how well the brand is conveying its voice and branding across the marketplace (e.g. Amazon A+ Content, branded storefront page, etc.). Ratings & Reviews explores how well the brand’s products are being accepted by marketplace shoppers according to ratings and reviews.

Competitiveness examines the use of effective promotional elements on the product such as the Amazon Prime badge, sponsored listings, coupons, Best Seller or Amazon’s Choice badges, Subscribe & Save, etc.

Price: Top 10 MPS Rankings in Amazon's Tool Category

MPS Report, Overall Price for Top Amazon Tool Brands 2021 | Pattern Blog

The top three MPS scores for pricing in Amazon's Tool category are:

  1. Cartman
  2. Metabo
  3. Klein Tools

Pricing is the third strategic lever to drive revenue on marketplaces. The MPS score on pricing breaks it into four key areas:

  • Channel Conflict
  • Number of Sellers
  • Product Compliance
  • Cross-Channel Consistency

Channel Conflict compares marketplace prices to other ecommerce marketplaces and websites to assess the perceived risk of channel conflict occurring between the brand’s retail partners. The higher the score, the less the likelihood of Amazon undercutting the brand’s retail partners on other platforms and sales channels.

Number of Sellers looks at how many unique sellers are selling the brand’s products. The fewer the sellers, the higher the score. Too many sellers incentivizes price erosion to increase individual sales attribution, which negatively impacts brand integrity and negates advertising efforts (artificially inflating bids, etc.).

Product Compliance looks at the marketplace price of the brand—how stable prices are kept and how frequently prices change. Price drops may increase short-term sales, but negatively impact long-term sales potential.

Cross-Channel Consistency is the level of price consistency across ecommerce marketplaces and D2C websites.

Download the full MPS Benchmark Report

There you have it—the MPS Benchmark Report for the top tool brands on Amazon for 2021. In this small sampling of the full MPS report, we demonstrated how overall MPS rankings for traffic, conversion, and pricing play into revenue driving ability.

In the full MPS benchmark report, we give individual scores for each brand in the top 10 list breaking down traffic, conversion, and price on a more granular level, as well as provide more comparative statistics about each score. To read the detailed benchmark report, download it here.

Request a Custom MPS Report | Pattern Blog

If your brand was featured in our report and you would like more information, reach out to us at hello@pattern.com. If your brand wasn’t featured but you would like to know what your Marketplace Performance Score is, request one here.

MPS Methodology

Our MPS methodology helps brands quickly identify strengths, weaknesses, and gaps in their revenue growth on ecommerce marketplaces. With a simple score of 1-10, you can see how your brand stacks up against the competition in your respective category. The higher the MPS score, the more revenue you’ll generate on an ecommerce marketplace.

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Improve Your Amazon Advertising Strategy With One Simple Metric: True RoAS
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Improve Your Amazon Advertising Strategy With One Simple Metric: True RoAS

The purpose of advertising on Amazon is simple: increase traffic and conversions. But the approach to get those conversions is not always so simple. Your Amazon advertising strategy is based on current ad data and performance results such as your return on ad spend (RoAS). 

At a minimum, your RoAS number tells you how well you’re maximizing your ad spend. The problem is the RoAS you’re getting from Amazon or an advertising agency isn’t always accurate. 

As a top 3P seller on Amazon, Pattern helps brands improve their Amazon advertising strategy and results by providing them with one simple metric: true RoAS.

Understanding True RoAS

To understand why true RoAS is helpful to brands, you need to understand how Amazon and other agencies calculate and present your RoAS.

The key to growing your brand and maximizing your ad spend is to drive incremental traffic, rather than cannibalizing what has already taken place. For example, if you are selling probiotics, and paying for sponsored ads to win the keyword “probiotics for women”, but also organically ranked in the top results with the same keyword, that’s cannibalization. The RoAS score you would receive from Amazon includes that level of cannibalism, which inflates the number, causing you to pay more on ad spend. The best ads drive incremental growth instead of cannibalizing organic sales. 

At Pattern, we’ve created the acceleration software to make sure brands are getting their “true RoAS”. Pattern’s patented tool applies artificial intelligence to advertising to maximize incremental growth or true return on investment. 

Our software helps brands optimize their efforts by providing live and updated information on where your brand is not organically ranking, and what you should be paying for. If your ranking improves in one area, the ad spend will automatically decrease for those words or phrases until the software detects a drop in ranking, signaling that your ad spend should go up again. This dynamic monitoring of ad spend will help you maximize incremental growth and improve your RoAS.

Improve Your Amazon Ad Strategy with Pattern

Knowing your true RoAS is key to improving your Amazon performance. Advertising agencies and marketplace account managers often give you an inaccurate RoAS ratio or value, which only incentivizes you to spend more on advertising, ultimately increasing revenue for the agencies and/or marketplaces.

At Pattern, a 3P partner on Amazon and other marketplaces, we view our brands just as that: a partnership. When you win, we win. You succeed on Amazon by maximizing your ad spend and we have the data and resources to help you do just that. Accurate, transparent data and reporting will help improve your advertising strategy to drive more traffic to and conversions on your products. 

Ready to finally get your true RoAS? Contact us.   

Slowing Inflation is Music to Consumers’ Ears
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Slowing Inflation is Music to Consumers’ Ears

**Instrument Pricing Changes Tune Amid Record Inflation** Compared to 2022, consumers should expect to pay more for musical instruments, but the rate of inflation shows signs of slowing. **The backstory:** America’s most popular musical instruments saw a notable price increase in 2022 compared to 2021, but the rate of inflation eased in Q4 ’22. **Why it matters:** Slowing inflation within this product category could indicate economic pressures like increased demand, rising labor costs, and supply chain disruptions are easing across the consumer landscape. **What we’re seeing:** The average cost of musical instruments increased 7.5% from 2021 – 2022; however, when analyzing individual increases year over year, some instruments saw price increases as high as 21%. <iframe title="YOY Price Change for Instruments — 2022 vs. 2021" aria-label="Bar Chart" id="datawrapper-chart-02Lwk" src="https://datawrapper.dwcdn.net/02Lwk/2/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="379" data-external="1"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(e){if(void 0!==e.data["datawrapper-height"]){var t=document.querySelectorAll("iframe");for(var a in e.data["datawrapper-height"])for(var r=0;r<t.length;r++){if(t[r].contentWindow===e.source)t[r].style.height=e.data["datawrapper-height"][a]+"px"}}}))}(); </script> * Trombones experienced a 21.73% increase compared to 2021 * Trumpets +20.08% * Flutes +18.6% * Recorders +16.13% * Saxophones +13.63% * Clarinets +10.55% * Drums +5.41% * Ukuleles +5.17% **However:** Inflation among these same instruments was significantly less in Q4 ’22 compared to Q4 ’21. In some cases, prices decreased from Q4 ’21 – Q4 ‘22: <iframe title="Price Change for Instruments — Q4 2022 vs. Q4 2021" aria-label="Bar Chart" id="datawrapper-chart-6X6GZ" src="https://datawrapper.dwcdn.net/6X6GZ/2/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="379" data-external="1"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(e){if(void 0!==e.data["datawrapper-height"]){var t=document.querySelectorAll("iframe");for(var a in e.data["datawrapper-height"])for(var r=0;r<t.length;r++){if(t[r].contentWindow===e.source)t[r].style.height=e.data["datawrapper-height"][a]+"px"}}}))}(); </script> * Trombones +11.23% * Flutes +10.41% * Saxophones +5.94% * Clarinets +5.59% * Trumpets +3.10% * Recorders +2.85% * Drums -2.59% * Ukuleles -8.46% **Moreover:** Certain instruments saw inflation reverse in 2022. On average, prices for melodicas, guitars, and violas saw their prices decrease by 4.41%, 3.19%, and 0.97%, respectively. <iframe title="YOY Price Change for Instruments — 2022 vs. 2021" aria-label="Bar Chart" id="datawrapper-chart-0Tefk" src="https://datawrapper.dwcdn.net/0Tefk/3/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="259" data-external="1"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(e){if(void 0!==e.data["datawrapper-height"]){var t=document.querySelectorAll("iframe");for(var a in e.data["datawrapper-height"])for(var r=0;r<t.length;r++){if(t[r].contentWindow===e.source)t[r].style.height=e.data["datawrapper-height"][a]+"px"}}}))}(); </script> **Diving Deeper:** Inflation was more significant when comparing Q4 ’21 to Q4 ’20 than when comparing Q4 ’22 to Q4 ’21, indicating a slowing down of price increases for consumers. <iframe title="YOY Q4 Price Change for Instruments — 2020 – 2022" aria-label="Stacked Bars" id="datawrapper-chart-p6iqt" src="https://datawrapper.dwcdn.net/p6iqt/1/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="206" data-external="1"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(e){if(void 0!==e.data["datawrapper-height"]){var t=document.querySelectorAll("iframe");for(var a in e.data["datawrapper-height"])for(var r=0;r<t.length;r++){if(t[r].contentWindow===e.source)t[r].style.height=e.data["datawrapper-height"][a]+"px"}}}))}(); </script> * In Q4 ’21, average prices for all instruments were up 8.89% compared to Q4 ’20. * When comparing Q4 ’22 to Q4 ’21, the average price for all instruments only increased by 2.65%. **The takeaway:** While consumers should expect to pay higher prices for instruments this year, overall inflation impact within this product category appears to be slowing down. With National Ukulele Day coming up on February 2, now is a great time for ecommerce brands to take advantage of slowing economic worries and reach new consumers. * Want Pattern’s data science team to power your brand with consumer insights like these? Contact us to [request more information](https://pattern.com/contact-us/) today.

Slowing Inflation? What Musical Instrument Pricing Tells Us
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Slowing Inflation? What Musical Instrument Pricing Tells Us

It’s safe to say consumers and brands alike are eager for a change to the pattern of rising inflation, steadily increasing in many ecommerce categories . Pattern’s internal team’s data scientists analysis of instrument pricing shows a glimmer of hope that inflation may be slowing, which would be great news for brands selling online.

At Pattern, we’re interested in and monitoring trends and news related to pricing since price is a key factor in a brand’s profitability (as explained in the Ecommerce Equation). When brands are able to optimize their price, conversions, and traffic, they can optimize their profitability. And profitability leads to better allocation of resources, better brand control, and gives leaders the ability to expand their presence to new markets worldwide.

YoY Instrument Pricing Increased at a Slower Pace

When analyzing the pricing changes of instruments from 2021 to 2022, our teams found that prices increased, but at a slower rate than from 2020 to 2021.

As shown below, the year over year Q4 changes show quite a lower rate of increase.

Inflation Improvements Raise Profitability

Because inflation impacts online shopping behaviors, lower inflation can lead to better overall profitability for brands. This idea, of course, is nuanced, but Pattern’s Ecommerce Equation can help illustrate the general principle.

When inflation rises, consumers change their spending habits. Shoppers spend more time researching products, forego premium, higher-priced brands, and buy more in bulk. Brands tend to see a loss of loyalty as they’re forced to raise prices.

Price is a key variable in the Ecommerce Equation: price x conversion x traffic = profitability. As inflation lowers, brands can expect better performance in all of these areas—more traffic as spending habits return to normal, higher conversion from returning customers, and price that better fits consumer demand. As inflation lowers and these variables stabilize, brands will see profitability increase.

Raise Your Profitability with Pattern

As an ecommerce accelerator, Pattern is obsessed with gathering data that helps our brand partners succeed. We’ve created best-in-class technology, models, and analytics to understand changes on the horizon and inform our decisions. With an incredible team of data obsessed Pattern employees, we see what makes the difference in truly great ecommerce performance and apply those learnings for brand partners. 

Ready to improve your profitability? Contact us here.