Amazon's Networking Category is Densely Packed
John Rode
on Apr 09 2019

Amazon's networking products category shows a clean distribution of brands. Netgear and TP-Link are tops in share of voice, and also excelling in supply chain execution. We see a handful of niche players performing pretty well with Belkin edging up to the "High IQ" quadrant border, and then there are also a few laggards with work to do. The "Large Leakers" quadrant is empty (thank goodness). This category feels healthy. But having said that, there are clear winners and losers! 

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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.    

 

High IQ Brands   

Together, Netgear and TP-Link account for about a 1/3 of total share of voice for this category. And it's organic search that's really separating these two brands from the rest of the crowd. They are hitting 21% and 19% for organic, respectively, which is very high whether you're analyzing cereal, baby food, computers, etc. For paid, they aren't really pushing hard relative to other categories we've analyzed, and are grabbing only 7% and 8% share of voice. Get the full BrandIQ report to see the share of voice breakdown for all the brands in this category. 

As you would expect from High IQ brands, Netgear and TP-Link have highly effective supply chains. They're rarely out of stock, and hardly ever lose the buy box to 3Ps. In fact, they're only losing 6% and 9% of revenue to leakage, respectively. That's a good showing for two brands who also claim a lot of mindshare in the category. 

 

Niche Performers

As you would expect from brands in the niche performers quadrant, share of voice is low. It ranges from 2% for Eero to 7% for Belkin. It's worth noting that with a tad more marketing muscle in paid ads, Belkin would likely climb into the High IQ Brands quadrant. They are only claiming 4% of paid share of voice, which puts them in 9th place in the category. Get the full BrandIQ report to see the charts on how each brand breaks out for organic search, paid search, and revenue leakage.

Belkin actually has the second best product availability metrics - only losing 0.8% of revenue to leakage due to availability issues. That truly is outstanding across all categories we've analyzed. D-Link and Eero are also running a tight ship on product availability. Well done! Trendnet is on the verge of tipping into the Laggards quadrant. It's their loss of 7% of revenue to 3Ps that's doing it to them. It's not that bad, but it's also not best-in-class. Their minimal 3% leakage due to availability issues is not bad at all.

Laggards

Asus, Tenda and AT&T are all languishing in the Laggards quadrant. Only Asus is showing signs of life in share of voice as their organic is a respectable 5%. Not bad considering they're putting very little into search ads on Amazon. You can see Asus performs incrementally better in the Computers & Tablets category. Tenda and AT&T are in the middle of the pack with advertising and grabbing 8% and 4% paid share of voice. Tenda is actually ranked #3 in paid, albeit in a pretty conservative category.

This is always the hardest part to write. However, relative to other categories we've analyzed, these brands aren't doing too badly. With revenue leakage of 18%, 14% and 13% for AT&T, Tenda and Asus they really aren't that far from jumping quadrants. None are doing particularly poorly in losing the buy box or going out of stock. Get the full BrandIQ report to see the performance stats on each brand in this category.  

 
Explore Other BrandIQ Quadrants 
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Methodology

Our data was drawn from an automated, daily analysis of top keywords in the Amazon networking products 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 networking products 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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