Research November 16, 2015

L2 Case Study: Seventh Generation and Amazon Search

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When we published our first Amazon report in 2014, Seventh Generation showed up on first-page search results against relevant home care-related searches more than any other home care brand.

Why?

To decide who shows up in search results, Amazon's algorithm considers a number of factors, the most important of which is sales volume.

And consumers are driven to shop online for specific goods that have limited in-store distribution—for example, Seventh Generation.

However, over the past year we've seen large CPG enterprises with deep pockets such as Unilever and Procter & Gamble ramp up their investment on Amazon, for example around product page merchandising and media investments.

In the face of this heightened investment which translates to sales and therefore search visibility, Seventh Generation's search performance has markedly declined across a number of category terms.

For example, while in July of 2014 the brand controlled 19% of first-page search results for laundry detergent searches, a year later they only controlled 12%.

Dialing in deeper around laundry detergent, we can specifically see that Seventh Generation product listings have been displaced by rising placement of Arm & Hammer products.

However, this current state is far from stable—for example, ownership of the top search positions are regularly in flux.

Brands distributing on Amazon.com should regularly monitor their search performance to benchmark competition around priority products.

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