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With thousands of sellers trooping into the Amazon marketplace daily, keeping an eye on your competitors is crucial to staying on top of the game.
Understanding how your competitors source their products, price their products, list their products, promote their products and much more is what is called competitor analysis. It involves examining their strategies, strengths, and weaknesses, to gain a competitive edge.
Read on as we explore this guide on Amazon seller competitor analysis, looking at how to identify and analyze your competitors.
We can simply refer to Amazon competitor analysis as the process of studying and evaluating the strengths, weaknesses, strategies, and overall performance of competitors selling similar products on Amazon. It helps sellers gain a competitive edge by understanding how their competitors position themselves in the market.
This analysis involves several components including:
Conducting an Amazon seller competitive analysis comes with several benefits:
An Amazon seller competitor analysis can help you identify unmet customer needs, product gaps, and opportunities that your competitors may have overlooked. This valuable information can help you improve your product and marketing strategies.
By closely examining your competitors’ listings, you can improve your product titles, descriptions, and images. This can lead to better visibility on Amazon search results and increase conversion rates.
Competitor analysis allows you to compare pricing strategies, including discounts and promotions. With this knowledge, you can set competitive prices while maintaining profitability.
Through Amazon seller competitor analysis, you can Identify effective keywords used by competitors. This can help you refine your own keyword strategy, improving your product's visibility in Amazon search results.
Regular competitor analysis keeps you informed about market trends, customer preferences, and emerging strategies. By understanding what sets successful competitors apart, you can develop unique selling propositions that differentiate your products or services from the competition.
This helps you make informed decision-making across various aspects of your Amazon business.
Carrying out regular competitor analysis helps you stay current with the marketplace dynamics. You can easily make timely adjustments to your business strategy.
By analyzing competitors' customer service approaches, and finding out what customers want and do not want, you can identify areas for improvement in your own service quality and response times.
To find out who your competitors are, begin by searching for relevant keywords related to your product. Use broad terms and gradually narrow your search to more specific, long-tail keywords. You want to use both broad terms and specific terms as this will give you a detailed view of your competition landscape.
Look out for the products that consistently rank at the top for your chosen keywords. These are likely your main competitors.
Look out for sellers offering substitute products or targeting slightly different audiences. These products may indirectly affect your sales even if they don't sell the same product.
Once you've identified your competitors, you can use tools like Jungle Scout, Helium 10, or Seller Assistant App to gain insights into Amazon's competitive landscape.
You can compare your product with competitors on various metrics such as revenue, units sold, average price, star rating, number of reviews, and market share.
Here’s a simple step-by-step approach to analyzing your competitors on Amazon:
First, you want to create a checklist of your competitors’ product features so you can find ways to improve your offer and highlight the most important benefits in your product listing. Scan through your competitors’ product features and look out for every feature you can find. You can arrange your list in a spreadsheet.
Once you have all your competitors’ product features listed, you can find out where your product is superior. You can look out for features they have that you don't. What features do you have that your competitors don't? In what areas can you improve your product features to gain a competitive advantage?
Once you've identified who your competitors are, it’s time to dig into the details of their product listings. A well-optimized listing can significantly influence your product’s rank and sales. By analyzing your competitor’s listing, you can gather insights into what works and what doesn’t.
Here are a few aspects of your competitors’ product listing to analyze:
Pricing is one of the most critical factors in consumer decision-making on Amazon. Understanding your competitors' pricing strategies can help you position your product appropriately.
You want to ask yourself the following questions:
Another crucial aspect you want to analyze is your competitors’ sales performance. Understanding your competitor's sales performance will give you a better sense of how they are doing in the marketplace. You can use several tools available that provide estimates of your competitors’ sales data. These tools include Jungle Scout, which offers insights into sales estimates, average monthly revenue, and best-seller ranks for individual competitors.
You can also use tools like Helium 10 and Keepa to get a detailed view of your competitors' sales trends over time.
Amazon PPC (Pay-Per-Click) advertising plays a huge role in how sellers gain visibility on the Amazon marketplace. Understanding the advertising strategies that make the most impact can help you optimize your own campaigns.
Here are a few ways to analyze your competitors’ advertising strategies:
Customer reviews can offer a wealth of information, not just for improving your product but for analyzing your competitors as well. Reviews reflect real customer experiences and provide insights into what customers love or dislike about a product:
Here’s how to analyze your competitors’ customer feedback:
While studying your competitors is incredibly beneficial, simply copying their strategies or switching to their product offerings is never a good idea. Here are some things you should not do when conducting an Amazon seller competitor analysis:
It can be tempting to assume that lowering prices is the best way to beat your competitors. But while price is an important factor, focusing solely on undercutting competitors can be a race to the bottom. Lowering your price too much can devalue your product, and ruin your profit margins.
Instead of focusing on product price only, look at the full scope of the competitor's offering. Consider other factors like product quality, add-ons like bundles, and warranties, customer service, shipping speed, and customer reviews.
We know the saying that imitation is the best form of flattery. But this is not always so in business. Copying a competitor’s product listings, keywords, or marketing strategies without understanding the why behind their choices can lead to failure.
Just because a competitor is using a certain approach doesn’t mean it’s working for them or that it will work for you.
Instead, use your Amazon seller competitor analysis to understand what is working in the market, but adjust it to your unique selling proposition. Address unmet needs or offer something competitors don’t. Look at their weaknesses and innovate, rather than simply copying.
It's easy to focus on top sellers and big brands, but this can cause you to overlook smaller rising competitors who may not yet have significant market share but are growing quickly. So, include smaller competitors in your analysis. They may have innovative methods, higher customer satisfaction, or product offerings that your larger competitors don't offer. Understanding their strengths can give you insight into emerging trends.
While competitor analysis is crucial, relying only on competitor data without considering your own performance can be risky. Every business is unique, and blindly following competitors without analyzing your own sales, reviews, and customer behavior may lead you down the wrong path. Instead, you want to combine competitor insights with data from your own performance.
Amazon seller competitive analysis is the process of researching and assessing the strengths, weaknesses, strategies, and performance of competitors selling similar products on Amazon.
How do I compete with other sellers on Amazon?
To compete effectively with other sellers on Amazon, you want to tactfully implement effective selling strategies. Some of these strategies include optimizing your product listings using effective product titles, detailed product descriptions, and high-quality images, improving search visibility, enhancing your customer experience, and optimizing your inventory.
To track your Amazon seller market share, you can use several methods and tools. You can use Amazon's built-in analytics tools like Amazon dashboard and Amazon brand analytics or leverage third-party analytics tools like Jungle Scout Competitive Intelligence or Helium 10 Market Tracker.
By conducting a thorough competitor analysis, you gain valuable insights that you can use to optimize every aspect of your Amazon business, from pricing to product listings to keyword optimization and customer service. This helps you gain a competitive edge ultimately impacting sales and profit.
You’ve probably already considered selling on Amazon but its way easier than you think.
Call Us Now