Amazon Competitor Analysis: Top Metrics to Track Competition
When it comes to e-commerce marketplaces, nothing compares to the bustle of Amazon, inviting hundreds of thousands of sellers every day. As a seller, things are likely to get pretty rough till you gain a ‘competitive advantage’ to stay atop. This requires a thorough Amazon competitor analysis, which lets you gauge where you stand and what strategies lead on the platform. What is Amazon Competitor Analysis? Competition analysis on Amazon is the process of examining and evaluating the weaknesses, strengths, strategies, performance, and offerings of competitors who sell similar or related products on the Amazon marketplace. This analysis provides insights into how competitors position their products, how is their product quality, how they promote their products, what is their listing content, why they attract customers, and drive sales. Benefits of Amazon Competitor Analysis for Sellers Whether you’re a small business owner or a big name, it’s crucial to know what you’re up against to build the right strategy. Remember, you can’t step into a soccer field without knowing who the opposing team is. It could be a local team (weak competition) or perhaps even world-leading champions (strong competition). Amazon competitor analysis is the bridge that gets you to the other end of the curve, i.e., optimizing your sales strategy to outperform the competitors. But taking a closer look, there’s a myriad of benefits competitor analysis brings you, including: Understand Market Potential There’s no denying the immense potential Amazon holds, but analysing competitors’ standings tells you exactly how profitable your niche may be. Are there enough buyers? Are competitors thriving or barely making sales? Once you study your competitors, you can answer these questions. This lets you decide if the niche is worth pursuing and whether it requires a spot-on strategy. Identify Trends & Consumer Preferences A deep Amazon competitor analysis allows you to quickly catch on to trends and explore what your customers love at the moment. Depending on your product, it becomes easy to discover the colours, features, or bundles selling like hotcakes. This way, you can align your offerings with your customer needs and even make the needful tweaks within your current listings. Set Competitive Prices In a marketplace as dynamic as Amazon, your price strategy can practically make or break your sales. Too high a price could mean losing your customers to the competition, while too low means undervaluing your offering. A comprehensive Amazon competitor analysis allows you to set competitive rates for your products. Plus, looking into your rival’s sales history also tells you a lot about how prices fluctuate over time. Identify Gaps to Make Your Product Stand Out Even if your competitors appear to be doing great, remember – they’re not perfect. Looking into their reviews and identifying gaps within their product strategy opens you up to a world of opportunities. While this may take a bit of hard work, it lets you position yourself in a ‘compelling’ spot for the buyers. If done right, this is your way of adding the value that customers desire. Marketing Insights Simply creating a product listing and waiting for sales isn’t enough. It’s essential to invest in marketing efforts to increase your product’s visibility and attract more shoppers, ultimately driving sales. Analysing how competitors promote their products can provide valuable insights about the keywords your competitors are ranking for and the promotions they’re running. Ultimately, you can work on your advertising campaigns in ways that draw more audience. 1. Identify Your Competitor on Amazon Begin by searching on amazon with various relevant keywords and product names to uncover a broad range of options. Identify the top-ranking products that appear in the search results. Identifying competitors on Amazon is a crucial step in understanding the marketplace, pricing strategies, and consumer preferences. Focus on the products that have similar designs with yours. Analyse high-performing listings by examining their sales data through tools like Helium 10, prioritizing those with strong sales velocity and consistent rankings. Compare the price ranges of these products to understand competitive tiers. Pay attention to their product’s ratings and review. Evaluate the visual presentation, including product images, infographics, lifestyle visuals, and A+ content, for creativity and professionalism. Note the listing categories and browse nodes competitors use. Identify the unique selling proposition (USP) competitors highlight. Direct Competitor Direct competitor refers to a seller offering a product that is nearly identical to yours, targeting the same audiences, their products have a design, functionality, or features closely matching yours, and their pricing aligns with your product’s range. Indirect Competitor Identify products that aren’t direct competitors but could be considered alternatives. These might target the same customer base with a slightly different value proposition Analyse top competitor’s listing to understand what works in your category. By understanding how competitors position their products, use keywords, engage customers we can develop strategies that will help us in making our product stand out. Assess Your Competitors’ Product Listings: The best way to begin a solid Amazon competitor analysis is by deeply analysing your competitors’ product listings. Ideally, create a separate document/spreadsheet to track what they’re doing smart. The basic areas you should evaluate include: Product Titles Since the product title is the first thing a buyer sees, watch closely how your competitors craft their titles to catch attention. This will give searchers a clear idea of whether the product is the best fit for them. Also, check if your competitors are using the keywords without cramming too much. This helps you analyse anything they’ve missed that you can add to your title to make it more appealing. If you find optimizing amazon’s product titles tricky, you can turn to Helium10. Simply log in to their Listing Builder, add your keyword list, and the tool will do the magic for you! Product Descriptions Next up, monitor your competitor’s product descriptions. The best ones are clear, short, and reader-friendly — no keyword stuffing, fluff, or repetition. View the description from a buyer’s perspective, and ask yourself if the brand could’ve done a better job.
