Amazon is the tech giant helping thousands of businesses by providing them e-commerce retailing space and successfully contributing to their growth.
Today every second business is rushed to sell on Amazon, with more than 2,000 sellers joining the Amazon marketplace each and every day. And why not, according to a study, more than 50% of online shoppers prefer Amazon first when looking to buy any product. Only Amazon itself has millions of active users including 105 million Amazon Prime customers, many of whom shop on its site daily.
Let’s see some more reasons to understand how Amazon helps businesses to grow faster-
Though listing any product on Amazon is not a big deal the real fight is to differentiate your product from competitors. Here in depth Competitor analysis is the only key to help businesses to get an edge over others with similar products.
This Amazon Competitor Analysis guide not only helps you know how to find, define, and analyze your competitors but how to conduct your competitive analysis to set your business up for success.
Yes, The value of the insight that can be gained from your competitors’ analysis can set your business up for success.
Analyzing your competition, help you gain insights into- what your competitors are doing? How dominant is your competition? Most importantly help you figure out what can you do better than them to outperform & overtake the market?
Gaining potential market insights & having an in-depth thorough understanding of your competition allows you to:
All these help you know what exactly can help you climb in the Amazon sales rankings and push you ahead most of the similar players in the fraternity
Let's move further and see….
How to find and define your competitors on Amazon?
The Simplest way to find your competitors is to search your product on Amazon. When you start searching with broad keywords, you will find so many results with similar products, all these are from your competitors, And if you want to find your top competitors, use more specific keywords.
For example, if want to sell an automatic single-serve coffee machine. You can start your competitor search form the broad term, “coffee maker,” this will get you various results and results showing different coffee makers.
But if you narrowed your search with a more specific term “ automatic single-serve coffee machine.” you will get the result-
Once you do a search with a more specific keyword, you can take note of the first 10 to 20 similar best-selling products from your competitors you should focus on.
Based on your search results like what types of products they have available, which category of competition they fall into, what are their basic strengths and weaknesses, you can segregate competitors as primary, secondary, or tertiary.
After getting good visibility about your competitors, using some good Product Tracker tools you can compare products, gain potential insights, and their sales metrics to work better on your one.
Knowing your competitors help you gain valuable insights into the prevailing demands and expectations of the target market. And this will get you more visibility on how you can position yourselves against them by understanding-
What helps them attract customers?
Why do customers prefer to buy from them? Is it their attractive pricing? Effective branding? Experiences they are delivering?
All this helps you know what are areas you need to work on?
what are all scope of improvements to get an edge over your competitors?
Once you know who your top competitors are, next you have to conduct an in-depth audit to identify their strengths, weaknesses, marketing & branding strategies and figure out how you can overtake them.
You can start competitor analysis of Amazon by compiling a list of your opponent’s products and conducting the in-depth audit focusing on every feature of their product listings, from the titles and descriptions to the images including-
Product title: Figure out how their title made balance from the perspective of both shoppers as well as Amazon's recommended format. Secondly, Is there any crucial piece of information missed by your competitors that you can add to make your product title more interesting.
Product Description: Product description is given just right to the product image highlighting the unique selling points (USP). Here you have to look up how can your business counter these points to add more value & make your listings even more informative.
Product images: Product Images are of extreme importance while selling on Amazon. Since the customer cannot touch, feel, or see a product its images play a vital role in convincing the customer. You can examine your competitor’s images and make sure to have the highest-quality images and infographics than that of your competitors.
Product Q&A: QA section is another important section of the product listing page, to help you know what kinds of questions are put on by shoppers, and what is the right way to answer those questions? You can check the kind of questions the customers ask and it's better for you to add them to your product listing.
Pricing analysis another critical part of an Amazon competitor analysis focuses on assessing the competitor's prices. Based on that you can come up with a strong & stable pricing strategy.
Pricing has a tremendous influence on the purchase decisions of most shoppers — especially on Amazon. Right pricing can even convince more customers to purchase a product from you rather than your competitors.
It’s essential for your business to compete with your competitors’ prices & make a profit. Building a good pricing strategy is critical to any brand growth. Here you can go for some good price tracking software like Sellics that allows your business to monitor the product prices of their competitors 24/7. A few good alternatives to Sellics include Priceyfy and CamelCamelCamel. Using these smart tools you’ll be able to avoid potential losses and figure out & stick to prices that are stable enough for you to make an optimum profit.
It's essential to evaluate competitors' branding strategy when it comes to Amazon competitor analysis - especially if targeting the same audience set.
Branding strategy is one of the key factors that influence customers’ purchasing decisions. This comes down to the brand tone, tone of the listing copy, the product images, packaging, content quality, and how effectively a brand communicates with its customers. How effective & active a presence does a brand have on social media.
By understanding your top competitor branding & strategy, you can come up with a better one for your brand.
None of the businesses wants to get into a market that is trending down or launch a product, that no one wants to buy. Tracking sales for similar product help you gain confidence in the product that you have decided to sell.
Tracking your competitor’s sales will give you a good understanding of market demand, with how much inventory they’re moving and what potential profit they could be making.
Researching your competitor’s potential keywords is one of the most critical steps while conducting Amazon’s competitor analysis. It is something very crucial that can set you up for sure business and SEO success.
Though based on your product listing audit, you will probably get an idea of what keywords your competitors are using. But getting an idea about their keywords by optimizing their listings is a bit exhaustive process. The easiest way to research your competition’s keyword strategy is to use any tools for competitive keyword research.
Review Assessment help you what customers are saying about your competitor’s products? What are their expectations, pain points?
What do they like about the product? Or how can their product resolve their issues or what else can be enhanced in the product to make it much better?
All these details help you know weaknesses & strengths of their products that you use for improvement in your one.
For example, if a review mentions that the handles are too small, making it more difficult to carry them easily, here you will get an idea that your product handle should be of optimum size, you can consider this point for the manufacturing department. This way you can take care of all possible issues in your product.
One of the most important steps for competitor analysis of Amazon is to visit your competitor's Amazon store. Not necessary that all your competitors have Amazon Store, which serves as a microsite for companies on Amazon. But if your competitor maintains an Amazon store, it's highly recommended for you to check out how they customize the customer experience establish a strong brand presence, and beat the market successfully.
Or else if you find certain elements of their websites clunky or far from user-friendliness, you can again make a note to work on it for your website. This way you can learn best practices to make your site more interactive & user-friendly!
Gaining insights about your competitors' ad campaigns is a great way to finish your Amazon competitive analysis. This helps you know what are potential keywords is bidding on and gain better business. This helps you gain more insights to design a more successful marketing campaign for your brand.
With potential insights about competitors' advertising campaigns, you will have better visibility about keyword strategy, targeting, bidding, CPC that allow you to lower the Advertising Cost of Sales (ACoS) and gain more profit.
You can utilize a combination of some good free and paid tools to find more valuable information on your competitors. Here is a list of some good tools we have gathered for you:
These tools will help you in competitor analysis of Amazon by providing information they most needed to get an edge over your competitors.
If you are feeling overwhelmed or busy to complete an Amazon competitor analysis. You can outsource professional digital marketing services that can help you with exclusive tips and smart strategies for Amazon competitive analyses or Amazon services to accelerate your product sales & brand growth.
Above we have discussed how can you conduct a depth Amazon competitor analysis? Next, we are going to see some good tips to help you gain an edge over your competitors and set your business up for sales on Amazon.
Here are the tip to grow your business faster on Amazon-
Researching and analyzing your competitors' strategies is critical for your brand growth on Amazon. Without knowledge of the competitive landscape, it won’t be possible for any business to grow its Amazon business.
Amazon seller competitor analysis helps you gain visibility about your competitor’s sales and marketing strategies to come up with the best possible strategies that offer you a competitive edge.
If you want to stand out and lead the market in long run, you may need to perform an Amazon competitors analysis periodically to make sure you are staying on top of the market with best practices. It is very true that performing Amazon competitive analysis is by no means an easy task, but it is one of the only viable methods that ensure success. Here you can undoubtedly go for a reliable & professional digital marketing agency to empower your competitive edge and get more business on Amazon.
Hopefully, this post has helped you gain more visibility about how to conduct Amazon competitor's analysis for best results.
Do you have more questions about Amazon competitive analysis? Or want to add something regarding the same? Let us know in the comments!