Do you know why Amazon is the largest e-commerce marketplace in the world?
This is a platform where 87% of customers actually shop for products and thousands of sellers sell their products.
Whether you are a new seller or an established one on Amazon, the main goal is to drive traffic to your products, maximize your reach, and increase sales.
The competition in the Amazon marketplace is so intense with thousands of sellers on Amazon. There are millions of similar products from different sellers that are listed and ranked by Amazon which gives customers a choice to buy quality products.
Since every product has hundreds of different vendors, the time is now, more than ever, that Amazon sellers carry out better analyses of their competitors to stand out from other merchants.
It’s no easy feat to maintain a competitive advantage on Amazon, especially when you’re not keeping track of your competitors. A comprehensive study of your rivals is one of the most successful ways to stay ahead and survive in the largest competitive marketplace.
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Why is Amazon Competitor Analysis important for Amazon Sellers?
Amazon is a giant marketplace and is only getting bigger. And just because it’s crowded and highly competitive doesn’t mean all is lost.
Evaluating competitors’ products and marketing strategies help in identifying gaps between what your competitors offer and what customers need. Bridging the gaps and finding new opportunities to make your products stand out from the competitors is what the game is all about.
The quantitative and qualitative data of competitors give valuable insights for Amazon sellers to make better decisions, optimize advertising campaigns, and more effectively, track performance and profitability.
Use competition as leverage and carve out a spot in the marketplace for yourself.
5 Key Competitor Metrics Every Amazon Seller Must Essentially Track
1. Analyze the targeted keywords of your Competitors
Keywords are the search terms entered by shoppers on Amazon’s search box to find a product. Shoppers can easily find your product only when it appears on the top pages of Amazon search results with their search terms.
The most critical step in Amazon’s competitor analysis is researching your competitors’ keyword strategies. Competitive keyword analysis helps evaluate specific keywords used by your competitors in the product listing page and identifies whether they are using evergreen keywords or trending keywords to improve their product’s ranking.
With this data, you can adjust the relevant Amazon keywords in the product listing page to optimize product visibility and conversions while also gaining a competitive advantage over other sellers.
2. Audit your competitors’ Product Listing
Figure out your competitors first and compile a list of their products. Compare all the features of your competitors’ product listings from the title and product description to images with your listings and check how well your competitors have optimized their listings.
Look at what other sellers’ product listings on Amazon have that attract customers, like the product title, quality images that showcase the key benefits of the product, description of the product in bullet points, use of optimized keywords in the title, and product content. This gives a clearer picture of what needs to be done to improve your product listings.
Auditing your competitors’ product listings is a simple strategy that boosts your products’ rankings and sales with less time and investment.
Pay attention to all forms of the product content like your product title, product description, tags, and meta-tags. Order content in a fashion that places the most relevant keywords first. Not only does this improve your product’s ranking and visibility, but it also helps customers better understand the details of the product being sold.
3. Know your Competitor’s Price
It’s a known fact that customers compare the prices of products between sellers before purchasing a product. This doesn’t mean that only a product with a low price gets sold. Better availability and the faster shipping time also play a key role in differentiating sellers from other competitors.
However, assessing the competitor’s prices is also an important factor for an Amazon seller to make sure that the pricing strategy is robust and stays competitive in the highly saturated Amazon marketplace.
As a seller, you need to be aware of your competitor’s pricing strategies to identify hot-selling items and how fast your competitor’s products are being sold out, based on which you can work and improve your sales strategies.
4. Check the Reviews of your Competitors
Reviews not only indicate the number of sales but also give valuable feedback on the products, either positive or negative. More the number of sales, the higher the rank of your product.
Analyzing product reviews of competitors reveals a wealth of information about buyers like what product features make them happy, and what they don’t like about the product. This helps you address the specific issues of your product.
Feedback on the products of your competitors also provides useful insights to position product descriptions to attract customers who shop in comparison.
5. Evaluate your Competitors’ PPC Strategies
An in-depth evaluation of competitors’ ad campaigns helps Amazon sellers to consistently structure their ad campaigns and leverage the untapped keyword potential to generate more traffic for their products at a low cost.
Keeping track of different strategies of your competitor’s ad campaigns helps you to understand and analyze the keyword choice of your competitors and helps in optimizing your Cost-Per-Click over time. This enables you to get more out of your Sponsored Products campaign than your competitors do and allows you to win high-value top sponsored positions.
Leverage the advantage of Amazon Competitor Research Tools – It’s worth your time and money.
There are many amazon competitor research tools like Sonar, Helium 10, Sellics, and Keyword Scout, that make it simple for you to compare your product listings to your competitors’ listings, show the type of keywords (Short or long-tail) used by your competitors, search volume, cost per click, and other valuable information and help you discover your competitor’s advertising strategy.
These tools give you an actionable Amazon seller competitor analysis and help you to quickly plan an effective strategy to create potential selling points against your competitors.
Getting a stronghold on your competitors’ strengths and weaknesses help you position your product or service accordingly and highlight key differentiators.
Now that you have a better idea and understanding of what your potential competitors are doing, record your information on each competitor and identify key areas to be improved to gain a competitive edge in the largest marketplace – Amazon.
Do you need any help with your Amazon competitor analysis?
We are ready to assist you.
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If you need any professional help for your Amazon store management, do get in touch with us.
BIE is a Vancouver, British Columbia-based agency providing human resources to manage all things Amazon.
