Selling products online can take time to turn a profit consistently. Therefore, the process necessitates ongoing growth and flexibility. In addition, to grow your amazon business, you must have the right strategy and analysis of your rivals, the products they sell, and an understanding of their pricing technique.
This article provides a guide to help you conduct a comprehensive Amazon seller competitor analysis.
Let's get started.
Why Conduct an Amazon Competitors Analysis?
Going through your competitor's keyword choice, comparing product sites, competitor's ad campaigns and other techniques are all part of an Amazon competitor analysis. The information you discover through analysis helps you enhance your Amazon target market by giving you knowledge of how others are doing to gain a competitive edge. Similarly, you will sufficiently understand all the search words and advertising methods you should use to attract customers.
You may find where their businesses are lacking by studying your direct competitors. By reading their customer reviews, you can identify shortcomings in their business that you and your company may address. Plus, a proper competitive analysis lets you track sales metrics and know who you need to exceed and how to achieve it.
Here are the steps to follow when analyzing other Amazon sellers you compete with.
Step 1: Establish Your Goals
Analyzing your rivals will be challenging without a clear purpose in mind.
Do you want to make your product listings better? Or increase your conversion rate and remain aggressive?
You must keep your objectives in mind as you do your analysis. Additionally, ensure the information you gather is pertinent to attaining your goals.
Step 2: Conduct a Keyword Search
You must first identify your competitors targeted keywords by doing a keyword study to assess which Amazon sellers you are against. Although you may determine a competitor's keywords based on intuition, it is far wiser to utilize a research or keyword tool to obtain a comprehensive list of the phrases you should focus on.
Step 3: Look Up Your Rivals
Note that the retailers performing for the same keywords as you are your direct rivals. Once you have a list of all the phrases you want to rank for, search for those sellers.
You must search for each phrase and go through the competitor's products that appear on the initial pages of search engines to accomplish this. The vendors whose items are shown at the top of the search results deserve your full attention.
Create a list of all the sellers whose listings appear in these results, and then repeat the process for each additional term on your list.
Step 4: Narrow Down the List
Note that you will have a big list of rivals once you have finished all the abovementioned stages. Include all vendors that have items listed as Amazon's Choice or Amazon Best Sellers since they are the top listings in each specialized market. Pay more attention to Amazon sellers with several listings on the first page of search results.
Group all the merchants into three groups after you've reduced your list. Your primary competitors should be in the first category. These are businesses that sell products that are comparable to yours or have similar customer bases.
The group of secondary rivals may market comparable goods to a different clientele or provide goods at a somewhat higher or lower price point than you do. Lastly, the tertiary rivals' group will include businesses that market goods comparable to what you sell.
Step 5: Analyze Your Competitors' Product Listings
Now that you know your objectives and rivals, it is time to evaluate them.
Observing a few things while examining a competitor's product listing would be best. They consist of the following:
a) Product Title
One of the key components of a listing is the product title. Since it will be the first thing potential consumers see, it must be compelling and pertinent.
Your competitor's product title should give you a sense of the main keywords they focus on and your competitors' keyword strategies.
Along with being concise and straightforward, it should be relevant and able to compete with terms from rival websites.
b) Merchandise Description
The description of the item is where sellers may make a sale. It is the place where you convince potential buyers that your product is the superior option.
Consider the length, tone, and style of a competitor's product description while writing your own. Do you need to check whether it is compelling? Does it showcase the same keywords present in your previous research?
c) Product Features
The product features are written on the right side of its images. Check this section first, then determine the item's most crucial selling points. What do your competitor brands choose to focus on in this section? Are you in a position to do better?
Step 6: Product Q&A
This section of the product listings has a wealth of information you may use as the vendor. You will immediately notice the most frequent client inquiries. You may also see how much effort other merchants make to help clients. Check to see if they engage in responding to consumer questions.
Step 7: Conduct Thorough Research
Study the language and tone used by other merchants when describing their products in their FAQs and features. Additionally, note the kind of product photos used by your competitors, and conduct a thorough study on how to label and package your products. Most importantly, remember to analyze the brand's content.
Spend at least 30 minutes each day researching the brands of your rivals. After all, you may create a brand that is too similar or distinct from your competitors.
Step 8: Customer Feedback
Pay attention to the reviews when examining your rivals. Do they have numerous reviews? Do they tend to be more optimistic or negative? What aspects of the product do buyers appreciate or dislike?
You may enhance your product by understanding what people want by reading the reviews.
A rival will likely offer a high-quality product if they have many favorable customer reviews. Conversely, if most of the reviews are unfavorable, you can make your product better than theirs. Finally, it would be best to learn effective strategies for getting reviews on Amazon.
Step 9: Assess the Pricing Strategy of Your Competitors
Price has a big impact on what consumers decide to buy. In some circumstances, it may even influence them to purchase a good from a different seller. As a result, a crucial aspect of your Amazon seller competitor analysis is assessing the rivals' prices. Just as it's simple to discover a competitor's keyword strategy, it's also straightforward to search for their product prices.
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You may use software that tracks pricing to enable your business to monitor your rivals' selling prices regularly. Of course, making a profit and maintaining pricing comparable to your rivals are crucial to your company's success. However, rather than using them as a benchmark, utilize your competitors' pricing as a guideline. After all, selling goods while making losses doesn't help your company.
Step 10: Competitors' Amazon Ad Campaigns
Additionally, you want to look at the advertising tactics of your rivals. For example, are there sellers' amazon ad campaigns? What about the Google Shopping ads section? What search terms are they aiming for?
Advertising campaigns are an excellent technique to bring your goods in front of potential buyers. Hence, consider conducting your advertising campaign if you notice one launched by competitors.
Step 11: Website
Your rivals may also offer products on other online platforms like their websites. Examine other sellers' websites carefully, paying close attention to their layout and user interface, the forms and pop-up windows they use to collect information, advertise deals, and solicit email addresses, and the e-commerce website builder they employ.
You can consider the drawbacks of other vendors' websites and fix those items on your site if you currently have one for your business or are going to build one in the future.
Step 12: Social Media
As many of your rival companies likely do, you should create a page on each social media network, as it is crucial if you're trying to reach a new audience that uses these sites often. In addition, your Amazon listings may receive much organic traffic from social media platforms.
It would help if you took notice of the platforms these accounts are on, the kinds of content these businesses are producing, how frequently they post, and the average level of engagement each post receives as you browse your competitors' social media accounts.
Step 13: Calculate the Competitors' Monthly Sales
To enhance your study of your rivals, look at their monthly Amazon sales. Knowing how much inventory your competitors move each month might help you figure out how much money they're making and whether or not they're undervaluing their goods.
Although this stage seems challenging, you may utilize analytic software to determine the average Amazon seller income.
After this study, your team may compare your sales to your competitors. You may also estimate the potential revenues your company could generate by improving its customer attractiveness. Advertising, product listing optimization, or any other strategy may make this achievable.
Step 14: Visit the Amazon Competitors' Stores
The likelihood of your rivals operating an Amazon Store is high because the page performs nearly like a microsite for businesses on Amazon since it makes it simple for customers to access your items. So first, look into whether your rival has an Amazon Store.
Even if your competitor's Amazon Store might have little valuable content, it is still beneficial to visit. If your team, for instance, frequently looks at such pages, you may notice a sudden change in the product they are showing, which could inform you of their evolving strategy.
How Should You Use the Data You Collected from Your Amazon Competitor Analysis?
You will have a lot of information once you analyze different sellers. Now that you have all that knowledge, you need to understand how to use it. You can do many things with it, but the following are some of the most beneficial.
a) Identify Market Niches You Can Fill
You will be able to identify certain market gaps once you have examined all the available information regarding the products other Amazon merchants offer. Then, you may find or make products to fill those gaps using the data.
Your firm will likely succeed if you can identify a market niche where customers' wants aren't satisfied and discover a means to fulfill them, as there will be no rivals for your products. Plus, it helps to know the popular products and categories on Amazon to achieve consistent, high-volume sales.
b) Set Reasonable Prices
Once you know how other retailers determine their prices, you can set competitive prices for your inventory of items. Additionally, consider using repricing tools to guarantee that you always ask for the most competitive figure.
Competing without these strategies may be challenging because most merchants use such software for their product listings.
c) Improve the Keyword Strategy
After conducting an Amazon seller study, you will clearly understand the products customers search for, so you may expand your product line to include the items customers search for. Additionally, you will better understand all the target keywords and advertising strategies you need to employ.
d) Expand Your Brand Outside of the Amazon Marketplace
Finally, consider setting up a social media account or website to take your business beyond the platform. However, remember what you learned from the seller analysis and avoid making the same errors that others have with their websites and social media profiles.
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Amazon Competitor Research Tools
You may learn more about various competing brands using a variety of software solutions.
The best options for Amazon analytics software include:
1) Top Pick from ZonGuru
ZonGuru is a brand you should pay closer attention to if you need a robust, all-in-one solution that goes above and beyond simple product research. There are a ton of standard capabilities available with this application, including a competitive analysis of PPC campaigns, keyword tracking and research, listing SEO, and index checking.
The amazon competitor analysis tool allows you to study product data from various perspectives, including rival data tracking and intensity analysis, as well as revenue and sales potential. In addition, the Zonguru team offers its members a lot of assistance, including webinars and training videos to support you as you launch your Amazon company. For tutorials and demos, check out their YouTube channel.
2) Viral Launch
A software and marketing platform called Viral Launch aids Amazon sellers in expanding their operations. The keyword research tool helps you understand the competitors' keyword strategy fast and offers easy access to successful goods to sell on Amazon. Any level of Amazon seller may easily use the program and receive precise results quickly, thanks to its user-friendly design.
Tools for market intelligence, keyword research, competition intelligence, and listing analysis, to mention a few, are available on the Viral Launch platform.
Frequently Asked Questions on Amazon Seller Competitor Analysis
a) What distinguishes a competitor analysis from a market analysis?
An examination of the total market for a good or service is called a market analysis. The amazon competitor analysis covers market size, the pace of expansion, patterns, and consumer demands. It aids in understanding the intended audience.
An examination of the market's sellers of a certain good or service by individual businesses is called competition analysis. It covers factors like pricing, keyword approach, product offers, marketing plans, sales history, and the volume of stock they have.
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You may gain a sense of the market's real opportunity by doing a market study. For example, when you conduct Amazon competitor analysis, you may discover more about certain businesses and improve your ability to compete with them.