With thousands and thousands of sellers active on this Marketplace, it is important to know what are your competitors and what are they doing in order to get ahead and be successful. This means, you have to know how to do an Amazon seller competitor analysis in order to find out your competitive advantage.
So, keep reading and follow our step-by-step guide.
How to find and select your competitors on Amazon
Once you have conduct your Product Research, the next step is to identify competition from sellers with similar products. This should be one of your biggest considerations. How do you know what you’re up against if you don’t know exactly who your competitors will be?
The easiest way to find your competition is to search for your product ideas on Amazon and see what comes up in the search results. Starting with a broad keyword the competition will be high, but as you get more specific, the number of your direct competitors will shrink — and these remaining competitors are the ones you should focus on.
Let’s make an example. We want to sell a juicer extractor. There are many types of juicer in the market. You have manual squeezer juicer, electric juicer, juicer for small fruit like lemon, squeezer juicer for bigger fruit like oranges, juicer for both fruit and vegetables — you get the idea.
For this example, we sell an electric juicer for fruit and vegetables. To start, let’s search for the broad term, “extractor,” and see what comes up.
As expected, we see a variety of squeezer juicer to choose from, using the broad term “extractor”. All of these juicer extractors would be your competition, but the idea is to target much more specific keywords to your actual products. Long tail and niched-down keywords are the one we want to target.
Now let’s search for “extractor eléctrico de fruta y verdura”:
These search results show electric extractor for both fruit and vegetables only— instead of many different types of extractor. The products that appear in the search results from this specific search term will be the main competition that you want to focus on.
Remember, the first 10 to 20 products on the first page represent the high-performing competitors you’ll want to monitor.
How to do an Amazon Seller Competitor Analysis
Step 1: Identify the keywords your competitors rank for.
If you want your products to show up when a customer searches for that item, you need to be sure you’re targeting the right keywords and keyword phrases. It is also important to work on backend keywords in order to optimize your seo.
Step 2: Audit your competitors’ listingsI
The second step is very important, because you can identify potential weaknesses by the analysis of your competitors’ listings. Do photos have poor image quality? Are listings missing specific product information? Do products have a sub-par rating?
Step 3: Monitor competitor pricing
Pricing places a huge role in customer purchase behavior — especially on Amazon. If a customer sees two similar products with similar review ratings, they’ll most likely go for the cheaper option.
Step 5. Explore how your competition markets their products
Understand how our competitor are marketing their products could be done in an easy way, by looking at listing copy, the product images, packaging design, A+ content, and how the brand communicates with its customers.
You should also take a look into their off-Amazon marketing efforts such as their social media presence. Social media has a huge impact on ecommerce and brand awareness.
Here are some questions to ask yourself:
- How does your competition use social media?
- What is their following like?
- What platforms are they on?
- How often do they post?
- What is their engagement rate?
- Do they use other platforms like emails or blogs?
All of these questions can help you better understand your competition and the consumers in your market.
We hope this article has been useful, do not hesitate to contact us if you have any questions.
