Let’s start analyse competition on Amazon! In this blog post, we will show you the best ways to stay on top of your Amazon competitors.
Amazon is nowadays, the biggest marketplace in the world. Actually, it is much bigger than it looks since it has more than 300 million registered users. This is Amazon’s competitive advantage.
This marketplace, has created hundreds of millionaires as well as it has helped many online entrepreneurs and small business-owners grow their business while expanding. But, succeeding on Amazon is not as easy as it seems.There are more than five million sellers across all Amazon marketplaces around the world, so the competition is tough.
To take part in this selling game and acquire competitive advantage, you need to follow the right strategies. Besides understanding your potential customers, you should also try to understand your competition and their strengths, weaknesses, motivation and strategies.
Also, to be successful as an Amazon seller, you must always stay one step ahead of your competition on Amazon. So, we gathered the following tips to help you obtain great competitive advantage:
Tip #1: Do An Amazon Review Analysis
Before you start selling a product, type a related keyword on the Amazon search tab. For example, if you intend to sell body lotion, you can type the general keyword “body lotion” on the search menu and check the first five results.
If you look for it, you’ll see that the top result has more than a thousand reviews.
Now, if you go check the next product, you’ll see it has over 500 reviews.
This means that the competition is quite tough and the existing top sellers are pretty hard to beat which means that there’s almost no product gap.
So, to avoid this, you need to make sure that your top direct competitors have less than three hundred reviews.
In fact, reviews not only measure customer satisfaction. They also measure or tell sales performance. To maximize your profit and increase your market share, you have to consider the following factors:
Amazon Best Seller Rank, is an indication of product demand.
Generally, if the top sellers in your product category have low reviews, this usually means that there’s a product gap. This means that new sellers can still get into the market to try to close that gap.
Tip #2: Check Your Competitor’s Optimization Strategy
Search Engine Optimization is a process of using strategic keyword placement to increase a product’s visibility in the Amazon ecosystem.
You should check the product pages of your competitors and analyse their keyword placements. If most of your competitors don’t have a great optimization strategy, this means there’s a gap for you to get competitive advantage.
Tip #3: Do A Detailed Competitor Analysis
In marketing and strategic management, competitor analysis, is the process of identifying the weaknesses and strengths of potential and current competitors.This is the so-called competitive analysis.
It helps you know your competitor. It can help you reach more customers and increase your market share. It can help you create an effective brand positioning strategy and eventually establish your brand as a leader in your industry.
We gathered up the best ways to do a useful competitor analysis:
- Investigate your competitors.
It’s hard to beat someone you don’t know. This is why you should take time to get to know your competitors. Search products that are similar to yours on Amazon and make a list of your direct and indirect competitors.
- Follow your competitors.
Once you have your list finished, check out and track all your competitors. You can use Google alerts to find out what people say about them.
Check your competitor’s product detail pages to know what they offer and how they position their products on Amazon. On top of that, you can also check out their social media pages to see their best online practices.
- Check their customer’s customer experience.
To find your competitor’s strengths and weaknesses, you must identify your competitor’s market positioning strategy.
Visit their product detail page and website to see why customers are buying their products.
- Check your competitor’s sales data.
Last, but not least, you can analyse your competitor’s ASINs to see their product’s sales trends. Looking at your competitor’s sales data helps you track the product demand, seasonality, and any sales trends.
Although Amazon doesn’t give any sales data, you can check reviews to estimate your competitor’s sales.
You don’t have to control every step your competitor does. Yet, doing some competitive analysis form time to time can help you take advantage in the Amazon game and keep one step ahead of your competitors.
Tip #4: Check Your Competitors Pricing Strategy
A lot of sellers lower their prices during holidays and paydays to maintain their Buy Box share. They constantly get involved in price wars to win the Buy Box game.
To keep yourself one step ahead of your competitors, you have to understand your competitor’s pricing strategy. You must precisely reckon their base price and see how low they can go.
Remember, that you don’t have to engage in price wars to increase your Buy Box share. You just need to products at a reasonable price, produce a high quality product, ship on time, and offer a great customer experience.
Tip #5: You Must Have A great PPC Strategy
PPC allows you to drive more traffic into your product detail pages and obtain more sales.In order to perform better than your competitors, you must create a solid PPC strategy. To do this, you just need to read our previous blog posts where we go over all PPC strategy tips.
If you have a wide seller catalog, you should create different ad groups based on relevant keywords. For example, let’s suppose, you’re selling “underwear”. In this case, the keyword “underwear” is significant to all your products. But, the keyword “women’s underwear” is only applicable to some products.
Hence, in order to win the Buy Box game and achieve great success as an Amazon Seller, you must know your competitors.
Knowing your competitor’s strengths and weaknesses can boost your market positioning strategy and help you obtain competitive advantage.
If you want to create strategies that can help you overperform and overcome competition on Amazon, just stay tuned to all our blog posts and contact us if you need any help!