Third-party sellers are responsible for almost 55% of units sold on Amazon. In 2020, Amazon earned $80.46 billion through third-party sellers. There’s room to expand your customer base in such a massive eCommerce marketplace. However, you should be aware of the strategies being used by your competitors. This is where Amazon’s competitor analysis comes into the picture.
Competitive analysis helps you make better business decisions that ultimately boost your bottom line by helping identify gaps in strategy and take advantage of what they are not doing.
Let’s look at how you can use Amazon’s competitor analysis to beat the competition.
Identify Your Direct Competitors
When identifying your direct competitors, there are some elements to consider. Here are some questions to ask:
- Are their products similar in use and function?
- What is their pricing?
- Are they reaching out to the same audience?
- Is their branding similar?
- Would their customers be interested in buying products from you?
- Can you compete with them?
When there is overlap in the target audience, pricing, products, and messaging between two companies, they can be considered direct competitors.
Pepsi is a direct competitor of Coca-Cola. But it is not a direct competitor of juice maker Minute Maid. Even though a customer can replace a Pepsi with Minute Maid, the target audience and messaging differ between these two brands.
Audit Competitors’ Product Listings
This is an essential aspect of Amazon’s competitor analysis. Once you know who your direct competitors are, it is time to research. Amazon product listings contain lots of valuable information. The first thing that needs to be done is to list all your competitors’.
When you’re done with the list, analyze the elements of the product listings and try to look at them from a customer’s perspective.
The search results page is essential for customers because they look at the product title and image.
- Product title: What kind of information do competitors include in the product title? Do they highlight a particular benefit or function? A product title should be clear, concise, and informative.
- Product images: There’s no strict definition of what constitutes a good one. But you certaicertainlyhigh-quality photos to highlight the features of your products and attract the attention of customers.
After analyzing the product title and image, you need to dig deeper. The next step is to analyze the other listing copy elements.
- Bullet points and product description: Analyze the features competitors are highlighting. Check if they mentioned benefits that you may have missed. Identify the unique selling points that they’re marketing. Use this information to find out what you can incorporate into your listings.
- Customer questions and answers: Amazon customers usually have questions about products they want to buy. You can use this section to figure out what shoppers are looking for in a product.
- A+ content: The A+ content is an excellent way to evaluate the messaging and branding of a particular product. Get clues on the features competitors are highlighting and the audience they are targeting.
Analyze Customer Reviews
Customer feedback is essential to any Amazon business. It can provide insight into the strengths and drawbacks of a product and show what your customers want for them to be satisfied with their purchase.
Here are some things to watch out for:
- Negative reviews: These are not always a bad thing. When you come across one, the key is to identify what it’s about and if your product has that same problem or can be customized somehow.
- Positive reviews: You can find out what Amazon customers love about your competition and use that information to improve your product or messaging.
- Keywords: It is essential to look at customer reviews when you launch a new product because they can provide insights into what keywords will be most successful for your item. Notice how customers describe the products, find out which words have high search volume, and use those in your marketing strategy.
- Competitors’ responses: When competing with another company, it is essential to see how they handle negative feedback. You may learn tricks that will help you deal with unhappy customers.
Comprehensive Keyword Analysis
It is time-consuming to find relevant keywords from the product title, description, and bullet points. In addition, keyword density doesn’t affect Amazon search rankings. As such, it cannot be easy to identify all the keywords your competitors are using.
In this case, SellerApp can help. By using the Chrome extension, you can track products from Amazon competitors. You can then use the Product Keyword feature to determine relevant indexed keywords.
With SellerApp, you can also find data about the search volume and cost per click (CPC) for each keyword. Also, it will tell you where the keyword is located (e.g., product title or bullet points).
It is also essential to include keywords in your back-end search terms or the product page when targeting keywords.
Another way of leveraging these keywords is by running Amazon ads. It’s an excellent strategy to consider to increase market share.
Evaluate Sales Trends and Monthly Revenue
Data is the best way to figure out if your competitors are succeeding. This requires finding data that will help you understand their strategies, and SellerApp’s Chrome extension helps with this process.
This extension will show you how many orders a product is getting on Amazon, as well as the revenue it has generated. It also provides more information about trends for these metrics:
Such data will help you evaluate the size of your potential market and what opportunities may be available to you. If you can penetrate the competitor’s customer base, you could increase sales and market share.
Furthermore, when pricing your product, make sure that it is competitive and profitable. One way to do this is by checking the prices of competitors on Amazon so that you can undercut them with a better price point while still making money.
One way of doing this is by setting price alerts for the products that compete with yours.
Final Thoughts on Amazon Competitor Analysis
Your competitors will also be adapting to the demands of ecommerce, so you need to stay on top of their strategies. Don’t just sit back and watch. Conduct Amazon competitor analysis. Now is the time to analyze your competitors and see what they are doing right.