Amazon competitor analysis is an essential part of your marketing strategy when doing business on Amazon. Without this information, you will lose your competitive edge.
Amazon is one of the leading e-commerce platforms today. The proof is that more than 2,000 sellers enter the Amazon marketplace every day. Therefore, you need to understand your competitors well to find a way to beat them.
Make sure to read to the end of this article to understand how to identify and analyze your competitors. So, let’s dive right in!
How to Define Your Competitors On Amazon
There’s no denying that competition from sellers with similar products is your biggest challenge. So, when performing Amazon competitor analysis, you need to answer basic questions like “What are you up against?” or “Who are my competitors?”
The easiest way to find competitors is to search for similar products yourself on Amazon with a broad keyword. Then see what shows up in the search results.
The competition will be high for a broader keyword. However, as you go deeper and more specific, the number of your competitors will gradually decrease. These remaining competitors are the ones you need to watch out for.
For example, your business is in the business of refrigerators. As we all know, there are many different types of refrigerators, such as top-freezer refrigerators, side-by-side refrigerators, bottom freezer refrigerators, French door refrigerators, counter-depth refrigerators, mini-fridge.
For this example, your business runs side-by-side refrigerators. Start by searching for the broad term – refrigerators – and see what shows up.
As expected, you’ll find a variety of refrigerators to choose from. Essentially, all of these refrigerators are your competitors. Continue by searching for “Side-by-side refrigerators.”
This time, you will only see side-by-side refrigerators instead of all the different refrigerators. These products will be the competition you should focus on.
It is best to focus on the first 10 to 20 products on the first page because they are products from the best-performing competitors.
How to Analyze Your Competitors on Amazon
Once you know who you have to compete with, it is time to research their strengths and weaknesses to figure out how to beat them.
1. Research keywords that your competitors rank for
If you want your product to show up on the first page when a buyer searches for it, you must make sure you are targeting the right keywords or keyword phrases. Otherwise, you could be missing out on potential sales.
It is possible to find out what keywords you want to target without using tools. However, to save time, it is wise to use keyword research tools.
2. Audit The Competitors’ Listings
It is possible to find hidden weaknesses in your competitors’ listings, such as missing product information, poor quality photos.
On the other hand, you can learn from your competitors’ strengths in listing optimization and apply this information to yours.
Here are the factors that you need to consider when auditing the competitors’ listings.
The title helps customers know what your product is. Moreover, it also allows Amazon’s A9 search engine to know what your product is and whether it is relevant to the customer’s needs or not.
Pay close attention to the keyword phrases that competitors apply in the title. Plus, to create a strong headline for your product, answer questions like:
- Are your competitors missing important information?
- Do you need to add/remove anything to improve your product title?
Bullet points & description
At descriptions and bullet points, research how your competitors describe their products. Try to find answers to the following questions:
- What product features and benefits does your competitor highlight?
- What’s their tone like?
- What helpful information have they not mentioned?
- What can you do to make your listing more informative?
We recommend avoiding unnecessary and cumbersome information. Instead, focus on helpful information for your customers. The faster buyers find the information they are looking for, the more likely they will buy your product.
Through customer reviews, you can get an idea of how customers feel about their products. What are they unsatisfied with? What do they like about the competitor’s product?
These reviews allow you to find weaknesses in your competitors’ product listings. For example, if a review mentions that a competitor’s listing has false or missing information, you must include the correct information in your product listing. Besides, customer reviews are a great way to discover potential keywords.
3. Focus On Competitor Pricing
Price is one of the factors that play a huge role in the purchase behavior of buyers. For example, if a buyer finds similar products with similar reviews, they are more likely to choose cheaper ones.
So, it is crucial to research what prices your competitors sell. Based on this information, you can sell your products at high enough prices for you to profit from.
This is not an easy task. That is why you should visit www.olifantdigital.com to get advice from experts.
4. Monitor Competitors Moessentialnthly Sales
This gives you a clear idea of the potential profits your competitors could make or the amount of inventory they are moving. What’s more, you get to know if this particular niche or market is healthy.
5. Learn How Your Competitors Market Their Products
This includes the product images, the tone of the listing copy, A+ content, packaging design, and more. You should also be interested in their off-Amazon marketing efforts, such as their social media marketing. The fact of the matter is that social media marketing is one of the most effective solutions. The proof is that many customers bought something they heard for the first time on social media.
To better understand your competitors and the consumers in your market, it is essential to answer the following questions:
- What platforms are competitors using?
- How do they use social media?
- How high is their engagement rate?
- How often do they post?
- Do they use email or blogs?
In general, without knowledge of amazon competitor analysis, you will have a hard time doing business on Amazon. So. by studying your competitors’ sales and marketing strategies, you’ll gain a better understanding of what you’re up against in the Amazon marketplace.