Do you know why Amazon is the largest e-commerce marketplace in the world?
This is the platform where 87% of the customers shop the products and thousands of sellers sell their products.
Whether you are a new seller or an established one on Amazon, the main goal is to drive traffic to your products, maximize the reach, and increase sales.
The competition in the Amazon marketplace is so intense, with thousands of sellers on Amazon. There are millions of similar products from different sellers that are listed and ranked by Amazon that give the customers a choice to buy quality products.
Despite your efforts for improved product listings, there is a chance that you would miss out on your competitors.
Since every product has hundreds of different vendors, more than ever, Amazon sellers need a better analysis of their competitors to stand out and outperform other merchants.
It’s no easy feat to maintain a competitive advantage in Amazon, especially when you’re not keeping track of your competitors. A comprehensive study of your rivals is one of the most successful ways to stay ahead and to survive in the largest competitive marketplace.
Why is Amazon Competitor Analysis important for Amazon Sellers?
Amazon is a giant marketplace and it is only growing bigger. But just because it is crowded and highly competitive doesn’t mean that you are lost to your competitors.
Evaluating competitors’ products and marketing strategies help you in identifying gaps between what your competitors offer and what the customers need and help find new opportunities to make your products stand out from the competitors.
The quantitative and qualitative data of competitors give valuable insights for the Amazon sellers to make more precise decisions, optimize the advertising campaigns, and more effectively track the performance and profitability.
Take the competition as an advantage and carve out a spot in the marketplace for yourself.
5 Key Competitor Metrics Every Amazon Seller Must Essentially Track
1. Analyze the targeted keywords of your Competitors
Keywords are the search terms entered by the shoppers in Amazon’s search box to find a product. Shoppers can easily find your product only when it appears on the top pages of Amazon search results with their search terms.
The most critical step in the Amazon competitor analysis is researching your competitors’ keyword strategies. Competitive keyword analysis helps you to evaluate specific keywords used by your competitors in the product listing page and know whether they are using evergreen keywords or trending keywords to improve their product’s ranking.
With this data, you can adjust the relevant Amazon keywords in the product listing page to optimize for product’s visibility and conversions and gain a competitive advantage over other sellers.
2. Audit your competitors’ Product Listing
Figure out your competitors first and compile a list of their products. Compare all the features of your competitors’ product listings from the title and product description to images with your listings and check how well your competitors have optimized their listings.
Look what features of other sellers’ product listings on Amazon attract the customers like the product title, quality images that showcase the key benefits of the product, description of the product in bullet points, use of optimized keywords in the title, and product content, etc. This gives you a clear idea of where you need to improve your product listings.
Auditing your competitors’ product listings is a simple strategy that boosts your products’ rankings and sales with less time and investment.
Pay attention to all forms of the product content like your product title, product description, tags, and meta-tags and order the content in a fashion that places the most relevant keywords first. Not only does this improve your product’s ranking and visibility to the customers, but it also helps the customer easily understand the details of the product being sold.
3. Know your Competitor’s Price
It’s a known fact that customers verify the price of the products from different sellers before purchasing a product. This doesn’t mean that only a product with a low price gets sold. Better availability and faster shipping time also play a key role in differentiating sellers from other competitors.
However, assessing the competitor’s prices is also an important factor for an Amazon seller to make sure that the pricing strategy is robust and stay competitive in the highly saturated Amazon marketplace.
As a seller, you need to be aware of your competitor’s pricing strategies to identify hot selling items and know how fast your competitor’s products are sold out, based on which you can work and improve on your sales strategies.
4. Check the Reviews of your Competitors
Reviews not only indicate the number of sales but also give valuable feedback on the products, either positive or negative. More the number of sales, high is the rank of your product.
Analyzing the product reviews of your competitors reveals a wealth of information about buyers like what product features make them happy, what they don’t like about the product. This helps you address the specific issues of your product.
Feedback on the products of your competitors also provides useful insights to position product descriptions to attract customers who shop in comparison.
5. Evaluate your Competitors’ PPC Strategies
An in-depth evaluation of competitor’s ad campaigns helps Amazon sellers to consistently structure their ad campaigns and leverage the untapped keyword potential to generate more traffic for their products at a low cost.
Keeping track of different strategies of your competitor’s ad campaigns helps you to understand and analyze the keyword choice of your competitors and helps in optimizing your Cost-Per-Click over time. This enables you to get more out of your Sponsored Products campaign than your competitors do and win high-value top sponsored positions.
Leverage the advantage of Amazon Competitor Research Tools – It’s worth your time and money.
There are many amazon competitor research tools like Sonar, Helium 10, Sellics, Keyword Scout, that make it simple for you to compare your product listings to your competitors’ listings, show the type of keywords (Short or long-tail) used by your competitors, search volume, cost per click, and other valuable information and help you discover your competitor’s advertising strategy.
These tools give you an actionable Amazon seller competitor analysis and help you to quickly plan an effective strategy to create potential selling points against your competitors.
Getting a stronghold on your competitors’ strengths and weaknesses help you position your product or service accordingly and highlight key differentiators.
Now that you have a better idea and understanding of what your potential competitors are doing, record your information on each competitor and identify key areas to be improved to gain a competitive edge in the largest marketplace – Amazon.
Do you need any help with your Amazon competitor analysis?
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Fabongo is a Vancouver, British Columbia based agency providing human resources to manage all things Amazon marketplace.