Did you know that there are over 353 million products for sale on Amazon, including those sold by third-party sellers?
Given the gargantuan size of the marketplace, it’s no wonder many sellers are finding it hard to stand out among a sea of players. That’s where an Amazon competitor analysis comes in.
Let’s unpack what an Amazon seller competitor analysis is and discuss the steps involved in conducting one. We’ll also offer tips on leveraging the data you gather to cut through the noise and grow your business.
What is Amazon Competitive Analysis?
Amazon competitor analysis is the process of systematically evaluating your competitors on the platform to gain insights into their strategies, strengths, and weaknesses.
In general, a competitor analysis would look at crucial aspects of the business, depending on their industry and selling propositions. For instance, here’s a competitive analysis framework for startups drafted by Antler:
Notice that the framework includes aspects like funding, investors, acquisitions, and free trials, among many others. It’s because these aspects are critical in the startup space.
On the other hand, when sellers analyse competitors on Amazon, they examine various aspects limited within the marketplace, such as:
- Product listings
- Pricing
- Customer reviews
- Keywords
- Marketing efforts
The effort of looking into these business aspects offers insights that answer questions you might have, such as: What is the competitive environment for Amazon? How are other sellers offering products to meet customers’ needs?
Just like startups trying to analyze other players within their industry, conducting a competitor analysis of Amazon sellers within your niche can help you identify opportunities to differentiate your products, optimize your listings, and enhance your overall sales strategy.
Here are a few extra advantages of conducting an Amazon competitor analysis:
- Identifying Market Trends. Monitoring competitors allows you to stay in touch with the latest market trends and adjust your offerings as needed. Doing so helps you remain competitive and relevant in a rapidly changing marketplace.
- Enhancing Customer Experience. Reviewing customer feedback on competitors’ products can highlight areas for improvement in your own offerings, helping you to better meet customer needs and expectations.
- Boosting Marketing Efforts. Analyzing competitors’ advertising strategies and promotions can inform your own marketing campaigns, making them more effective and targeted.
How to Identify Your Competitors on Amazon
Before you can conduct an Amazon competitive analysis, you need to answer a crucial question first: Who are your Amazon competitors? Here’s how to identify the Amazon players you’re going against:
- Browse product categories that align with your products. You can also do this by searching the same keywords you’re trying to rank for on Amazon and SEO.
- Identify the top-selling products and brands within those categories. This will give you a clear picture of the key players you’re competing with.
- Scheme the product listings to get an idea of their offerings. Narrow down your list of competitors to those who are the closest to your brand in terms of products and market.
Once you’ve identified your competitors, you can start your Amazon competitor analysis by following the steps outlined below.
How to Run a Competitor Analysis on Amazon
So, how do you do competitor analysis on Amazon? One way to conduct it without the elbow grease is by using competitor analysis software, just as many startups do.
Aside from Amazon competitor analysis tools for marketing, there are also options that cater specifically to sellers on the platform.
In addition, you can turn to an Amazon consulting agency like AMZ Advisers. An Amazon consultant can help you grow your brand across the globe, and assist you with many other important aspects of your business.
But even with a wealth of Amazon competitor analysis resources available, it never hurts to learn how to conduct the process the old-school way.
Analyze Competitors’ Product Listings
Examine the product listings of your main competitors. For private label sellers, this involves a thorough review of several key elements to understand what makes their listings successful.
- Product Titles. Look at how your Amazon competition structures their titles. Note the use of keywords, the order of information, and any unique selling points they highlight.
- Product Images. Analyze the quality and variety of images. High-quality, professional photos with multiple angles and detailed shots often lead to better conversion rates.
- Bullet Points. Evaluate the clarity and effectiveness of bullet points. These should succinctly highlight key features and benefits.
- Product Descriptions. Read through descriptions to see how competitors are communicating the value of their products. Search for compelling language and the inclusion of keywords.
- Customer Q&A. Examine the questions customers are asking and how competitors are addressing these queries.
As I was searching for the most popular items on Amazon, I came across this product listing for Crocs Classic Clogs, which has 569,374 ratings and over 7,000 sales over the past month:
When it comes to the quality of product listing elements, it ticks all the boxes and offers added information, such as a chart comparing the product to other Crocs models, as well as answers to common questions.
By examining product listing elements, you can identify areas where your listings can be improved to outperform the competition.
Conduct Keyword Research
Next, focus on keyword research to find tailored and high-performing search terms that can enhance your product visibility.
Find out which keywords your competitors rank for by analyzing their product listings and identifying commonly used search terms. Then, use a keyword research tool to integrate these terms into your own listings. Revamp product titles, bullet points, and descriptions to improve your product’s visibility.
Monitor Competitors’ Pricing Strategies
Look at how competitors price their products relative to yours. Identify whether they are using high, low, or value-based pricing strategies.
You can also use price monitoring tools to track your competitors’ price fluctuations over time. Doing so can help you understand their pricing models and seasonal changes.
Based on your findings, craft a competitive pricing strategy to attract price-sensitive customers while maintaining profitability.
Evaluate Sales Volume and Market Trends
Analyzing sales volume and market trends provides insights into demand and competition within your niche.
As part of your Amazon competitor analysis, use tools like Amazon price trackers to evaluate pricing and sales rank.Doing so will help you pinpoint products worth exploring.
It will also help you adjust your product offerings and marketing strategies to better align with market trends and customer needs.
Assess Customer Reviews and Feedback
Your competitors’ customer ratings and feedback are a goldmine of data and information about their performance and business. Assessing them is a part of a comprehensive Amazon competitor analysis.
Whether your competitors’ reviews are filled with complaints or praises, going over them will allow you to identify consumer sentiments. Doing so can help you learn winning moves to emulate or avoid pitfalls before they happen to you.
Investigate Competitors’ Marketing Strategies
Many Amazon sellers are driving traffic to their product pages via Amazon Ads, and there’s a big chance that your competitors are doing the same. Investigate how your competitors are advertising their products and review the type of creative assets they use.
Another way to assess marketing strategy is by checking the keywords they’re targeting in their ad campaigns, cost-per-click campaigns, and other promotion tactics within Amazon, social media, and search engines like Google.
Performing a SWOT Analysis
A classic framework, SWOT stands for strengths, weaknesses, threats, and opportunities. A SWOT analysis helps you understand not only your competitors but also the market better.
To perform this analysis, you need to ask the following questions:
- Strengths. What do your competitors do well? Do they offer strong brand recognition, effective pricing strategies, or high customer satisfaction?
- Weaknesses. Where do they fall short? Do they have poor customer reviews, high prices, or low product quality?
- Opportunities. What are market gaps you can take advantage of? What are unmet customer needs or emerging trends that competitors have not yet addressed?
- Threats. What external factors could impact your business? For instance, are new competitors entering the market or changes in Amazon’s algorithms threatening your business?
By performing a SWOT analysis, you can better understand competitor advantages and develop strategies to leverage your strengths while minimizing threats.
Compiling and Using Your Findings
After conducting a thorough Amazon competitor analysis, it’s crucial to compile and utilize your findings effectively to enhance your business strategy.
Identify key insights, such as the most effective keywords and pricing strategies. Use these insights to adjust your pricing, optimize your product listings, and refine your marketing strategies.
This comprehensive approach will ultimately help you drive your conversion rates on Amazon and achieve sustained success in the competitive online marketplace.
Authors
Esteban Muñoz is a content writer with several years’ experience in digital marketing and ecommerce. He’s been able to achieve incredible growth for his associates by optimizing and managing their accounts, and creating in-depth content marketing strategies.
Carla Bauto Deña is a journalist and content writer producing stories for traditional and digital media. She believes in empowering small businesses with the help of innovative solutions, such as e-commerce and digital marketing.
