Competitor analysis is a very crucial piece of the puzzle when it comes to running a successful Amazon business. With over 6.3 million businesses operating on the global e-commerce platform, it’s a real survival game. One of the smartest moves to make before joining the crowd of sellers is to find out what others, specifically top sellers, are doing. From their products to prices, marketing strategies, suppliers, product listing optimization, and competitive advantage. Planning and setting up your business, guided by this wealth of information, can be a game-changer for your Amazon business. You won’t be playing a guessing game hoping things work out. Keep on reading to learn more about Amazon competitor analysis, including how to analyze your competitors.
What is Amazon’s Competitor Analysis?
Amazon competitor analysis is vital to research, aimed at scoping out your competitors to gather important information that can help you outperform. So, let’s say you want to start selling shoes on the Amazon Marketplace, you visit the marketplace and research the big elephants in the shoe niche. In this research, you’re going to be looking out for the type and quality of shoes they sell, the prices, and what endears buyers to them (selling point or competitive advantage). Also, you’ll research their marketing strategies and areas where they are deficient. Competitor analysis helps you to know exactly what type of shoes to sell, as there are multiple types of shoes. Also, researching your competitors enables you to figure out how you can beat them. Practically, Amazon competitive analysis involves thorough research of your competitors to garner facts about them.
Step-by-Step Guide on How to Do Amazon Competitor Analysis
Here is a guide on analyzing your Amazon competitors.
Find Out Who Your Competition Is
The first step in conducting a competitor analysis is finding out who you’re up against – your competitors. Knowing your competitors sets the foundation for your research. Your Amazon business competitors comprise sellers with similar products, and the easiest way to find them is to search for your product ideas on Amazon. So practically, if you intend to sell wristwatch on Amazon, you should type in “wristwatches” in the Amazon search box. But then, you can expect to see lots of wristwatch brands in the search result, so, you have to narrow your search using a more specific keyword. For example,” led wristwatches.” This way, the number of competitors will reduce, leaving you with only brands that sell led wristwatches. These brands are your main competitors, and you should focus on them. Take note of the first 10 to 20 products on the first page, as these represent the high-performing competitors you’ll want to monitor.
Perform Keyword Research
Now that you know who your competitors are, it’s time to figure out how to beat them in their game. The next thing to do is to find out what keywords your competitors are ranking for. These keywords are words or phrases buyers will likely search for when they’re looking for your product in the marketplace. If you don’t rank for these keywords, your product is not likely to show up in the search results. Now the big question is, how do you find the keywords or key phrases your competitors are using and should be targeting? Although you can do that using your intuition, it’s better to use a keyword research tool. However, to save time and energy, it’s best to outsource keyword research to a professional Amazon services agency. Webzonservices.com uses a robust keyword software tool to help clients figure out the right keywords to get ahead of their competition. If you’re in Calgary, this agency can be of great help.
Analyze Your Competitors
Examining your competitors’ listings gives you a footing for setting up a highly optimized listing, as you can identify and fill their gaps. Here are things to look for in a listing.
A product’s title tells the Amazon A9 algorithm as well as shoppers what the product is. Check out the keywords other sellers used in their titles and figure out how to make yours even stronger.
Images make a product listing visually appealing. Without reading the caption or description, it tells the buyer what you sell, so it must be attention-grabbing and of high quality. Get an idea from other sellers to improve your image.
- Bullet points
Bullet points contain a summarization of your products’ selling points. You must inspect the bullet points of other sellers to see what’s omitted that can give you an edge.
- Product Description
Read through your competitor’s descriptions, and notice how they describe their products. Take note of the tone and features and benefits they highlight, and work on having a more informative and persuasive description.
These are testimonies from customers who have used the product. Pay attention to the good reviews, as it gives you an idea of your competitors’ selling points. In the same vein, examine the bad reviews to learn their weaknesses and turn them into your strengths. Owing to how crucial listing optimization is to your business’s success, it may be best to allow a professional to handle it.
At the consideration stage of the buyer’s journey, price is a critical factor, especially when there are lots of options to choose from. When choosing between similar products, customers will most likely go for the cheaper option, as long as the quality isn’t compromised. And so, especially if you’re a new seller, you may have to sell at a cheaper price to attract buyers. However, not at the expense of making a profit. This is why you should also study the price history of the market and know if the product is viable. Most sellers use a repricing tool to track the price history of their potential market and determine the best prices for their products.
Explore Competitors’ Marketing Approaches
Marketing is the lifeblood of every successful Amazon business, so you need to give it your best. It’s important to examine your competitors to find out how they market their products on and outside the marketplace. Observe their packaging design, listing copy, product images, A+ content, and social media marketing. Find out their engagement rates and what kind of content they put out, the platforms they are most active on, and more. This information can help you better know your competition and the consumers in your market.
If you’re planning to start selling on the Amazon Marketplace, Amazon competitor analysis is a critical step in starting your business. It sets the foundation for success in the marketplace. Thankfully, there are different Amazon account management firms to guide you through this tasking process. Webzonservies.com is a trusted digital marketing agency committed to helping both new and existing Amazon sellers make the most of their time on the e-commerce platform. So, if you’re wondering how to go about your competitor analysis, reach out to us.