A Comprehensive Guide on How to Run Amazon Seller Competitor Analysis

Elise Jackson

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  • AUTHOR: Elise Jackson
  • CATEGORY: Amazon Brand Strategy
  • DATE: 24/04/2024

Stop wondering how or why your competitors are performing so well on Amazon. We’ve got the inside scoop on uncovering all those hidden secrets to keep your brand ahead of the competition.

 

This Is Unicorn

 

Conducting a competitor analysis reveals valuable information about market trends, pricing strategies, customer preferences, and effective marketing tactics. Understanding what your competitors do well and poorly allows you to make informed decisions that improve your product listings, customer satisfaction, and pricing strategy.

Identifying your direct competitors, as well as analysing their product listings, pricing, customer reviews, and marketing strategies, are key concepts in Amazon seller competitive analysis. Techniques such as keyword analysis and sales data tracking help sellers understand which products are in high demand and how competitors are capitalising on market trends. Furthermore, evaluating promotional strategies and advertising approaches provides valuable insights into how to effectively reach potential customers.

Understanding Amazon Competitor Analysis

Defining the purpose and benefits of competitor analysis involves recognising its role as a strategic tool for you to make informed decisions. The primary goal is to thoroughly understand competitors’ strengths and weaknesses compared to your own business. The advantages are numerous: it enables sellers to identify market trends, spot product opportunities, price competitively, optimise product listings, and tailor marketing strategies.

Several key metrics and factors must be considered. These include pricing strategies, product selection and differentiation, customer ratings and reviews, sales performance, inventory levels, and marketing tactics like SEO optimisation and advertising campaigns. Additionally, understanding how competitors handle customer service and returns can provide insights into consumer satisfaction and loyalty.

Some of the most popular Amazon competitor analysis tools are:

 

Jungle Scout

Jungle Scout

 

Helium 10

Helium 10

 

Keepa

Keepa

 

CamelCamelCamel

CamelCamelCamel

 

These tools give brands actionable data and insights to adapt and strategise in a competitive market.

 

Identifying Your Amazon Competitors

A deep dive into Amazon’s search and category feature identifies direct and indirect competitors. Direct competitors target the same customers with similar products, while indirect competitors may serve the same needs with different products or adjacent categories. Start by entering product-related keywords into Amazon’s search bar. This will show highly ranked products similar to yours, pointing to your competition.

Amazon’s category and subcategory nodes can help you refine your search. By exploring relevant product categories, you can identify top sellers and new market entrants. This method assists in understanding the range of products you are competing against, including those that may not be directly comparable.

Look at potential competitors to see how similar their products are to yours and the extent of customer overlap. Review the features, quality, price, and marketing messages used. Customer reviews on competitor pages are valuable as they show what features customers like and don’t like, providing insight into how your product could offer a better solution. By looking at these factors, you can gauge how much of a threat each competitor is and develop strategies to differentiate your product.

 

Choosing the Right Metrics for Analysis

Key Performance Indicators (KPIs) are important for figuring out how you stack up against your competitors and identifying areas for improvement. Sales performance, customer reviews, pricing strategies, and product selection are some of the most important metrics for this analysis. Each of these offers a distinct perspective on competitor dynamics and market opportunities.

Metrics like sales volume, revenue, and market share are frequently used to evaluate sales performance. These figures show how well a competitor’s product is selling and can highlight trends or seasonal fluctuations that you could take advantage of.

Reviews from customers shed light on product quality and customer satisfaction. High ratings and positive reviews often correlate with better sales performance and customer loyalty. On the other hand, unfavourable reviews can reveal shortcomings in competitors’ products or customer service that you can either avoid or improve upon.

 

Dunkin Amazon Review Section

You can learn valuable insights into a brand and product in the reviews section

 

Pricing strategies are crucial in competitive markets. Tracking how competitors price their products – whether they utilise a premium pricing model or compete aggressively – can help you match market expectations or differentiate.

Product assortment entails evaluating the variety and uniqueness of products offered by competitors. Understanding the breadth and depth of their product lines may help you identify gaps in their offerings or areas they may have overextended.

Setting precise goals and benchmarks is key for effective competitor analysis. It’s important to establish clear metrics, such as aiming for higher review scores or more competitive pricing during peak sales periods. Using these key performance indicators allows you to regularly compare your performance to that of your competitors. This allows you to make timely strategic modifications, better meet consumer needs, and strengthen your market position. Keep at it, and you’ll reap the rewards of staying on top of your game!

 

Tools for Amazon Competitor Analysis

Several free and paid tools can provide comprehensive insights vital to strategic decision-making.

 

Jungle Scout.

Renowned for its robust capabilities in product research and competitor tracking. To begin using Jungle Scout:

1. Start with the Product Database to find products and identify competitors based on your criteria, such as category, price, and sales.

2. Use the Product Tracker to monitor these products over time, observing sales data and inventory levels.

3. Employ the Keyword Scout to research which keywords competitors are targeting, helping you optimize your listings for these keywords.

Additionally, Jungle Scout offers a comprehensive paid platform called Cobalt, providing users with the capability to create segments and analyse segment data using intuitive graphs and tables. While it may not be as widely utilised as other tools, Cobalt boasts a high level of completeness, making it our preferred tool for the task at hand.

You can learn more about it here.

 

Helium 10.

Offers a suite of tools that covers almost every aspect of running an Amazon business. Steps to leverage Helium 10 effectively include:

1. Use Black Box to discover products and identify competitors by searching with specific criteria.

Helium10 - Black Box

 

2. Apply Cerebro to perform reverse ASIN searches on competitor products to see what keywords they rank for.

Helium 10. - Cerebro

Helium 10. - Cerebro

 

3. Utilise Xray on Amazon product pages to get instant data on competitor metrics such as monthly sales, revenue, and more.

Helium 10. - Xray

 

 

AMZScout.

Another powerful tool that helps in making informed product decisions and understanding competitive dynamics. To use AMZScout:

1. Install the AMZScout Chrome extension and navigate to an Amazon page with products similar to yours.

2. Activate the extension to analyse detailed insights on these products, including historical prices, sales estimates, and profit calculations.

3. Explore the Keyword Tracker to see which keywords drive traffic to your competitors’ listings, enhancing your ability to compete on search terms.

 

AMZScout.

 

Both paid and free tools offer varying degrees of insight. Paid tools offer a wealth of comprehensive and practical data that can greatly enhance strategic decision-making, whereas free tools offer more rudimentary data for initial analysis. By combining these analytics, you gain a comprehensive view of the competitive landscape. This allows brands to target buyers and optimise products for success effectively.

 

Running a Detailed Competitor Analysis

Analysing your competitors on Amazon also involves diving into their product listings, descriptions, and images. Compelling copy and standout images have a major impact on consumer decisions, so pay attention to how competitors highlight their product characteristics and apply keywords for SEO.

Tip: Disregard any search result labeled as “Sponsored” because the seller paid for increased visibility.

Evaluating customer feedback and ratings is also important. These reviews shine a light on what customers like and dislike, offering clues on how you might improve or differentiate your products. Keep in mind that high ratings typically indicate high customer satisfaction, which is crucial information for refining your product and marketing strategy.

Looking at competitors’ pricing strategies and promotions can reveal their market positioning—whether they focus on competing through price, quality, or unique offerings. Keep an eye out for pricing adjustments during peak buying seasons like holidays or sales events, as these patterns can help you understand their sales strategies.

Checking out how competitors interact with their customers on social media and other channels can reveal a lot about their brand presence and customer loyalty. Strong engagement frequently leads to repeat business, so it’s worth noting how they build and manage their community.

 

This Is Unicorn

 

Strategies for Amazon Seller Competitor Analysis

To keep up with the competition on Amazon, create a process for analysing your competitive landscape – consider checking in regularly or quarterly. Use Helium 10 or Jungle Scout to stay informed about competition sales, pricing changes, and customer feedback. Don’t forget to set up automated alerts for when competitors introduce new products or tweak their prices, so you’re always in the loop.

 

Helium 10’s market tracker function

Helium 10’s market tracker function

 

Including a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) in your strategy enriches your understanding of not only your brand but also what your competitors are up to. This might help you spot new markets and ways to improve your products based on their weaknesses.

You could also try benchmarking against the best in the biz. Compare key measures like conversion rates and customer loyalty to those at the top of your market. Identify any gaps in your performance and make specific, attainable targets to close them. Regularly comparing your practices to those of industry leaders ensures that you are not only keeping up but also aiming to exceed expectations.

 

Leveraging Competitor Insights for Business Growth

Study how your top competitors write their product descriptions, utilise keywords, and maintain quality in their pictures. Focus on the benefits they highlight and the consumer issues they answer to improve your own listings, attract attention, and raise your SEO.

Adapt your pricing tactics. Keep tabs on how your competitors price their items throughout the year, particularly during peak sales periods or market fluctuations. Keepa and CamelCamelCamel are excellent for tracking past pricing data, helping you to predict trends and establish competitive prices to maximise sales.

 

CamelCamelCamel

CamelCamelCamelCamelCamelCamel is a powerful free tool great for product price history

 

Likewise, revamp your marketing strategies to remain competitive. Analyse your competitors’ advertising, noting the keywords they target and their marketing techniques. This insight can help you identify opportunities to differentiate your campaigns. To expand your reach even further use social media. Tailor your efforts to respond to competitor movies and customer feedback can ensure that your marketing not only keeps pace but also resonates with your audience

 

Monitoring Changes and Adaptations

Set up notifications with tools like Helium 10 or Jungle Scout to stay informed of changes to their listings, price, and marketing activities, allowing you to respond swiftly and strategically.

Adapt your strategies to the competitive landscape, not just by reacting to changes but by anticipating them. For instance, if competitors frequently lower their prices during particular seasons, get an advantage by planning your promotions or introducing bundle deals early to safeguard your position in the market.

It’s vital to stay up-to-date on industry trends and market dynamics besides watching competitors. This includes staying current with broader market factors, shifts in consumer behaviour, and technical advancements. Being well-informed helps to anticipate changes and alter your strategy proactively, allowing you to remain competitive in a fast-paced market.

 

Amazon Advertising Account Audit

 

Overcoming Challenges in Competitor Analysis

Navigating the bustling marketplace to gather competitor data can present a challenge. Amazon is a vast ecosystem where things are constantly evolving. Sellers utilise creative strategies to safeguard their sales information or to give their product rankings a little nudge, making getting accurate data tricky.

To stay on top of things, combine some useful tools with manual oversight. Helium 10, Jungle Scout, and Keepa are great for monitoring what your competitors are doing thanks to their automated tracking and alerts. However, it’s also wise to perform regular checks yourself to ensure that everything is relevant and accurate.

 

Keepa Alerts

Be notified whenever a competitor drops a price with Keepa Alerts

 

Stay sharp. This is a fast-paced market. So being flexible and‌ ready to pivot is crucial. Keep your inventory adaptable ready to match the latest consumer trends, and consider a pricing approach that is easy to adjust on the fly. Staying on top of industry developments and listening to consumer feedback can also help you stay ahead of the competition, allowing you to thrive rather than just keep up.

 

Our Thoughts

Regular competitor analysis is an essential component of a successful Amazon sales strategy. Sellers can acquire useful insights by thoroughly analysing product listings, customer feedback, pricing methods, and marketing tactics, allowing them to enhance their offers and position themselves in the marketplace.

Brands must incorporate competitive analysis into their regular business practices. This entails not just monitoring the immediate competitive situation, but also keeping an eye on larger market trends and consumer behaviours. Implementing a systematic approach to competitor analysis enables brands to remain ahead of the competition, anticipate market shifts, and make informed decisions that increase customer satisfaction and boost sales.

Competitor analysis should be seen as a continual strategic endeavour that is essential for long-term success. By adopting these techniques, sellers can maintain a competitive advantage, adapt to market changes proactively, and achieve long-term success on Amazon.

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