The competition amongst Amazon sellers continues to get increasingly fierce as more and more buyers are opting for Amazon as a preferred choice for a purchase. To become a successful Amazon seller, you need to constantly outperform competitors. Otherwise, your products will end up getting buried in search results and you will lose customers to them. The most effective way to make sure you shine through is by conducting a detailed competitor analysis. This will help you strategize how to create a competitive advantage and win the buy box for higher sales.
Don’t know where to get started? Well, we make it easy for you in this article. Let’s explore the steps that sellers need to undertake for a thorough analysis:
- Identify the right competitors for a focused analysis: You cannot beat someone if you don’t know who you are competing against. You should enter highly relevant keywords in the search bar to see how all the products from different brands are presented to a customer. Shortlist the top 3 products as these positions are known to grab 40-70% of the sales on Amazon. Various factors based on which competitors should be shortlisted are – intent, price range, how long they have been selling, brand presence, etc. Additionally, you can check the products with the best-seller ranking between 1-10 for your category. You may boil down to a mix of primary and secondary competitors. Primary competitors would include those selling the same product or targeting the same audience, while secondary competitors would be those offering a higher or lower end version. Moreover, sellers can also focus on studying Amazon Brand Analytics data. It helps in understanding the top converting competitors and shortlisting them for the analysis to understand what they’re doing right.
- Audit competitor product listings for conversion insights: You must extensively work on understanding the attributes highlighted in the competitor’s product listings; examine every feature ranging from the title and description to the images. Start by analyzing the structure of the title, understand whether it is informational or promotional. Then look at the benefits prioritized in bullets and product description of top competitors. Identify the USPs highlighted by them and what additional information is provided in the description. Browse the Q&A section of the competitor’s listing as well. Observe the kind of questions asked by the shoppers, and the answers provided for these questions. The tone and language will also help in gauging what appeals to their audience.
Furthermore, the seller involved in thorough auditing of the product listings needs to focus on the competitor’s keyword strategies as well. These targeted keywords are extremely essential as they determine the terms that will boost sales for the product. An extensive comparison of the competitor’s keyword ranking with your own will help you understand lost opportunities and optimize your product listings as well as ad campaigns for higher visibility. It is advised to repeat this exercise every few months.
- Assess competitor prices and sales for comprehensive target setting: 82% of Amazon buyers consider price the most important factor while shopping on the platform. You should be aware of the product matrix of your competition while trying to perfect your own. Monitoring competitor’s pricing strategies helps in understanding how their pricing impacts your sales directly. Being aware of the price fluctuations can also help in determining whether a competitor might be underselling at a certain point. Any price declines by a competitor can help them rank better and get better conversions, thus stealing from your sales. Hence, you may decide to respond by reducing your own prices for a brief time and countering them.
Variation in the sales rates can be tracked by the rise and fall in the Best Sellers Ranking (BSR). Track the changes in the BSR in order to strategize your plans and boost your sales accordingly. The real-time tracking of data through our in-house tools helps in making pricing decisions to keep your products competitive.
- Evaluate your competitor’s advertising strategies for higher ROI: You need to start by analyzing your competitor’s keyword choice in the ads campaign. Study the keywords targeted by your rivals in their ads. Then, check the search volume, suggested bids, and competition for these keywords. Based on the acquired data, our in-house tools can help you in 3 ways:
- Identify keywords with less competition and tap them using ads immediately
- Identify keywords on which your close competitors are advertising, then target those aggressively to take their spot
- Identify the SKUs from your portfolio that can be advertised and sold with less competition
Hence, with a thorough understanding of your competitor’s ads strategy, you can build a better one that leads to a higher ROI.
5. Monitoring competitor’s reviews for understanding the shopper’s perspective: Keep a close eye on your rival’s reviews, both in quality and quantity. This will give you a first-hand understanding of the shopper’s demands and needs. Studying the reviews of a competitor’s products can give the sellers an insight into the weaknesses and strengths of the product being sold by their competition. Sellers can then ensure that their own products don’t have the same shortcomings and work on improving them. Moreover, you can also study the features that the customers like about your competitor’s products and then incorporate those features in your own product listings.
All in all, monitoring and surpassing your competition, can seem daunting, however, sellers must actively focus on it to boost their sales on Amazon. With the tips mentioned above, sellers can conduct a detailed competitor analysis and create a competitive advantage on the platform.
Want to know how you can drive higher sales than competitors on Amazon? Hit reply and let’s talk.