How To Run a Competitor Analysis On Amazon

Unlocking the Secrets of Competitor Analysis on Amazon

Amazon has metamorphosed into a vast marketplace, making it indispensable for businesses to understand their standing amidst fierce competition. Whether you’re an established seller or a newbie starting your Amazon journey, you must fathom the dynamics of your competitors. By understanding their strengths, strategies, and weaknesses, you can craft a plan that doesn’t just emulate, but innovates.

This article answers seven burning questions about conducting a competitor analysis on Amazon, offering actionable insights and the wisdom of market-tested strategies. Dive in to unveil the art and science behind thriving on the world’s largest e-commerce platform.

Why is Competitor Analysis on Amazon crucial?

In a marketplace as vast and diverse as Amazon, being knowledgeable about your competition isn’t just recommended—it’s essential. With millions of sellers vying for attention, understanding what your competitors are doing right (or wrong) can give you a distinct advantage. For instance, if your competitors are receiving rave reviews for quick deliveries, it indicates a demand for swift service in your category.

Moreover, competitor analysis can uncover gaps in the market. Let’s take the example of yoga mats. If your research shows that most competitors are selling PVC-based mats, but there’s a growing demand for eco-friendly products, launching a sustainable cork yoga mat could be your unique selling proposition (USP).

Additionally, by studying competitors’ pricing strategies, promotional tactics, and customer feedback, you can craft a more informed and effective business strategy. Instead of entering the marketplace blind, you’ll have a roadmap informed by the successes and failures of others.

Lastly, Amazon’s A9 search algorithm prioritizes products with better sales performance. By understanding and implementing what your successful competitors are doing, you’re better positioned to improve your sales and search ranking on the platform.

For example, if a competing brand of skincare is consistently topping search results because of their organic ingredient list and effective advertising campaigns, it’s a sign to reconsider your product formulation or marketing approach.

How can I identify my main competitors on Amazon?

While Amazon’s vastness can be intimidating, tools and strategies can simplify the process of identifying your main competitors. Start with a keyword search. If you’re selling handmade leather wallets, search for terms like “handmade leather wallets” or “artisanal wallets.” The top products that appear are likely your primary competitors, given that they dominate for your product’s main keyword.

Utilizing tools like Helium 10, Jungle Scout, or AMZScout can further refine this process. These tools provide insights into product rankings, sales data, and reviews, enabling you to identify the top sellers in your category. For instance, using Jungle Scout on our leather wallet example might reveal that wallets with RFID-blocking technology are particularly popular.

Another method is to analyze the “Customers also bought” section on product pages. If your product consistently appears alongside another, it’s an indication that you share a target audience and, by extension, are competitors.

Reviewing the Amazon Best Sellers list in your category can also yield valuable insights. If your category is ‘Home & Kitchen,’ and you notice a specific brand of blender consistently outperforming others, that brand is a key competitor.

Lastly, keep an eye on Amazon’s choice and Best Seller tags. Products with these tags have high conversion rates and are recognized as top performers in their categories.

Which tools can assist in Amazon competitor analysis?

Several robust tools on the market are designed specifically for Amazon competitor analysis. Helium 10 is a comprehensive suite offering keyword tracking, product research, and listing optimization suggestions. For instance, if you’re selling herbal teas, Helium 10 can show you which keywords competitors are ranking for, like “calming herbal blend” or “caffeine-free tea.”

Jungle Scout is another formidable tool, boasting features like sales data analysis, opportunity scores, and detailed competitor insights. Using our earlier example, if you wanted to sell yoga mats, Jungle Scout could provide data on monthly sales, average price points, and even the seasonality of demand.

Then there’s AMZScout, which offers sales estimates, trend data, and keyword analysis. If you were launching a new range of organic skincare products, AMZScout could reveal how many units top competitors are selling monthly, allowing you to forecast potential sales.

Keepa is another invaluable tool, primarily for its price tracking features. If you notice a competitor’s product is consistently outselling yours, Keepa can show if they’re frequently discounting their product, giving you insights into their pricing strategy.

Besides these, CamelCamelCamel offers price history charts and drop alerts, while Fetcher provides detailed profit analytics, helping you understand the financial strategies of competitors.

How do I analyze competitor reviews and ratings?

Reviews and ratings are a goldmine of information. They offer unfiltered insights into what customers love or loathe about a product. Start by studying the top-rated reviews of your competitors. If a particular feature is consistently praised—say, the long battery life of a competing electronic device—that’s a strong point you might consider emulating or bettering in your product.

On the flip side, negative reviews highlight areas of improvement. If customers lament the flimsy packaging of a competing beauty product, ensuring your product is impeccably packaged can give you an edge.

Moreover, look for patterns. If a competitor’s shoe line has multiple reviews mentioning size discrepancies, there’s an opportunity for your brand to win over customers by offering a more consistent fit.

Tools like ReviewMeta and Fakespot can help filter out inauthentic reviews, ensuring your analysis is based on genuine customer feedback. Remember, it’s not just about the star ratings but the stories and experiences shared by customers.

For instance, while a laptop might have high ratings, diving deep might reveal that customers appreciate its performance but despise its weight. Such nuances are pivotal in product development and positioning.

What role do competitor prices play, and how to monitor them?

Price is a paramount factor influencing purchasing decisions on Amazon. By keeping a close watch on competitor prices, you can adjust your strategy to remain competitive and maximize profits. For instance, if a competitor drastically drops the price of a similar product during a sale, you might consider offering a bundle deal or enhancing your value proposition to retain your customer base.

Employ tools like Keepa and CamelCamelCamel to track competitor price changes over time. This not only helps in understanding immediate pricing strategies but also in discerning patterns like seasonal discounts or flash sales.

If you’re selling handmade jewelry and notice a competitor offers substantial discounts during Valentine’s Day and Christmas, it’s a hint to prepare your stock and marketing campaigns for these peak times.

Also, consider implementing a dynamic pricing strategy using tools like RepricerExpress or Prisync. These adjust your product prices in real-time based on competitor prices and predefined rules, ensuring you remain competitive without compromising profitability.

Remember, while price is significant, it’s not the only factor. Consistently delivering quality, maintaining stellar customer service, and building a strong brand can allow you to command higher prices than competitors.

How can I decode competitor marketing and advertising strategies on Amazon?

Competitor marketing and advertising strategies play a pivotal role in their success on Amazon. Start by observing their product listings. Analyze the quality of their product images, the persuasiveness of their descriptions, and the effectiveness of their keywords. If a competitor’s product consistently outranks yours, they might be using more effective keywords or running aggressive advertising campaigns.

Tools like Helium 10’s Cerebro can give insights into the keywords competitors are bidding on. If you’re selling organic baby clothing and find a competitor is consistently targeting “hypoallergenic baby onesies,” it might be a keyword worth considering for your campaigns.

Monitor Sponsored Product Ads and Headline Search Ads of competitors. These are clear indicators of the keywords they deem essential and the kind of marketing budget they’re operating with. For instance, if a competing brand of headphones is consistently advertising using the keyword “noise-cancelling headphones under $100,” it’s a hint at their target market and price point.

Also, keep an eye on external marketing efforts. Are competitors running Facebook ads leading to their Amazon listings? Are they collaborating with influencers or bloggers? Such off-Amazon marketing strategies can significantly drive traffic and sales.

Lastly, join Amazon Brand Registry if eligible. It provides access to enhanced branding tools, including A+ Content and Brand Stores, allowing you to craft a more compelling brand story and possibly outshine competitors.

How can I leverage the information from a competitor analysis?

Gathering insights is just the beginning. The true value lies in leveraging this information to refine your strategy. Begin by identifying gaps in the market. If your analysis reveals that customers desire a feature missing in current products, consider incorporating it into yours.

For instance, if you’re selling kitchen gadgets and find that customers lament the lack of durable avocado slicers, producing a stainless steel, ergonomic avocado slicer could be your ticket to success. Adjust your pricing strategy based on competitor prices but ensure you maintain profitability.

Revamp your marketing and advertising strategies based on competitor insights. If they’re seeing success with certain keywords or ad types, consider integrating them into your campaigns. But always ensure you add a unique twist, setting your brand apart.

Lastly, use the feedback from competitor reviews to enhance your product. If customers complain about a competitor’s smartwatch having a short battery life, ensure yours excels in this aspect. Remember, competitor analysis isn’t about emulation—it’s about innovation and differentiation.

Through strategic adjustments and a keen understanding of the market landscape, the insights from competitor analysis can be the catalyst propelling your brand to Amazon stardom.

Question	Key Takeaway
Why is Competitor Analysis on Amazon crucial?	Understanding competitors allows for better market positioning and strategy formulation.
How can I identify my main competitors on Amazon?	Use keyword searches, tools like Jungle Scout, and analyze “Customers also bought” sections.
Which tools can assist in Amazon competitor analysis?	Helium 10, Jungle Scout, AMZScout, Keepa, and Fetcher are among the top tools.
How do I analyze competitor reviews and ratings?	Focus on top-rated reviews for positive insights and negative reviews for improvement areas.
What role do competitor prices play, and how to monitor them?	Price influences purchase decisions. Use tools like Keepa to monitor competitor prices.
How can I decode competitor marketing and advertising strategies on Amazon?	Analyze product listings, observe Sponsored Product Ads, and monitor external marketing efforts.
How can I leverage the information from a competitor analysis?	Identify market gaps, adjust pricing, revamp marketing strategies, and innovate products.

FAQs

Can I perform competitor analysis without any tools?

Yes, while tools streamline and deepen the analysis, manual methods like keyword searches, reviewing product listings, and studying reviews can still offer valuable insights.

How often should I conduct competitor analysis on Amazon?

Regularly. Given the dynamic nature of e-commerce, competitors’ strategies, product offerings, and market dynamics can change frequently. A quarterly review is recommended.

Are there risks in copying a competitor’s successful strategy?

Yes, directly copying can lead to issues like copyright infringement. Moreover, what works for one brand might not work for another. It’s vital to adapt strategies to your brand’s unique identity and values.

How do I ensure my competitor analysis is objective and not influenced by biases?

Use data-driven tools, focus on quantitative metrics like sales data and reviews, and avoid making decisions based solely on personal preferences or assumptions.

Is there a way to prevent competitors from analyzing my brand?

While you can’t prevent analysis, consistently innovating, updating product listings, and staying proactive in your strategies will keep competitors on their toes.