Doing an analysis of the competition is a really useful strategy to help you succeed in Amazon business. However, a proper Amazon competitor analysis would require certain tips so you can properly pull it off.
To make your money grow in Amazon, you have to think carefully about your strategies. Regardless if you’re new in the business or already settled, knowing how to do Amazon competitors analysis is essential.
In this article, we’ll try to give you the answers to the following questions to keep you on top of your game:
· Are the items what they really seem to be based on their appearance?
· How strong are your competitors?
· What are the actions you should take?
6 steps to conduct Amazon competitor analysis
Whether you like it or not, a merchandise will always have one or more sellers, and that means more competition for you. This is when you need to have in-depth knowledge of competitor analysis.
For that reason, sellers should accurately source and explore smart actions for their investments, decide a competitive and profiting price for each of their products, make full use of their campaigns on advertising, and continually track the progress of their business encounters. The question is, how? Here’s the answer:
1. Check and review listings of products
For beginners, it’s best to keep a list of the products of your competitors. After that, make any online sheet that you can share with your team. Lastly, make a grading for every product listing feature such as product titles, descriptions, and pictures.
As much as possible, try to focus on the following areas:
· Product name – note that Amazon’s suggested product title format is “brand + model + product type.” Do a comparison between your competitor’s product title and yours. Moreover, think like the buyer when you are making your own title. You should keep it informative and never promotional.
· Product characteristics – this is what you should take a look at next. This is how you do a product feature competitive analysis: first is to check out the right of the items’ images, second is to take a careful look at your competitor’s emphasized USP (Unique Selling Point), and third is to think about how you could effectively counter this aspect.
· Product description – search for loopholes in your competitor’s descriptions. Did the seller forget some important information concerning their products? What information did he/she provide? How did he/she deliver his/her information? Is it just the usual format? Or is it reader-friendly?
· Q&A section – see if your opponents take measures in responding to their buyers’ questions. List all the common questions that shoppers ask, and answer these questions for yourself for your future listings.
· Product pictures – what product images are featured in the listing? Take a look at the quality. Could your team possibly remake the features of their product images such as displaying the product functions, etc.?
2. Do a careful research
Learn from the tone and words used by other sellers in their product descriptions, Q&A, and features. Furthermore, understand how the images of their products were used, make a detailed research on how to package your items, and how to label them. Most of all, remember to make an analysis of the content of the brand.
Set aside at least 20 minutes of your day to study the brands of your competitors. Who knows if your branding will be similar to your competitors or will be a completely different thing.
3. Keep an eye on reviews
To conduct an Amazon review analysis, check reviews with regards to their quality and quantity. Amazon desires that reviews have raw detail and substance. Therefore, scroll down through customer reviews and know the details concerning what users might have liked and disliked about a specific item. Also, check if reviews contain merely one sentence.
When it comes to reviews, quantity matters. Typically, the algorithms of Amazon favor items with both high-quality and high-quantity reviews.
Did your competitors receive many reviews for every product in comparison to your products? Moreover, always remember to check the score of each product on average. You can then contemplate your own strategy from the information you got.
4. Know the targeted keywords your competitors use
This is one of the most significant steps to do while doing your analysis: knowing what keywords your competitors use as part of their strategy. This ultimately depends on a careful review of your product listing.
Commonly, merchants place their main keyword on the title of the product. For example, “Organic Whole Bean Coffee” or “Organic Dark Roast Coffee” is the primary keyword used. Moreover, you can easily search your competitor’s keywords by using free Amazon competitor research tools online.
5. Calculate the product prices and monthly sales of your competitors
It is a reality that the prices of your merchandise have a major effect on your sales. If your item’s price is more expensive than what another seller is selling it for, the tendency is that buyers will buy the cheaper one.
This is why evaluating the prices your competitors offer is an essential part of your competitor tracking template. Practically speaking, you do all these things for the sake of profit. So make sure you use the prices your competitors use as reference and not as a benchmark.
Another way to keep your analysis on the upper hand is to calculate your competitor’s monthly sales. You can do this by estimating their gains thought their monthly inventory. With all these at hand, your sales strategy will be effective, and with diligence, your sales will increase along with your profit.
6. Visit the shops of your competitors on Amazon
Some of your competitors may own an Amazon Store. Such a store is different for some companies that serve to provide customers easy access to the items they display and sell. Therefore, if your competitor has one, better take a look at it and assess the following features:
· Arrangement – every company has its own design when it comes to the stores, though Amazon does provide standard templates. You can gain ideas on your competitor’s marketing strategy by looking at the game plan of their shop. To set an example, your competitor may emphasize some selected items on their storefront/homepage to inform their buyers of their best sellers.
· Links to social media – shops on Amazon are allowed to have social media links. You can check the accounts of your competitors to help you and your team get some intelligence on what your competitor is actually primarily promoting.
So, what is really the importance of all of this information concerning competitive analysis?
With the growing number of competitors on Amazon, keeping an eye on your opponents will be your means for success. One of the most common mistakes that sellers in Amazon do is to purchase fiery products without trying to compete. Not facing competition will put your business on the edge, so doing at least some research on the market will help you know who your “enemies” are. With even a little effort, you will keep yourself on top of your competitors.
Conducting a competitor analysis will keep you accurately informed about what are the wise decisions to make concerning your business. With this, you will also be able to decide on the strategy for the pricing you will use. By researching different promotional and advertising strategies, you will get more ideas with regard to how you can optimize your own campaigns.