With over 1 million sellers joining Amazon in 2018, it is evident that there has been a substantial increase in the number of new entrants on the world’s number one marketplace. And as a result, competition among sellers has increased manifolds. In such a scenario, staying ahead of the competition has become all the more challenging. If you intend to stay ahead and stand out from your competitors, conducting an in-depth competitor analysis is a great idea and an effective way to gain an edge over them.
Here is a quick checklist that can help you effectively analyze your competitors:
1. Go through your competitors’ product listings
When you are planning to go for Amazon competitor analysis, you must ensure that you scan the entire product page of your competitors thoroughly before diving into creating one for your products. Notice the style and tone of their product descriptions, sift through their product titles, images, and videos (if any). Don’t miss out on their branding, packaging, design, and labeling as they too are a crucial part of a product page. As doing all these things on your own can eat into your productive time, opting for marketplace management services is a great way to ease out the complexities of your selling lifecycle and save time.
2. Take note of the keywords used
Researching the keyword strategies adopted by your competitors is the most critical step in order to know what keywords they are targeting and how they place them in their product titles and descriptions. Free tools such as Sonar can give you access to any competitor’s keyword strategy and make things easier for you. Use most-searched and relevant keywords, and place them in a way that lands you in your potential buyers’ search results.
3. Pay heed to the reviews
While reading the reviews of your competitors, you can take note of the number of reviews posted, quality, strengths, weaknesses, customer ratings and positive responses. By studying this, you might come across something insightful that you can use as a future strategy for selling your products on Amazon. This way you might as well capitalize on the weaknesses of your competitors.
4. Study the pricing strategy and trends
Price of a product greatly impacts buying decisions of shoppers. You will not be able to make profits if all you are doing is clearing the inventories without analyzing or monitoring what your competitors are offering for similar products. So, another vital aspect of Amazon competitor analysis is the assessment of competitor prices of products falling in the similar category. Use them as a reference and don’t just set it up as a standard.
5. Keep an eye on their marketing campaigns
Try to get to the bottom of your competitors’ ad campaigns. Focus on analyzing the keywords used by your competitors, their search volume, competition, cost-per-click, ACoS (Advertising Cost of Sale), and other vital data. For example, if your competitors are using short-tail keywords, you might devise a better marketing strategy by choosing long-tail keywords instead. Not only this, you should optimize the keywords for your PPC campaigns from time to time. In addition, you can incorporate more keywords to secure new customers and retain the existing ones. This way you can leverage the untapped keyword potential across different categories to your advantage and drive more traffic to your products by allocating a relatively low budget.
ACoS (Advertising Cost of Sale), and other vital data. For example, if your competitors are using short-tail keywords, you might devise a better marketing strategy by choosing long-tail keywords instead. Not only this, you should optimize the keywords for your PPC campaigns from time to time. In addition, you can incorporate more keywords to secure new customers and retain the existing ones. This way you can leverage the untapped keyword potential across different categories to your advantage and drive more traffic to your products by allocating a relatively low budget.
6. Monitor competitors’ sales data
Analyze the monthly sales trends of your competitors and find out how much they are selling. You may also get to know whether their products are doing good and making adequate profits or not. Even if they are underselling, you can figure that out by studying the competitive sales data. All this monitoring can be undertaken to become an all the more competitive choice for your potential buyers. And this is very much possible through Amazon product listing optimization, advertising or any other strategy. Apart from sales data, you can also analyze the product catalogs and ASINs (Amazon Standard Identification Numbers) of your competing counterparts in order to make a decision regarding what products to sell in the future and figure out ways to create stronger bundles. In addition to extracting relevant sales information, latest sales trends and special promotions (such as Cyber Monday, Black Friday, and Prime Day) must also be taken into consideration for understanding your competitors’ strategic intent.
7. Glance through your opponent’s storefront
Your competitor’s Amazon store might not offer as much insights as you may expect it to, but it may still be worth visiting. You can keep a constant watch on what new strategies they are adopting to lure shoppers to their store. You might be interested in knowing what your competitors’ store design looks like and looking at how they have showcased their products. This would help you devise an effective strategy that not only drives insights from your competitors’ Amazon store but also keeps you ahead in the competition. Glancing through their existing social media accounts is also essential in order to determine the most rewarding social platforms used by the competition to attract more sales.
The Key Takeaway
Doing an in-depth analysis of your competitors can help you in designing a sales strategy that works. Don’t let your competitors be a roadblock and distract you from meeting your goal. Now that you are done analyzing your competitors on all the aforesaid parameters, it’s time to execute the derived plans and accelerate the selling process to maximize revenues.
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