Amazon has more than five million marketplace merchants, and while you are not competing with them, you are still competing with some. That is why it is critical to carry out a competitor audit, which provides your brand with a comprehensive assessment of other sellers. Ready to find out how to conduct an Amazon competition analysis in seven steps?
Step 1. Inspect Your Competitors’ Product Pages
Start your competition analysis by making a list of your rival’s items — for simple reference, compile a Google Sheet you can later share with your team. In the document, you can assess every product listing feature, from the description and title to the videos and images. If other merchants use A+ Enhanced or Enhanced Brand Content, consider it as well.
Step 2. Look At Your Competitors’ Branding
Next, we recommend assessing your opponent’s branding. Many merchants overlook this factor in their AMZ analysis, but it can provide insight into why clients don’t pick you.
Spare up to 30 minutes researching other sellers, and you can come up with an excellent idea of their branding. Maybe they are laid back with a concentration on humour or straight-to-the-point with a concentration on details. Sometimes your branding might align with your competitors’ — or be with a completely opposite take.
If your branding differs from your competitor, it is worth evaluating if you focus on the same target audience. For instance, maybe they are targeting companies with their fact-based stance, and you are focusing on shoppers with your humour-first approach. However, you can believe you have a direct competitor in the marketplace with millions of merchants.
Step 3. Research Your Competitors’ Feedback
After that, you wish to check the various reviews from clients on your competitors’ product pages. This step in the AMZ competitive analysis helps you gain a tremendous amount of idea of the strengths and weaknesses of other sellers, which may influence your future strategy for running a business on Amazon.
Based on this feedback assessment, your team may develop the basis for enhancing your general strategy. For instance, your brand may choose to revamp particular product listings to emphasize competitor weaknesses, like a short warranty on goods.
Step 4. Go to Your Competitor’s AMZ Store
Depending on your competition, merchants might have an AMZ Store that serves as a microsite for brands on the platform, as it provides customers with easy access to your goods.
While your rival’s Store might not provide an immense amount of insight, it is still worth visiting. For instance, if you check your opponent’s Amazon Store every quarter, you might notice their unexpected switch to displaying a different item, meaning a change in their business strategy.
Step 5. Check Your Competitors’ Targeted Search Terms
This stage of an AMZ competitor analysis is vital. It means inspecting the keyword strategy of your opponents. By now, you are aware of the keywords other sellers use based on your audit of their product listings.
Merchants usually put their main search term in the product listing title. Look for the recurrent phrases, indicating that they’re the targeted keywords. You can also use third-party tools to help you and your team discover your opponent’s keyword strategy quickly.
Step 6. Research Your Competitors’ Pricing
Clients’ buying decisions are guided mainly by price. Sometimes, it might even persuade them to purchase an item from another vendor. Because of this, assessing the pricing of other merchants s a vital aspect of an Amazon seller analysis.
There’s a simple trick to look up competition pricing, just like you may quickly uncover their keyword approach. Price monitoring services enable your company to constantly track your competition’s selling prices. Of course, generating a profit is equally essential to your business as maintaining prices competitive with those of other merchants. Nonetheless, use your competitor’s pricing as your guide instead of your standard. It does not benefit your brand to sell products while losing money.
Step 7. Think of Your Competitors’ Marketing Strategies
A client’s decision to purchase can also be heavily impacted by the marketing and branding of your products and those of your competition. The tone of the product listing description, the product images, the packaging design, the A+ or Enhanced Brand content, and how the company interacts with its target audience – all play a huge role in this.
Finally, don’t forget to check out other sellers’ non-Amazon marketing initiatives and social media presence. The influence of social networks on eCommerce and brand recognition is huge. In fact, more than half of buyers have purchased goods they found out about on social media.