Guest post by Charles Richard from TatvaSoft UK
Successful survival demands continuous evolution and adaptation. And the fact certainly stands true for any entity in any scenario; even for leading tech-companies ruling the industry such as Amazon. No matter how counter-intuitive it may sound, but it’s true! Also, the internet seems to be beaming with opportunities and information, waiting to be utilised. Say, for example, Amazon competitor analysis- have you ever wondered why it is imperative? Let’s find out!
Being a million-dollar venture itself, making huge money on Amazon can be insanely tricky at times. Whether you are just opening up on it or simply looking to expand what you already have to offer, analysing your competition is very important because your competitor does.
- Is that product really as good a bet as it appears to be?
- How dominant is your competition?
- What can you do better?
These need to be taken into account as it gives you a leg up over most of your players in the fraternity.
Conduct Amazon Competitive Analysis
Call it a blessing or a curse; the world is brimming with endless possibilities where each product typically has hundreds of different sellers. And here’s when the in-depth competition comes into play. By doing this, sellers can make more precise scouting and sourcing decisions for their portfolio, ensure that their pricing strategy is robust and competitive, their advertising campaigns are optimised and get a better handle on ad spend, and more effectively track performance and profitability. But the question remains the same, how?
1. Audit Product Listings
Compile a list of your opponent’s products; for starters. Create a Google sheet that can be shared with your teammates. Furthermore, you can also grade every feature of a product listing, from the title and description to the images. Try focusing on specific areas such as:
- Product title – Compare product titles in Amazon’s recommended format- brand + model + product type. In addition to this, look at the product title from the perspective of a shopper. Make sure it is informative and free of promotional messages.
- Product features – View the product features next, I am talking to the right of a product’s photos. Check out the unique selling points (USP), especially the ones which are highlighted by your competition. And how can your business counter these points?
- Product description – Time to move on to the product description. Check out what additional information does the seller leave out or what it provides on the product? Does the seller deliver the information in an easy-to-read, original format?
- Product Q&A – Walk further to the questions and answer section (Q & A). Check whether the seller takes an active role in responding to shopper questions. And even better what kinds of questions do shoppers ask or how can you apply that to your product listing?
- Product images – What product pictures does the listing feature, and what is their quality? Do they feature product images that your team could recreate, like showcasing the uses of your product?
Look at the tone and language used in the product description, features, and Q&A. Also, evaluate the angle and approach used in the product images, research about the product packaging design, labelling, and don’t forget to analyse the enhanced brand content.
Try spending 15 to 20 minutes studying your competitors so that you can develop a good idea of their brands. Chances are there that your branding may align with your competitors’ — or have an entirely different take.
3. Check the Reviews
Keep a close eye on aspects such as quantity and quality. Quality as in, Amazon wants to have reviewed with substance and detail. So go through a good bunch of reviews and check if they provide any detailing why a user likes or dislikes the product? Or, do they feature reviews with barely a sentence?
Quantity Amazon balances the quality of reviews with the number of reviews. Ideally, Amazon’s algorithms prefer products with high-quantity, high-quality reviews. How many reviews does each of your competitor’s products have, and how do they compare to yours? Also, do not forget to check the average score of each product. Depending on your review assessment, a further strategy can be designed.
4. Competitors’ Targeted Keywords
One of the most critical steps while conducting Amazon’s competitor analysis is researching your competitor’s keyword strategies. It highly depends on your product listing audit; you probably have an idea of what keywords your competitors use. However, in most cases, sellers include their primary keyword right in their product title.
“Natural Insect Repellent” or, “Insect Repellent Pump Spray” are the primary keywords. There are also some free tools available which you can use to uncover your competitors’ keyword strategy fast.
5. Investigate your Competitors’ Ad Campaigns
Like I said before, focusing on your competitor’s keyword choice. Now it’s time to do an in-depth evaluation of your competitor’s ad campaigns. Now can you tell me what are the average cost-per-click (CPC), search volume, and competition for these keywords? How are those numbers affecting their Advertising Cost of Sale (ACoS)?
Here I would suggest that instead of focusing on short-tail keywords like your competitor, you direct your attention to long-tail keywords, which have a lower CPC. Here you can lower your ACoS, plus connect with shoppers in your target market.
6. Estimate your Competitor’s Price and Monthly Sales
Price has a tremendous influence on shoppers to buy your product from another seller. That’s why assessing the competitors’ prices is also a crucial part of an Amazon competitor analysis. Parallelly it’s important that you make a profit. so, use your competitor’s prices as a reference, not a standard.
Similarly, monthly sales estimation of a competitor can boost your competitive analysis. You can estimate how much they’re earning if you find out how much inventory your competitor moves each month.
Thus, you can improve your sales strategy by your competitor’s price and sales analysis and estimate how much you can profit by accelerating your sales.
So that’s all for now! It’s time to get started with your Amazon competitor analysis.