Selling on Amazon has been rewarding but extremely challenging. Once you decide to go live on this best-selling platform, you’ll be facing 9.7+ million sellers. This is exactly why a thorough Amazon competitor analysis might make or break your business.
Simply put, Amazon competitor analysis refers to how you detect your competitors in the same niche. This can include their pricing, overall selling strategy, and marketing effort throughout the selling procedures. Later on, all those findings will help you build your business on Amazon more effectively.
So, are you ready to find out every step and useful tool to analyze your competitors on Amazon yet? If yes, let’s now find out:
- How to conduct an Amazon competitor analysis?
- How to analyze competitors on Amazon?
- What are 4 Amazon competitor analysis tools?
How to Conduct an Amazon Competitor Analysis
After carrying out a competitive analysis of Amazon, the subsequent step is to conduct this process. You can proceed through these four stages:
Step 1: Prepare your Amazon competitor analysis
Always remember to implement your analysis with great preparation. Here are three things you should note down before conducting any competitor investigation on Amazon:
- Competitor count: Counting your Amazon competitors is an integral part of Amazon competitor analysis. By counting the number of sellers offering similar products, you understand the competition in your market better. Additionally, knowing the number of competitors can help identify market gaps.
- Storefront checks: When analyzing your competitors, examine their Amazon storefronts in detail. Start storefront checking by analyzing their product listing, which includes the title, description, images, and prices. Also, don’t forget to read their product reviews and their fulfillment methods.
- Competitor profiling: It is suggested to start by testing their brand positioning and messaging across various channels, including their website, social media profiles, and advertising campaigns. Besides, it is advisable to identify their target audience and evaluate how they engage and communicate with them. You can gain a deeper understanding of your target market, optimize your product offerings, and develop effective marketing strategies by learning how does Amazon wish-list work.
Step 2: Define your market niche
Before diving into Amazon’s competitor analysis, it’s essential to define your niche clearly. You need to identify the specific product or service category you deal in and the target audience you aim to serve. This step will help you narrow your competitor search and focus your analysis on the direct competitors in your niche. Understanding your place will allow you to gather relevant and actionable insights during the analysis.
Step 3: Conduct keyword research
Keyword research is an important aspect of Amazon’s competitor analysis. So, how to find competitors’ keywords on Amazon? You can start by identifying key keywords relevant to your niche and product. Next, you use keyword research tools to determine search volume and competition for these keywords. Also, it is wise to analyze the keywords your competitors are targeting in their product listings, titles, and descriptions. To do this, you should learn how to list products on Amazon using SEO techniques.
By understanding the keywords that drive organic traffic and conversions for your competitors, you can optimize your own listings and improve search rankings. Keyword research provides valuable insights into the strategies used by successful competitors, helping you tailor your own approach.
Step 4: Find your business competitors
After you’ve identified your niche and conducted keyword research, it’s time to identify your business competitors on Amazon. The easiest way to get started is to search for products that are similar to yours and analyze the top-rated lists.
You should then look for brands or sellers that consistently appear in search results and have a significant presence in your niche. Then, you ought to explore product offerings, pricing strategies, and customer reviews. Don’t forget to jot down any unique selling propositions of value propositions they highlight.
By analyzing your Amazon competitors, you can gain valuable insights into the competitive landscape and identify areas where you can differentiate and excel.
How to Analyze Competitors on Amazon
After completing all the aforementioned tasks, the utmost significance lies in analyzing the gathered information. Without this crucial step, all the preceding efforts would become devoid of meaning. Here are the factors that you need to seriously analyze and evaluate:
1. Product listings & images
First and foremost, analyze the product listings of your competitors. Here are some elements of your competitor’s product list that you should analyze:
- Product Title: The product title serves a dual purpose as it helps your customers find out your products and search engines categorize the product correctly. Analyzing your competitors’ titles is a way to help you get inspired and identify keywords that might drive sales to products like yours. Moreover, consider if there’s any important information missing from your competitor’s headlines that you can include in your headlines to better inform customers in the first place.
- Product Description: Along with the title, analyzing the description of your competitors is a step you should not skip when conducting an Amazon competitor analysis. You can identify additional information they include and how they present it. You should ask yourself:
- Are your competitors providing additional product details that you may have overlooked?
- How do they organize their descriptions to make it easy for customers to read and understand?
- Do they highlight product benefits that you may not have emphasized?
- Image: By analyzing your competitors’ images, you can point out what they are doing better than you or what is missing in your product images. Uploading high-quality images that accurately represent your product in real life will help customers visualize it and make informed purchasing decisions. For example, if you are on the journey of selling books on Amazon, your book’s image should be clear, informative, and engaging. Also, they need to be 500×500 or 1000×1000 pixel images to increase listing quality.
For a more in-depth analysis of Amazon product competitors, check out the product-optimizing listing section of our Sell on Amazon guide.
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2. Pricing strategy
The next step in Amazon competitor analysis is to uncover the pricing strategy of your competitive rivals. Pricing is a crucial factor in the success of any eCommerce business. Amazon competitor research can help you gain a deeper understanding of their pricing strategy. You can start by analyzing their pricing for similar products and then move on to any discounts or promotions they offer.
Note that manually analyzing the pricing history of your competitors can be time-consuming and tedious. Instead, consider using helpful tools like Keepa, or Pricepulse to streamline the process. These tools can help you track the pricing history of your competitors and provide detailed information on how their prices fluctuate over time. By analyzing this data, you can identify trends and make informed decisions about when to adjust your own pricing strategy.
Additionally, using these tools can help you maintain competitiveness in real time by allowing you to quickly and effectively adjust your pricing strategy.
3. Sales performance & revenue
The next step in your Amazon competitor analysis is to keep a close eye on your competitors’ sales performance as well as revenue. You may be wondering how seeing other sellers’ sales will benefit you.
When it comes to selling products on Amazon, tracking your competitors’ sales performance and revenue not only helps you stay ahead of them but also tells you what’s the best product to sell on Amazon. You can gain valuable insights such as the demand for similar products you are offering as well as the profitability of those products.
This is also a type of Amazon competitor analysis that is very important when you want to introduce new products for sale and how to position them in the market. It will tell you how the market reacts to the new products offered by your competitors. Thus, improving your chances of launching a successful product that customers actually want to buy.
4. Customer reviews & ratings
There’s no better way to better understand your competitors’ business than to hear directly from their customers. So, it is preferable that you spend the time and effort to browse through customer reviews, I can assure you that the effort will be well worth it. You’ll be able to see why customers like or dislike their products, the problems they face, and how competitors solve those problems.
Additionally, you can use this information to improve your own product offering and solve any problems your competitors may be ignoring. For example, if your competitor doesn’t offer a free shipping option, you can use this as a competitive advantage and offer discounted shipping to attract more customers.
By leveraging Amazon competitor analysis and customer review analysis, you can better understand your competitors’ strengths and weaknesses, and use that knowledge to improve your operations.
#5. Marketing & advertising effort
Effective marketing and advertising are crucial for the success of your online business. That’s where Amazon competitor analysis comes into play. It provides valuable insights into your competitors’ marketing strategies, allowing you to learn from their tactics and make informed decisions for your own campaigns
By conducting competitor analysis, you can discover the channels your competitors are utilizing to reach customers, the types of ad campaigns they are running, and the keywords they are targeting in their ads. This knowledge can guide your own marketing efforts and help you identify areas for improvement.
It’s essential to recognize the significance of research tools and leverage them to your advantage. These tools enable you to monitor key metrics such as Click-through Rate (CTR) and Conversion Rate for your competitors’ ad campaigns, giving you valuable data that would otherwise be inaccessible. This information allows you to assess the effectiveness of different strategies and identify opportunities to enhance your own campaigns.
Top 4 Amazon Competitor Analysis Tools
The remarkable expansion of Amazon, renowned as one of the top marketplaces for selling products, has spurred the development of numerous Amazon competitor analysis tools specifically tailored for Amazon. To assist you in this endeavor, we present a few recommendations, regarding tools for Amazon competitor analysis:
1. Jungle Scout
Jungle Scout is an Amazon competitor research tool designed to help sellers make informed decisions about their products. The tool provides valuable insights to help sellers optimize their sales and stay ahead of the competition.
One of the primary ways Jungle Scout helps its users is by providing a thorough analysis of competitors on Amazon. This includes valuable information such as sales data, search volume, and customer reviews. With this information, sellers can determine the viability of their products, make data-driven decisions on pricing and marketing strategies, and adjust their listings accordingly.
Pros:
- Comprehensive competitor analysis helps sellers stay ahead of the competition
- Robust sales data and other metrics provide valuable insights for optimization
- Easy-to-use interface with a customizable dashboard
- Offers both web app and Chrome extension options
- Helpful customer support and educational resources are available
Cons:
- Can be expensive for small businesses and new sellers
- Some users report inaccuracies in the data
- May take time to master the platform and make the most of its features
Pricing for Jungle Scout varies depending on the specific plan chosen. The web app offers three pricing options: Basic, Suite, and Professional, ranging from $49 to $129/month. The Chrome extension offers two pricing options: Lite and Pro, ranging from $19 to $39/month. Ultimately, the pricing may be a consideration for those who are just starting out or selling only a few products.
2. Seller App
The Seller App tool is an Amazon competitor analysis tool designed to help sellers analyze and optimize their product listings. Its key features include inventory management, profit calculation, and competitor analysis.
When it comes to competitor analysis, the Seller App tool provides essential data such as seller ranking, sales volume, ratings, and reviews. This competitive intelligence helps sellers understand how they stack up against their competition, and make informed decisions about pricing, marketing, and product optimization.
Pros:
- Real-time data tracking enables timely decisions
- User-friendly interface requires no prior experience
- Offers valuable insights on product ranking, ratings, and customer feedback
- Helps identify profitable product niches and market trends
- Affordable pricing options for small and large businesses alike
Cons:
- Lacks some advanced features of more expensive software
- Only compatible with Amazon marketplaces
- Some users report issues with data accuracy
Pricing for the Seller App tool is tiered, offering Basic, Professional, and Premium subscription plans starting at $14.99 per month. This makes Seller App a viable option for small businesses and new sellers that may not have the resources for more advanced analytics tools. However, as the needs of the business grow, it may be necessary to upgrade to more full-featured software to gain a better understanding of the competitive market.
3. AMZ Scout
AMZ Scout is an Amazon competitor analysis tool designed to help sellers identify profitable products and optimize their Amazon listings. The tool provides valuable data insights that enable users to make data-driven decisions, such as product research, competitor analysis, and sales tracking.
One of the key ways that AMZ Scout helps with competitor analysis on Amazon is by providing insightful data on competitor products. This includes information such as sales volume, customer reviews, price comparisons, and search terms. By analyzing this data, sellers can gain an understanding of what products are trending, and what price points are popular and optimize their own listings to stay ahead of the competition.
Pros:
- Comprehensive competitor analysis helps sellers stay ahead of the competition
- Powerful product research features provide valuable insights for the optimization
- Easy-to-use interface with a customizable dashboard
- Offers both web app and Chrome extension options
- Provides helpful customer support and educational resources
Cons:
- Expensive for smaller businesses and new sellers
- Some users report inaccuracies in the data
- May take some time to master the platform and make the most of its features
Pricing for AMZ Scout is tiered, offering Basic, Start, Business, and Enterprise subscription plans ranging from $29.99 per month to $299.99 per month. This pricing structure provides businesses of all sizes with entry-level and advanced features with affordable pricing options. Furthermore, the Chrome extension version is available as a free version, and the company offers a 7-day free trial of their web app version.
4. ZonGuru
ZonGuru is an all-in-one Amazon seller tool that offers an array of features to help sellers grow their businesses. It offers several features such as product research, keyword research, listing optimization, email automation, and inventory management.
One of the primary ways that ZonGuru helps with competitor analysis on Amazon is by providing an in-depth analysis of competitors’ listings. This includes competitor sales volumes, rank tracking, review tracking, and potential keywords. This allows sellers to gain an understanding of how their competitors are performing, what is driving their sales, and how they can adjust their marketing and pricing strategies to stay competitive.
Pros:
- Offers a variety of tools for different stages of the sales process
- Provides comprehensive competitor analysis for data-driven decision-making
- Helps optimize listings for better visibility and sales
- Extensive keyword research capabilities
- Offers excellent customer support with dedicated account managers
Cons:
- More expensive than some alternative tools
- Some features are only available in higher-priced plans
- Some users report glitches within the platform
Pricing for ZonGuru is also tiered, offering Starter, Business, Business Plus, and High Volume subscription plans ranging in price from $47.99 – $599.99 per month. This means it may be a bit pricey for smaller businesses just starting on Amazon. However, for larger businesses and established online sellers, ZonGuru offers a considerable variety of tools for them to scale and optimize their Amazon listings effectively. Interestingly, ZonGuru also offers a 7-day free trial, where users can try all the features and a return policy for users unsatisfied with the platform.
Amazon Competitors Analysis – FAQs
One method to find your direct competitors on Amazon is to search for products similar to yours and analyze the listings that appear on the search results page. Look for sellers with high sales volumes and ratings, and check their product offerings and pricing. Additionally, you can use competitor analysis tools like Jungle Scout, Helium 10, or AMZScout to identify your top competitors based on factors like product reviews, sales data, and keyword rankings. Using these tools can save you time and provide you with more accurate data to inform your analysis. There are several techniques that can be used during Amazon competitor analysis, and the appropriate technique may depend on the specific goals of the analysis. Some competitor analysis methods mentioned include analyzing customer needs to be left unmet by competitors’ products or services, using social listening tools to analyze mentions of competitors, using SWOT analysis, and using Porter’s Five Forces analysis to analyze the competitive landscape. Therefore, it is important to select the right technique depending on the goal and context of the analysis. There are several tools mentioned in the search results for conducting Amazon competitor analysis, including Jungle Scout, Seller App, AMZ Scout, ZonGuru, Helium 10’s Market Tracker 360, Feedvisor’s Amazon Competitor Analysis Tool, and more. Different tools have different capabilities and features, and the choice of tool may depend on the specific needs and goals of the seller. Therefore, there is no specific tool that is exclusively used for Amazon competitor analysis. Amazon competitors analysis involves analyzing businesses on Amazon that sell similar products that compete with yours. This process entails identifying and studying competitors’ strategies, products, pricing, keywords, and marketing strategies to understand Amazon’s competitive advantage. More than that, an Amazon competitor analysis will help to:
Conclusion
In conclusion, conducting an Amazon competitor analysis is vital in today’s competitive market. By decoding your competitors, you can gain valuable knowledge about their strategies, strengths, weaknesses, and market positioning. This information allows you to make informed decisions, identify market gaps, and differentiate yourself. Regularly updating your analysis is essential to stay responsive to changes in the market.
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