Amazon has over 5 million sellers in the marketplace, and while it’s true that you can’t compete with all of them, you’re at least competing with some of them for sure. Therefore, for this reason, Amazon Competitor Analysis is essential, which enables your company to have proper information and insights regarding your competition in the market. However, if you want proper insight on business management, visit our website olifantdigital.com.
Here, in this article, we will talk about doing Amazon Competitor Analysis in just a few simple steps. Stay tuned to find out what they are.
Benefits of Amazon Competitor Analysis
Amazon Competitor Analysis sounds like a lot of work. Is it really necessary? Is there anything to win? The simple answer is yes!
- Researching your competition gives you the opportunity to:
- Make sure your pricing strategy is competitive
- Gain insight into fulfilling your message to make your product stand out from the competition
- Make the right purchasing decisions for your portfolio
- Track profits and performance
Check Your Competitor’s Product Lists
Start your competitor analysis by compiling a list of your competitors’ products. For easy reference, create a Google Sheet that you can share with your team. Here you can categorize every feature of the product list from title to the image description.
You need to focus most of your attention on the following areas:
Product Title: Compare product titles with Amazon’s suggested format – brand + model + product type. Next, look at the product title from a buyer’s perspective. Is it free of information and value information and advertising messages?
Product Features: Next, take a look at the product features located on the right side of the product images. What unique selling points (USPs) do your competitors emphasize – and how can your company compete with them?
Product Description: Now continue with the product description. What is additional information about this product or what information does the seller leave out? Does the seller provide information in the original format that is easy to read?
Product Q&A: Also find the product’s FAQ section. Does the seller play an active role in answering buyers’ questions? What questions do buyers ask and how can you apply them to your product list?
Product Pictures: at the top of the product list. Which product images are included in the list and what is their quality? Are there pictures of products that your team can recreate, such as how your product was used?
Also, do take note of the fact that whether your competitor uses any kind of Enhanced Brand Content or maybe they use some kind of A+ Enhanced Brand Content. This is important as well.
Research Your Competitor’s Branding
After your audit, you want to evaluate your competitor’s branding. Many sellers in Amazon’s competitor analysis often overlook this measure, but it can provide insight into why buyers choose your competitors over you.
Incidentally, if you want more clicks on your products, and want to earn on every click, then you should go for a PPC agency.
So, here are some ways to evaluate branding:
- Consider the product description, features, and accents, and language used in the Q&A
- Angle estimation and perspective used in product images
- Researching product packaging, design, and labeling
- Enhanced Brand Content or A + Enhanced Marketing Content design analysis
Spend 15 to 30 minutes studying your competitors and you can get a good idea of their brands. They may be placed back with a focus on humor or a focus on detail. In some cases, your branding may be the same – or quite different – from your competitors.
If your brand is the opposite of your competitor’s, it’s worth checking to see if you’re targeting the same audience. For example, they may target businesses from a factual perspective, and they may focus on consumers with their humorous behavior.
However, with millions of sellers, you can be sure that you have direct competition on Amazon.
Check Your Competitor’s Reviews
Next, you’ll want to read different product reviews from consumers in your competitor’s product lists. This step in Amazon’s competitor analysis enables you to gain insight into the strengths and weaknesses of your competition. And that could affect your future strategy for selling on Amazon.
Here are some features to keep in mind when reading reviews:
Quality: Amazon wants to offer buyers products with content and detailed ratings. View product reviews of competitors – do they explain why the user likes or dislikes the product? Or do they just not pay attention when you tell them something to do?
Quantity: Amazon compares the quality of reviews with the number of reviews. Ideally, Amazon’s algorithms prefer many, high-quality review products. How many reviews of your competitor’s product and how do they compare to you?
Pros: To improve the competitiveness of your products, you must know the strengths of your competing products. What are some of the features that consumers like – and do your products have the same benefits? How can you show these benefits on your list?
Problems: Understand the weaknesses of your competitor’s product and how to increase the value of your product to buyers. What do consumers dislike about your competitor’s products and how does your product address these issues?
Rating: Also check the average score for each product – you can record a star rating on your Google Sheets. Depending on the strength of your competitor in this area, you may need to consider a review management strategy to get more realistic reviews for your product.
Answers: See if your opponent is responding to the reviews, positive or negative. How do they communicate with buyers, especially dissatisfied ones? Can your team learn or improve from their perspective?
Based on your assessment, your team can form the basis for improving your overall strategy. For example, your company may decide to revise certain product listings to take advantage of competitive weaknesses, such as a shorter product warranty.
Hence, the simplest and easiest way to check your competitor’s list, check your competitor’s brandings and check your competitor’s reviews. If you follow these guidelines, surely you will be able to do Amazon Seller Competitive Analysis.
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