Check out the comprehensive guidelines on the urgent need for an Amazon competitor analysis and perform one effectively in the article below!
When it comes to boosting revenue on Amazon, focusing on your business alone is not enough. You need to be aware of how stiff the competition is and which strategies your rivals are employing. In addition, getting to know how the market revolves around your line of products would give you a solid foundation to calculate your next moves.
But unfortunately, not everyone understands the importance of an Amazon competitor analysis and the step-by-step guidelines on how to perform one. So, if you ever struggle with this task, this article is for you!
Why Is Amazon Competitor Analysis Necessary?
1. It helps you save time, money, and effort.
There are plenty of strategies out there waiting to be tested and applied to your business. However, you cannot possibly try out each and every one of them until you find those that work in your favor. This is when digging into the activities of your competitors can prove to be helpful.
As you all sell the same items to a similar group of potential customers, chances are the competitors would utilize tactics the same as yours. Instead of doing everything yourself, let them be guinea pigs and experiment with different approaches.
You can observe from afar and determine whether these decisions are fruitful or not. From there, feel free to make any necessary adjustments. If you manage to pinpoint why certain plans have failed and others have succeeded, you can give them a quick fix and use them for your own listings.
Imagine the resources that would have gone to waste simply if you had focused solely on your brand without taking notice of what others are up to.
2. It helps you get the correct pricing.
The price tag is decidedly one of the most important factors regarding a customer’s shopping behaviors. Therefore, it is your job to keep the pricing within the affordable range of the target audience.
Having a look at what your competitors are charging their items is a credible source of reference, especially if you are not an experienced Amazon retailer. It would help if you had a general idea of the average market price so that your offer does not fall out of place.
If it is too low, customers may get doubtful about the legitimacy of your products. If it is too high, they will shy away from placing an order.
3. It helps you set up realistic expectations about your business.
When setting up an Amazon store, any aspiring seller is tempted to dream of the day when their products become best sellers. But the reality is much more challenging, given the cutthroat competition on the world’s largest e-commerce platform.
Hence, learning about your rivals’ brand reputation and pros and cons gives you a more down-to-earth realization of what you are about to come up against.
This way, you can be more rational about how to handle your business.
How To Perform Amazon Competitor Analysis In 4 Steps?
Step 1: Identify your competitors.
If you want to examine the practices of your opponents, you need to know who they are. Browse through the market and list out the names of all brands that deliver the same line of products like yours.
Then, check out if they truly pose a threat to your Amazon store by evaluating their brand image, sales records, and potential resources. There will always be some companies at the top that you cannot possibly win if confronted, like Apple if you sell electronics or Casio if you focus on wristwatches.
But there are also smaller businesses that belong to your tier, which requires your attention. And of course, be on the outlook for start-ups, since you never know they will excel.
Step 2: Compile their product listings.
Now that you have the basic information of your competitors, start acquiring more details about their listings. You should be able to gather the head titles, product description, bullet points, FAQs and imagery, as all of these are publicized. Put them into neatly categorized tables for later use.
Step 3: Examine the collected data
Once you have all the necessary bits about your competitors, it is time to inspect them closely. Search for the most frequent and common keywords that appear in the copy. Underline how your rivals address the questions from customers.
Take note of their tone and mood regarding the photos and videos. Decide whether the unique selling points of each product are clearly illustrated for the sake of potential buyers.
You need to be as specific as possible here, mostly because the examination will reveal some coveting discoveries for your business. For example, if you notice how different the primary keywords of your competitor are, you can assess their effectiveness and determine if your store benefits from the same phrases.
Step 4: Read the reviews
Some shoppers are particularly invested in writing testimonials about their shopping experience. You can find plenty of advice and suggestions from past buyers on how to improve a certain service or product.
These include sturdier packages, more detailed manuals, or better warranty policies. Take advantage of this opportunity and see what you can do to live up to the customers’ expectations.
If your rivals are excelling in some aspects, there is no shame in mimicking their approaches. If they fall short, jump at the chance to offer a better alternative for your target audience.
Digging in the activities of your competitors can be tricky since not all of the information you need to know is obvious to the eyes. This is why you have to reach out to Olifant Digital – a professional agency specializing in digital marketing.
Rest assured that in the hands of these professionals, your competitor analysis will be exhaustive and finished in no time soon. Check it out now and see for yourself!