Last updated on January 3rd, 2023
Written by Ken Zhou
A great Chinese philosopher Sun Tzu once said, “Keep your friends close and enemies closer.” In the realm of eCommerce, this quote is also applicable. With Amazon having approximately 1.9 million active sellers, you will need to think ahead of your competitors to win. Therefore, Amazon seller competitor analysis is one of the most vital steps you can take in all stages of your business. In that sense, Amazon's competitor financial analysis is also a part of this.
What sets apart top-earning Amazon sellers from others is simply one thing, and that is research. Competitor analysis is just an important fraction of the equation to have successful business operations. Whether you want to do this alone or subscribe to an Amazon competitor analysis service, check this article to gain some insights about it.
While some sellers conduct an official and professional competitor analysis by themselves or through a specialist or agency, many are still downplaying its benefits. By effective competitor analysis, we mean thorough, detailed, accurate, and up-to-date. You aim to be rest assured that you are on top of things, after all.
Let us see some of the advantages it brings to both current Amazon sellers and those who are planning to be one:
Basically, the more you know, the better. In the realm of Amazon selling, you can get ahead of the competition if you know what your competitors are lacking. May it be a lower price, more variations, better bundle deals - all of these can be known if you have done your research with the Amazon sellers that offer similar products or product types like you.
As an Amazon seller, it is imperative that you continuously improve your business to keep the sales and revenues coming. Knowing which areas you can alter in your business can greatly benefit you. You may do this task by checking the information found in competitor analysis. While you may do this by yourself, availing Amazon account management services from professionals can save you time and other resources.
If push comes to shove, you can instead act as an observer and copy what your competitors are doing. Not convinced to duplicate the strategies of your competitors? Well, you may adopt their business strategy while incorporating your own strategies and ideas instead. This way, you are participating in the innovation and trendsetting of the Amazon selling landscape.
Doing competitor analysis on your Amazon business does not only refer to one or two aspects of your competitors. Your competitor analysis can include everything about your direct and indirect, primary, secondary, and tertiary competitors. Are you still in doubt whether or not to perform a competitor analysis? Well, check this list to see just SOME of the information you can gather when you do it.
One of the pieces of information you can obtain right away from doing competitor analysis is product listing data. A product listing includes everything you can see on Amazon's product - product title, images, bullet points, price, descriptions, reviews, and others. So, being better in one or multiple parts of a product listing already gives you an edge compared to your competitors. So, hooray!
Many Amazon sellers rake up thousands of sales, all thanks to their effective ad campaigns. While all the details of ad campaigns are not disclosed, you can still observe how their ads work about their sales. Those product listings with a high number of sales may be inspired when coming up with your strategy for your ad campaigns.
One of the highlights in a product listing is the review section. Reviews can make or break a sale and ultimately decide the fate of an Amazon business in the long run. Knowing the average reviews and customer reviews of your competitors' products can give you a clear picture of how they do their business operations and how they look towards the shoppers. This knowledge can tell you how to avoid having low-star ratings and terrible reviews by giving a much better service.
In eCommerce platforms such as Amazon, pricing is one of the major, if not the most important, factors that shoppers consider when buying a product. A competitive pricing strategy amongst your competitors can drive buyers to hit your Buy Box instead of others'.
Although having a low price isn't at all a guaranteed motivator with other factors taken into account, you may still be able to choose a price that can keep up with the prices and deals offered by your competitors. In addition, this strategy can lead to a higher profit margin and better reviews.
Remember that competitor analysis should not stress an Amazon seller; rather, it should empower those who need it. A meticulously crafted, comprehensive, and accurate competitor analysis can create a huge difference in outperforming your competitors. When your business decisions are anchored in factual information, you are undoubtedly geared towards your goals.
Here at Seller Interactive, we focus on recognizable growth in the Amazon store by ramping up sales and profit through multiple channels available. We believe that there are many ways to tackle what is lacking, and that is how we think holistically. You can only trust a partner who has valuable experience in the Amazon marketplace, and we believe that we are the right partner for you.
Interested in knowing more about your competitors? Please send us an email at [email protected] today!
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