No man is an island--of course not. Usually, there’s an island and there are many men competing for it. Now imagine that the island is Amazon. Will your brand be booted out of the island, or will you survive to win?
Brands on Amazon know all about the competitive market. By 2016, there were already 310 million customer user accounts on Amazon according to Statista.com, and everyone’s competing to engage those users. “Everyone” includes more than 15,000 sellers worldwide competing for space on Amazon in 2018.
In this blog post, we’ll analyze different competitor metrics and show competitive intelligence tools available from outside and inside Amazon.
We’ll dish out comparative market analysis and competitive intelligence tools for competitive market analysis. Think of it as an opposition hack--hacks to level the playing field with your competitors.
STAY ABOVE THE COMPETITION USING AUTOMATION
How can your brand scope out the competition and maintain standing at once? How to stress your value proposition and differentiate your brand from its competitors? How to be able to boost your productivity based on others’ productivity?
The first step in competitor analysis is to scour competitor pages to analyze if they’re up to par with your own brand’s unique value proposition, reviews, pricing and sales data, and promotional marketing strategies. Reviewing related products on a regular basis also helps with finding the best practices with your brand.
Then, use automation to your advantage. There are many market analysis tools out there both on Amazon and beyond that can help you navigate the competitive landscape. These tools are highly automated to give the most accurate real-time data possible.
That said, we’ve put together a list of competitor metrics to look out for and market analysis tools for each metric:
Spy on Competitor Metrics Using Automated Competitor Analysis
These are metrics for scoping out the competition standard to any eCommerce business:
The unique value proposition is the big why: a statement explaining what benefits the consumer will experience from the product or service while also demonstrating what makes the brand unique.
Examining your own brand’s value proposition from time-to-time and making sure to stick to it is effective.
After refiguring your own, analyze competitor value propositions and find how your brand competes on a big picture level. Visit your competitor’s websites and write down their UVPs. Reexamine your own UVPs and note changes that may make your brand stand out more than the rest.
Reviews are an estimate of how your product is doing, and competitor reviews show you how their products are doing. Look at your competitor’s reviews directly on Amazon.
Use Amazon’s Best Seller Rank to see how well a product is selling and also how it’s selling among similar products. Analyze this list to determine the need for a similar product that your brand can provide.
If a product is on Amazon’s Best Seller list and fulfills a product gap or need with low reviews and high buyer demand, it means there’s room in the competitive landscape for your product.
Scour the review section for only 1 or 2 stars and see what your competitor is doing wrong. This gives the chance to outperform the competition.
The top five spots usually feature products with 300+ reviews. This means that the products have a set of sellers that often sell in high volumes, so look for products that have less than 300 reviews. This way your brand can set yourself up for one of the top five spots and outsmart your competitors.
Pricing Strategy & Sales Data
Pricing Strategy varies by company, so of course, you want to see how your prices stand up to competitors. Not only that, but there are also ways to track your competitor’s exact sales, profit margin and price history.
Use any Amazon tool for monitoring that you prefer for your comparative market analysis. Then adjust your own pricing strategy based on the market intelligence you uncover.
You can monitor competitor data using Jungle Scout, a product research tool and product tracker. This tool allows you to see a spreadsheet of products similar to yours and their estimated sales and FBA fees. It also gives you an overview of competitors’ products.
Jungle Scout’s product tracker lets you spy on your competitor’s products to see which products are doing well. You can uncover hidden revenue from your competitors with their niche hunter, too.
You can also use Jungle Scout in combination with other tools such as AMZInsights, a product tracking tool, and CamelCamelCamel, which gives you access to price history charts and allows you to track over time.
The quality of a product listing and an ad campaign depends on the prominence of keywords. There is a lot of competition out there for keywords because they’re valuable sources that drive clicks on product pages and ads.
Competitive keyword analysis is an important aspect of competing in a crowded space and gaining leverage over other brands in your industry. So how you do find the valuable keywords that the competitors are using in their campaigns based on market intelligence?
You can use Sonar Sellics Keyword Research Tool, which allows you to see your own and your competitors’ keywords based on real search results from Amazon shoppers. You can search by similar keywords and extended keywords.
Sonar’s rankings let you monitor keywords based on how they rank. A great added feature is the reverse ASIN lookup which shows you the keywords ranking on the first page for any given ASIN.
You can use Sonar Sellics in combination with SEMRush, a comprehensive all-in-one marketing analysis toolkit. You can search competitor metrics on SEMRush by Keywords, or URL, filter results by country, and search PPC keywords by match types.
Make sure to analyze data from each of the search types and maximize the potential of the toolkit.
An effective PPC (Pay-Per-Click) campaign on Amazon gives increased inventory sales, increased organic rankings, and lower CPC (Cost-Per-Click) costs.
The PPC (Pay-Per-Click) strategy of your competitors can affect your own PPC strategy. Knowledge of the PPC landscape can give you leverage to optimize your own PPC methods as well as lower your CPC (Cost-Per-Click) costs. You’ll know how to structure your own ad campaigns by product category, brand, or top sellers. And, always avoid the risk of running repeated ads.
Despite its suspicious name, Spyfu is a legitimate way to literarily spy on your PPC competition. It gives you information on the exact keywords your competition is bidding on, and you can view ad copies of their exact running ads.
Simply type their name on the address and you’ll get: estimated monthly AdWords budget, paid keywords, top paid competitors, ad positions, clicks per day, keywords, and ads. It’s a pretty nifty tool for exactly what it advertises--spying!
Aside from keyword analysis, you can also use SEMRush to look at your competitors’ social media accounts, such as Facebook or Bing.
Track Your Competitors on Amazon Itself
Then there are the metrics that are unique to Amazon to utilize and gain success over competitors. These are useful because you don’t necessarily have to install or pay for outside services.
Instead, you can maximize the competitive intelligence tools that Amazon gives you for comparative market analysis.
Winning the Buy Box from your competitor, for example, would truly make you stand out.
Buy Box - You’ve probably heard the expression “Win the Buy Box.” The Buy Box is the white box on the Amazon product detail page, where customers can add items for purchase.
But, for competitor analysis, you can track through the buy box who’s won the buy box. Whoever wins the buy box, if their price is undercut by a seller, that seller may ultimately be able to win the buy box from them. The main components for winning the buy box are price, prime eligibility, shipping cost, quantity, and seller rating.
There are also Keyword Research Tools, Product Re-Price Tools, Inventory Management Tools, and Alexa that you can use within the marketplace itself to revamp your competitive analysis.
The Bottom Line
Let’s face it, the Amazon marketplace is a competitive market. But as you can see, there are many, many market analysis tools out there based on market intelligence to stay on top of your competition. You can track always your competitors, of course.
But there’s one thing to keep in mind--use this information in order to better your brand. Use external influences for internal improvement. That is the only true way to outshine your competitors.
You know how truly competitive the marketplace is. If you’re having any trouble gaining leverage over the competition, MarketplaceOps is here for you. We are a team of online marketplaces and eCommerce experts who have been in the industry for many years. We’re willing to help you every step of the way. If you have more questions about our article or if you simply need help in starting or handling your Amazon business, just reach out to us by sending an email or clicking the link here: