Selling on Amazon is impossible to ignore for almost anybody involved in eCommerce.
With 197 million people visiting the site per month in 2019, and Amazon’s share of the US eCommerce market hitting 49% in 2018, the reach selling on Amazon can give to a business is only going to grow further as more and more businesses get drawn to the numbers.
But as Amazon and their FBA programme continue to grow, the marketplace will continue to get more competitive, and selling on Amazon successfully without fading into obscurity is only going to get more difficult.
It’s your lucky day, then, because in this guide we’re about to break down some powerful techniques for Amazon competitor analysis in simple terms, showing you exactly how you can learn from what your competitors do, take advantage of any progress they make, boost your rank to top level positions and win sales.
Let’s start with the basics:
Why Should I Do an Amazon FBA Competitor Analysis?
By analysing your Amazon competitors, you can learn about what products your potential customers are interested in buying, which ones fail to satisfy them, find new keywords that your competitors are earning sales from, optimize your pricing strategy, run more efficient ad campaigns, and more accurately track your profitability and overall success.
With KeyworX, you can learn about everything your competitor’s do and how this affects their Amazon rank, meaning nobody will ever get anything past you ever again!
When doing Amazon competitive analysis, there are 5 main areas to take into account:
- Sales Data
- PPC Strategy
In this guide we’ll show you exactly what you should be doing for all 5 areas, and show you some tricks in KeyworX to make it even easier.
Let’s start at the beginning:
How to do Competitor Analysis
If you have a product idea in mind and are hoping to launch it, or already have a product on the market and are hoping to improve your marketing, getting sales data for similar products and brands can help you get an accurate picture of the potential demand you can expect for your own product.
Monitoring your competitor’s ASINs will also give you insights into what they’re doing right and what they’re slacking on, which can be great for finding ideas for where your own products can fit in.
You can do this manually via things like the Best Seller’s list or use software tools that extract sales data from Amazon such as JungleScout.
KeyworX also makes it simple to keep track of which competitors within your niche are achieving the highest ranks for different search terms, meaning you can check their listings to see how they’re achieving such strong results and take insights from this to apply to your own listings to grow in rank more quickly.
Combining this with knowledge of sales data will allow you to strategically place your products where they are likely to get the most sales, and insights from KeyworX makes this super easy.
Knowing what sort of sales volume your competitors are achieving with which rankings will help to give you a full picture of your corner of the market and help you accurately gauge how many sales you should be able to achieve by reaching a certain rank, which KeyworX will then make it easy for you to reach.
This provides further insights once you do it, for example if you reach first position and are receiving less sales than your competitor was when they were previously at this rank, you can take this as a sign that your competitor’s product, listing or pricing was more attractive than your own offering for people searching that specific search term, and optimize your listing or improve your product according.
As you are likely aware, Amazon Sponsored Products allows Amazon sellers to buy more traffic to their listings, for a surprisingly low cost in comparison to Google PPC and other advertising methods.
It’s important to have a clear, understandable and consistent structure to your PPC campaigns so that you can avoid bidding twice for the same keyword or search term.
Creating different ad groups with different objectives will make this much easier to manage.
Keeping track of your competitor’s ads and optimising your Cost-Per-Click over time will allow you to get more out of your Sponsored Products campaign than they do and allow you to win high value top sponsored positions.
We purposely believe that organic rankings are the foundation to success on Amazon and as such, this is likely the least important aspect of this post, however, it still remains important to be aware of and Sponsored Ads can be a reliable way to get more sales when you need them.
Keywords are a crucial part of an Amazon competitors analysis.
After all, the more customers that are able to find your products, the higher your chance of increasing your sales.
Once you rank for a specific keyword, you can easily use KeyworX to consistently rank high for that keyword and act with 100% confidence knowing you’ll immediately see the results of your marketing efforts and know whether they have worked or not.
Once you have practised with this for a while and know how to dominate your existing keywords, finding out which keywords your competitors are ranking for and including them in your listing will give you new ways to find potential customers and to take them from your competitors!
Our complete guide to Amazon product listings will help you to include these keywords in the appropriate places to make your listings more and more attractive over time. It’s important to remember that your product titles are what catches a user’s eye first and to put appropriate keywords and features early on in the title if possible.
Any relevant keywords your competitors are ranking for but you aren’t is a window to customers that they can benefit from but you can’t, so you need to make it a regular part of your strategy to find and optimize for these keywords.
If you aren’t leveraging this and your competitors are, you are directly handing them an advantage, with more traffic and more sales than you being extremely likely for them.
Pricing is a crucial factor as it doesn’t only play a huge part in your potential customer’s decision to buy, but it also affects your share of the Buy Box and a strategic price point can make your listing look consistently more attractive than your competitor’s and help you to avoid a price war.
Since ranks are directly impacted by conversion rate, if you change the price of one of your products, you can use KeyworX to track whether the rank increases or decreases soon after, making it easy to see which price points are more attractive for your customers.
You can also set alerts for your competitor’s ranks, meaning you’ll be made immediately aware of any rank increases or decreases, including if they are spurred by price changes.
You should also aim to have a flawless record in at least one of the following areas, ideally several:
- Faster shipping time
- More consistent stock availability
- More attractive price (or the same price with more features)
Maintaining this over time will help you to consistently keep the Buy Box for more time than your competitors and help boost your sales.
There are Amazon seller tools aimed at automated pricing updates so they might be worth looking into, but if you already have KeyworX they are likely unnecessary, since KeyworX will make you aware of any relevant price changes in the form of a change in rank.
Reviews are the easiest way to get competitor research insights from Amazon, especially when you are launching a new product or looking for ways to improve an existing one.
First things first, the number of reviews in the top selling results provide an easy way of judging the competition of a search term.
If the top 5 listings all have 300 or more reviews, you know they are all selling fairly well and therefore this may be a very competitive niche to jump into.
If a few of the top listings have smaller amounts of reviews than 300, however, this is a good sign that there is still space for you in this niche. Reviews aren’t helping these products, to rank, however, they are a sign of sales volume and help to indicate the overall success of existing listings.
Of course, the average score of the reviews and the text of the reviews themselves are a great way to do competitor research too.
If a competitor’s product has both a large number of reviews and an average score of 5 stars, you are going to struggle to compete, because not only is this competing product getting good sales volume, but it is also making its buyers very happy.
In the same way, if a competitor’s product has a less than perfect average review score, this shows that the people looking for that kind of product aren’t being 100% satisfied. This is your chance to satisfy them by reading the negative comments, finding out what they expected or hoped the product would do that it didn’t – and making sure yours does!
How to Analyse Amazon Competitors
Now that we’ve discussed the above aspects of researching competition, here’s a checklist of the ideal order in which to complete an Amazon competitive advantage analysis in order to get a complete picture of the market you’re entering and what you’ll need to do to dominate it:
- Audit competitor’s product listings – Make a complete spreadsheet with all of your competitors listing details, allowing you to easily compare the following aspects and make sure you’re own stand out amongst the crowd as much as possible: Title, Product description, Product features, Q&A, Images.
- Research in more depth – any information you can get on your competitor’s packaging design, copywriting tone, enhanced brand content etc will make it easier to apply what can work for you to your own listings, and go for an all-new strategy in the areas that can’t.
- Go through reviews in detail – this allows you to analyse how competitive a niche is, but also to find out any features that buyers aren’t happy with and implement them, making your own product more attractive than the competition.
- Make a list of your competitor’s targeted keywords – Finding their primary keywords is easy as it should be in their product title, but there are free tools out there that can quickly and easily give you all of the keywords your competitors are targeting. Understanding your competitor’s keyword strategy can help you validate or improve your own, as well as giving keyword suggestions you may not have thought of otherwise.
- Analyse your competitor’s PPC strategy – Understanding their keyword strategy should make this easier and also allows you to work out your competitor’s ACoS. Generally, we would recommend that instead of simply stealing your competitor’s keywords here and spending a lot of money trying to outbid them, it might be a lot more effective to go for longer-tail versions of their keywords, allowing you to win sales with a lower Cost-per-Click than your competition, and therefore a lower ACoS too.
- Consistently win ranks and learn exactly what works – If you’ve done all of the above and launched into a new niche that isn’t overly competitive or filled with Amazon’s own listings, making sure that your product is as attractive as possible, KeyworX will allow you to learn from everything you or your competitors do, making your eventual rise to the top of the organic rankings inevitable!
How to Find Competitor’s Keywords on Amazon
As you can see, KeyworX makes all of the above as easy as possible and provides data-driven insights to make sure you’re never in the dark about your marketing again and can 100% see and assess the impact any optimizations make on your rank, sales or traffic.
The one aspect where you may require another seller tool is for finding Amazon competitor keywords.
While there are plenty of free tools out there that do this and you should have no issues extracting the data whatsoever, our personal recommendation is Helium10 or JungleScout. The combination of a keyword analysis tool like these with KeyworX’s powerful rank tracking features will give you an advantage over your competitors that will be extremely difficult to overcome.
We hope you have enjoyed this guide on how to do competitor analysis for Amazon. We post regular guides on how to get more out of your Amazon business, so check back soon, or sign up for a free trial to see what KeyworX can do for you!
We will leave you with this brief video that explains how easy it is to track and build rank with Keyworx: