Maintaining a competitive edge on Amazon is no mean feat. Especially if you don’t keep tabs on your competitors. Learn how to stay one step ahead with this quick checklist for an effective Amazon competitive analysis.
To succeed in a market like Amazon, you need to monitor and anticipate your competitors. If you don’t carry out a routine competitive analysis yet, then you’re losing out. Everybody else is already keeping tabs on you.
Instead of wasting your time around and checking free software you better take a free trial of a Software that will simplify your work. Below you will get to know tips and tricks through which you can easily identify your competitor. Here is what we cover:
- Why is it important to constantly monitor your competitor’s performance?
- Top ways to identify competition on Amazon: a) Decision criteria b) DataHawk tools for identifying potential competitors at scale
- Insights to extract from identified competitors
Why is it important to constantly monitor your competitor’s performance?
You can easily review your competitor’s performance at a glance and scope out the competition by monitoring the best performance brands. DataHawk’s Amazon seller tools and intuitive charts give you access to the competitor’s overall performance. You can see the number of active/inactive and new sellers, daily sales volume and revenue for brands and their products. Another way to help you effectively track Amazon competitors is to set up an alarm notification. The Amazon Alerts system at DataHawk will automatically notify you of the changes in competitor’s inventory, price, review, ratings, revenues, etc. You can use alerts like Amazon price change alert, Amazon BSR alert & Amazon rating alert. So you are always one step ahead of the competition. By gathering competitor’s data, it helps you get a clear image of where your business positions in the market. To sum up:
- It gives you an idea of how you're doing as compared to your competitors.
- Keeps you informed of actions they may be undertaking (discounts, listings changes).
- Monitor and estimate their sales.
- Benchmark your market share against theirs over time.
- Benchmark your organic search performance against theirs over time (and compute Share of Voice).
Top ways to identify competition on Amazon
1. Decision criteria
Your competitors are not just those who are selling the same products as yours, but also other brand sellers who are selling products that can be purchased as supplements to what you are selling.
It is therefore important to track your competitor’s products by evaluating in detail, your Amazon Product Analytics and thus derive who is your direct and indirect competitor. DataHawk’s Amazon Keyword Research Tool & Amazon Product Research Tool can help you to easily identify your competitor’s best-selling products and monitor the product price, review, sales, profit margin and inventory amount.
With all the insightful analysis, you can make actionable plans on how to compete with competitors and differentiate your products. By tracking your competitor’s hot-selling products, you can observe what the best-sellers are selling differently and further utilize the information into new product ideas too.
Pricing is a crucial factor as it is one of the deciding factors in your potential customer’s decision to buy. It also affects your Amazon Buy Box share.
The increasingly saturated Amazon marketplace points towards the fact that more and more sellers are changing prices frequently. It is important to understand your competitor’s pricing strategies in order to avoid price wars and maintain your Buy Box share. Using DataHawk’s Amazon Buy Box Tracker will help you increase your probability of winning the Amazon Buy Box as our insights will help you understand your competitive dynamics henceforth adjust your product's prices accordingly.
c) Branding & brand awareness in and out of Amazon:
It is very important to access who is your competition also in terms of branding both in and out of Amazon. This includes a thorough check of their Amazon Products Page and obviously the website or company’s profile.
Knowing what they are offering can help you measure their strengths and weaknesses hence gain insight into your own. But, the hardest part always starts with HOW? A few quick ways to start with:
1) check Amazon Today’s Deal
2) visiting a competitor’s website to see if they are running a discount deal
3) check on social media.
Many brand sellers also release their special deals on fan pages so you can spy their promotional campaigns online. Any information you find here can be useful. You might not be able to capitalize on them. But at least they’ll help you understand the landscape you’re operating in.
d) Rating count & Star Ratings:
First things first, the number of ratings in the top-selling category results is an easy way of judging the competition of a search term.
If the top 5 listings all have 4.5 out of 5 ratings, you know they are all selling fairly well and therefore this may be very high competition. For instance, if a 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 is getting good sales volume, but it is also making its buyers very happy. You can easily access the competition by using the competition scorecard on both products and keywords provided by DataHawk.
2. DataHawk tools for identifying potential competitors at scale:
a) Keyword Research & Rankings + Keyword Lookup
Tracking changes in a product's keywords rankings is a good way for you to benchmark your performance against your competitors and extract insightful learnings from how they are piloting their Amazon business.
It allows you to discover the keywords for which your competitors' products are ranked and track how their ranks change over time. You then get to compare those findings to your own products and better understand from where they drive sales as well as how their SEO efforts, pricing positioning, PPC strategy, and other advertising techniques might be explaining the gap between their performance and yours. Such a competition-monitoring approach is very helpful not only when you're actually an existing seller within a specific niche, but also when you're considering launching new products as you can get a better sense of the degree of competition you would encounter beforehand.
You can compare the listings to find some of the keywords your potential competitor use or you could also track an ASIN using DataHawk.
Simply identify a set of short-tail Keywords that best represent the product categories you're benchmarking and track them on DataHawk. This will allow you to discover monthly search volume attached to each Keyword in the marketplace in which you're interested. It will also give you a list of ASINs that are organically ranking for that Keyword. Thus, it enables you to estimate the market opportunity and competition related to each Keyword and the categories you are looking into.
We tracked the keyword “brow shaper”, it had a competition score of 84% which means it has very less competition.
It is also important to monitor the monthly search volume and average ratings.
DataHawk Keyword Research also gives you a list of products ranking organically on any keyword along with the information of their position and page numbers. This will help you identify your top competitors based on your keywords.
You can also use DataHawk Keyword Lookup to identify your competition.
For instance, your product is “Schick Schick Silk Touch-Up Multipurpose Exfoliating Dermaplaning Tool”, you can simply go to keyword lookup and check the Keyword suggestions.
You will have keyword suggestions like, “dermaplaning tool” or “face razor” or “eyebrow razor”. You can track the keywords that matter to your product. Then follow the same process of tracking the products that rank for it organically. In this case, we found that Finishing Touch Flawless Dermaplane Hair Remover Tool is ranked number 2 on page one, followed by others as you can see below.
This is how you uncover the main competitors for this keyword. You could then go ahead and check it’s listings keyword and make them yours by adding them to your own listing and bidding on them if required.
b) Best Seller Rank Tracker:
Our Amazon Sales Rank Tracker is the most powerful tool to monitor the sales performance of any product on Amazon by tracking daily changes in sales rank or Amazon Best Seller Rank in up to 5 browse nodes or categories.
By monitoring changes in sales ranks across different categories for your products and the others competing in the same niche you can extract insights about the potential sales performance of your competitors and leverage other data points to outperform them.
You can also use Sales Rank data to run Amazon product research by unveiling top-selling products and thus identifying your competitors in that category.
For example, we identified top competitors for “Schick Schick Silk Touch-Up Multipurpose Exfoliating Dermaplaning Tool”, using DataHawk’s BSR Tracker, in the category “Tools & Accessories”.
Here, is your list of top 100 products in the category. This enables you to draw comparisons and helps you analyze your competitive landscape.
c) Leveraging on Sponsored Rank Tracker
The Amazon keyword tool enables you to have information on sponsored ranks of products for a given keyword in parallel to which products are ranked organically for the selected keyword. This allows you to identify your competition in terms of PPC Strategy and also enables you to decide which competitor you want to track in terms of their bidding strategy.
Insights to extract from identified competitors
Once you have identified your competitors and you start tracking their ASINs, the following are few insights that can help you have a competitive edge over your competitors.
1. Sales estimates
If you already have a product on the market or you are planning to launch one 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.
You can use DataHawk’s Amazon Sales estimator to monitor 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. 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.
2. Fulfillment & distribution strategy
It is very important to also check your competitors’ fulfillment and distribution strategy as it has a lot of impact on their visibility and sales altogether. You should know about the competition in terms of the supply chain too. It includes an analysis of three things:
a) Products sold on the marketplace vs by Amazon/1P
b)Do they sell direct-to-consumer (DTC) through their own seller account
c)FBA vs FBM
Access the storefront to see the brands they stock and the number of products they sell.
Whether you are just listing your first product or a seasoned pro with several products selling on Amazon already. I hope you found some useful tips in this article on how you can identify your top competitor. Competition can be fierce on Amazon so it’s important to list your competitors and monitor them.