Amazon, a synonymous name with online shopping, is the largest e-commerce marketplaces. It hosts nearly 2 million active sellers globally, each aiming to drive traffic, maximize reach, and increase sales. In the third quarter of 2025, Amazon’s total net sales reached $180.2 billion, representing a 13% year-over-year increase..
Pricing remains a key deciding factor for customers, but to succeed, sellers must continuously track competitor strategies, market trends, and performance metrics through a comprehensive competitive analysis of Amazon.
By understanding how leading Amazon sellers operate, you can fine-tune your business strategy and gain a competitive edge in the marketplace. This blog explores the key metrics of Amazon competitor analysis and how they can benefit your Amazon business in 2024 and beyond.
Table of Contents
How Does Amazon Competitor Analysis Benefit Amazon Sellers?
Key Competitor Metrics that Every Amazon Seller Should Track
Frequently Asked Questions (FAQs)
How Does Amazon Competitor Analysis Benefit Amazon Sellers?
Amazon competitor analysis is the bridge between your brand and your competitors’ Amazon sales strategy. It allows you to fix the limitations of your Amazon business and capitalize on market gaps.
Once you figure out the key metrics of your competitors’ sales strategy, you can use those valuable insights to:
- Optimize Profitability: Make more precise decisions on pricing and cost management.
- Refine Advertising: Optimize PPC campaigns by identifying high-converting keywords your competitors overlook.
- Product Development: Discover unmet customer needs or pain points directly from competitor reviews, informing new product features or variations.
A competitive analysis of Amazon helps you understand market trends and competitor tactics, giving you the data to refine your strategy for higher sales velocity, the core signal that the A9 algorithm rewards.
Key Competitor Metrics that Every Amazon Seller Should Track
1. Focus on Competitors' Targeted Keywords and SEO
Visibility is the first step to conversion. If customers cannot find your product among the top search results, they cannot purchase it.
By analyzing your competitors' targeted keywords, you can assess their content strategy:
- Relevance Mapping: See which long-tail and short-tail keywords your top competitors rank for both organically and via paid ads.
- Keyword Gaps: Identify search terms where your competitors are missing, or where you can dominate with more relevant listing copy.
Strategic Insight: Success today requires optimizing for relevance (using the right keywords) and performance (high Click-Through Rate and Conversion Rate), not just stuffing keywords. Analyze how competitors use keywords in titles, bullet points, and A+ content to signal relevance to the A9 algorithm.
2. Conduct Competitors’ Dynamic Price Tracking
Pricing is arguably the most dynamic and essential competitor metric on Amazon.
- The Buy Box: Track the price that wins the Buy Box (the main driver of sales). Frequent price adjustments by competitors necessitate dynamic repricing to remain competitive without sacrificing margin.
- Value Proposition: Analyze their pricing alongside their value. If a competitor sells an item at a higher price and still wins, investigate the differentiating factors: is it a superior Brand Registry experience, better ratings, faster shipping, or a value-added bundle?
- Average Selling Price: Data suggests that as of 2024, the majority of Amazon sellers (62%) price their products between $16 and $50. Use this range to benchmark your own product positioning.
3. Analyze Competitors’ Product Reviews and Ratings
Reviews determine two critical things: sales volume and product quality perception.
- Influence of Reviews: Research shows that up to 98% of consumers read reviews before making a purchase, and customer reviews are a more influential factor than even price, shipping cost, and return policy.
- The Goldmine of Negative Feedback: Pay close attention to negative reviews. They instantly reveal the merits and demerits (strengths and weaknesses) of a competitor's product. For instance, if multiple reviews complain about a "flimsy zipper," you know to emphasize the "heavy-duty zipper" in your product description and bullet points.
- Credibility: Customers are more likely to trust products with balanced ratings that include both positive and negative feedback, as a perfect 5-star rating can sometimes be viewed with suspicion.
4. Know the PPC and Advertising Strategy of Your Competitors
Understanding your competitors' paid advertising strategy allows you to optimize your Advertising Cost of Sales (ACOS) and boost your overall Return on Ad Spend (ROAS).
- Ad Visibility: Track which products your competitors are promoting and for which keywords they are buying the top placement (Sponsored Products, Sponsored Brands, etc.).
- Bid Strategy: Analyzing their PPC strategy helps you gauge their budget and keyword choice, allowing you to identify low-cost, high-converting keywords they may be ignoring.
- Benchmarking: While CPCs (Cost-Per-Click) vary wildly by category, overall Amazon's average CPCs have remained relatively stable or even slightly declined in some periods, making the platform primed for growing sellers who implement a groundbreaking strategy.
5. Compete with Competitors’ Overall Customer Experience (CX)
Customer experience is now the top competitive differentiator, surpassing price and product in many categories. A great CX drives loyalty and repeat purchases, crucial for high seller performance.
Data Point: 73% of consumers say experience is a key factor in purchasing decisions, and companies that lead in CX grow revenue 80% faster than their competitors.
You can gain a competitive advantage by considering the following CX metrics:
1. Product Variations and Catalog Depth
Analyze how your competitors structure their product catalog. Are they maximizing Parent/Child variations (combining different sizes/colors into one listing)? This practice is crucial as it allows Amazon to combine all review scores, instantly boosting the social proof of the listing and improving sales.
2. Delivery Speed and Fulfillment Model
- Prime is Table Stakes: Track the use of the Prime badge. Leading competitors use Fulfillment by Amazon (FBA) or Seller Fulfilled Prime (SFP) to offer fast, reliable delivery (often next-day). 82% of Amazon sellers still use FBA as their primary fulfillment method (2024).
- Logistics Efficiency: Note if competitors are leveraging Amazon's logistics network effectively to ensure quick and consistent shipping times, which is a major factor in customer satisfaction.
3. Customer Support and Returns Management
Assess the after-service support. Good assistance with returns, refunds, and inquiries is vital for maintaining a healthy Order Defect Rate (ODR) and achieving positive Seller Feedback. Pay attention to how quickly competitors respond to customer questions on their product pages.
Conclusion
Amazon is known for its pro-consumer behavior. It prioritizes the needs and expectations of the buyers. For an Amazon seller to perform well and leverage traffic and conversions, they have to design their sales strategy accordingly.
Taking the strategies and activities of your competitors through a rigorous competitor analysis boosts your process of understanding your customer persona. The key metrics we've discussed, from keyword relevance and dynamic pricing to review analysis and superior CX, come in handy to quickly build your revised strategy and outperform the 2 million active sellers vying for market share.
If you need help tracking the Amazon competitive pricing or optimizing your entire listing for current A9 standards, reach out to us at Vserve Amazon Listing Services. Our goal is to help you outshine your competitors and increase your chances of earning more revenue through your Amazon business.
Frequently Asked Questions (FAQs)
1. What are the most important numbers (metrics) I should track on my product page?
You only need to focus on five core numbers. These include how many people add the item to their cart (Add-to-Cart Rate) and how many people start checking out (Cart-to-Checkout Rate). If these are good, your page is working.
2. Why are these five numbers more important than how many people visit my page?
These five numbers show the customer's intent to buy and their trust in your product. Knowing these helps you fix the specific things that are stopping sales, which is much better than just increasing general visitors.
3. If people add my product to the cart but don't buy, what is the problem?
This usually means there is a surprise or friction just as they are about to pay. The most common cause is the first sight of high shipping costs or tax, which were not clear on the product page.
4. How does Vserve help me fix my product pages?
Vserve is an Amazon expert. We don't just show you the numbers; we tell you why your sales are low. We analyze your content (images, text, shipping info) to find the exact gaps that are causing low "Add-to-Cart" numbers or high returns, and then we fix the content for you.
5. Can Vserve help me reduce the number of returns I get?
Yes. A high return rate means your product page is misleading. Vserve's team creates high-quality content, including clear sizing charts, dimension images, and videos, to reduce the returns caused by customers getting a product that doesn't match their expectations.
6. How does Vserve know what needs to be fixed on my page?
Vserve uses its expertise and intelligence to check the quality of your content against top-performing brands. We give you a plan to fix the specific issues (like missing keywords or poor trust signals) to get an elite conversion rate.
