Amazon, a synonymous name with online shopping, is one of the largest e-commerce marketplaces. It has more than 1.6 million active sellers, each of whose main goal is to drive traffic to their products, maximize the reach, and increase sales. Whether you are a new seller or an established one, the competition level on the platform is fierce.
One of the most important factors to consider is the Amazon competitive pricing strategy. It is also an ultimate deciding factor for customers to make a choice. Along with it, you need to keep your finger on the pulse of the industry to beat your competition. Assessing the strategies of the brands that are leading the pack on the platform is crucial to create your business strategy and gain a competitive edge in the market. In this blog, we introduce you to the key metrics of Amazon competitor analysis and how it benefits you as an Amazon seller.
How Does Amazon Competitor Analysis Benefit Amazon Sellers?
Amazon competitor analysis is a bridge between you and your competitors’ Amazon sales strategy. It allows you to fix the limitations of your Amazon business. Once you figure out the key metrics of your competitors’ sales strategy, you can use those valuable insights to improve your business standing.
It allows you to make decisions as major as changing the pricing strategy with the help of Amazon competitive pricing analysis. Moreover, you can make more precise decisions, optimize the advertising campaigns, and more effectively track the performance and profitability of your Amazon business.
Key Competitor Metrics that Every Amazon Seller Should Track
Focus on the Targeted Keywords of Your Competitors
The question of making a purchase comes much after your customers find your product. If they do not find your product among the top-ranking results, they can not consider it. Hence, the targeted keywords are essential to optimize the product for visibility, relevance, and, ultimately, conversions.
By focusing on the targeted keywords of your competitors, you can assess their keyword strategy. In addition, it will help you analyze their keyword pattern - whether they use specific keywords, evergreen keywords, or trending keywords. With these keyword metrics, you can make changes to your product listing page and better product visibility.
Conduct Competitors’ Price Tracking
Pricing on Amazon is complex and competitive. It is also one of the essential competitor metrics since pricing can be a deal-breaker for the customers. No one buys a product before verifying it from multiple sellers.
Amazon price tracking will give you an insight into the choices and preferences of your customers. We do not refer to just lowering your prices here. If your competitor has hot selling items even with high prices, gain insights on other factors, such as product availability or shipping time.
Understand the Competitors’ Product Reviews
Review of a product determine two things -
- The number of sales the product has had, and
- The valuable feedback on the product - both negative and positive.
A high good-quality review count is a crucial catch for sellers as it attracts customers towards the product. According to research, rating and reviews influence 79% of consumers.
If you could include reviews as a part of your Amazon competitor analysis, you’d get to know the merits, demerits, strengths, and weaknesses of the product. Then, use these customer insights to improve your product and position your Amazon store better by making changes to the product descriptions.
Know the PPC Strategy of Your Competitors
The PPC landscape facilitates the sellers to lower their Cost-Per-Click (CPC) and get them more traffic at a low cost by leveraging the keyword potential within Amazon Sponsored Products.
If you study the ad campaigns of your competitors, you can gain insights into the structure of their campaigns. As a result, you can keep track of their keyword choice and optimize them for different ad groups of a product.
Compete With Competitors’ Customer Experience
Customer experience is one of the most important metrics for the Amazon competitor analysis. Good customer service goes a long way towards retaining customers and gaining loyalty. A report by PWC states that 86% of buyers are willing to pay more for a great customer experience.
You can gain a competitive advantage over other sellers by considering the following key Amazon competitor analysis metrics -
Analyze how your competitors consider product attributes to put your products into variations. If you are keeping the products of different sizes, colors, or similar attributes under the same family, customers get a limited choice to choose from. Spreading out your product allows Amazon to combine all your review scores. As a result, your sales improve.
Research about the delivery methods of your competitors. Leading competitors use the prime badge and offer next-day delivery. They even gain rewards from Amazon to provide exceptional customer service.
Assess the after-service client support of your competitors. Good assistance will not only satisfy the customer but also help improve your Amazon performance. Also, pay more attention to customers’ returns and product complaints.
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 boosts your process of understanding the persona of your customers. The key metrics of Amazon competitor analysis come in handy to quickly build your revised strategy. Whether it requires Amazon price tracking, better keyword research, or anything else, you get the chance of performing better in the Amazon marketplace.
If you need help tracking the Amazon competitive pricing, 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.
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