Competitor analysis is a crucial process for understanding your competitors and the strategies they use. Systematically observing and analyzing your competitors’ activities can greatly enhance your performance.
In 2024, Amazon advertising revenue reached $56.2 billion, marking a 20% increase from $46.9 billion in 2023. This significant growth suggests an expanding pool of advertisers utilizing Amazon’s advertising services.
While we will not be competing with all of them, we can list a few that are similar. Knowing your competitors’ strategies can have a transformative impact on your business. Here are the ways you can get to know the competitors and analyse them effectively:
1. Conduct a Manual Search
To find your competitors on Amazon or Google, search for keywords related to your product. This process helps you find top-selling brands and categorise them as primary or secondary competitors.
For example, if you are a brand that sells mattresses, you can search your competitors using more targeted keywords like “Spring Mattress,” “Foam Mattress,” or “Coir and Foam Mattress.” Your primary competitors can be the top products for your niche keyword.
We can also navigate the relevant product categories on Amazon. Observe the brands and sellers that consistently appear in those categories.
2. Third-Party Research Tool
Powerful tools like SEMRush, AMZScout, and Helium10 can help you identify and analyze your competitors on Amazon.
- SEMRush for analyzing external traffic sources
- AMZScout to get insights into sales trends, pricing, and competition
- Helium 10 for deep Amazon competitor research, keyword tracking, and PPC spying.
Get to know 5 more competitive intelligence tools to elevate Amazon Ads strategy
Many third-party tools allow you to perform a reverse ASIN lookup. You can locate the ASIN number on the product detail page or within the URL.
This enables you to identify the top-ranking keywords your competitors are ranking for. With this insight, you can enhance your rank and visibility by crafting more engaging campaigns.
3. Analysing Product Listing
Analyzing product listings on Amazon is a fundamental way to identify and understand your competitors. By performing the reverse ASIN lookup, you will know other ASINs that are ranking for the same keywords. These can be your direct competitors. What are the elements you can analyse:
Product Titles: Pay close attention to the keywords they use. These keywords reveal what terms they’re targeting in search results. Note the structure of their titles. Are they concise or detailed? This can indicate their optimization strategy.
Features & Benefits: Analyse the features and benefits they are providing and what problems they can solve. Also, identify their unique selling points and analyse what makes their product stand out.
Product Description: By examining the product description, you can understand the language, tone and target audience.
Customer Reviews: Analyze both positive and negative reviews to identify recurring praises and complaints. This will help you pinpoint opportunities to differentiate your product.
Pricing: Compare the pricing with a similar product you offer to determine whether they are competing on price or positioning themselves as a premium brand. Also, check if they frequently use sales or coupons.
Amazon Store: If your competitors have an Amazon store, explore their other products to gain a broader perspective on their brand and product offerings.
4. Measure Product Placement
Analysing competitor’s product placement reveals how well their products rank organically and how well their ad campaigns perform. It provides insights into their market positioning and presence. You can check:
- the placement and frequency of competitors’ products in search results.
- their dominance within specific categories and subcategories.
- the bidding strategies they use and the suggested bidding range.
Amazon uses conversion rate to determine the organic ranking of the product. If your competitors have higher product placement in the market, you need to improve your conversions.
5. Analysing Marketing Strategies
Why customers would want to buy a product will depend on how that particular product has been marketed. Apart from analysing the product listing, you can check your competitor’s social media accounts. Social media can have a huge impact on brand awareness. As per Social commerce-statistics & facts:
According to a 2023 survey, these platforms helped six in ten social media users to find new products and brands. When it comes to making purchases, more than a quarter of global shoppers named Facebook their favorite social commerce platform in 2023, followed by Instagram with 20% of respondents.
While analysing your competitor’s social media activities, find answers to these questions:
- How many social media platforms are they on?
- How many followers do they have?
- How frequently do they post?
- What is the engagement percentage of their post?
- What content do they normally post?
The answers to these questions will give you valuable insights into how your competitors engage with their audience and strengthen their brand.
6. Analysing Amazon Ad Campaigns
Examining your competitor’s Amazon ad campaign can inspire you to craft more compelling ad copies. Analyzing their keywords will provide insights into their target audience and product focus. Finding the effectiveness of your competitor’s keywords, relevance and bidding strategies can help achieve higher ad placement.
Taking the Next Step
Try to focus on these key areas:
- Identify your competitors’ strengths and weaknesses and determine how you can differentiate your products
- Look for opportunities to improve your product listings, pricing, and marketing strategies based on your competitor analysis
- Regularly monitor your competitors’ activities and adapt to changes in the market
A thorough competitor analysis helps you identify your rivals and gain valuable insights into their strategies, allowing you to refine your approach for better success.
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