With the COVID-19 crisis still hampering businesses all over the world, selling on Amazon can be a good lifeline for your business. However, with over 2.5 million active sellers* on the platform today, you will need to do more than just post your goods.

 

In fact, if you’re a new seller, the cards can actually be stacked against you. As a new merchant, you likely will have any ratings or product reviews. Because of this, customers won’t have any information to verify your trustworthiness. If you are selling products that are also offered by a more established merchant, chances are, a customer will choose your competitor.

 

The good news is, you can do something about it. The best way to succeed is by basic competitor analysis and learning how best to optimize your listings. This way, you’ll have a better chance of increasing your sales on the platform.

 

Doing a Basic Competitor Analysis

 

To do a basic competitor analysis, follow these five simple steps.

 

  1. Know your audience

 

Another merchant could be selling the same products as you without being a direct competitor. This is true for sellers who are trying to sell to different demographics and marketplaces.

 

To differentiate yourself, you should consider customizing your messaging to help your customers find you. For instance, if you are a US-based clothing merchant wanting to reach the UK, you may want to include an alternate size chart.

 

  1. Identify direct competitors

 

One quick and easy way to find your direct competitors is to search for your products like a customer. You will likely see a lot of more established merchants who are selling identical or similar products as you.

 

  1. Analyze competitor keywords

 

One tool that Amazon brand managers use is mining competitor listings for keywords. Since Amazon products show up on Google search, you can apply basic search engine optimization techniques to your Amazon listing.

 

The easiest way to do this is by taking note of how your established direct competitors are writing product descriptions. You can use this as a springboard for your own copywriting efforts.

 

  1. Read customer reviews for insight

 

Reviews are written by regular customers who probably use the same keywords while doing searches. By reading customer reviews, you may come across a few phrases that will take you closer to customers. You can then use these phrases in your product descriptions, which will greatly enhance your chances of being found by customers.

 

  1. Look at competitor pricing strategy

 

Pricing your goods competitively is a crucial aspect of running an online business. However, in Amazon, adopting a pricing strategy that works for you can mean the difference between success and failure.

 

When Amazon business consultants talk about pricing strategies, it usually involves the coveted buy box. The buy box refers to the white square on the right side of the Amazon product detail page, which contains the “Add to Cart” and “Add to List” buttons.

 

The choice of which seller wins the buy box for a certain product is determined by Amazon’s algorithm, which favors sellers with excellent seller ratings and prices. If you were on equal footing, you could simply lower your prices to win the buy box. However, since your competitor is likely doing the same, you will need to closely monitor their prices to maintain your position.

 

Grabbing the Amazon Buy Box

 

As a new seller with little to no seller ratings, it will be difficult for you to grab the buy box for a significant amount of time.

 

However, you still have two options that you can try.

 

 

 

 

 

Constantly monitoring your competitors on Amazon is the best way to increase your sales and grab higher rankings. As you get more experience, you will be able to make better business decisions that will help you flourish on the platform. Remember, even the top Amazon sellers had to start from scratch. 

 

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Romans Tide has one single mission: To give YOU the unfair advantage on the world’s largest marketplace. We are Amazon experts with a passion for helping you crush your competition. Are you ready to leverage our proven strategies to push your products to Page 1 on Amazon, boost your revenue, and succeed in any niche?

 

Visit our website to learn more about our Amazon brand management services: www.romanstide.com 

 

*According to Oberlo.com 

 

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“Remember, even the top Amazon sellers had to start from scratch.”

 

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