Amazon Competitor Analysis: How To Use It To Improve Your Sales

As sellers, you might already know that Amazon is incredibly competitive. But do you know how exactly competitive it is? 

There are over 9.7 million Amazon sellers worldwide, with 1.9 million actively selling on the platform.

This means only one thing - unless you adapt and innovate constantly, you cannot survive in this highly competitive marketplace. But where do you start? 

Amazon competitor analysis, of course! It is your secret key to unlocking opportunities for rapid growth and not just survive but thrive in Amazon. 

In this blog, we will understand everything about Amazon competitor analysis, including its benefits, how to perform it, and ways to use insights to make smarter marketing decisions.

What is Amazon Competitor Analysis?

As the name suggests, Amazon competitor analysis is the process of evaluating the strengths, weaknesses, and performance of sellers who sell similar products as yours on Amazon. 

The objective is simple - by understanding these competitors’ selling strategies, you can refine your own approach to attract more customers to your store. Here are the different areas of competitors that are evaluated as part of competitor analysis:

• Positioning in the market

• Pricing strategies

• Keywords they rank for 

• Sales performance and market share

• Customer reviews

• Advertising strategies

  
  

Why Perform Amazon Competitor Analysis?

Apart from helping you attract more customers and improving your sales performance, here are some of the major reasons why you should perform competitive analysis on Amazon:

To keep your pricing aligned with the market

Pricing is one of the deciding factors in driving purchase on Amazon. When your product is priced too high (compared to competitors), it might scare off potential buyers. When your product is priced too low, it can undermine your product’s perceived value. Through competitor analysis, you can easily ensure that your pricing is always in the sweet spot and aligned with the market. 

To create impactful and targeted promotions 

Competitor analysis gives you a clear view of how other sellers are structuring their promotions. You will find answers to questions like - Are they offering limited-time discounts? Are they running seasonal sales? By studying their approach, you can develop impactful promotions that will resonate with your audience and help you stand out in the crowded Amazon marketplace.

atom11 helps you analyze ad performance data at an ASIN level and sales trends to help you create impactful promotions.

From such data, you get valuable insights about whether running promotions are worthwhile. Ultimately, it helps you allocate the right amount of resources for executing individual promotional strategies.

To identify and seize untapped market potential 

Competitor analysis helps you identify gaps in the market. You get to know the areas where demand is high and competition is low. More importantly, it helps you uncover customer segments or geographic regions that are underserved. This is possible because competitor analysis focuses on the types of products your competitors are selling and helps you identify categories they haven’t entered or areas where they have limited offerings.

atom11's Search Term Harvester allows you to create custom rules to harvest high-performing keywords. 

By automatically identifying search terms that drive conversions but have lower competition, this feature reveals profitable segments or rather keywords that you can add to your existing campaigns.

To maximize the effectiveness of your ad campaigns 

By analyzing your competitors’ advertising strategies, you get access to valuable insights  such as where and how they are placing their ads. You will also learn what types of campaigns they are running and how successful they are, which lets you refine your own ad strategy and ensure you're targeting the right audience with the right message.

atom11 gives you data-backed recommendations on low and high-performing placements. This enables you to adjust the placements according to your ACOS targets.

To gain deep insights into what your customers want

Competitor analysis doesn’t just reveal the areas your competitors are doing well (or poorly); it also tells you what their customers are actually looking for. By examining reviews and preferences, you can fine-tune your messaging in the description or alter the product features section to align more closely with customer expectations. 

Ultimately, through all these individual benefits, if you are able to track competitor data, then you can use the right advertising strategy, establish a strong market presence, and outpace your competitors on Amazon in no time.

How to Perform Amazon Competitor Analysis?

Here is a step-by-step process for performing Amazon competitor analysis: 

Step 1: Audit your competitors’ product listings

The first thing to do is to thoroughly analyze your competitors’ listings. Find out what they’re doing well and where they fall short. Focus particularly on the following elements during your competitor research:

• Product Titles: Are they structured well? Do they highlight key features?

• Descriptions & Bullet Points: Are they detailed and persuasive? Do they clearly explain the unique selling points?

• Image Quality & Variety: Do they use high-resolution images? Have they supported it with infographics and videos? 

• A+ Content or Enhanced Brand Content: Are they using enhanced visuals? Have they included storytelling elements to boost engagement?

What to do with the data collected?

• If you notice missing details in one of the above elements, ensure that you have covered it in your own listing. For instance, if their listing doesn’t highlight the ease of installation in the product description, emphasize that in your own listing, to gain competitive advantage. 

💡Pro Tip: Add a comparison chart in the A+ content section or product image gallery  showcasing your product’s superior features (wrt generic products) to further help persuade buyers.

Here is an example of an Amazon listing with one such comparison chart in the image gallery:

Step 2: Research your competitors’ branding

If you want to stand out on Amazon, you need to pay attention to your branding. Your competitors know this, too. The successful ones, in fact, already have a strong brand identity that is influencing the purchase decisions of their customers. To analyze your competitors’ branding, look at the following three aspects of their store:

• Brand Positioning: How do they position themselves through their listings? 

• Visual Identity: Do they have a recognizable color scheme or logo displayed across their listings and product pages? 

• Brand Storytelling: How do they communicate their brand values? 

For instance, here is a brand with a consistent color scheme across all their product images and listings:

What to do with the data collected?

• Once you have gathered the above information, use it as a baseline to refine your own branding strategies. Your goal should be to create a distinct brand perception that sets you apart from the noise.

• Ensure that your titles, bullet points, descriptions, and images have a uniform brand voice and are following your brand guidelines. Pay particular attention to images and A+ content, as they should display your branding prominently. Audiences coming to your Amazon store should remember ‘you’ as a brand and not just some random product on Amazon. 

💡Pro Tip: Find ways to differentiate yourself. For example, if the competitor is selling power banks to the premium market, you could brand your product as personalizable with custom engraving options. This will help you gain a unique space in the market rather than directly competing on price.

Step 3: Check your competitors’ reviews

Customer reviews are a goldmine of insights. They give you a good idea about what buyers like and dislike about the product categories you and your competitors are selling. While analyzing competitor reviews, focus on these aspects:

1. Common Complaints: Identify pain points from recurring negative feedback. For instance, are the customers frustrated with product compatibility, poor packaging, delayed fulfillment, or misleading descriptions?

2. Key Selling Points: Pay attention to positive reviews as well. They will highlight what customers appreciate most. It could be anything from product quality to specific features.

3. Star Ratings Distribution: Check the ratio of 1-star to 5-star reviews. A high number of negative reviews signals potential weaknesses you can capitalize on.

4. Q&A Sections: See what customers are asking about your top competitors' product offerings. Are they confused about functionality, materials, or sizing? This can reveal gaps in product descriptions.

What to do with the data collected?

• Use these insights to improve your own product and customer success strategy. In the same power bank example, if customers are frustrated with the size of the product, emphasize your power bank’s sleek design and weightlessness in your listing.

• If you notice a pattern of complaints or expectations, use them to offer superior customer service. For instance, you can focus on faster response times or better return policies to build trust and increase conversions.

💡 Pro Tip: Look at review trends over time. If a competitor once had strong ratings but recently declined, they may have changed suppliers or quality control measures. This is an opportunity to position your brand as a more reliable alternative.

Step 4: Analyze your competitors’ targeted keywords

Keywords play a critical role in determining your listing’s visibility on Amazon. While you can research and come up with your own list of keywords, the easier and more effective way is to analyze your competitors’ targeted keywords. With the help of the right tools, you will be able to identify high-performing search terms and spot keyword gaps. This will help you optimize your listings to increase visibility and conversions. Here are the key areas you need to focus on:

• Product Titles & Bullet Points: Keywords used in these sections carry the most weight in Amazon’s ranking algorithm. Look at the type of keywords your competitors are using. Are they focused on specific features, benefits, brand names, etc?

• Review Backend Search Terms: While you can’t see competitors’ backend keywords directly, you can use 3rd party tools to help uncover hidden keywords they rank for.

• Analyze Sponsored Ads & PPC Campaigns: Search for your product on Amazon and see which competitors appear in Sponsored Products and Sponsored Brands ads. The keywords they target for paid campaigns can indicate terms that drive the most sales.

What to do with the data collected?

• Once you've identified your competitors’ keywords, rebuild your SEO strategy. Start by incorporating high-ranking terms in your product title and bullet points. Add all the other relevant keywords to the backend search terms. 

• If competitors are ranking well for broad keywords, target long-tail keywords. They will help you capture specific customer needs. Additionally, optimize your A+ content with keywords to improve both search rankings and conversion rates.

💡Pro Tip: Keep tracking keyword trends over time. A keyword that’s performing well today may lose relevance later. So, continuously update your listings and campaigns based on search volume and market changes.

Step 5: Assess your competitors’ prices

As we have highlighted earlier, pricing can make or break your store. So, it becomes absolutely important to assess your competitors’ prices. This will ensure that your product is competitively priced while also maintaining profitability. Start by understanding your competitors’ pricing strategies. Consider not only the base price but also how your competitors approach discounts and promotions. 

Next, conduct a comprehensive price assessment. For this, identify the range of prices for similar products and pinpoint where your product falls in relation to the competition. Based on this, you can take either of the below steps:

• If your competitors are priced lower, you may want to analyze their offerings to see if they provide less value, such as fewer features or lower-quality materials. 

• If your product is priced higher, ensure that your product’s quality, features, or customer experience justify the premium. 

What to do with the data collected?

• Use the collected data to adjust your pricing dynamically, whether by offering better deals, leveraging discounts, or positioning your product as a premium option. Your goal should be to maintain competitiveness without sacrificing profitability.

💡Pro Tip: Use atom11’s Digital Shelf to link pricing data to your ad spend insights, giving you a more complete picture of your pricing strategy in relation to your overall marketing efforts. This can help you identify whether a lower price point could lead to higher conversion rates or whether maintaining a premium price could attract more value-driven shoppers.

Step 6: Estimate your competitor’s monthly sales

This step is all about understanding how well your competitors are performing in comparison to your own sales numbers. By analyzing their sales volume, you can gauge the demand for their products and determine how much market share they hold.

Now, there are no direct Amazon-based ways to find the exact sales numbers of your competitors unless you use third-party tools. Luckily, there are certain neat tricks to predict the ballpark sales of your competitors. Here are they: 

• Use Amazon’s Best Seller Rank (BSR) to understand how your competitor’s product is performing. BSR is a strong indicator of listing performance within its category. A lower BSR typically means higher sales. You can use atom11’s Digital Shelf to track your competitor’s BSR with great ease. 

• Keep an eye on the competitor’s stock levels. It will give you insights into their sales trends. A sudden drop in inventory may indicate a spike in sales, while slow-moving stock suggests lower demand. 

• The frequency and volume of reviews and ratings offer clues about a product’s sales performance. A product receiving consistent new reviews is likely selling well. By estimating how many reviews are added per day or week, you can get a rough idea of a competitor’s sales velocity. 

What to do with the data collected?

• Competitors’ sales data can reveal trends in their growth or decline. If a competitor is gaining traction, it might be due to promotions or product improvements that are worth analyzing.

• Using the data collected, you can assess the overall demand for a product category. If competitors have high sales volumes, it indicates a thriving market, whereas low sales suggest limited demand.

  
  

Step 7: Investigate your competitors’ ad campaigns

Analyzing your competitors' ad campaigns involves understanding the types of ads, their budget allocation, ad placements, etc. For instance, your competitors may be using Sponsored Products, Sponsored Brands, or Sponsored Display Ads, each serving different purposes in visibility and customer engagement. By examining where and how they place these ads and their messaging, you can gain valuable insights into their promotional priorities and high-performing products. 

Understanding which keywords they target and how aggressively they bid on them allows you to alter your own PPC strategy. For instance, if they underbid on certain valuable keywords, you can capitalize on the opportunity by increasing your bids and securing better ad placements.

What to do with the data collected?

• By analyzing their ad placements, budget distribution, and keyword selection, you can adjust your bids strategically. You can also use the data to compete effectively without overspending. If a competitor dominates high-traffic keywords, you might want to focus on long-tail or alternative search terms that bring in more targeted traffic at a lower cost. 

• By studying their ad copy and creative elements, you get an opportunity to differentiate your own messaging, ensuring your product listings highlight unique selling points and stronger value propositions.

💡Pro Tip:  Use atom11’s Search Rank Optimizer to ensure that your product gains higher organic visibility. This feature refines your keyword usage, prevents PPC cannibalization, and allows you to increase or decrease your bid basis organic rank performance. Ultimately, you can improve performance without overspending on ads.

How can Atom11 help?

atom11 is an Amazon PPC advertising automation solution that can streamline Amazon competitor analysis, among other processes. The Digital Shelf feature of atom11, in particular, enables you to:

1. Monitor Pricing Strategies: Track both your own and competitors’ pricing trends over time. Identify discounting patterns, such as the percentage of discounts offered during sales events and the timing of price drops. Set up alerts for competitor price changes to stay ahead.

2. Track Search Rankings: Monitor how your products and competitors rank for important keywords, helping you optimize for better visibility.

3. Analyze Product Reviews & Ratings: Keep an eye on customer feedback and ratings for key competitor products to identify strengths, weaknesses, and opportunities for improvement.

4. Monitor Best Seller Rank: Track competitor products' Best Seller Rank (BSR) to gauge shifts in market share and assess whether you are gaining or losing ground.

   
   

Book a demo to start your Amazon competitor analysis with atom11.

Frequently Asked Questions

How to check competitor’s sales?

While there is no direct Amazon-provided way to check your competitor’s sales, you can always use tricks like checking the BSR, tracking stock levels, and analyzing the frequency of reviews. An all-encompassing tool like atom11 can help streamline and automate this whole process of analyzing your competitors’ sales for you. 

What are the four key components of Amazon competitor analysis?

The four key components of Amazon competitor analysis are product listings, pricing strategies, customer reviews, and sales history/performance. By focusing on these areas, you can outpace your main competitors and thrive as a successful seller in the competitive Amazon marketplace. 

What mistakes should be avoided while performing Amazon competitor analysis?

Most new sellers make two major mistakes while performing Amazon competitor analysis. One, they copy strategies without adapting to their own needs and goals. Two, they fail to account for seasonal trends in sales data. Both these mistakes have to be avoided at all costs to ensure that your Amazon competitor analysis is successful. 

How often should I perform Amazon competitor analysis?

It is recommended that a detailed analysis be performed every 3-6 months. This will help you stay updated with market shifts. Apart from this, it is important to perform regular monitoring every 2-4 weeks of key metrics like pricing, promotions, and customer feedback. This, in turn, will help you stay competitive in real-time.