As the saying goes, only by knowing yourself and your enemy can you win every battle. Analyzing competitors is one of the means of operation. So how does Amazon analyze its competitors? What are the risks that novice Amazon operators need to avoid?
How to analyze competitors on Amazon
1. Comparison of products and brands
(1) Product type and scope: Check the type and quantity of products sold by competitors. Determine whether they specialize in a specific product category or have a broad product range.
(2) Product pricing: Compare competitors’ product prices. Find out if their pricing strategy is higher, lower, or similar to yours.
(3) Product features: Analyze competitors’ product features, innovations and differences with your products. Determine what their unique selling point is.
(4) Brand: Study the brand reputation and popularity of competitors. Find out if they have a registered brand and what kind of brand image they have established in the market.
2. Price and pricing strategy
(1) Track price changes: Use price tracking tools to monitor competitors’ price changes. Find out if they frequently adjust their prices in response to market changes.
(2) Compare added value: See if competitors offer additional value, such as free shipping, warranty or gift wrapping. These added values can influence buyers’ decisions.
(3) Identify promotions: Determine whether competitors launch promotions at specific times, such as seasonal sales or discounts. This can help you plan your own promotional strategy.
3. Customer evaluation and feedback
(1) Analyze evaluation scores: View competitors’ product ratings and reviews. Find out how their products are performing in the market.
(2) Read customer feedback: Carefully read your competitors’ customer feedback to understand the strengths and weaknesses of their products.
(3) Respond to negative reviews: Check whether competitors respond positively to negative reviews and take measures to solve customer problems. This can help improve customer trust.
4. Sales and advertising strategies
(1) Review advertising campaigns: Research whether competitors use Amazon advertising to increase product visibility. Understand their advertising strategy and budget.
(2) Analyze sales channels: Determine whether competitors are promoting products on other online channels or social media. This can give you inspiration for multi-channel sales.
(3) Research seasonal sales: See if competitors market for seasonal sales events, such as holiday promotions or season-specific sales
What are the risks that novice Amazon operators need to avoid?
1. Fierce competition
There are millions of sellers on the Amazon marketplace, and competition is fierce. Novice sellers may find themselves competing against larger sellers and brands and will need to develop a differentiation strategy to attract buyers.
Avoidance strategy: Study the market, find unmet or under-met needs, and try to build your brand in these areas.
2. Counterfeit brands and intellectual property infringement
There are issues with counterfeit brands and intellectual property infringement on Amazon, and sellers may receive infringement complaints, which may result in product removal or account restrictions.
Avoidance strategies: Make sure your product does not infringe the intellectual property rights of others and that your supplier is trustworthy. You can also register your brand and use Amazon’s brand registration service for increased intellectual property protection.
3. Inventory management issues
Inventory management is a critical issue, and if inventory is overstocked or out of stock, it can harm sales and reputation.
Avoidance strategies: Use Amazon’s inventory management tools to track inventory levels and make smart inventory purchasing decisions based on sales data.
4. Amazon Fees and Costs
Amazon charges various fees, including subscription fees, sales commissions, FBA fees, etc. These fees can have an impact on profits.
Avoidance strategies: Calculate and understand all fees before selling, and make sure your product is priced enough to cover costs and leave some profit.
5. Fake reviews and malicious competition
Some sellers may use fake reviews or other unfair means to gain a competitive advantage, which may affect your sales.
Avoidance strategies: Comply with Amazon’s review policies, do not engage in unfair competition, and respond proactively to any fake reviews or inappropriate behavior.
6. Seasonal sales fluctuations
Certain products have seasonal sales fluctuations that may result in lower sales in certain periods.
Avoidance strategies: Diversify your product portfolio to mitigate the impact of seasonal fluctuations or be well prepared for seasonal peaks.
7. Supply chain issues
Supply chain issues, such as delayed deliveries, quality issues, or a supplier suddenly discontinuing cooperation, can impact your business.
Avoidance strategies: Build strong supply chain partnerships, diversify suppliers, and maintain regular communication with suppliers.
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