Chapter 8 – Multi-Market Validation
If you’ve diligently followed the steps outlined so far, you likely have a comprehensive grasp of your Amazon competitors. However, to gain a broader perspective, it’s crucial to expand your research beyond Amazon’s borders. Understanding where your competitors are selling, how well they perform on other platforms, and their reasons for doing so will provide invaluable insights for your strategy.
Exploring Multiple Sales Channels: A Greater Threat
While Amazon boasts an impressive 41% market share, a significant 59% of shoppers choose to make purchases elsewhere. Competitive brands often diversify across various platforms, including DTC (Direct-to-Consumer) sites, Walmart, Target, eBay, and more. Although these platforms are not your direct competition on Amazon, brands with a strong e-commerce presence can feel familiar to consumers, making them more formidable contenders. Moreover, brands with a wider reach likely have greater resources for marketing and optimization efforts.
Key Considerations for Researching Brands Beyond Amazon
To get a comprehensive understanding of your competitors’ off-Amazon presence, keep track of the following factors:
- Sales Channel Usage: Identify how many sales channels they utilize and which ones they focus on. Recognizing saturated marketplaces and potential opportunities for future expansion is crucial.
- Consistent Pricing: Amazon is highly competitive in terms of pricing. Brands that maintain consistent pricing across channels avoid risks like rolled buy boxes. Varying prices may indicate challenges with controlling 3P (third-party) sellers or undercutting attempts. Consistency in pricing across channels is vital for success on Amazon.
- Uniform Branding: Trust is bred through brand consistency. Brands that invest in high-quality creative assets, establish a consistent brand tone, and highlight their unique value proposition pave the way for scalable success.
- Variation Selection: Observe whether brands offer different variations on different platforms. This insight can reveal successful variations on Amazon and those that underperform, guiding your own decision-making process. Understanding the health and choices made by your competitors enhances your overall comprehension.
Note: Price considerations are for the exact same products. For instance, a grey pet bed sold on Amazon will not be penalized if a black version of the same pet bed is offered on Walmart at a lower price.
In your quest to dominate the Amazon marketplace, you’ve already learned the fundamentals of conducting a comprehensive competitor analysis. But did you know that investing in certain paid tools can take your analysis to the next level, giving you a distinct competitive advantage?
Advanced Keyword Research: Paid tools offer an array of sophisticated keyword research capabilities. Uncover high-performing keywords, generate keyword lists, and analyze long-term trends to align your content with shopper search behaviors. By leveraging these insights, you can enhance your product’s visibility and attract more relevant customers.
Detailed Competitor Tracking: Stay ahead of the competition with in-depth tracking features. Monitor keyword trends, identify top-ranking competitors, and track their performance within your product category. Armed with this knowledge, you can fine-tune your strategies and adapt to ever-changing market dynamics.
Precise Sales Insights: Gain access to valuable data, including average price points, historical pricing trends, estimated total sales, and monthly revenue estimations. Armed with this information, you can optimize your pricing strategies and position your products competitively in the market.
Buy Box Vigilance: Keep a watchful eye on your product’s Buy Box performance. Paid tools offer Buy Box monitoring, enabling you to track your Buy Box share and take swift action to maintain or improve your position. This ensures maximum visibility and conversions for your products.
Optimize Listings Strategically: Utilize listing graders to evaluate the effectiveness of your product listings. Identify areas for improvement and optimize your content to resonate with Amazon’s algorithm and your target audience. This targeted approach increases the chances of your products standing out in a crowded marketplace.
Sales and Revenue Estimations: Gain valuable intelligence with estimated units sold and associated Amazon fees for each product. By understanding your product’s revenue potential, you can make data-driven decisions to maximize profitability and growth.
What Frequency Do You Want to Monitor Your Competition?
Competitive analysis on Amazon is a dynamic and ever-evolving process that demands continual vigilance and adaptability. To maintain a competitive edge, regular competitor analysis is essential, ideally conducted every quarter. Embracing this iterative approach grants valuable insights into your category’s trajectory and your competitors’ tactics, empowering you to make informed decisions.
As the e-commerce landscape shifts, competitor analysis uncovers hidden opportunities and potential threats. A competitor’s decline may signal a chance for you to seize their market share, while a surging competitor reveals areas where they outperform you, prompting you to redirect resources to more lucrative endeavors.Recognize that on Amazon, you never operate in isolation. Even as a trailblazer in your niche, competitors will emerge. Our recommendation is to monitor your competition Monthly as you’re scaling your product line. Staying proactive in analyzing your rivals helps anticipate shifts and adjust strategies accordingly. Being ahead of the curve provides a strategic roadmap toward becoming a top seller in your Amazon space.