What Amazon tools will help you spy your competitors?

Amazon is a very competitive marketplace where millions of sellers may retail the same products. So, you can face thousands of competitors in your niche and product category. Under this circumstances, the odds of encountering Amazon competition is high. That is why it is essential for you as for Amazon seller to conduct a comprehensive competitive analysis to identify their existing marketing strategies and outsmart them. 

In this article, we are going to discuss the basic competitor analysis criteria and schemes. Moreover, we will take a closer look at some practical Amazon spy tools that will help you stand out from the crowd.

The basic Amazon competitor analysis criteria

• Avoid too competitive niches as you won’t be able to compete with TOP brands and countless sellers

The basics of competitor analysis are laid in understanding who is your TOP niche competitors and how many they are. It is unreasonable to start selling products that Amazon o other big and prosperous brands are selling. It will be challenging to compete with such large competitors as users have already known them well. Moreover, they can provide better brain price and discount. 

So, it there is too many sellers who retail the same stuff, it will better for you to avoid selling these products unless you feel that you have a significant advantage over them. For instance, if most of them are implementing FBM, it will be reasonable to apply FBA for retailing your products. 

• Product reviews contain a lot of valuable information about your competitor's state of affairs

Another significant aspect you should pay your attention to is competitor reviews and star ratings. They provide a lot of information about your competitor's state of affairs. So, if you are targeting a product, you should obviously check a product page. If each of the TOP Amazon sellers in your niche has more than 100 reviews, this market niche can appear too competitive for you to enter. 

Moreover, if you notice that most of the competitor reviews have 1 to 3 ranking stars and note the points that consumers are complaining about, you will easily outsmart these shoppers providing your customers with better services. All in all this data will help you to understand your potential customer needs and improve your product accordingly. 

• Monitor the pricing policies of your TOP Amazon competitors

Pricing serves as the significant ranking factor on Amazon and has a massive impact on sales and an opportunity to win a Buy Box. There are always some existed necessary costs that include product cost, shipping fee, and Amazon fee which depends on the selling program you use. There is no opportunity to decrease these expenses, so it can be problematic for sellers to lower their prices. So, the lower your rate is, the lower your margin is. To avoid profit loses, you should implement some cost reducing tactics to make your product more valuable and different than others in your niche. 

The right way to stay competitive is to monitor your competitor pricing policies and put a price at least $1 lower than they have. It will help you to identify your pricing strategy and stand out from the crowd by attracting more leads and boosting your sales. 

To accelerate the process of tracking your niche competitor pricing policies, you can implement one of the third-party Amazon repricing spy tools, such as Repricer Express, Big Tracker, and AMZInsight. These tools will provide you with a comprehensive competitive analysis, displaying your profits and costs as well shipping cost and Amazon fee.