Introduction
Competition on Amazon is fierce. Sellers often feel overwhelmed when trying to stand out, gain sales, and maintain profit margins. This is where Amazon competitor analysis becomes essential. By examining what other sellers in your niche are doing well—and not so well—you can sharpen your strategies and uncover ways to improve your own listings and brand presence.
In this guide, we will show you how to run a competitor analysis on Amazon. You will learn practical steps for gathering data, making informed decisions, and shaping a unique selling proposition (USP). Whether you are a new seller or an established brand looking to scale, a thorough Amazon seller competitor analysis can reveal hidden growth opportunities and help you gain an edge in a crowded marketplace.
Keep reading for an in-depth look at each step of the process. By the end, you will have a clear plan for analyzing competitors on Amazon and improving your listing performance.
Why Amazon Competitor Analysis Matters
When you list your products on Amazon, you are entering one of the most dynamic marketplaces in the world. New competitors appear every day, and customer expectations evolve rapidly. If you do not keep track of your competitors’ actions, it is easy to lose market share or miss trends that affect your bottom line.
- Identify Product Gaps: By looking at your competitors’ offerings, you can spot gaps in their product range or discover untapped niches.
- Optimize Your Listing Strategy: Evaluating competitor listings helps you learn what resonates with the target audience, from keywords to product images.
- Set Competitive Prices: Understanding competitor pricing allows you to position yourself at the right price point—whether that is to match, exceed, or undercut the market.
- Improve Customer Satisfaction: Competitor reviews highlight areas of dissatisfaction you can address in your own product and service.
Let us now walk through the how-to part of the Amazon competitor analysis process.
Step 1 – Identify Your Top Competitors
The first step is to identify the sellers who pose the greatest threat to your market share. You might already know some of them from observing the marketplace or researching similar products. However, a systematic approach ensures you do not miss potential competitors.
- Search for Your Main Keywords
- Go to Amazon and type in your primary keywords. Note the sellers who appear on the first page of results. These are likely to be your top competitors since most customers do not browse beyond the first page.
- Go to Amazon and type in your primary keywords. Note the sellers who appear on the first page of results. These are likely to be your top competitors since most customers do not browse beyond the first page.
- Check Amazon Best Seller Ranks (BSR)
- Look at the Best Seller Rank in your product category. Sellers near the top of the category are usually worth analyzing.
- Look at the Best Seller Rank in your product category. Sellers near the top of the category are usually worth analyzing.
- Identify Brand Competitors
- Beyond individual listings, identify brands that keep coming up for the same or related keywords. These are your brand-level competitors.
- Beyond individual listings, identify brands that keep coming up for the same or related keywords. These are your brand-level competitors.
- Create a Master Competitor List
- Compile this information in a spreadsheet. Include details such as brand name, product title, price, and rating. This document will serve as your reference for the next steps.
- Compile this information in a spreadsheet. Include details such as brand name, product title, price, and rating. This document will serve as your reference for the next steps.
Tip: Start with five to ten main competitors. Focus on those with similar products, target audiences, and price ranges. This keeps your analysis manageable.
Step 2 – Evaluate Competitor Products and Listings
Once you have a list of top competitors, the next stage is to analyze their product listings in detail. This includes everything from listing titles to bullet points, product images, and video content.
- Listing Title Optimization
- Check if your competitors are using popular keywords. Take note of how they format their titles and whether they highlight features or benefits.
- Check if your competitors are using popular keywords. Take note of how they format their titles and whether they highlight features or benefits.
- Bullet Points and Product Description
- Evaluate how your competitors organize their bullet points. Are they using concise benefits or adding extra features? Look at how they address customer pain points.
- Evaluate how your competitors organize their bullet points. Are they using concise benefits or adding extra features? Look at how they address customer pain points.
- Images and A+ Content
- Product images are a major factor in driving clicks and conversions. Look at whether your competitors use lifestyle images, infographics, or videos. If they have A+ Content (formerly known as Enhanced Brand Content), study the design and the messaging they use.
- Product images are a major factor in driving clicks and conversions. Look at whether your competitors use lifestyle images, infographics, or videos. If they have A+ Content (formerly known as Enhanced Brand Content), study the design and the messaging they use.
- Brand Storytelling
- Some brands communicate a compelling story through their Amazon storefront or A+ Content. Check how they present their brand history, mission, or values. This can give you ideas on how to differentiate your own brand.
- Some brands communicate a compelling story through their Amazon storefront or A+ Content. Check how they present their brand history, mission, or values. This can give you ideas on how to differentiate your own brand.
Tip: Focus on clarity and simplicity. If a competitor’s listing is cluttered or unclear, this is an opportunity for you to stand out by improving your own listing’s readability and design.
Step 3 – Analyze Pricing and Profitability
Pricing is one of the biggest factors in any Amazon seller’s success. If your prices are too high, customers might choose cheaper alternatives. If they are too low, you risk losing profit margins and devaluing your product.
- Review Competitor Price Ranges
- Note both the lowest and highest prices among your competitors. This will give you an idea of the market’s price ceiling and floor.
- Note both the lowest and highest prices among your competitors. This will give you an idea of the market’s price ceiling and floor.
- Account for Shipping and Fulfillment
- Check if your competitors use Fulfillment by Amazon (FBA) or Fulfillment by Merchant (FBM). This can impact shipping times, costs, and customer trust.
- Check if your competitors use Fulfillment by Amazon (FBA) or Fulfillment by Merchant (FBM). This can impact shipping times, costs, and customer trust.
- Factor in Promotions and Discounts
- Sometimes a competitor appears to be selling at a lower price, but there may be coupons or limited-time discounts at play. Keep track of these promotions to understand real price positioning.
- Sometimes a competitor appears to be selling at a lower price, but there may be coupons or limited-time discounts at play. Keep track of these promotions to understand real price positioning.
- Estimate Competitor Profit Margins
- It is not always possible to know exact costs, but you can make educated guesses by looking at manufacturing and shipping expenses. If a competitor can afford to sell at a lower price, they might have a cost advantage.
- It is not always possible to know exact costs, but you can make educated guesses by looking at manufacturing and shipping expenses. If a competitor can afford to sell at a lower price, they might have a cost advantage.
Tip: Use Amazon’s “Compare with similar items” section to see how your product stacks up against competitors on price and features. This gives you a quick snapshot of competitiveness.
Step 4 – Study Customer Feedback and Reviews
Customer feedback is a treasure trove of insights. It tells you what people love about a competitor’s product and what frustrates them.
- Read 4-Star and 3-Star Reviews
- Reviews with 4 stars or 3 stars tend to provide constructive feedback. They often highlight small issues or missed expectations, which you can address in your own product.
- Reviews with 4 stars or 3 stars tend to provide constructive feedback. They often highlight small issues or missed expectations, which you can address in your own product.
- Search for Common Complaints
- Filter reviews by keywords such as “quality,” “delivery,” “packaging,” or “customer service.” This can help you see patterns in what customers dislike.
- Filter reviews by keywords such as “quality,” “delivery,” “packaging,” or “customer service.” This can help you see patterns in what customers dislike.
- Look at Positive Feedback
- Positive reviews indicate what customers value most. Use this knowledge to accentuate similar benefits in your own listing.
- Positive reviews indicate what customers value most. Use this knowledge to accentuate similar benefits in your own listing.
- Assess Review Volume and Velocity
- If a competitor has hundreds or thousands of reviews added in a short time span, they may have an aggressive marketing or review generation strategy. Note how quickly they are collecting feedback compared to your listing.
- If a competitor has hundreds or thousands of reviews added in a short time span, they may have an aggressive marketing or review generation strategy. Note how quickly they are collecting feedback compared to your listing.
Tip: Consider building a simple table listing “Key Complaints” and “Key Praises” for each competitor. This makes it easier to spot opportunities to innovate or to highlight your product’s strengths.
Step 5 – Examine Competitor Advertising and Marketing Tactics
Amazon’s advertising platform is robust, giving sellers many ways to promote products. When doing a thorough amazon competitor analysis, you should evaluate your competitors’ ad strategies.
- Search for Sponsored Ads
- Type in relevant keywords and see which competitors appear in sponsored product ads. This indicates they are bidding on those terms.
- Type in relevant keywords and see which competitors appear in sponsored product ads. This indicates they are bidding on those terms.
- Look at Sponsored Brands
- Competitors with brand registry can run Sponsored Brands ads, which display a banner ad with multiple products. If you see these ads, note which products they feature.
- Competitors with brand registry can run Sponsored Brands ads, which display a banner ad with multiple products. If you see these ads, note which products they feature.
- Check for Sponsored Display Ads
- These ads can appear on product detail pages and target specific audiences. If you see them often for certain competitors, they might be investing heavily in remarketing.
- These ads can appear on product detail pages and target specific audiences. If you see them often for certain competitors, they might be investing heavily in remarketing.
- Analyze Off-Amazon Marketing
- Some competitors use social media ads or influencer partnerships to drive traffic to their Amazon listings. Keep an eye on social channels or brand websites to see how they generate external traffic.
- Some competitors use social media ads or influencer partnerships to drive traffic to their Amazon listings. Keep an eye on social channels or brand websites to see how they generate external traffic.
Tip: You can gather hints about how aggressive your competitors are with paid advertising by tracking sponsored placements over time. This can help you plan your own advertising budget and tactics.
Step 6 – Leverage Data Tools for In-Depth Insights
While you can gather a lot of information manually, specialized Amazon tools can speed up the amazon seller competitor analysis process. Consider using third-party tools or Amazon Brand Analytics to deepen your insights.
- Keyword Research Tools
- Tools like Helium 10 help you see the keywords your competitors rank for, their search volume, and approximate traffic. This is our preferred tool for clients and readers seeking comprehensive Amazon insights.
- Tools like Helium 10 help you see the keywords your competitors rank for, their search volume, and approximate traffic. This is our preferred tool for clients and readers seeking comprehensive Amazon insights.
- Sales Estimation and Revenue Tracking
- These tools can also estimate monthly sales and revenue for competitor listings. Although not always 100% accurate, they offer valuable ballpark figures.
- These tools can also estimate monthly sales and revenue for competitor listings. Although not always 100% accurate, they offer valuable ballpark figures.
- Amazon Brand Analytics
- If you are a brand-registered seller, use Amazon Brand Analytics to see which search terms customers use and how they engage with competitor listings.
- If you are a brand-registered seller, use Amazon Brand Analytics to see which search terms customers use and how they engage with competitor listings.
- Review Analysis
- Some platforms can scan thousands of competitor reviews in minutes, identifying common themes and frequency of certain keywords.
- Some platforms can scan thousands of competitor reviews in minutes, identifying common themes and frequency of certain keywords.
Tip: Make sure you choose data tools that fit your budget and specific needs. Not all features are necessary, especially if you are just starting out. Focus on tools that can automate your most time-consuming tasks.
Step 7 – Develop Your Differentiation Strategy
The ultimate purpose of competitor analysis is to help you stand out. Data by itself does not drive sales; it is what you do with it that matters.
- Identify Your Unique Selling Proposition (USP)
- Based on your research, find a clear way to differentiate. This might mean better materials, a bundle offer, exceptional branding, or added services.
- Based on your research, find a clear way to differentiate. This might mean better materials, a bundle offer, exceptional branding, or added services.
- Refine Your Listing Details
- If you see that competitors often miss certain keywords or do not address specific customer concerns, use this gap to improve your own listing.
- If you see that competitors often miss certain keywords or do not address specific customer concerns, use this gap to improve your own listing.
- Enhance Your Visuals and A+ Content
- If competitor listings are visually weak, invest in high-quality photography, infographics, or videos to set yourself apart.
- If competitor listings are visually weak, invest in high-quality photography, infographics, or videos to set yourself apart.
- Craft a Strong Brand Narrative
- Some competitors lack a compelling brand story. Use your knowledge of customer pain points and brand values to build a relatable message.
- At Bits & Atoms, for example, we emphasize our passion for transforming products into profitable powerhouses with bespoke strategies that drive long-term success.
- Some competitors lack a compelling brand story. Use your knowledge of customer pain points and brand values to build a relatable message.
Tip: Do not just copy successful competitors. Adapt their best practices to your brand’s unique message. Always aim to resonate with real people.
Step 8 – Monitor and Refine Your Approach Over Time
Competitor analysis is not a one-time activity. Amazon’s marketplace changes fast, and what worked a few months ago may not work next quarter.
- Set a Regular Review Schedule
- Plan to revisit your competitor list every 1–3 months. Add or remove competitors as the market shifts.
- Plan to revisit your competitor list every 1–3 months. Add or remove competitors as the market shifts.
- Track Key Metrics
- Monitor your sales rank, keyword rankings, and review score. Compare these to competitor data you have collected.
- Monitor your sales rank, keyword rankings, and review score. Compare these to competitor data you have collected.
- Test and Optimize
- Make changes to your listings or ads based on your insights. Run tests to see if these adjustments improve conversions and revenue.
- Make changes to your listings or ads based on your insights. Run tests to see if these adjustments improve conversions and revenue.
- Stay Alert to Industry Trends
- Keep up with Amazon policy changes and new features. These can affect your strategy and open new opportunities.
- Keep up with Amazon policy changes and new features. These can affect your strategy and open new opportunities.
Tip: Use automated alerts or dashboards that track significant changes in competitor price, reviews, or best seller rankings. This helps you respond more quickly to market shifts.
Conclusion
By following these steps, you will have a clear blueprint for how to run a competitor analysis on Amazon. You will uncover growth opportunities, spot gaps in competitor strategies, and refine your own listings to stand out in a crowded marketplace. Remember to stay focused on data, track changes over time, and adapt your approach based on real results.
At Bits & Atoms, we believe that success on Amazon is about more than just listing products—it is about crafting a brand that resonates with real people. We have over a decade of experience helping sellers develop bespoke strategies that drive sustainable, long-term success on Amazon—and beyond.If you would like personalized guidance on your Amazon seller journey, book a call with us. We take the time to understand your business, goals, and products, and then create tailored solutions to transform your vision into reality. Let’s work together to make your brand stand out and keep growing.
