It is no secret that Amazon Marketplace housed more than a million third-party sellers worldwide in all of its product categories that carry hundreds of millions of products. So, a seller can expect at least one competitor to contend with for every Amazon product listing.
Why analyze your competition? Checking out your competitors in Amazon will help you avoid running your business half-blind. By reducing the risk of the unknown, you will be able to maintain your competitive edge over other sellers. Find out how to analyze your Amazon competition in 5 easy ways.
1. Search the product listing in Amazon.
Start the process by finding the product listing in Amazon using a specific keyword or phrase taken from the Product Title. Concise Product Title search filters all similar listings related to the product, making it one of the easiest ways to spot the product’s competitors. Let us take this particular product: Funko Pop Dancing Groot Bobble Action Figure as an example for the entire discussion in this article. The search results for “Dancing Groot POP Figure” keyword showed more than one listing.
A closer look at the listings would reveal that the first and third listings are similar products, though have different ASINs. However, the first one is priced lower at $10.99 than the other one at $15.75. The first one also has 2,141 customer reviews and the most number of sellers (62 offers for new and 1 offer for used), while the other one has only 12 reviews and 9 sellers.
For Amazon Prime members, the first listing is definitely the better choice since it is way more affordable than the other offer. However, this is not the case for non-Prime members and customers with total orders worth less than $49. Amazon shipping cost is around $6.18, which obviously increases the total price to $17.17. This means that the first listing is not at all cheaper than the other one.
At this point, a retailer can decide to list under the other listing with less number of sellers (9 only). The less competitors there are, the more chances of selling.
2. View a snapshot of the listing’s overall competition.
Assuming there is only one listing for the product Funko Pop Dancing Groot Bobble Action Figure, you can view the product front page to check product images, description, price, number of sellers, customer reviews, and other details. The product front page tells us that Amazon.com is the Buy Box seller. Surprisingly, only one alternative is featured in the Other Sellers box though there are 60 more sellers in this listing. This is primarily depending on what algorithm Amazon uses, which remains a mystery to sellers.
To learn more about the sellers for this particular listing, a quantity checker like Amzpecty can provide you the snapshot of all sellers’ stock quantities and prices, relevant information every seller needs. With the Google Chrome add-on installed in your computer, it would show you a snapshot of the total quantity available for that particular product listing in just one click. The extension’s icon is found at the top right side of your Chrome browser. You could have also clicked right away the quantity checker icon found beside each listing on Amazon search results page.
Scroll down the list to see all the sellers. They are sorted by price in ascending order (from lowest to highest). On top of the window you will see the Product Title, Manufacturer, ASIN, and Highest Sales Rank of the product. In one look, you will know that the estimated total quantity for this product listing is 1, 385 units. The minimum price (net of shipping fee) is $10.99 (true only for eligible orders), as shown on the top of the list. The maximum price is $47.49, while the overall average price is $27.
The snapshot information tells you that Amazon.com may stay in the Buy Box for a while because it has the “lowest price” and has almost 20% of the total stocks. Next in line is another FBA seller, carrying 237 units which are priced $1 higher than Amazon’s. If you are one of these two non-FBA merchants on the third and fourth row, does your product still have a chance to sell out? The answer is Yes. Albeit Amazon and FBA sellers are marketed to have free shipping, non-Prime member shoppers still have to pay an extra $6.18 for the shipping fee unless the order amounts to $49+. Consequently, non-Prime shoppers would actually find the independent merchants’ offers cheaper than Amazon’s, the one in the Buy Box. So if you are a FBM (Fulfillment by Merchant) seller, your product should be priced anywhere below $17.17 (inclusive of shipping fee) to be competitive.
3. Examine the sales trend.
We can identify the sales trend for this product using the quantity tracking feature of Amzpecty. Note that this particular listing was tracked for 6 days only. The first line graph shows an overall decreasing trend for the past 6 days, which means products are sold everyday. The upward movements signal stock replenishment periods.
The second graph shows the quantity changes for every seller, designated with a distinct line color. One can estimate that Amazon.com has been selling tens of products everyday with insignificant restocking pattern as exhibited by the declining green line. However, another vendor has a significant restocking pattern which almost mirrors the overall quantity trend in the first graph. There was a slump of stock quantity on January 11, around a hundred units. Does this mean the seller sold quantities more than Amazon.com? How could that be? Well, knowing that Amazon.com has been in the Buy Box with the “cheapest” offer price; that is a remote possibility. This seller might have been moving or re-positioning its products to other listing/s or sales channel/s.
4. Check other sellers’ quantities sold.
After realizing that your product actually makes sales, you would want to know exactly how many others are selling, too. The quantity tracker makes the job easy for you. Estimated quantity sold per day can be detected once you chose to track this product.
We learned from the sales trend that Amazon had sold units daily. Just click the Estimated Quantity Sold tab and you can easily view the total estimated quantities sold daily. Data are tabulated, as well as graphed, just like the sales trend. Both the overall quantity sold and the quantity sold per seller are displayed.
The first graph depicts the increase and decrease in sales as marked by the upward and downward movements, respectively. On the other hand, the second graph indicates the variation in sales for each seller. Notice the vendors with significant sales. The Sellers graph shows three to four active sellers. These top sellers become apparent in the tabulated data — all merchants have sold zero quantities for the last 6 days except four of them (quantities encircled in red). The average quantities sold for Amazon.com is around 70 units per day, highest among the rest.
Bottom line is, we become aware that sales for this particular product are made not only by Amazon/FBA sellers but by non-FBA merchants, as well. (To use these data for further analysis and sales forecasting, click Export CSV.)
5. See competitors’ price changes.
Last but not the least, you can gauge your competition by understanding not only other sellers’ sales trends and restocking patterns, but also their pricing decisions. Product prices online fluctuate as demand and supply change. For this reason, most vendors use repricing tools to automatically adjust product prices in response to competitor change in price and quantity.
In Amazon, price adjustments can now be seen using a price tracker. Fortunately, Amzpecty does not only track competitor quantities but also their prices.
The first graph shows that maximum and minimum prices (indicated by a red line at the top and a blue line at the bottom, respectively), remain steady. However, the average price (signified by a yellow line in the middle), slightly fluctuates all throughout the 6 days.
On the other hand, the second graph exhibits price changes for all sellers. It is observable that the product prices of the majority of the sellers, especially the most active ones, have remained stable for the last 6 days.
The invariability of competition’s prices for this particular product suggests the absence of remarkable supply and demand changes so far. You may have to wait when the stock quantities become depleted that could take at least 10 days (based on average quantities sold), provided of course no more stocks are in transit or the manufacturer discontinues production of this product, before prices start to move up. Hence, the longer the product is tracked, the more informed you become.