On Amazon, a huge and competitive e-commerce platform, it is crucial for new sellers to understand their competitors and effectively avoid operational risks. The following will explore in depth the strategies of Amazon competitor analysis and the risks that new sellers need to avoid during operation.
1. Amazon competitor analysis strategy
Product and brand comparison:
Product types and range: Carefully check the types and quantities of products sold by competitors to determine their focus or wide coverage.
Product pricing: Compare product prices and gain insight into competitors’ pricing strategies, whether they are higher, lower or similar.
Product features: Analyze the features and innovations of competitors’ products to determine unique selling points.
Brand: Investigate the brand reputation and popularity of competitors to understand their brand building results.
2.Price and pricing strategy:
Track price changes: Use price tracking tools to monitor competitors’ price dynamics and grasp market changes.
Compare added value: Check whether competitors provide additional value, such as free shipping, warranty, etc.
Identify promotional activities: Confirm whether competitors have launched promotional activities and make timely response strategies.
3. Customer reviews and feedback:
Analyze review scores: Carefully study the ratings and reviews of competitors’ products to understand market feedback.
Read customer feedback: Read competitors’ customer feedback in detail to understand the advantages and disadvantages of the products.
Respond to negative reviews: Observe whether competitors actively respond to negative reviews and learn strategies to solve problems.
4. Sales and advertising strategies:
View advertising campaigns: Study whether competitors use Amazon advertising to increase product visibility and understand advertising strategies and budgets.
Analyze sales channels: Check whether competitors promote products on other channels or social media.
Study seasonal sales: Investigate whether competitors have marketing plans for seasonal sales events.
II. Risk avoidance strategies for Amazon novice operations
1. Fierce competition:
Avoidance strategies: Find unmet or under-met market needs, develop differentiation strategies, and establish unique selling points.
2. Counterfeit brands and intellectual property infringement:
Avoidance strategy: Ensure that products do not infringe on the intellectual property rights of others, choose trustworthy suppliers, and improve intellectual property protection through brand registration services.
3. Inventory management issues:
Avoidance strategy: Use Amazon’s inventory management tools to make intelligent decisions based on sales data to avoid inventory backlogs or out-of-stock.
4. Amazon fees and costs:
Avoidance strategy: Calculate and understand various fees in advance to ensure that product pricing is sufficient to cover costs and leave room for profit.
5. Fake reviews and malicious competition:
Avoidance strategy: Comply with Amazon’s review policy, maintain fair competition, and actively respond to any improper behavior.
6. Seasonal sales fluctuations:
Avoidance strategy: Diversify product portfolios to reduce sensitivity to seasonal fluctuations, or be fully prepared during peak periods.
7. Supply chain issues:
Avoidance strategy: Establish strong supply chain partnerships, diversify suppliers, and communicate regularly to ensure a stable supply chain.
By gaining an in-depth understanding of competitors and developing corresponding risk avoidance strategies, Amazon novice operators can more calmly respond to market challenges and improve the stability and competitiveness of their own businesses.