Amazon competitor analysis is the systematic process of evaluating other sellers on the Amazon platform who offer similar or related products. It involves studying their strategies, strengths, weaknesses, pricing models, listings, keywords, advertising, customer feedback, inventory trends, and even off-Amazon branding efforts.
The goal of this analysis is to gather actionable insights that help you improve your product offering, optimize your listings, develop competitive pricing, refine your marketing strategy, and ultimately increase your market share.
Why Amazon Competitor Analysis is Crucial
Amazon is a dynamic, hyper-competitive marketplace where even minor improvements in your product listing or ad strategy can significantly affect performance. Without thorough competitor research, sellers often make decisions based on assumptions or incomplete information—leading to missed opportunities and wasted investment. Competitor analysis enables sellers to:
1. Identify Key Competitors
Using keyword search and category filtering, sellers can pinpoint their direct competitors—those targeting the same keywords and customer segment—and indirect competitors—sellers with slightly different products that fulfill similar needs. By understanding who these competitors are, you know exactly who you’re competing with for visibility and conversions.
2. Understand Market Demand and Trends
Analyzing the sales velocity, Best Seller Rank (BSR), and seasonal performance of competitors’ products reveals which items are trending, how often they sell, and during which periods. This helps sellers forecast demand, prepare inventory, and enter markets at the right time.
3. Optimize Pricing Strategies
Sellers who regularly track competitors’ pricing (including discounts, bundles, and dynamic changes) can stay price competitive without undercutting unnecessarily. A well-informed pricing strategy balances conversion rates with profit margins.
4. Enhance Product Listings
By studying how top-ranking competitors structure their listings—including images, bullet points, descriptions, and A+ Content—sellers can identify what kind of messaging, visuals, and features convert best. Sellers can then structure their own listings to outperform others in both appeal and clarity.
5. Refine Keyword and SEO Tactics
Reverse ASIN lookups and keyword research tools reveal the organic and paid keywords competitors are targeting. This shows you which terms are driving traffic and conversions for others, helping you optimize your listings and PPC campaigns with proven search terms.
6. Analyze Advertising and PPC Campaigns
Competitor PPC strategies reveal how much they’re spending on advertising, which keywords they target, and how aggressive their bidding is. This enables sellers to find underutilized or cost-effective keywords, identify ad gaps, and craft more efficient campaigns.
7. Leverage Customer Feedback
By reading competitor reviews and Q&A sections, sellers uncover what customers love, what frustrates them, and what expectations aren’t being met. This information is vital for improving your product design, customer experience, and product messaging.
8. Monitor Inventory and Stock Levels
Tracking when competitors go out of stock offers opportunities to boost your own visibility and sales. Sellers can also identify if competitors are facing supply chain issues or stocking up ahead of promotional periods.
9. Gain Insights into Marketing and Branding
Competitor analysis isn’t limited to Amazon. Studying off-Amazon efforts—such as Instagram ads, influencer partnerships, blog reviews, and branded websites—provides insight into brand positioning and customer engagement strategies.
How to Conduct Amazon Competitor Analysis: Detailed Step-by-Step
Amazon competitor analysis helps you understand your rivals’ strategies and market position. By studying their products, pricing, and customer feedback, you can improve your own listings and stay competitive.
Here are the key steps to get started.
Step 1: Identify Your Competitors
Use a mix of broad and niche keywords related to your product category. For example, if you’re selling eco-friendly lunchboxes, search “lunch box,” “bento box,” “reusable lunch container,” etc. Analyze the top listings and identify competitors based on:
- Sales rank
- Customer reviews (quantity and quality)
- Listing age and content
- Sponsored placement
Shortlist direct competitors whose products closely match yours and who target the same customer profile.
Step 2: Collect Competitor Data Using Tools
Use tools like:
- Helium 10 (Xray, Cerebro)
- Jungle Scout
- AMZScout
- SellerApp
- Keepa
These tools provide detailed insights into: - Estimated monthly sales and revenue
- Review count and star ratings
- Price history and fluctuations
- Keyword rankings and ad targeting
- Listing optimization scores
- Historical BSR (Best Seller Rank)
Create a spreadsheet to compare this data across competitors.
Step 3: Analyze Competitors’ Product Listings
Break down their listings section by section:
- Title: Are they keyword-stuffed or benefit-focused?
- Bullet Points: What product features and customer problems do they highlight?
- Description/A+ Content: Do they tell a story? Are visuals used effectively?
- Images: Are their photos high resolution? Do they use infographics, lifestyle shots, or comparison tables?
Note any commonalities in structure or messaging across top-performing listings, and find gaps you can exploit.
Step 4: Evaluate Pricing and Promotions
Use tools like Keepa or CamelCamelCamel to analyze pricing trends:
- What’s the average selling price across competitors?
- Do they use frequent coupons, Lightning Deals, or bundles?
- How do they price during holidays or peak seasons?
Tracking these patterns helps you develop a dynamic pricing model that keeps your offer competitive without hurting margins.
Step 5: Study Reviews and Customer Feedback
Segment reviews into positives and negatives:
- 5-star reviews: What do customers love?
- 1–3 star reviews: What are the consistent complaints?
Pay attention to recurring themes like poor durability, confusing instructions, or sizing issues. Use these to improve your product features or highlight advantages in your listing.
Q&A sections also reveal customer concerns and objections before they buy. Use this info to preemptively answer questions in your bullet points or product images.
Step 6: Examine Advertising Strategies
Use Helium 10’s Adtomic or ZonGuru to monitor:
- Sponsored ad frequency
- Keyword bidding strategies
- Ad placements (top of search, product pages, etc.)
- Branded keyword targeting
Check if competitors invest in Sponsored Brands, Sponsored Products, or even off-Amazon traffic. This can help you understand their customer acquisition funnel and replicate effective elements.
Step 7: Track Inventory and Fulfillment
Inventory levels can be estimated using software like:
- Sellerboard
- RestockPro
Frequent stockouts indicate poor planning and create temporary sales opportunities for you. Also, assess whether competitors use FBA or FBM and how their fulfillment method affects delivery times, ratings, and Buy Box eligibility.
Step 8: Study External Branding and Marketing
Look at competitors’ external presence:
- Do they have a strong Instagram following?
- Are influencers reviewing their products?
- Do they have a DTC website driving traffic to Amazon?
This gives you insight into broader marketing tactics and opportunities to build brand equity.
Example: Competitor Analysis in the Wireless Earphones Market
Scenario:
You’re preparing to launch a new set of wireless earphones on Amazon.
Step 1: Identify Competitors
Search terms like “Bluetooth earphones,” “wireless earbuds,” and “noise-cancelling earphones” to identify top sellers. You select 5 ASINs based on consistent BSR under 2000 and at least 1000 reviews.
Step 2: Collect Data
Using Helium 10 and AMZScout, you find:
- Sales volume ranges between 2,000 to 5,000 units/month
- Price range is $28 to $60, with most priced around $39.99
- Keywords like “Bluetooth 5.3,” “gym earbuds,” and “noise cancelling” perform well
- Competitor A spends heavily on Sponsored Brands; Competitor B dominates organic rankings
Step 3: Listing Audit
- Competitor A has excellent images but weak descriptions
- Competitor B misses lifestyle images but ranks well due to keyword-rich titles
- Reviews frequently mention battery life and fit issues
Step 4: Pricing Patterns
Using Keepa, you observe discounts of 10–15% during Prime Day, with occasional bundling offers (case + earphones).
Step 5: Reviews & Feedback
Review analysis reveals:
- Customers want more secure fit for workouts
- Many praise quick pairing but criticize touch controls
- One competitor’s earphones are too bulky for small ears
Step 6: PPC Strategy
Top competitors bid aggressively on “Bluetooth earphones” and long-tail keywords like “wireless earbuds for gym.” You find underutilized mid-volume keywords like “lightweight gym earbuds.”
Step 7: Inventory Opportunities
You track that two competitors went out of stock during a recent sales spike, revealing gaps you can target during promotional periods.
Step 8: Off-Amazon Marketing
Competitor B runs TikTok influencer campaigns and links to Amazon. Their branding is fitness-focused and resonates well with active users.
Actionable Takeaways from the Analysis
Based on the competitor analysis, here are the key actions you can take to position your wireless earphones effectively:
- Highlight Product Differentiators: Address common complaints such as poor battery life and uncomfortable fit by emphasizing your earphones’ superior battery performance and comfort in your listings.
- Optimize Your Listings with Quality Content: Use professional images, clear product descriptions, and A+ Content to stand out from competitors, ensuring your product’s value is clearly communicated.
- Pricing and Promotions Strategy: Offer limited-time discounts or bundle deals to drive early sales and differentiate your product from competitors. Use Amazon’s coupon features to create urgency.
- Target Niche Keywords in PPC Campaigns: Focus on mid-tier, long-tail keywords with clear buyer intent. Test different PPC match types to improve visibility and reduce ad costs.
- Capitalize on Stockouts: Monitor competitors’ inventory levels, especially during high-demand periods, and ensure your product is fully stocked to take advantage of gaps in the market.
- Expand Your Brand Presence Beyond Amazon: Build your brand on social media, collaborate with influencers, and use off-Amazon marketing to build trust and drive more customers to your product listings.
These strategies will help you differentiate your product, optimize your Amazon presence, and ultimately increase sales.
Conclusion
Amazon competitor analysis is not a one-time task—it’s a continuous process of intelligence gathering, adaptation, and optimization. By understanding what your competitors are doing and what the market demands, you can make smarter decisions and gain a tangible edge.
