Amazon Competitor Analysis: A Step-By-Step Guide

Your Amazon product is not getting the sales it should. You may be pricing too high or too low, and you could lose the Buy Box to competition you had not even noticed.

You are not alone. Today, there are over 1.9 million active sellers on Amazon, and many fumble around in the dark because they have no idea what their competitors are doing. So they're just guessing at prices, missing crucial keywords, and losing sales to better-optimized listings.

Amazon competitor analysis solves these problems. It reveals who your real competitor is and shows you precisely what they are doing well and where they are falling short. You'll discover market gaps you can fill, turning their strengths into your opportunities.

This guide will walk you through the entire process. You're going to learn how to track competitor sales, capture their best keywords, and outrank their listings. No guessing. No wasted ad spend. Just proven strategies that work.

So, let's begin converting your competitors' success into your own.

What is Amazon Competitor Analysis?

Competitor analysis on Amazon is simply studying other sellers who sell similar products within your niche. You observe their pricing, keywords, listings, reviews, and marketing strategy to see what has worked.

This will help you in finding direct and indirect competitors. Direct competitors sell the same products to the same customers. Indirect competitors offer different products that solve the same problem.

You track competitor performance over time to spot the trends. This data shows you where you can improve and where competitors struggle.

Why Amazon Seller Competitor Analysis Matters?

The Amazon competitor analysis clearly gives one a competitive advantage. Here's why it matters:

   1. Price Competitively: You observe what others charge and then adjust your prices to win the Buy Box.

   2. Find Market Gaps: Identify product features or customer needs that competitors miss.

   3. Listing improvement: You identify which keywords, images, and descriptions drive conversions.

   4. Optimize Advertising: You learn which keywords competitors are targeting and how they bid on them.

   5. Understand Customers: Read competitors' reviews to understand what buyers love and hate.

    6. Sales Boost: You make data-driven decisions instead of guessing.

In 2024, Amazon U.S. sellers averaged $290,000 in annual sales. The successful ones would never stop tracking their competitors.

How to Find Your Amazon Competitors?

But now that the why is out of the way, let's start from the ground up: identifying exactly who you're competing against. Finding your main Amazon competitors can be done with three straightforward approaches. Use all three to get complete results.

Search Method
‍

Start with the basic product searches on Amazon. Just type in your main product keywords into the search bar. Everything that pops up on page one is your main competitor. Copy the top 10-20 listings and note the seller names and product ASIN, as these sellers would rank high for the keywords you want to target. Repeat for different keyword variations to find more competitors for each term.

Category Research
‍

Look for your product category on Amazon. Go through the subcategories in search of your niche and see the Best Sellers and Movers & Shakers sections. Use filters for price range, ratings, and features to reveal competitors at all market positions—some compete on price, others on quality. Save the top performers in each category; these are the brands customers trust most.

Tools to Use
‍

Manual research may be slow, but using the right tools can accelerate it and uncover deeper data.

   1. SmartScout: Follow the sales and revenue of competitors with Product Tracker.
   2. Helium 10: Utilize X-Ray to examine sales, pricing, and BSR data.
   3. AMZScout: Try the PRO Extension now and get instant competitor insights.
   4. Amazon Brand Analytics: Access to free data for brands registered with Amazon.

These tools help you find competitors that you might not find through a manual search, and they track performance metrics you would not otherwise see.

Competitor Product Analysis: Seven Key Areas

Step one is finding competitors, but the next crucial step is understanding what fuels their success and where they fail.

Practical competitor product analysis focuses on seven key areas. Each area provides insights necessary to solidify your strategy.

   1. Sales History and Revenue
‍

Observe how many competitors sell and at what price to establish market demand and realistic goals. Employ the use of tools like SmartScout or Helium 10 to verify monthly sales estimates and go through sales trends over 3–6 months. Increasing sales indicate growing demand, while falling sales suggest market saturation or a problem with the product.

Observe BSR changes. Lower BSR means higher sales. Check the BSR daily to figure out seasonal patterns. Estimate revenue by multiplying sales volume by price to see which products generate the most income in your niche.

   2. Product Quality and Reviews
‍

Customer reviews reveal a product's strengths and weaknesses. Read reviews systematically to detect patterns in them. Start with 1-star reviews to surface core complaints. Common issues include poor quality, inaccurate descriptions, or slow shipping. Next, read 3-star reviews for balanced feedback on what works and what does not, as customers often note unmet expectations here.

Examine 5-star reviews to identify the features customers love most, and use that to improve your own product. Do not forget to review the Q&A section, where unanswered questions highlight information gaps you can address in your listing.

   3. Pricing Strategy
‍

The pricing will directly affect your sales velocity and profit margins. Monitor competitor prices to ensure that your own are competitive. Check price changes weekly to see whether some sellers change in relation to demand, competition, or inventory levels. Observe seasonal price tendencies.

Check the Buy Box price, the price most customers see and pay, and work on being competitive enough to win it. Total up all costs, including shipping, because some competitors can still have a lower item price but charge more for shipping.

Utilize automated repricing rules that will dynamically adjust your prices to maintain competitiveness without the need for constant, manual adjustments.

   4. Keyword Research
‍

Keywords determine which searches your product shows up in. Determine what keywords your competitors rank for and expand your keyword strategy. Use reverse ASIN lookup tools: Enter the competitor's ASIN to discover all the keywords they rank for. These uncovering opportunities might have been missed.

Scrutinize both organic and sponsored keywords. Organic will show the strength of SEO, while sponsored will reveal the focus of advertising. Analyze the search volume of each keyword: High-volume keywords drive more traffic but are more fiercely competed for. Low-volume keywords are easier to rank for.

Find the keyword gaps-where relevant terms have been forgotten by competitors. Target these gaps to capture additional traffic.

   5. Product Listing Optimization
‍

The quality of your listing directly impacts conversion rates. Study how competitors structure theirs.
Observe title keyword placement, length, and format. Notice which features they lead with. Titles need to be clear while keyword-rich.

    • Images: Check how many pictures they use and whether they include lifestyle photos, infographics, or even size comparisons. Quality images improve conversions.
   •  Bullet Points: The competitors are presenting both the features and benefits. Focus on the tone and writing style to make the bullets scannable and benefit-oriented.
   • Description: Review depth and formatting; descriptions formatted with HTML are easier to read.
   • A+ Content: Assess the balance of text and imagery therein. A+ Content helps to build brand trust and ultimately drives conversions.
   •Videos: Check whether product videos are employed. Videos enhance engagement and reduce returns.

   6. Stock and Inventory Management
‍

Stockouts sap your sales and sink your rankings. Keep an eye on competitor inventory to understand how they operate.

Check the availability of each product every day. Regular stockouts indicate poor planning or higher-than-anticipated demand, while consistent availability indicates good inventory management.

Track your fulfillment method. FBA gives you Prime eligibility for better placement, but FBM gives you more control at the cost of less visibility.

Estimate your inventory levels using Stock Stats tools to anticipate when rivals might run out.

   7. Marketing and Social Media
‍

A thriving seller market beyond Amazon: Observe competitor strategies off-platform.

Research your competitor brands on Instagram, TikTok, and Facebook. Note the follower count and engagement rate; high engagement shows that content works well.

Observe the kinds of content they post. Do they include product demos, customer testimonials, and influencer partnerships? These methods generate outside traffic to Amazon.

Check whether they have blogs or send regular email marketing campaigns. These build brand loyalty, encouraging repeat purchases.

Monitor their Amazon Store pages. Stores that showcase complete product catalogues and brand stories and are well-designed can help lift the average order value.

Tools for Amazon Competitor Analysis

You know what to analyze. Now learn about the tools that make this analysis efficient and accurate.

The right tools expedite competitor analysis and make it more accurate. Here are the top options:

   1. SmartScout provides in-depth competitor tracking. Keyword Scout finds profitable keywords. Product Tracker keeps an eye on sales and revenue. Competitive Intelligence benchmarks your performance against competitors.
   2. Helium 10 provides in-depth data analysis. Cerebro handles ASIN-based keyword research. X-Ray shows the estimates of sales, pricing trends, and BSR. Magnet uncovers new keyword opportunities.
   3. AMZScout provides fast insights: The PRO AI Extension instantly displays data on search results pages, finds competitor keywords with Reverse ASIN Lookup, and estimates inventory levels with Stock Stats.
   4. Amazon Campaign Manager automates advertising analysis. Simply input competitor ASINs to unlock their PPC bid data, revealing their ad spend and strategy.
   5. Manual Review Analysis is functional. Read reviews on your own and summarize patterns with tools like ChatGPT to capture some insights that automated tools might miss.

How to Use Competitor Data Effectively?

Tools and data are useless if not applied correctly. Gathering data is just the first step; acting upon that insight is what gets the job done. You should start with a positioning statement, based on your research, that defines and describes how your product is unique and superior, and use that positioning throughout your marketing.

Document clear do's and don'ts. Note which competitor strategies succeed and which fall short, then translate winning tactics into your own approach. Look for market gaps you can fill—unmet customer needs and missing product features—and position your product to address them.

Develop your value proposition. Do not mimic the competition; differentiate your products with higher quality, features, or service. Price, advertise, and order inventory based on data, re-evaluating competitor data monthly to refine strategy.

Set up automated tracking to monitor competitors' every move with no manual effort, and get alerts for price changes or when stock is running low. Test changes systematically: try strategies drawn from competitor insights in a controlled manner and then measure results to see what worked for your specific product.

Common Mistakes To Avoid

Even with a sound methodology, some traps will undermine your analysis. Professional sellers fall into these traps too—be wary of the following:

   1. Obsessing over the competition-chasing others will ultimately dull your brand identity. Balance competitive research with innovation.
  2. Copying without thinking: what works for competitors may not work for you, given different costs, margins, and brand positioning.
  3. Not considering indirect competitors, who provide alternative solutions for the same problem and can still attract your customers, include them too.
   4. One-time analysis: Competition is never static. New sellers emerge, the prices change, and so do the trends. Analyze periodically.
  5. Missing the big picture: don't focus on just one metric, such as price alone; consider everything about the customer experience.
   6. Forgetting who your customers are: competitor data matters, but customer feedback matters much more. Read your own reviews and adjust accordingly.
  7. Not differentiating: Differentiation is more critical than competitor matching. Find an angle that is unique and play on it.

Dotcom Reps: Your Amazon Success, Strategically Managed.

Amazon competitor analysis provides the level of insights required to compete and win. Study successful sellers to see what works, but also observe where others have gone wrong so you can avoid their mistakes.
Start by conducting simple searches to identify the competition, then use tools to collect data on sales, pricing, keywords, and marketing. Also, concentrate on the seven key areas identified in this guide.

The competition in the Amazon marketplace grows stronger every day. Analysis alone won't grow your business-you need expert execution.

Dotcom Reps transforms competitive intelligence into profitable outcomes: managing your Amazon ads, optimizing your listings, and creating A+ content focused on conversions. Founded in 2009, we have helped sellers and brands increase their rankings and sales.

Don't let competitors steal your sales. Schedule your free Amazon strategy consultation today and fortify your competitive edge.

To see how data-driven optimisation also helps brands perform better on Amazon, check out Dotcom Reps’ guide to the Amazon Buy Box here.

‍