This article focuses on modernizing and enhancing the top 7 strategies to evaluate competition within a specific Amazon FBA niche.
Strategy 1: Search Volume
Start by visiting Amazon.com and search for the product you plan to sell. Notice the “results” count on the upper left. This indicates the number of products matching your search term.
For instance, searching for ‘iPhone case’ might yield over 45 million results, translating to millions of product listings. Gaining visibility among such vast competition can be challenging. Consequently, identify markets with a manageable level of competition. This strategy ensures faster product ranking and easier advertising.
Strategy 2: Assessing Relevancy
After gauging the total results, examine the relevance of products within your chosen niche. Of the many search results, only a fraction may correspond to your specific product. You might notice that some products appear similar, with a few variations. Prioritize markets with diverse yet top-selling items within the same niche.
Strategy 3: Price Considerations
Price greatly impacts competition on Amazon. Highly competitive markets often lead to price reductions and shrinking profit margins. Therefore, it’s essential to ensure that your chosen market allows for an attractive margin. Additionally, avoid markets with numerous competitors offering extremely low prices. You can utilize tools like AMZ Tracker for tracking price history.
Strategy 4: Spotting New Listings
Services like AMZ Tracker can help you monitor new listings among the top 10 products. A surge in new listings might suggest increasing competition. Look for markets with few new listings, yet not entirely dominated by long-established items. Ideally, the top 10 should feature one or two recent items, indicating a feasible ranking potential within the niche.
Strategy 5: Deciphering Trends
Using tools like the product ranking service in AMZ Tracker, monitor the price trend and BSR (Best Seller Rank) of the top 10 items. Ensure a stable BSR over an extended period, and the price level isn’t continuously declining. If the BSR fluctuates wildly, it might indicate a seasonal product or frequent competitor promotions.
Strategy 6: Reviews Analysis
Evaluate the number of reviews for the top 10 competitors. Markets with an average of over 500 reviews per product may be highly competitive. It’s best to aim for markets where the top 10 competitors average 300 or fewer reviews. Lower rating scores could also indicate a potential opportunity for listing optimization.
Strategy 7: Listing Optimization Potential
Analyze each product within the top 10 listings. Look for elements such as image quality, number of feature bullets, and overall listing quality. Markets where top products exhibit poor quality photos, few feature descriptions, and generally subpar listings present a unique opportunity. Your superior product listings can quickly stand out in such markets, providing a competitive edge.