What the never-ending competition on Amazon means for your brand

May 4, 2020

Competition hits brands on all sides, from direct competitors to competing with Amazon itself on Amazon-owned products. Brands need to be strategic in their strategy to beat the competition, because trust us when we say that there is always a brand waiting to take over your marketshare. You can’t take your foot off the gas for even a moment if you want to maintain your organic positioning, the ‘Buy-box’, FBA or any other element that makes your products sell.

If you are using Amazon to drive sales but are failing to reach a level of efficiency because of tenacious competitors, there are a number of things you can do get a leg up on the competition.

Organic Optimisation is more important than ever before

With increased competition comes more and more brands struggling to increase their organic presence. Therefore having optimised content is more important than ever. Brands need to be investing time and resources into various organic optimisations, including; product title, bullet points, descriptions, and A+ content. Organic optimisation can have a rippled effect in various areas of your brand’s presence on Amazon, here are a few of them:

Search result ranking

This is a given, but the more you improve your organic optimisation, the higher chance you have of increasing your search result ranking. Your brand needs to work hard to earn those organic placements! Therefore, when we on-board new brands and ASINs we spend a significant amount of time conducting keyword research and creating a strong keyword and content strategy. You have limited space, so focus on the most important keywords, features and benefits. Our mobile optimisation guide provides helpful information on how to best optimise your product listing and Amazon Store via smartphone.

Amazon advertising campaigns

Organic optimisation and rankings play an important role in Amazon advertising strategy. You can increase your ad spend drastically, but if your driving traffic to unoptimized product listings, you will see lower conversion rates. Looking to improve your advertising ROI? Want to lower ACoS? Look at your product listings and A+ content first! This is one of the reasons our PPC and content teams work so closely together, it’s all connected!

Product reviews

Product reviews can make or break a product. Great rating not only make consumers trust your brand and your products, but it means Amazon will trust you as well. Reviews factor into product rank in the search results. The products that rank at the top for a broader keyword generally have more reviews, and have a higher rating, than those lower down the list. Use reviews to identify areas to improve within your product’s bullets and descriptions as well. This will help communicate your product more effectively to shoppers, influencing purchase decisions, leading to more positive reviews!

Amazon advertising is worth the investment

If you’re working with the right Amazon agency, they will tell you that while they are seeing that Amazon advertising is becoming more and more expensive with increased competition, that investment is worth it in the long run. Comparing to traditional marketing platforms like Facebook or Google, Amazon tends to have a relatively higher ROI. That’s because the Amazon audience is a more engaged, ready-to-buy audience, lower in the conversion funnel.

Advertising investment often pays off when needing to generate brand awareness and product visibility for new product releases and when launching into new marketplaces. When launching a new product in an already overly competitive marketplace, Sponsored Ads drive product visibility! Check out how we helped a house-hold personal care brand test new products with our new product development (NPD) service offering.

Critically important to apply data to your Amazon strategy

Why is data so important to help you gain a leg up on competition? Testing, testing, testing! Informed Amazon experts use all data points available to them, analysing and interpreting it and then adjusting their strategy. It’s a never-ending loop – develop a strategy, launch a campaign, test, adapt your strategy, adjust your campaign, test, etc.

Performance data is also critical when developing a budget. Keeping a very close eye on data from advertising campaigns is critical. That data can then be used to empower your Amazon PPC team to allocate spend more efficiently. Without using data to inform advertising strategy, you risk not learning from experience and your brand will stagnate!

Our thoughts on the competitive landscape

Amazon will continue to get more competitive as the landscape for consumerism changes. We were heading towards this before COVID-19, but it has ramped up drastically in the last few weeks which will leave a lasting effect on consumerism afterwards. Brands must be smarter and much more strategic to stay competitive now. They need to adapt their traditional marketing strategies to this new landscape.

However, from set-up to optimisation, Amazon takes time and skill to master. Brands of all sizes find investing in a full-service Amazon agency saves them time and resources. That’s time and resources they can spend improving internal processes and focusing on other areas of the business. Get in touch with our team to discuss how we can help support your brand’s growth and sales strategy.


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