Amazon Competitor Analysis: How to See Who You are Competing Against & Win

With how savage the competition on Amazon has become, it will be no stretch to describe the internet’s biggest marketplace as a warzone. Thousands of online sellers are constantly fighting for the attention of consumers. When it comes to eCommerce warfare, as with all warfare, one rule rings true – know your enemies.

So, in this digital age, how exactly do eCommerce sellers get to know their enemy?

The most effective way to do it is through an in-depth competitor analysis.

By analyzing what your competitors are doing, you’ll know how to stand out and outperform them.

There’s A Lot To Learn From The Competition

Amazon Competitor Analysis: How to See Who You are Competing Against & Win 1

“You should learn from your competitor, but never copy. Copy and you die.”

~ Jack Ma, Executive Chairman of Alibaba

To learn from the competition, you need to break down their online presence and thoroughly understand their overall approach.

You can then leverage this knowledge to develop a strong competitive advantage and sustain that advantage by always being one step ahead.

What You Can Gain From Tracking Your Amazon Competitors

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Amazon FBA sellers have much to gain from performing an Amazon competitor analysis. The value of the insight that can be gained from your competitors’ successes and failures cannot be understated. Having a thorough understanding of the competition allows one to:

  • Improve the precision of portfolio scouting and sourcing decisions
  • Optimize advertising campaigns and maximize the efficiency of ad spending
  • Improve performance and profitability tracking

How to Conduct Your Competitive Analysis

Identify the competition.

You can’t analyze the competition if you don’t know who your competitors are. Knowing the competition will let you:

  • Use their strengths and weakness as a guide on what you should and shouldn’t do.
  • Better understand the Amazon FBA landscape and how to position your business above the competition.
  • Keep track of the competition so you are never caught off guard and can stay one step ahead.

Find Your Competitors

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Making full use of Google and Amazon search engines is one of the fundamentals of how to do competitive analysis as an Amazon FBA seller.

Here’s an example of how to leverage the immense power of these two search engines to cast and wide net and get an accurate view of the current competitive landscape of your chosen industry:

  1. Go to Amazon and search for your planned business name, product ideas, and overarching business ideas.
  2. Take note of the top results as they will most likely be ones you’ll have to compete with.
  3. Go to Google and search for the different social media channels, organizations and online communities of each of the competitors you’ve listed in the previous step.
  4. Utilize a combination of free and paid tools to find more information on your competitors. Such tools may include:
  • SpyFu – a competitor analysis tool that helps you research and download your competitors’ most profitable keywords.
  • SEMrush – a tool that helps you to conduct competitive research on any domain name and to use the data to optimize your campaigns.
  • SimilarWeb – a competitive analysis tool for digging into a site, app or platform.
  • Alexa – a tool that provides deep analytical insights to compare and optimize businesses on the web.
  • Keyword Competitor – an all-in-one competitive analysis tool that shows you keyword opportunities that your competitors have been ignoring.
  • Social Mention – a tool that provides real-time search on brand mentions.
  • Rank Signals – a backlink checker tool that helps you uncover SEO backlinks & traffic sources of your competitors.
  • Buzzsumo – a social networks tracking tool that helps you find the most shared content for a given topic.

Categorize Your Competitors

After finding the competitors you believe will be a threat to your Amazon FBA business, it’s time to segregate them. You can divide them into three main groups based on their threat level:

1.) Primary Competition

  • Targets the same audience as you or;
  • Sells a similar product to yours

Example: A Nike retailer is a primary competitor of an Adidas retailer.

2.) Secondary Competition

  • Offers a high-end or low-end version of your product or;
  • Sells a similar product to yours but to a completely different audience

Example: A Rolex seller is a secondary competitor to a Timex seller.

3.) Tertiary Competition

  • Sells products tangentially related to yours

Example: A seller of gems and precious stones is a tertiary competitor of a jewelry seller.

Find and compile the following information for each competitor:

  • Name of store
  • Mission statement (if available)
  • Product offering
  • Strengths and weaknesses of their business
  • Category of competition

Examine your competitor’s website & customer experience.

Now that you know the basic information about the competition, it’s time to dig a little deeper.

Take a closer look and put yourself in their customer’s shoes. You can do this by finding the answer to relevant and important questions such as:

  • How good are their product images? How do they communicate the details of their product?
  • How detailed are their product descriptions? What information can be added and what information can be omitted?
  • How are their calls to action presented throughout the online shopping experience? Do they feel organic? Are they easy to notice?
  • Do they have an email capture strategy such as a newsletter subscription opt-in? If yes, how prominent is it?
  • Where are their social media buttons positioned?
  • Do they maintain a blog? How often do they post? What type of content do they publish?
  • Is their website optimized for mobile users?
  • What are the available ways of contacting them? Do they offer 24/7 customer support?
  • What is their average response time to emails, live chats, and contact form submissions?
  • Do they have reengagement strategies such as an ‘Abandoned Cart’ feature? If yes, how do they tell their customers about it?
  • What information do they include in their marketing banners and callouts?
  • How often do they run promotions such as discounts and freebies?

Knowing the answers to these questions will help you identify what competitive advantage you have over your competitors.

Identify your competitor’s market positioning

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Understanding the positioning strategy of your competitors will give you valuable insights into the prevailing demands and expectations of your target market. Knowing how your competitors position themselves will give you an idea on how to position yourself against them.

To do this, you need to look at their website and messaging and answer these three simple questions:

  • What is the main reason customers buy from them? Is it the price? Is it the experience? Or is it something else entirely?
  • How do they differentiate their product from that of their competitors? What feature/s and benefit/s do they highlight the most?
  • What, according to them, makes their product unique?

Here are a few tips to help you gather as much relevant information as possible:

  1. Sign up for their newsletter and check out the messaging of their newsletter campaigns.
  2. Subscribe to and follow their blog. Look at what type of content they publish and what tone they use.
  3. Follow their official social media pages and analyze how they communicate with their followers.
  4. Put an item into your shopping cart but do not complete the checkout process. Wait and see whether or not they will try to convince you to complete the purchase. Study the language and structure of each email in their ‘Abandoned Cart’ email series.
  5. Purchase a product and analyze it. Determine how it compares with your own product.

Take a peek at pricing.

Your pricing strategy can make or break your Amazon FBA business.

There are numerous factors to consider when setting the price of your products. You can use the way your competitors priced their products as a reference.

Doing so will give you an idea on how much your target consumers are willing to pay. Check their prices on both Google and Amazon.

Keep in mind that your prices don’t necessarily have to be less than your competitors as long as you offer something they don’t. That extra value can come in the form of peace of mind, expedited shipping, better buying experience, etc.

Don’t forget to factor your startup and operating costs when setting your prices. It is essential that you earn enough to profit to make your time as an Amazon FBA seller worthwhile.

Take a temperature check with reviews.

Find out what consumers are saying about your competitors’ products and the overall customer experience they provide.

You can gauge the health of an ecommerce business by how good or bad the online word of mouth about it is. The number of available reviews also indicates how much interest consumers have on a particular product.

Knowing this information is essential to identifying the best items to sell on Amazon FBA.

Check the reviews on the competitor’s Amazon product pages, on their website, on review sites, and on social media.

Read the comments left on their blog posts too, if you can.

Customer reviews might show you something you can capitalize on or give you hints on something you have that you can turn into a competitive advantage. Identify the things consumers complain about.

Find ways to ensure they won’t make the same complaints about your product.

Review their social media.

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Taking a closer look at a competitor’s social media accounts can tell you a lot of things.

The number of followers along with how much they talk about the product tells you how viable that product is.

You’ll also learn the general consensus consumers have about that competitor’s business. You’ll see which attempts at engagement fail and which succeed.

Check out as many social media accounts you can find for each competitor. Use the following questions to gauge how strong or weak their social media presence is:

  • How would you define their overall social media presence?
  • What social media channels do they use the most?
  • What tone do they use when speaking with their followers?
  • What are they posting and how often?
  • How often do they post something new?
  • What relevant social media channels do they ignore?
  • What percentage of posts talks about their business?
  • What percentage of posts is aimed at increasing engagement or attracting new followers?

Amazon is the largest online marketplace on the World Wide Web. It is also the most competitive.

Fortunately, you don’t necessarily have to start from scratch.

You can use the trials, failures, and success of your potential competitors as stepping stones for your own Amazon FBA business.

Your competitors are goldmines of valuable information. They can give you an idea of what the best items to sell on Amazon FBA are. They can tell you what you should and should not do. They can give you ideas on how you can differentiate your brand.

Understand your competition and Amazon FBA success will be well within reach.

Why Storytelling is Crucial for Ecommerce Businesses

People love stories.

It’s why some stories originally told over a thousand years ago endure up to this day.

We’ve loved stories from an early age, back when we barely understood them.

Stories entertain. Stories inspire. Stories fuel the imagination.

Storytelling in Marketing

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It’s no surprise that storytelling has become one of the most effective tools used in marketing.

Its ability to establish a deeper connection with consumers is unparalleled. Storytelling can humanize a brand and make it more relatable.

When done right, eCommerce storytelling can reach out of the computer screen and “touch” consumers.

It can also be the catalyst to mobilizing a legion of loyal fans. 

What Is Storytelling For eCommerce?

Marketing is a necessity if you want to succeed in eCommerce.

There are countless competitors selling products identical to yours.

It becomes a race of who can capture their audience’s attention first. When it comes to engaging your audience, few can be as potent a tool as storytelling.

Capture the Imagination of Your Audience

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Online stores can make consumers experience their stores physically.

So you need something else to reel them in. Engage them. Make them understand what your brand is about. Let them know what you stand for.

Tell a story that makes your audience imagine themselves enjoying your products.

Take Consumer on an Emotional Journey

A powerful story can do a variety of things for your brand.

It can compel your audience to trust you.

It can evoke an emotion that leads to a desire to buy your product.

A good story can make consumers feel like they’ve known your brand all their life.

Why do I need to care about storytelling?

Stories make your brand feel more authentic.

Stories can make your audience feel like they are talking to a trusted friend.

Stories allow you to converse with your audience on a more emotional level. Stories add depth.

They can make your brand seem more than just a product or service.

Stories can make your brand an entity that consumers want to be friends with.

Information overload

Let’s face it. Consumers today find most conventional advertising methods boring.

You can’t expect a consumer to read a boring wall of text. We’re in the digital age.

Consumers are overloaded with information:

  • Google receives over 63,000 searches per second
  • The average consumer processes around 100,000 digital words each day
  • A person encounters an average of 5,000 marketing messages per day
  • 3 trillion online ads are sold each year

Most consumers don’t bother with marketing messages. Almost 80% of people scan content and only read the parts that interest them.

Ecommerce storytelling can compel your audience to read every word of your message.

Develop stronger relationships

Communication is a two-way street.

Consumers aren’t content with just listening to you.

They want you to listen to what they have to say too.

Tell a story your audience can relate to. This will make them feel that you understand them.

The more relatable stories you tell, the stronger your bond with them will be.

Make Your Audience Feel They’re a Part of Something Greater

Define your brand with a core set of beliefs. Make sure these core beliefs resonate with your audience.

This will build goodwill between you and your audience. It will add perceived value to your products and services.

This perceived value will allow you to charge higher than your competitors without losing your customers.

Consumers who feel strongly about your brand will also become your brand ambassadors.

For instance, Warby Parker has the mission to solve the problem with access to glasses. Their Buy A Pair, Give A Pair program encourages customers to be part of their initiative and help solve this crisis. This adds to the alure of buying a pair of glasses from Warby Parker.

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Warby Parker Buy A Pair, Give A Pair Program

Similarly, LUSH is an active participant in donating and discovering ways to help solve various environmental and animal crisis. Their strong activist brand attracts those who share similar values and adds to the “feel good” state of customers when they see that portions of sales goes to LUSH’s many ethical campaigns.

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Some of LUSH’s initiatives

Stories are motivational

Stories can move people. A good story can motivate consumers to do what you want them to do. Build a story around these motivations. To do this, there are three factors you need to consider:

  • What you want your audience to feel
  • What action you want your audience to take
  • What call-to-action (CTA) will be the most compelling

How Do I Start Telling A Story About My Business?

1.) Focus on emotions

Most consumers make buying decisions based on emotion instead of logic.

Paint a clear picture of how much they’ll love your product or service. Focus on positive emotions.

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Casper focusing on how they help people get better sleep

Make consumers see themselves being satisfied with what you offer.

2.) Talk about how your product makes the customer’s life better

Focus on the benefits instead of the product or service.

Emphasize why your product or service is superior. Highlight why it is unique.

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Casper’s Mattresses
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Bellroy showcasing how their wallets can handle wear and tear through time

Last, clearly define what consumers can achieve by getting it.

3.) Explain how your company solves customer problems

Attack the pain points of your target audience. Describe the problem in detail. Include its causes and its impact.

This will tell them you understand what they’re going through. Then describe how you’ve developed a solution for the problem.

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Bellroy visually showing the difference from regular wallets and theirs – the pain most people have with their wallets.

4.) Make the story shareable

Build a story around the core values of your brand. Present the story in a way that makes readers want to share it.

Create a short hashtag that summarizes your core message or the story.

Encourage your audience to share their own stories using the hashtag.

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Warby Parker’s story that makes you want to root for them

5.) Be more transparent

Consumers tend to assume the worst when there’s something they don’t know. So say tell it to them right off the bat.

Tell them about your company culture and how it’s like for the people working for you.

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Zappos’ perspective on company culture

 

Describe your manufacturing process.

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Warby Parker shows the full process from prototype to completion
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Everlane sharing their factory details for their products

Talk about where you came from and how you got to where you are today.

6.) Be socially conscious

Give back and pay it forward.

Get involved in local community events. Donate to charity. Sponsor a local project. Fund a few scholars.

Any good thing you do can be incorporated into the story of your brand.

Sharing this story will further endear you to your audience.

But make sure to be authentic with this. If you don’t believe in the event or charity, do not force yourself to be part of it. People can sense it.

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Everlane’s ethical approach
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Patagonia’s Denim

7.) Highlight your brand’s origins

People love success stories. It inspires them.

Share a story about the evolution of your brand.

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Highlight the challenges and setbacks you’ve had to overcome.

Talk about the mistakes you’ve made and the lessons you’ve learned.

8.) Humanize your brand

Don’t only talk about your company or your products.

Tell stories about your employees.

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LUSH has video features of their employees that share their work and life

Highlight what they bring to the table.

Showcase the various ways they contribute to your company.

Talk about people who founded your company.

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The story behind Huckberry
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Story of Yeti

9.) Enhance product descriptions

Many Amazon FBA sellers have trouble finding ways to tell their stories on the Amazon.

Ecommerce storytelling is harder to do on online marketplaces. So what should you do?

Use what’s already there. Use visuals and stories to describe what your product is and what it’s like to use them. 

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10.) Use real-life stories from customers

Encourage your customers to share their stories involving your company. Offer them a prize to encourage their participation.

This will give you a chance to collect user-generated contact. It will also add authenticity to your storytelling.

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LUSH user-generated content
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Daniel Wellington user-generated content
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Tweets and Instagram posts from Casper customers

Storytelling is vital to eCommerce success. It’s vital for a business’s longevity. 

A good story will not only make someone want to read every word of it, but it will also connect with them on a much deeper level. It transcends what the product is about. 

The beauty of a well-established brand is creating that connection where what you sell matters less than what you stand for.

And when you stand for something and mean something more than just a product to them, you build a tribe that will root for you in the long run.

Amazon FBA Sellers – Why You Need to Build a Brand Before It is too Late

There’s a surprising number of Amazon FBA sellers who don’t think that branding is important.

They believe that it’s okay to sell the same product as everybody else as long as they offer a better price.

This strategy can be viable in the short term but it is rarely sustainable for the long term.

You do not want to settle for being the cheapest in the market. You don’t want to compete with other Amazon sellers that also think the same.

It will become a competition of who can set their prices the lowest. This will hurt your profit margin.

What you want is to be able to compete with other sellers even if your prices are not the lowest. And you can do that through branding.

Reasons to Start Brand Building Today

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You need to get started on your Amazon FBA brand development strategy as soon as possible.

And here is why:

Stand Out from the Sea of “Me Too” Products

95 million Americans have Amazon Prime memberships.

Consumers purchased over 100 million products on Prime Day 2018. These two Amazon 2018 stats are proof that Amazon is a lucrative marketplace.

Amazon gives its FBA sellers the chance to make it big quick.

The benefits being so great is also a disadvantage. Everyone wants in on the action. Thousands and thousands of new sellers join Amazon each month.

This creates a sea of “me too” products, where everyone is selling the same white-labelled products and using the same strategies. Many of the listings end up becoming indistinguishable.

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A sea of “me too” products

 

Escape the Saturation Plague

A significant part of Amazon sellers offers generic products.

This causes the marketplace to suffer from a high level of saturation.

Market saturation is one of the most glaring Amazon issues. This makes it a lot harder for a new seller to enter his desired niche.

After all, it’s hard to stand out when a thousand other sellers offer the same product as you do.

You can change this with branding and actually stand out. 

This doesn’t mean just slapping on a logo. It means taking the deliberate path of creating a brand that means something, that has values, that has a story, and goes beyond just the logo.

Charge a Premium Instead of Being a Commodity

Selling is all about perception.

Make consumers think that what you’re selling is different.  

This will allow you to make them buy even if your prices are higher.

There can be no better example of this than Yeti’s $300 cooler. People were shell-shocked.  

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It was surprising that consumers were actually willing to shell out 300 bucks for a cooler.

It was so baffling that it became a popular meme. 

But even if it became a meme and was considered outlandish by many…Yeti is getting the last laugh.

Because while other people sell coolers for $80, they are able to sell their’s for triple the price. And it works.

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Build a Brand That Demands a Premium

So what gave Yeti the audacity to charge so much for a cooler?

Yeti believed in its brand.

While most Amazon sellers focus on being the cheapest, Yeti did a 180 and decided to be the most expensive.

This was possible because Yeti was able to establish itself as a premium brand.

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Yeti makes their products look premium and advanced

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When consumers buy a Yeti product, they don’t pay only for that product. They also have to pay for the brand.

Develop Customer Loyalty & Build a Loyal Fan Base

When was the last time you bought a generic product online and remembered the seller?

It’s hard to build customer loyalty when your customers can’t even remember your name.

And what can’t they remember your name? You’re selling the same unbranded product as everybody else so why would they bother?

In the minds of consumers, there’s no reason to remember you.

They believe that they can get the same product from another seller. It won’t matter if they can’t find you again so there is no point in remembering you.

But if you spend the time and effort to build a brand that focuses on them, they will remember you and think of you.

Build a Brand That Inspires Confidence

The first step to building a loyal fan base is creating a brand that commands trust and respect.

Let’s look back at Yeti. Imagine a lesser-known brand selling a $300 cooler. Consumers would most likely dismiss it as nonsense. Some will even outright laugh at the foolishness of it.

The $300 cooler only worked because Yeti did it.

What did Yeti’s loyal customers do after they heard about the $300 cooler?

They rationalized that the cooler must be far superior to other coolers. They didn’t feel skeptical. They believe that Yeti always gives them the right value for their money.

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Build a Superior Customer Experience

By having your own brand, you can offer your customers a unique experience.

You can engage your fan base on social media. You can convince them that you care for them. Show them you respect their feedback.

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Yeti showcasing customer’s photos of their product

Consumers love the feeling that the seller actually cares.

Publish useful and/or interesting content on a regular basis. This will make consumers want to follow you. Make them look forward to new products you are planning to sell.

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Yeti Youtube Channel

Become a Trusted Resource of Your Niche

Build a thriving community around your brand.

Become that dependable friend.

Be the first thing consumers think of when they need to buy something.

Think of ways to offer a customer experience consumers can’t find anywhere else.

For example, you can offer to send articles on how someone can make the most out of a product they bought. All they have to do is provide you with their email. You can then use the collected email as leads for your next marketing strategy.

Enjoy Creative Freedom Through Brand Longevity

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It’s easier for an Amazon FBA seller to be creative when they know that they have a fan base that will give them a shot.

Knowing your loyal customers are there for you will give you peace of mind.

You’ll have more confidence to launch a contest or event. All you need is one viral campaign to make your popularity explode.

And each surge in popularity helps ensure the longevity of your brand and your business.

Don’t be Afraid to Defy Conventional Marketing Wisdom

Remember KFC’s 11 Herbs and Spices Twitter campaign of 2017?

All KFC did was follow only 11 people on Twitter: the five original Spice Girls and six guys named herb. Then KFC waited for someone to notice.

Remember what happened when someone finally did and twitted about it?

That original tweet had been favorited more than 700,000 times. It also received more than 300,000 comments.

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Why did KFC come up with that campaign? It knew it had enough Twitter followers to make it work.

Branding is essential if you want to be a successful Amazon FBA seller.

You will be another generic seller in a wide sea of generic sellers if you don’t.

Building your brand should be one of your top priorities. A strong brand will give you the competitive advantage you need.

Your brand will ensure your business will remain sustainable for the foreseeable future. 

The #1 Mistake Amazon FBA Sellers are Making and Why You Need To Build A Brand

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Are you making this costly mistake?

Amazon is one of the largest online marketplaces. They had an insane 49& share in the entire US e-commerce market in 2018. It’s no wonder why so many people started flocked to create businesses that focus solely on this platform.

But with so much attention and hopes of riches on Amazon FBA, there lie many opportunities for beginners to follow the wrong advice and come out of this journey at a big fat loss.

Today I’m going to share with you the #1 mistake I see novice and advanced Amazon FBA sellers make.

Let’s dive in!

Don’t Fall Into The Same Trap

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Every aspiring online e-commerce entrepreneur dreams of a successful Amazon FBA Business and living those stories of reaching 7 or 8 figures.  The number of FBA sellers is increasing and that, in itself, can be a problem.

As more and more people flood into the platform and listen to the same gurus, the growing competition makes it harder for everyone to gain a foothold.

But even with the influx of new sellers, time and time again, I see people continue to make one massive mistake that can completely kill their Amazon FBA business’ potential.

The Bane of Amazon FBA Sellers – Being A Commodity Business

Quantity! Quantity! Quantity!

This is the only thing most new FBA sellers only think about. You may think that selling more products is enough. But such a strategy is not viable for the long-term.

Don’t take shortcuts. Don’t skip branding. Otherwise, your Amazon FBA business won’t last long and only be a commodity business. 

What’s a commodity business? One that focuses on selling and neglects building brand equity. This, in turn, puts them on a very dangerous position – where they could only compete on price to lure new customers.

Forgoing brand development is the biggest mistake an Amazon FBA seller can make. Here are the reasons why selling unbranded items (and poorly branded items) on Amazon won’t work as a long-term strategy.

Amazon’s Product Saturation Problem

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Amazon FBA provides online sellers the opportunity to potentially earn massive profits. New sellers are flocking to this online marketplace every day with that goal in mind. But, most are content with selling a few generic items. This causes saturation of “me too” products.

When a consumer search for a product on Amazon, there’s a high chance that they’ll be given pages and pages of the same item but with just a different colour or logo slapped on. This makes it hard for sellers to stand out and establish a following of loyal customers.

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1. Everyone is Following the Same Advice About Ranking

Many Amazon consumers only look at the first page of the results when they perform a product search (like Google search results).

So getting a top ranking can exponentially increase your sales volume and eyeballs on your product. But, doing so is easier said than done. Everybody seems to be using the same strategies to boost their Amazon ranking algorithm to improve the spot their listing shows up on. 

  • Having specific keywords in the product title, description, and feature bullets
  • Running giveaways to increase sales signals
  • Get as many reviews as possible

Having everybody use the same optimization techniques is troublesome. You need to do the best practices, but it also has the same effect as nobody performing optimization. 

2. You have to Adhere to Amazon’s Rules

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There are limits to what you can do to get your products ranked higher and stand out from the crowd. You have to follow the same rules imposed by Amazon (assuming you’re building an authentic business). Such factors make it hard to get creative.

It makes it all the more challenging to stand out from the rest of the Amazon FBA sellers. By spending time and creating a brand (not just slapping a logo on your product), you are no longer like everybody else. You have your own identity and message that you can incorporate in your marketing and build a community that could eventually become your raving fans.

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Vitacoco Amazon Brand Content Store

3. It is a Race to the Bottom

Imagine having to lower your prices again and again just to stay competitive…

Not something I’d ever want to do. But that’s the reality if you are a commodity business.

It is the most damaging aspect of selling unbranded or generic items on Amazon. You sell exactly the same product as everybody else. You offer the same quality of packaging and shipping (since it’s handled by Amazon and not you).

The only way left to compete is with the price.

The only way you make your products more desirable by lowering your prices. But chances are high that your competitors will fight back. How? They’ll bring their prices lower than yours. You can then only react by lowering your prices again. It will inevitably become a vicious cycle. It will be a cycle that is great for consumers but devastating for sellers.

And the person with the deepest pockets win. In most cases, it’s not you.

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Become A Premium Brand & Charge More

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A big mistake I see business owners make is thinking that they need to spend the time and effort on branding AFTER they make revenue. But it’s backward. You need to be carving out the time from the beginning to create a solid brand and then let it build organically.

Never underestimate the importance of branding. Even though it is difficult to see its effect, it is an important factor in how we decide between one product from another. By building a recognizable e-commerce brand will let you get out of the abyss of selling generic products and the sea of “me too” items.

When people connect with what your brand is about and what it stands for, they’ll be willing to pay the premium for your product. It is why some brands are able to charge double the price of their products, while others need to go into a pricing war that continues to lower their margins.

Here are the 5 most powerful reasons why you need to be serious with building a brand on Amazon:

1. Cut the Need to Compete on Price

Establish your brand,  then you won’t have to keep trying to undersell your competitors anymore.

You can even price your products higher. Why would you do this? To make yourself stand out while reaping more profits.

Yes, consumers generally go for products with a lower price. But that is only if you fail to make them perceive that your product offers a higher value.

For instance, if you search “water bottle” on Amazon, you’ll find these two very similar looking and described products beside each other:

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BOZ vs. Mossy Oak water bottle

Although Mossy Oak isn’t a brand that is recognizable for the majority of people outside of their niche, doing a Google search and you’ll find that it is actually an established outdoor equipment business in Mississipi. They create valuable content like How-To Guides and host various events that connect with their target market. They are able to charge a premium by aligning their brand name as an authority.

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Photo Credit: Mossy Oak

Whereas, Boz is just a standard “brand” you’ll find on Amazon that is doing all the ranking strategies well. Because they have not spent more time in creating an outstanding brand, they have to continue to compete on pricing.

2. It’s All About The Perceived Value

Have you ever wondered why some people are willing to spend thousands of dollars for Louis Vuitton or Gucci products?

Because of their perceived value.

People could find value in 2 ways:

  1. an increase in status (ie. the Gucci branded shoes makes them feel high class) or
  2. they believe they are getting more than what they pay for (it’s a damn good deal)

By increasing the perceived value of your product, people will be willing to pay a premium.

Although it takes concerted effort and time to align your brand name with an increase of status value, it can be the reason why you’ll have a legion of fans that keep coming back to purchase for you. 

One popular way to have people believe they are getting a good deal is to include add-ons that look valuable but are actually quite cheap to produce. What’s the simplest way of knowing what accessories you should bundle with your products?  Look at the “Frequently Bought Together” suggestions provided by Amazon.

3. Boast About Your Product

Another way to go about it is to highlight the advantages and benefits that your product provides.

Do it in a way that it strikes the strongest pain points of your target consumers. Explain in detail why and how your product is the perfect solution to their want or needs. The value of the presentation is massive. Is your brand the only thing that makes your product different? If yes, the presentation can do wonders.

Take a look the often-memed Yeti’s $400 cooler.

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YETI Portable Cooler VS. Other Portable Coolers…

You heard it right, Yeti is selling a cooler for $300 and people are buying it.

Yes, it is better than most coolers. It has offers improvements and new features. But does that justify the hefty price tag? Maybe.

A strong brand can get away with a lot.

So how did Yeti do it?

It didn’t build its brand on being the cheapest. It branded itself as a premium product with the highest in quality, technology, and features.

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Photo Credit: YETI; YETI Portable Cooler Product Technology & Features

And more importantly, they have a story that resonates with their intended customers:

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Photo credit: YETI

And now, Yeti is selling as many products as the cheapest competitor, but at a massive price difference.

That shows the power of building a proper e-commerce brand.

4. Better SEO and Conversions on Both Amazon and Google

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Branding gives you a significant edge when it comes to search engine optimization. And it isn’t limited to Amazon since you’ll also have an easier time getting your products ranked high on Google.

By having an established brand, you’ll have an easier time building brand loyalty. It will be easier to forge relationships with consumers when you’ve created a brand that has specific values it stands for and a personality that connects with a target audience. There’s a reason why so many people are loyal and diehard fans to Apple. 

It’s also simpler for word-of-mouth to spread for a branded product than a generic one.

All these can lead to various benefits such as:

  • higher reviews
  • higher conversions
  • higher search rankings on both Amazon and Google
  • and more

5. Stabilize Your Sales with Repeat Business

It’s a lot easier to get repeat customers when you built a respected brand.

In fact, 48% of transactions are from repeat customers.

Satisfied customers will remember your brand and be more likely to buy the same product from you again and again. It’s the same as people who are shopping for a car, they often gravitate to the brand they enjoyed or known for a particular trait (like safety or fuel efficiency). They’ll also have a bias in favour of your other products whenever they recognize your brand over others.

Spending the time and effort to really build a brand is something every e-commerce entrepreneur should do. It isn’t entirely just for Amazon FBA sellers.

But brand building is often overlooked or done in a lazy manner. It only requires a little investment and consistency, but the payoff can be massive.

By having a proper brand, you can gain a significant competitive advantage that will transcend your current product line. You’ll be empowered in dominating the countless generic Amazon FBA sellers. 

Are you building a brand for your e-commerce business?

 

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