What Continually Increasing Competition on Amazon Means for Brands

Competition on Amazon
Competition on Amazon

Over the years, brands have learned that increased competition on Amazon isn’t only fueled by its growing customer base. The growing number of brands selling on the channel is also creating a more cluttered catalog. As a result, it has become more difficult for brands to grow their presence organically. With that said, organic optimization, advertising, and the intelligent use of data are absolutely necessary to drive a brand’s success on Amazon. Here we explain important considerations for brands that strive to overcome the competition on Amazon.

Organic Optimization is More Important than Ever Before 

Focusing on your product’s detail pages should be a priority. The elements brands need to focus on are the product’s title, bullet points, description, image library, and A+ content.

To put this into perspective, below are a few examples where organic optimizations have a direct impact:

Customer Experience 


Put yourself into your shoppers’ shoes and consider what makes shopping on Amazon either a good or bad experience. To provide positive customer experiences, include high-quality images throughout your detail pages. This also means including a variety of image types in your product image libraries. Beyond imagery, your brand can offer concise and informative titles, bullets, and descriptions. Prioritizing the above will help communicate with shoppers effectively. It will also minimize the research needed to purchase your product.

Ranking in the Search Results 


When shoppers search for products on Amazon, your brand needs to do everything possible to earn organic placements. We recommend conducting keyword research and creating a strong keyword strategy. This will allow your brand to apply strong optimizations across your catalog. And then, as a result, your products will be more likely to earn organic placement in the search results.

Brand Reputation 


Like customer experience above and customer reviews below, your detail pages are a direct reflection of your brand. The quality of your optimizations will determine your brand’s ability to offer a positive experience and earn reviews. As a result, the image library, title, bullets, description, and A+ content need to be a priority.

Success of Advertising Campaigns 


As we’ve explained above, organic optimizations can have a ripple effect on your brand’s presence on Amazon. This is most tangible when investing in advertising. Driving traffic to unoptimized listings results in lower conversion rates. Therefore, organic optimizations are more important than ever to your brand’s bottom line and return on investment.

Customer Reviews 


Customer reviews hold valuable information that can be used in organic optimizations. We suggest looking through your reviews to identify common themes. From there, address questions and concerns within your product’s bullets and description. This will help your brand better communicate with shoppers and influence purchase decisions. And, to take it a step further, this approach can lead to more positive reviews and less negative reviews.

Every part of a brand’s Amazon strategy is connected. Because of this, and considering the above, brands cannot ignore listing optimizations.

Amazon Advertising is Becoming More Expensive, but Worth It 

The ROI brands can expect from Amazon Advertising and DSP is a driving factor of its popularity. Amazon’s conversion rates are generally higher than alternatives such as Facebook or Google. Stronger performance is likely due to Amazon’s ready-to-buy audience and a clearer understanding of how a shopper converts. 

Aside from a high ROI, advertising on Amazon should be gauged by its ability to generate brand awareness and product visibility. At Marketplace Strategy (MPS), we encourage brands to take advantage of Amazon Advertising’s potential. Although it has become more expensive to do so, our clients have found it to be a vital cog in their Amazon strategy.a. More brands are advertising on Amazon, all while becoming more sophisticated. So the rising costs are unsurprising. To keep up and maximize your efforts, we suggest using a healthy mix of both search and programmatic advertising.

The Ability to Apply Data to Your Amazon Strategy is Crucial 

As we briefly mentioned above, Amazon’s data is unique and powerful because it offers insight into consumer behavior. Whether a brand can interpret and leverage this data to adjust their strategy will set them apart from competitors.

For example, advertisers may find themselves in a position to test different campaign types. After the campaigns run, compared performance data will make it possible to allocate spend more efficiently. Brands that lack this skill, or the strategic support, will inevitably fall behind.

Marketplace Strategy Perspective 

Brands and retailers that sell on Amazon inherently have a lot on their plates. And, selling on Amazon isn’t a simple endeavor. Our belief is that to remain competitive, it’s wise to invest in a strategic partner or managed services provider. Doing so makes it possible for brands to take their presence to the next level and focus on other areas of their business. 

As time goes on, the competition on Amazon is going to become even more complex. So, to be successful, brands have to focus on optimization, advertising, and data. If you could use the support of a strategic partner, schedule a free consultation. And as always, we’re here to answer any questions.

Competition on Amazon
Hannah West

Hannah West