Product comparison is vital for Amazon Sellers to gain the upper hand in an otherwise competitive market. It’s the key to price effectively and win the Amazon Buy Box, while at the same time ensures that you maintain profits.
It is far more business savvy than undercutting prices time and time again, which will effectively damage your business.
But how should an Amazon Seller build a product comparison strategy effectively? Well don’t worry, that’s what we are here for. Let’s walk you through what happens when you use an online price comparison tool.
- Measures Thousand Of Competitors
- Win The Amazon Buy Box
- Calculate Profitability
- Seize on Expansion Opportunities
Why Is Product Comparison Important?
Today is the day. You have your business set up, and an incredible product ready-to-go. For the sake of this article, let’s call it Product X. Let’s take a look at what comes next.
First of all, ask yourself these four questions:
- Is your product one-of-a-kind, with no similar products available?
- Are you the sole producer of this product?
- Is your pricing fair enough to attract customers?
- Do you make enough profit on each product?
If you answered YES to ALL of these questions then congratulations, you don’t need to do the research. But, of course, you didn’t – no one does.
The world of eCommerce is enormous. It’s a bustling metropolis with districts, highways, and new competitors springing up every single day. The chances of being the first one with a revolutionary product are slim-to-none.
And even if you are – you won’t be the only one for very long. You can find cheap copies of every brand at a local bazaar including “Abibas” and “Golce & Dabbana” and then pick up your shopping at “Singhsburys!”
Our point is that even if you do not face competitors now – you will very soon.
How Product Comparison Works
Product comparison is simple to do without a product comparison tool – but it is time-consuming. In fact, online shoppers do it regularly themselves. Once they set their mind to purchase an item, they will open up different providers to see if a direct sale is cheaper than one through Amazon, or they will set their search filter from “price: low to high.”
But will you scroll through and visit each provider and take notes? Across hundreds, if not thousands of products all from different businesses, each one has different qualities, different prices and potentially a slightly different unique selling point for each product.
Whether you are a startup or a previously established business – time is money. Useful though this information may be, it carves out an enormous amount of working hours through the day.
It is absolutely not cost-effective.
That is where a Product Comparison Tool comes in!
A Product Finder tool is a perfect example to organise your product comparison strategy.
Firstly, you need the product identifier code for your product X. Or if you are still in your planning stage, a product similar to your own – Ideally from your competition!
You enter this code into the Product Finder tool. Product Finder will then give you a spreadsheet of essential information compiled from across thousands of businesses.
This information includes:
- Amazon Specific Internal Number (ASIN)
- Brand (The one that Amazon associates with the identifier)
- Title (The description Amazon associates with the identifier)
- Buy Box Price (Essential to win the Amazon Buy Box)
- Amazon Referral Fee
- Amazon FBA Charges (Check out our Amazon FBA Guide for a full breakdown!)
- Product Sales Rank
And much more!
Now on the one hand, it may seem like a spreadsheet (however informative) will not affect your business. It is true that on its own it will change nothing.
But now you have information. Valuable, actionable information regarding your product and its market capability. When you put it into practice, you can change your profits forever. Let’s take a look at some of the enormous benefits to using this price comparison tool.
Measures Thousand Of Competitors
We’ve already established this, so it goes without saying, but a product comparison tool scans across thousands of businesses in an instant. With a few clicks you gain more actionable information in seconds than a thankless intern could gain in an entire year.
It’s also far more accurate than allotting staff members to conduct research. You don’t have to worry about mixed-up decimal points, random extra keystrokes or bathroom breaks!
You have an entire market’s worth of data in moments. This means that you can strategise your business plans effectively by answering questions such as:
- Which other products have unique selling points?
- Which brands are currently involved in these products?
- How is the price variance of alternative brands?
- Will your combination of price and quality stand out in the current market?
Essential business planning points that you need to answer if you want your business to succeed.
Win The Amazon Buy Box
One of the most common questions we get asked is “How do I win the Amazon Buy Box?”
It isn’t surprising as the Amazon Buy Box is the goal of every Amazon Seller. What makes it worth the effort is the fact that 82% of all Amazon sales (around 90% on mobile devices) are made via the Amazon Buy Box.
Those are some wild numbers considering Amazon is the world’s largest marketplace. There are 200 million Amazon Prime members alone!
With the Buy Box on your side – orders are high. That’s why Product Finder results calculate the optimal price to win the Amazon Buy Box. It’s a combination of price and quality in regards to your competitors.
Of course it isn’t the only metric to win the Amazon Buy Box, but it is certainly a vitally important aspect of it. You can read more about the other metrics here.
What is your business goal? Make a profit.
What’s a common barrier? Unplanned Amazon fees.
These are fees that cut into your overall profits. They decrease your business growth if they are not properly accounted for before you sell on a larger scale.
Product Finder not only calculates your basic profitability, but it also gives you the various costs regarding Amazon fees in advance. This leaves you with a figure that wholly reflects the pure profits you make on each sale – with zero margin of error.
Surprises are for birthdays – not business costs!
Seize on Expansion Opportunities
Product comparison doesn’t just have to limit itself to a single market. This is somewhat of a specialised matter, but certain Product Finder tools have the ability to differentiate between market regions.
The advantage of these tools is that you can use them for effective market expansion. Say, for example, that Product X is on sale in a saturated market. With an effective Product Finder tool, you can measure alternative, potentially untapped markets.
It is possible you will need to analyse minor tweaks in your distribution and pricing strategies, but it offers a unique advantage over your competitors – as well as vastly increasing your sales!
Where To Find A Comparison Tool Like This?
That’s the easiest part – it’s called Product Finder.
While there are a few others out there, they all have their failings. Some can’t differentiate between market regions, others fail to give the Buy Box price, and a couple can’t even accurately account for Amazon FBA fees.
All of this data is so essential for businesses, that we don’t believe that they are “optional extras” – they are necessary to succeed.
With Product Finder to help with your product comparison strategy, you have all the latest, actionable data at your disposal in order to make your business decisions. Once you have the data, it takes some business planning, but you shouldn’t have a problem with that!
If you’ve any questions, contact us and one of our experts will be happy to help, or check out our other business resources and guides!
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