Make data-driven business decisions to scale up thanks to the power of this tool.
Product comparison is an important component of Amazon’s competitive marketplace. It helps you stand out by pricing competitively and winning the Buy Box, while also ensuring that you’re still profiting. Without an Amazon product comparison tool, cheaper prices may seem like an easy solution; but eventually they’ll greatly affect your business. It’s smarter to be more profitable and sustainable than it is to continually lower your prices, which will lead to failure.
But how and why do they work?
Don’t worry, that’s what we’re here for. Let’s walk you through the steps when using an Amazon price comparison tool and how your business can benefit from one!
The Importance of Product Comparison Tools
Here’s a list of four important questions you can ask yourself.
- Does your product seem to be one-of-a-kind, unable to be replicated?
- Do you create this product on your own?
- How are you able to stand out in the competitive business world? Are you pricing yourself fairly?
- Does every product offer a good profit margin?
If you answered YES to ALL of these questions then congratulations, you don’t need to do the research! But you would be the first business to answer yes to those questions. Even then, you’d face fierce competition before long as other companies jumped onto the bandwagon of your great idea.
The world of eCommerce is growing larger every day. Every day, more and more people enter the world of online shopping by creating innovative new products. The chances of being one of the first to do this are slim.
Look at designer brands, even they aren’t invulnerable to knock-offs and quality-squandering replacements. You could go to any bazaar and find cheap copies of their products there, including “Duma” or “Shanel“. Then afterwards you could pick up some “Abibas” and “Bolce and Gabana“!
Many businesses don’t realize that it’s not a question of if competitors will come on the scene, but rather a questions of when.
Why an Amazon Product Comparison Tool?
A comparison tool is helpful when trying to find the best prices on the most essential products, including a shirt or a cellphone. It saves you time by comparing all products at once, so you don’t have to do all of the legwork yourself. This is why online shoppers regularly consult a product comparison tool themselves – they’re willing to save their time so that they can focus on finding the perfect item for them.
Shoppers have the luxury of letting Amazon’s algorithm do the sorting for them. They can browse, select product by product or brand by brand at their leisure.
It’s a leisure that you do not have.
Without an Amazon product comparison tool you could waste hundreds of hours (either personally or by your workforce) as they put together a competitor analysis click by click across potentially thousands of Amazon Sellers. Once they’d finished that analysis, they would have to start again as no doubt the prices would have changed…
As an entrepreneur, it’s important to stay on the cutting edge of trends in technology and find a tool that assesses products from Sellers at a single keystroke.
How to Use an Amazon Product Comparison Tool?
A Product Finder can be a great way to organize your product comparison strategy.
You can use it in two different scenarios:
- You aren’t sure about which products you would like to sell on Amazon and are researching into competitive, profitable products.
- You have a product, but you are still building your financial strategy and calculating your profit margins.
Regardless of your situation, you use the SKU of a product and enter it into your Amazon product finder tool. In a heartbeat (or less if your internet connection is good) you’ll receive a downloadable spreadsheet of all the information you need to make strong financial decisions that are based on pure, accurate data from across hundreds of different Sellers that are selling the same product.
This information includes:
- ASIN / Amazon Specific Internal Number
- Brands (The one that Amazon associates with the identifier)
- Title (The ones that Amazon associates with the identifier)
- Buy Box Price (Precision pricing is essential to winning the Buy Box on Amazon)
- Amazon Referral Fee.
- Amazon FBA charges (our Amazon FBA Fee guide explains them all)
- Product Sales Rank
And so much more!
A spreadsheet on its own might seem like it won’t do much for your business, but the truth is that it’s more than just a tool. It’s a map to increasing your profits. When paired with the right decisions, it can increase your odds of success significantly.
This is because in the world of ecommerce, information is everything. Valuable, actionable information drives marketing strategies, pricing evaluations and more. Just ask any CFO, they’ll tell you exactly what information is worth!
But let’s take a look at the benefits of the information you can get from using an Amazon product comparison tool.
Scan Your Competition
We’ve established this already, but it goes without saying that a product comparison tool scans thousands of businesses to find information in seconds. With a few clicks, you’ll garner more actionable and more accurate info than an intern could hope to find after months of hard work. One advantage of using a tool to perform the research is that it’s more accurate than conducting research by an individual. There’s no risk of mistakes in calculations, keystrokes, or losing time as they break to use the restroom.
With an Amazon product comparison tool, you have access to enormous amounts of data in an instant, AND you can differentiate your searches by geographical marketplaces. That means you can answer questions like:
- Do you make more money when you sell this product in that region?”
- What other products have anything in common with this one?
- What brands are involved in these products?
- How does the price of alternative brands compare to your own?
- Based on your combination of price and quality, will you be able to compete with the other options in your market?
You need to answer these important questions if you want your business to succeed:
Get The Amazon Buy Box
One question our customer care team often gets is “How do I win the Amazon Buy Box?”
Competition for the coveted Amazon Buy Box can be tough with so many sellers vying to win. But, owning it means huge opportunities for your store and your business. That’s because 82% of all sales on Amazon (or about 90% via mobile devices) flow through the Buy Box. Combine that with the fact that Amazon is without a doubt the world’s largest online marketplace. There are over 200 million Amazon Prime members in the U.S. alone!
As a seller on Amazon, you know that the Buy Box is important. That’s why our Product Finder tool calculates the best price to win the buy box. Combining both your product’s price and quality against your competitors will increase your orders.
Of course, winning the Buy Box on Amazon is not just about your sales volume. There are a variety of other factors to consider. The Amazon Buy Box Optimization Strategy guide can help you learn more about these metrics and how they impact your chances of winning the box.
Calculate Your Profits
Your company’s goal is to make a profit in order to grow your operations.
Amazon fees stand in the way of that goal.
In an online business, many obstacles arise to impede your success. But unexpected Amazon fees shouldn’t be one of them. Amazon is no stranger to complex fees and chargebacks. That’s why we offer FBA fee support and minimum chargeback guides for Vendors. When you don’t account for the necessary fees, such as advertising and credit card processing fees, it can be tough to maintain a profitable business. All these fees need to be taken into account before increased growth.
Product Finder not only calculates your basic profitability, but it also gives you a more in-depth look at your margins. You’ll know all the Amazon fees in advance and will instantly have the net profit you make on each sale with zero margin of error. After that it’s up to you or your accountant to cover your operating costs.
Surprises are for birthdays, not business fees!
Expand Your Business
Opportunities for expansion are always popping up, so make sure you’re always on the lookout.
It’s common for people to want to compare prices when they’re looking for a new product. But product comparison doesn’t have to stop at one country or continent. Certain Product Finder tools are capable of differentiating between regional markets, making it easier than ever to get a complete picture of price variations in different areas.
Companies using these tools will see greater market expansion. For example, say Product X is on sale in a saturated market. With an effective Product Finder tool, you can measure alternative potential markets that may not be on sale or as saturated, and grow your business.
This strategy will allow you to tweak your distribution and pricing. It may be a little tedious at first, but it’s worth it because you won’t have any competition. Plus, with this unique advantage you’ll sell more products!
How can you Find an Amazon Product Comparison Tool that Does This?
That’s the simplest part – it’s called Product Finder.
Some tools are better at certain tasks than others. For example, some offer a more accurate Buy Box price, while others can’t tell the difference between Amazon market regions. But Product Finder covers all your Amazon price comparison tool needs.
With the power of Product Finder at your fingertips you’ll have more information and a better pricing strategy to back up your business with up-to-date data. Grow your business quickly and securely with the knowledge that you have an edge over your competitors.
If you have any questions contact an ecommerce tool specialist today! Otherwise, feel free to check out our other business resources and guides!