How to Remain Competitive on Amazon’s Saturated Marketplace

In this playbook, discover strategies to increase your market share and win back demand.

Download the Amazon Competition Playbook

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44% of Amazon sellers cite direct competition with Amazon as a leading concern

By Natalie Taylor November 19, 2019

In this playbook, discover strategies to increase your market share, remain visible to consumers, and win back demand from your competitors — including Amazon. 

Competition on Amazon is at an all-time high and ensuring your product’s discoverability and your business’s sustainability is becoming increasingly challenging. Since 2017, over 3 million new third-party (3P) sellers have joined Amazon marketplaces worldwide and there are now nearly 2 million brands operating on the platform. 

In addition, Amazon itself poses a threat to sellers and brands both competing for the Buy Box and competing in the branded and private label segments. As the original categories of many top Amazon merchants become increasingly saturated, sellers and brands are seeking opportunities elsewhere, expanding to new categories or subcategories. Yet many often do so without proper insights into the opportunity, consumer demand, and competitors within those categories that are necessary to inform a competitive strategy. 

How to Remain Competitive on Amazon’s Saturated Marketplace

What Will You Discover in the Playbook? 

  • How to win against Amazon’s Buy Box competitive and private label products
  • A breakdown of all the types of competitors that exist within the CompetitiveSphere™ on Amazon and how they impact your demand
  • Steps to performing a competitive analysis for your business and which metrics you should regularly monitor
  • Strategies to dynamically price your entire catalog and increase your market share

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Remaining competitive and profitable on Amazon requires a comprehensive understanding of your direct and indirect competitors

Who are Your Direct and Indirect Competitors?

Do you know who your direct and indirect competitors are on Amazon? Are you aware of the competing, complementary, and substitute products that affect the demand, price points, and discoverability of your items?

Indeed, remaining competitive and profitable on Amazon requires a comprehensive understanding of your direct and indirect competitors as well as a fluid strategy that evolves and adapts to Amazon’s dynamic marketplace

Direct Competitors

Competing products are products that satisfy the same consumer need as your product. Direct competitors are the brands or sellers that provide those products. Factors like price or brand name can determine how competitive they are, ultimately impacting your demand. For example, think of the customer preference consumers may have with Nike versus Adidas.

Indirect Competitors

In short, an indirect competitor is a brand or seller that offers similar products or viable substitutes. For example, if you sell peanut butter your indirect competitor would sell almond butter. Although they are not the same, they are used for the same purposes and could be comparable to consumers.

Remaining Competitive Through Competitive Analysis

Performing a competitive analysis is crucial to staying ahead of the competition on Amazon. A regular examination of key competitor metrics will not only help you track your own performance and profitability but will also allow you to make more precise scouting decisions and optimize your pricing and advertising strategies to increase your sales and market share.

Play by Play on Remaining Competition on Amazon

In The Amazon Competition Playbook, designed for both sellers and brands, we examine the intricacies of the CompetitiveSphere™ on Amazon, the variables that impact your demand and prices, and strategies to increase your market share, drive sales, and ensure the sustainability of your Amazon business.

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About the Author

Natalie Taylor is the content manager at Feedvisor, where she oversees and executes on the company's content marketing strategy. Prior to her work at Feedvisor, she wrote for a B2B supermarket magazine, focusing on merchandising and marketing trends in the grocery industry.

Whether you are a brand or seller operating on Amazon’s marketplace, it is crucial that you understand every layer of competition on Amazon as well as the numerous variables that can directly or indirectly affect your performance on the platform.

With the details and strategies outlined in this playbook, you will be prepared to optimize your business accordingly and adapt to real-time market changes to always remain one step ahead of the competition.

Download the Playbook

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