How to monitor prices on Amazon?

Amazon is now the most dominant company in the e-commerce branch having the biggest market share in the United States reaching 43% in online sales and ca. 44% of all product searches in the U.S. The platform gives a lot of opportunities when it comes to increasing sales results or gaining new clients. But the dark side is the harsh competition that might take actions and negatively influence the brand image and enterprise revenue. The actions that Amazon retailers take are the main topics in this article.

Amazon and its brand image

The competition among retailers might undermine the position of certain brands and their products. There are several ways to do so:

  • Setting prices on such low levels that the margin is absorbed and doesn’t generate revenue
  • Price wars
  • Promoting cheaper, fake products
  • Unauthorized sales

Later in the article, there will be shown ways that prevent such disruptive procedures.

 

Amazon from a practical point of view

Setting price on the right level

Attempts to compete with other retailers in Amazon should be categorically omitted because it is ineffective. It is because of the algorithms and price management system that a lot of retailers belong to.

Decreasing own margin to get to the same level as competitors won’t bring the desired effect and will negatively impact enterprise finance.

Instead of trying to extremely lower the prices, it is better to focus on maintaining the client’s satisfaction level at the same time keeping the retailer’s margin on the profitable level. To support such a case, retailers should remember about production cost optimization, distribution, transport, or conducted operations.

Combating the unauthorized sales

Among the offers, some auctions belong to retailers that don’t have any agreement. They offer goods that are under their market value. There are several ways to combat this phenomenon, namely:

  • Signing up to Brand Registry – the Amazon’s registry for sole distributors of certain brands and services
  • Spotting unauthorized retailers and reporting MAP (in the U.S) abuse, suggesting retail price or reporting unknown name of the company

Search engine optimization in Amazon

Similarly to Google, the position in search depends on the right SEO tactics and sales offer optimization according to the A9 algorithm.

Before scoring, the algorithm takes into consideration the criteria such as price, content, the quality of opinions, photos, descriptions of products as well as suitable words and keyword phrases.

How to optimize the content of the sales offer in the Amazon market space?

  • Offer title in the format: Brand – Main characteristics – The product’s material – type – code – size – color
  • Keywords should contain at least 250 signs, be unique (shouldn’t double), adequate to the offered goods or services, grammatically correct with the right punctuation and language
  • The product description should contain between 3 to 5 words that are the most common in terms of searches. Keyword stuffing should be replaced by an optimal number of keywords that fit buyer’s searches – all to make it easier for them to find what they need.

 

Start monitoring your prices!

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