It’s not as easy as looking at the growth of your total market sales to determine your Amazon market share. You can calculate your Amazon market share if you have a good idea of a product’s ranking. However, this formula is not as simple as it sounds. For one, ecommerce numbers are often based only on top-ranking products. Amazon also keeps their data close to their chest.
The Bigger Picture of the Amazon Market Share
Amazon and Ecommerce have seen significant market growth over the past year. In categories such as apparel, books, or consumer electronics, the numbers have risen to almost 16% between 2016 and 2017. The trend is steadily on the upwards.
It’s not as easy as simply looking at the growth of your total market sales to calculate your Amazon market share. You can calculate your Amazon market share if you have a good idea of a product’s ranking. However, this formula is not as simple as it sounds. For one, ecommerce numbers are often based only on top-ranking products. Amazon also keeps their data close to their chest.
1. Get the sales numbers for your categories and products.
You have many options and tools to determine the value of Amazon sales in certain categories. The Amazon Sales Estimator by SellerApp gives data about average sales per category.
These tools can be useful if the product’s ranking in sales is known. This will allow you to make an accurate estimate. You will get different results if you use a tool such as SellerApp which provides data on the estimated sales of your product.
Once you have the results for each category, you can estimate the numbers for individual products. You will need to estimate the numbers for specific products. To calculate the conversion data and Amazon search rank, you can use another tool or search Amazon.
These tools may also produce different results because they don’t have the same data as Amazon. It is better to take the average of several tools. Calculate from the raw numbers, and don’t convert your market share to a percentage until the final step.
2. Calculate expected category growth and the overall Amazon market share by category.
You can use the same tool or another to get a good estimate of the category’s likely growth over the next year. You can even get comparative data from the best analysis firms to help you gather more information in one location. These numbers can be used to augment your averages.
Next, look at Amazon’s market share for each category over the years leading up to the present year. You will get slightly different results from different reports. Therefore, you need to identify the reliable sources and then average them.
Different categories will be analyzed. You will need to examine a variety of sources to obtain a fair amount and an average for each category.
3. Calculate market share on Amazon.
Now that you have your overall Amazon averages, you can add these to the second step numbers. It’s time to compare how you stack up. Use the information you have, calculate your Amazon sales for each category that you sell in the same year as the overall Amazon averages.
Remember to include any sales that are attributed to third-party sellers for your brand. Conversions are the most important aspect of Amazon. You can refine your numbers by using comparative sales or organic search ranks. Because of the possibility that third-party sales could skew your results, this step is crucial.
Final Thoughts
This method will show you a significant difference in your market share on Amazon compared to your old set of numbers. It can be quite a thrilling experience.
Ecommerce does not have the same limitations as brick-and-mortar sales. You have unlimited shelf space to display your product, regardless of whether you dropship or stock the product. You don’t have to face the same fulfillment problems as physical shops, thanks to the Amazon FBA network.
Amazon has a larger market share than you might think. These numbers could be just what you need to get it going.