How to analyze your product category’s competition and decide where to focus your efforts?

PRICE VS REVIEWS: What Really Drives Amazon Sales? | Ft. Jordi | Ep. 02 | Adil Talks 2.0

Data-Driven Approach & Engineering Mindset Jordi leverage...

Data-Driven Approach & Engineering Mindset

Jordi leverages his engineering background to focus heavily on data analysis, monitoring metrics such as conversion rates, PPC performance, pricing, and customer feedback to optimize Amazon sales.

Product Selection Criteria:

Market Fit: Find products people want that are affordable relative to competitors. Affordability does not mean cheapest but reasonable for the target segment (e.g., glass cups vs. plastic cups).

Niche Gap: Identify niches with solid sales but unresolved customer pain points, and offer solutions at competitive prices.

Avoid over-perfection; excessive product improvements can increase costs beyond what customers are willing to pay.

Home & Kitchen / Sports & Outdoors are preferred niches, but home & kitchen is complex due to diverse consumer needs.

Listing Optimization Essentials:

Main conversion drivers: price, reviews, social proof, and images.

Importance of these factors varies by niche:

In commodity items (e.g., plates, cups), price is critical.
In categories like children’s toys, safety and features justify higher prices.

Reviews matter more if top competitors have many (e.g., >1,000 reviews). High competition in reviews makes entry difficult.

Use of Amazon Vine Program for Reviews:

Jordi uses Vine regularly to gain verified reviews legally and quickly (100+ in under a month).

Average ratings tend to be around 4.4–4.5 stars; some inconsistent ratings (e.g., 3 stars for positive comments) occur.

Pricing strategy during Vine campaigns: sometimes lower initial price to avoid negative price-related feedback, then raise price post-campaign.

PPC and Conversion Rate Management:

Ideal conversion rate benchmark: ~12% or higher.

CPC (Cost Per Click) must be balanced against product price.
Low-priced products ($10–$20) face tough PPC profitability challenges.

Jordi’s PPC approach:

Test campaigns, assess conversion rates.

Push keywords to desired organic rank (e.g., top 3–4 positions).
Gradually reduce PPC bids to minimal amounts (e.g., €0.05) once organic rank stabilizes.

If conversion rates are low, improve listing or adjust PPC strategy.

European Market Nuances:

Conversion rates vary significantly across countries despite identical listings and translations

(e.g., Spain 14%, Germany 17%, France 5%).

Cultural/taste differences and market-specific preferences affect performance; France is notably challenging.

Ongoing testing to optimize for local markets is necessary but can be uncertain.

Inventory Management in Europe:

Uses Pan-European FBA program to send inventory to one country (Spain) and allow Amazon to redistribute stock across Europe.

Keeps 4–6 weeks of inventory buffer to avoid stockouts.

Uses 3PL warehousing in Spain for cost efficiency and frequent shipments to Amazon warehouses.

Suggests using FBM (Fulfillment by Merchant) locally (e.g., Spain) as a backup to prevent lost sales during Amazon stock delays, despite logistical complexity.

AI in Amazon Selling:

AI tools simplify data analysis tasks like review mining, buyer persona creation, and market gap identification, greatly speeding up product research compared to previous years.

However, Amazon’s internal AI systems (e.g., A9 algorithm and newer tools like Cosmo, Rufus) are less transparent and sometimes complicate operations.

AI for bulk file management is currently inefficient and error-prone, often requiring manual correction.

Brand Analytics in Europe has recently improved significantly, providing better data for PPC and market insights.

Brand Building and Multi-Channel Sales:

Building a brand on Amazon is challenging but possible by dominating multiple product listings with consistent branding and high review numbers.

Marketing off Amazon (e.g., via Google, YouTube, press) is important to improve brand discoverability, especially with Amazon’s AI scanning web presence.

TikTok Shop and influencer affiliates can boost brand awareness effectively, despite high affiliate commission rates (30–40%), especially for recurring products like supplements.

Team Management for Amazon Sellers:

Building and maintaining a loyal, productive remote team is crucial.

Uses time tracking, screenshots, and project management tools (Trello, transitioning to ClickUp) to monitor tasks and deadlines.

Prioritizes employee happiness and flexibility over strict exclusivity to retain talent.

Final Advice from the Jordi:

Focus on data and competitor research before product launch. Balance product improvements with price sensitivity to maintain affordability.

Use Amazon Vine to accelerate gathering legitimate reviews. Manage PPC campaigns by monitoring conversion rates and adjusting bids strategically.

Utilize AI tools for market research but rely on manual checks for complex tasks.