Vendors on Amazon are facing an assortment of challenges in 2022. Advertising on Amazon now costs 30% more compared to 2020. On average, 3,500 sellers join the eCommerce platform on a daily basis.
How can small-scale vendors deal with rising costs and increasing competition?
Well, the best independent vendors have always relied on analytics to understand exactly what their customers want. However, Amazon-native analytics tools are becoming less effective for sellers every year. Here are some reasons why –
Amazon’s Lack of Commitment to Creating Seller-Friendly Analytical Tools
Have you heard of Alexa? No, not Amazon’s famous AI assistant that performs all sorts of tasks at the prompt of your voice commands. The Alexa website is a very old SEO analytics tool. It was launched by Amazon in 1996. It provides details about a website/webpage’s online traffic.
Back in the day, it was the perfect tool for site administrators who wanted to measure their growth. After over two decades’ worth of operation, Amazon recently stated that it would be shutting down Alexa.com.
Why? Because better-quality web analytics are now available across several platforms. These tools are easier to understand, more affordable, and give site admins detailed and specific insights into their growth metrics. Amazon has simply no financial interest in creating such high-quality analytical tools anymore.
Amazon Brand Analytics is Not Seller-Friendly Anymore
Amazon does have one high-quality analytical tool called “Amazon Brand Analytics” (former name: “Amazon Retail Analytics”). Well, it’s “high-quality” because it provides a large amount of data to registered brands on the platform.
- Approved members of Amazon’s Brand Registry can access data on customer demographics, customer behavior, the most popular search terms, etc. However, this tool is only available if you register with Amazon’s Brand Registry.
- You can’t use this tool unless you’re a brand-registered vendor with an active trademark. Of course, this rule is intended to prevent scammers from selling fake products. But, it also harms small-scale vendors with insufficient resources.
- Vendors who can’t afford to create unique brands can’t use Amazon Brand Analytics to gain competitive advantages. Hence, they turn to third-party apps to track product performance, customer behavior, and other key metrics.
Plus, Amazon Brand Analytics doesn’t even provide high-quality data to registered members. The type of information they provide can be accessed via any free third-party analytics tool.
Here are some features that premium-quality third-party Amazon analytics tools provide and Amazon Brand Analytics doesn’t –
- No segmented and bifurcated reports. Sellers have to read through different sections of the analytics reports to gather data about the same topic/feature. It can get very confusing.
- No actionable insights. Inexperienced vendors cannot analyze and decipher the point-blank numbers they see in their Amazon Brand Analytics reports. Unless they have certified data analysts on their teams, various data points in these reports are often useless to vendors.
- Basic data. Vendors only get reports on their individual accounts. Amazon Brand Analytics can’t track multiple stores or accounts of one vendor. The tool doesn’t provide multi-store reports. It also doesn’t provide detailed customer data; it only provides basic data like demographics, previous products purchased, etc.
- Hard to share. You can’t export reports from the Amazon Brand Analytics tool to send them to colleagues or anyone else. You need to request Amazon to send the report. This process is unnecessarily tedious.
Amazon’s Confusing Data Supply
Amazon’s data supply has always been difficult to use. Many vendors have to deal with escalating silos of data. Some have limited access to the data collected by Amazon. Amazon’s analytics tools have never focused on quantifying lasting product value or long-term customer value.
The company’s tools tend to have a generalized focus on growth, one-off sales, in-the-moment product sales, and other similar metrics.
The Need for Third-Party Tools
Amazon vendors need and deserve premium-quality, third-party Amazon analytics tools. These tools offer something that Amazon-native tools don’t offer – flexibility. Independent, third-party analytics tools typically provide all-in-one solutions.
From tracking your products/inventory to managing your finances to getting info on competitors – these tools have many uses. For sellers who are serious about making careers on Amazon, these tools are vital investments. They can give sellers a competitive advantage by providing them with –
- Categorized Data Presentation: Find yourself struggling to analyze and organize the sales data of a particular category of products you sell? Amazon-native tools don’t offer these classification features. But, third-party analytics tools do. Vendors can create multiple, assign different products to each category, and get detailed, real-time insights on those products.
- Performance Tracking: Several third-party analytics tools give sellers in-depth sales comparison charts. Vendors can compare orders, units, and other details just by glancing at these charts.
- Easy Searching: The latest third-party analytics tools have made searching for products or orders in the analytics reports very easy. Sellers can find whatever data they’re looking for on any of their orders or products using advanced search filters. They can filter their analytics reports to find specific products/orders by looking up their SKU numbers, channel order IDs, etc.
The best part about using third-party Amazon analytics tools is the easy-to-use dashboards. All data about a seller’s account is aggregated into a single dashboard. Sellers can get actionable insights from the pictorial charts, graphs, etc., on the dashboards. Selling on Amazon becomes much easier when you use third-party Amazon analytics tools!