Market share is an indication of how much sales volume your brand controls in the product category. In other words, what percentage do you receive of the total sales in your product market?
Calculating your market share on Amazon is important for a number of reasons and at a number of stages.
- Product sourcing: When you are consider selling a product or selling in a particular sub-category, it’s worthwhile to determine the market shares of top competitors including their average monthly revenue. Then examine their average product costs, number of reviews, and other factors. This will help you to determine the difficulty with earning a piece of the market share and if it is at all possible considering factors like product costs.
- Product sales over time: Analyzing your monthly market share for individual products and sub-categories is a good way to think about sales goals, forecasts, and required marketing time/spend. It is also worthwhile to analyze market share over time for your top competitors.
How to determine market share on Amazon:
- There are several tools which can pull estimated monthly sales, and other important market share data. A few examples of these tools are Unicorn Smasher (Amz Tracker) and Jungle Scout.
Look at the data for at least the first 3 pages. This will also help to show you if the market share is largely controlled by only a few products/brands on the first page, or if it is more evenly spread amongst the first 3 pages.