How to evaluate market competition through the traffic costs

2024-02-22| Help Center|views(1468)|Comments(0)

💡Keyword research function: click here
This metric is based on SellerSprite internal calculation which indicates the traffic cost required to sell similar products with same prices.

How to calculate: Traffic costs = Average PPC Bids/median price of the top 3 ASINs * 100%
Why choose the median price of the top 3 ASINs?
The top 3 ASINs for keyword clicks are taken from the Amazon ABA report, and the data is accurate and reliable;

And the higher the product ranking is, the higher the buyer's purchase intention and the greater the reference , which can help us gain a general understanding of the market.


The PPC bid is US$3.54, dian price of the top 3 ASINs for keyword clicks is US$21.99. Then the Traffic costs =3.54/21.99*100% = 16.1%, For every $100 amount of commodity, it requires $16.1 to spend.and the median price of the top 3 ASINs for keyword clicks is US$21.99.
Then the Traffic costs =3.54/21.99*100% = 16.1%,
For every $100 amount of commodity, it requires $16.1 to spend.

Generally speaking, the lower the Traffic costs, the lower the cost of getting traffic and the smaller the competition.
For example, the keywords colby jack cheese and moss for plants indoor represent two different niche: and you see traffic cost is 2 times different


Calculation method: Traffic cost/Market ana.*100%


Compare the three major indicators that reflect market competition - click concentration, traffic cost, and PPC bidding
Therefore, when we know the traffic cost, we can try to avoid markets with high traffic costs when selecting products.
Sellers who are more concerned about competition can also prioritize sorting or filtering by traffic cost to find keyword markets with relatively low costs.


As you see from above I put 5 Max for Traffic cost


And then descending for Traffic cost


After initially screening out market segments that meet your product selection expectations, click the jump icon to go to the Amazon search results page.


You can analyze from amazon search page more

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