How to Compete with Amazon Basics: Strategies for Sellers
The competition on Amazon is fierce, and the presence of Amazon Basics only raises the stakes. This private-label brand spans many categories and benefits from Amazon’s unmatched visibility and reach. If sellers hope to succeed, they must develop a clear and effective business strategy tailored to this platform’s challenges.
In this article, we’ll provide an overview of Amazon Basics and share actionable tips to help sellers compete efficiently with this retail giant.
Table of contents
What is Amazon Basics?
Amazon Basics is a private-label brand owned by Amazon that offers a wide range of products across various categories, from clothing and home goods to electronics. The brand has gained significant traction by offering lower-priced alternatives to well-established brands, often replicating their products at more affordable rates. With more than 15 years on the market, Amazon Basics has established a strong presence. In fact, for the 12-month period ending September 30, 2024, its earnings per share hit $4.77, which is a remarkable 143.37% increase compared to the previous year.
Here are a few key reasons behind the success of this brand:
Affordability: Amazon Basics products are budget-friendly, with many of their products costing half as much as their counterparts from well-known brands.
Trust: Many consumers trust Amazon for its reliability and convenience.
Delivery: Amazon offers fast, sometimes even same-day delivery, with free shipping for Prime customers.
Sustainability: Many Amazon Basics products are part of the Climate Pledge Friendly program.
Lack of brand loyalty: Some consumers aren't particularly loyal to brand names, so they see little difference between choosing products from Amazon Basics and established brands.
Quality: On average, these products enjoy ratings between 4 and 4.5 stars.
All of these factors contribute to the impressive performance of Amazon Basics', with an increasing number of customers opting for these alternatives. This success could have significant implications for other sellers, as we’ll explore in the next section.
How Amazon Basics Affects Independent Sellers
In a garden with a towering tree, smaller plants must compete for sunlight and water to thrive. Similarly, Amazon Basics creates significant challenges for independent sellers, especially when it comes to maintaining competitive pricing and profitability. With its enhanced visibility within Amazon’s ecosystem and a strong presence driven by numerous reviews, Amazon Basics attracts considerable customer attention.
In order to succeed alongside Amazon Basics, having a well-thought-out strategy is crucial. Below, we’ll review useful methods that can help you stand out.
How Sellers Can Compete with Amazon Basics
Competing with Amazon Basics can be likened to navigating a vast ocean. You can either sail alongside Amazon, vying for the same customers, or chart your own course, discovering new shores where both you and Amazon can prosper. The path you take will depend on your business goals and personal preferences.
Below, we’ll explore five key strategies to help you succeed, based on the approach you select.
Choose the Right Product to Sell
Competing with Amazon Basics doesn’t have to mean going head-to-head. Amazon Basics primarily caters to the mass market with products designed for broader appeal. One effective strategy is to focus on niches and specialized markets that Amazon Basics is unlikely to enter, such as eco-friendly dog toys.
Alternatively, you can choose products that Amazon Basics doesn’t sell yet. This ensures that you won’t face direct competition within your chosen niche. To succeed, it’s important to research both the product and the market thoroughly to ensure that your selection is not only free of competition with Amazon Basics but also profitable.
The most efficient way to do this is by leveraging analytical tools that streamline your research process and provide reliable data for decision-making. A top choice is the AMZScout toolkit, known for its user-friendly interface and reliability. Let's explore below how to use AMZScout to help you determine whether a product is being sold without Amazon Basics among competitors.
Checking if Amazon Basics is a Competitor for Your Product
AMZScout PRO AI gathers and analyzes data from Amazon, offering valuable insights into market trends and product performance. Many top Amazon sellers rely on this tool to make informed decisions about product launches. Read on to find out how it can help you assess both competition and profitability for a potential product:
1. Install the AMZScout PRO AI Extension. Enter your email address to start a free trial.
2. Search for a product on Amazon. Use Amazon's search bar to enter the name of the product you want to analyze, (e.g., "hand soap"). Open the extension by clicking the icon in the browser's top-right corner. 3. Check the competition with Amazon. To see whether Amazon is among the competitors, check the following columns in the search results:
The Brand column: This will display brands alphabetically, helping you quickly spot if Amazon Basics is a competitor. For example, in the hand soap search, Amazon Basics is listed second after Aesop.
The Seller Type column: This metric shows who currently holds the Buy Box—Amazon, FBA, or FBM sellers. Besides Amazon Basics, Amazon sells other brands with competitive advantages, making it harder for resellers. If Amazon is present, most purchases go directly to them, making it tougher for third-party sellers to compete.
While this tool will help you quickly identify if Amazon is a competitor, competition alone doesn’t determine whether you should sell a product. It's also important to assess product profitability and other potential threats and opportunities. Let's explore how to do that below.
Evaluating the Product’s Profitability
By conducting thorough product research, you can assess whether products can generate a profit effectively and stand out in the market. Here’s how to evaluate whether an item is worth selling or if it’s best to focus on something else:
Note: While resellers can compete with Amazon Basics, the majority of competitors are private brand owners. Below, we’ve put together a guide to help you assess whether a product is a good fit for launching under your own brand.
1. Check the niche potential. To see how these types of products sell, click on the Niche Score, located in the upper right-hand corner of the page. If a score exceeds 7, this suggests a combination of high demand, low competition, and favorable profit margins.
2. Evaluate niche demand. Click on the Niche History in the upper right-hand corner to review sales trends. This will allow you to analyze the pattern, identifying whether the market is stable, growing, or declining, with stable or growing trends indicating positive market conditions.
3. Analyze the competition. Even though you’ve already checked if Amazon Basics is a competitor, you also need to assess niche saturation. Consider the following:
Competitor volume: Check the number of results in Amazon’s search for a specific term. If there are fewer than 1,000 results, this indicates lower competition and a higher chance of success.
Product listing duration: Examine the “Available From” column next to products in the first search page. Listings that have been available longer usually suggest stronger, more established competition.
Review count: Look at the “Number of Reviews” column. A higher review count generally indicates more competition, making it harder for a new product to gain traction.
![AMZScout PRO AI Number of sellers Number of reviews]( "AMZScout PRO AI Number of sellers Number of reviews")
![image]()
4. Assess product suitability for your store. Click on the AI Product Analysis feature, highlighted in violet on the right side of the page. This will provide a detailed overview of the strengths, weaknesses, and risks of the most popular product in the niche, reflecting demand trends so you can assess if this type of product aligns with your business goals.
5. Evaluate profitability. To estimate your potential earnings, start by clicking the Product Score for Private Label to prioritize products with the highest potential for launching your own brand. Then, under products with the best scores, use the Profit Calculator to check margins, aiming for at least 20% to cover Amazon FBA fees and ensure long-term profitability.
Tip: Always check whether a product falls under any restricted categories or contains hazardous materials (HAZMAT), as these require additional certifications or approval.
By following these steps, you can differentiate your business from Amazon Basics and select products with strong potential. Investing time in thorough research and using advanced tools ensures that you lay a solid foundation for long-term success.
Focus on Quality and Differentiation
Always make sure that the materials used to manufacture your products reflect your brand’s commitment to quality and durability. It could be helpful to gather insights by asking friends and relatives to try your product and share their feedback, to ensure that it meets high standards. If necessary, reach out to your supplier to make adjustments.
Additionally, it’s important to continuously research ways to improve and differentiate your product, using customer feedback on competitors' products as valuable insights. Look for innovative opportunities that address your target audience’s needs to stay ahead in the market.
Tip: To save time and streamline this process, consider using AMZScout’s PRO AI. Under the product from your search in Step 1, click “Get AI Insights” to access personalized suggestions for product improvement. The AI generates recommendations and assesses their potential impact, helping you enhance your product and give your brand a competitive edge.
Competing with Amazon Basics requires more than just lowering prices, as their brand already offers affordability, reliability, and fast delivery. To stand out, you need to prioritize delivering exceptional value and ensuring customer satisfaction through superior quality and innovation.
Strong Branding
While Amazon Basics may offer competitive prices, a strong brand can inspire customers to pay more, especially in the clothing sector, where you can find Amazon Essentials items for less than $10. Some crucial elements of branding include:
Consistent visual identity: Use a cohesive design, colors, fonts, and elements like product logos and packaging to create a unified look.
Brand storytelling: Share your brand’s mission and values, such as sustainability or a long standing presence in the market, to connect emotionally with customers.
Product ecosystem: Offer complementary products that create a “universe” of items, showcasing your expertise in the category.
Building a strong brand takes time, but it also allows you to develop a loyal customer base and command higher prices in the future.
Optimize Your Amazon Listings
While Amazon Basics products enjoy higher visibility due to Amazon's algorithms, you can still optimize your own Amazon listing to increase the likelihood that it appears on the first page. Keep in mind that if a product has multiple color or texture options, you’ll need to create separate listings for each variation. This requires attention to several key aspects:
Visual content: Use high-quality images and videos from multiple angles and settings. If you’re registered with Brand Registry, include A+ content to enhance your visuals.
Title: Make it catchy and informative, motivating customers to click. Aim for 80-200 characters, and include efficient keywords for better search visibility.
Bullet points: Highlight the key benefits and unique features of your product, ensuring that all information is accurate and optimized with relevant search terms.
Description: Clearly explain why customers should choose your product, emphasizing its value and advantages over competitors while naturally incorporating appropriate keywords to rank higher in related search results.
Backend keywords: These are invisible to customers but play a crucial role in driving traffic.
Creating an Amazon product listing can be time-consuming, requiring several hours of detailed work. Balancing keyword integration with readability can be tricky, and you must also adhere to Amazon’s guidelines on character limits and prohibited symbols.
However, with the AI Listing Builder, this process can be completed in seconds. Its advanced AI capabilities extract keywords from your competitors or a pre-collected list and generate compelling, SEO-optimized content within moments.
By streamlining this process, you can boost your visibility, attract more traffic, and ultimately increase sales.
Provide Exceptional Customer Experience
Making a purchase is often driven by personal sentiment. Customers may choose your product over Amazon Basics—even at a higher price—if you can make a genuine connection. A large part of this comes down to the customer service you provide. Here are some key tips to foster that connection:
Timely responses: Respond within 24 hours, including on weekends. Quick replies show you care and value their time.
Friendly and empathetic communication: Be understanding and proactive in finding solutions that address their concerns.
Clear and transparent information: Make sure your product details are clear and easy to understand, so customers don’t have to wait for answers.
Proactive measures: Anticipate customer needs by offering FAQs, certificates, and size charts, helping customers find what they need without having to reach out.
By delivering exceptional customer service, you can build a loyal community, earn positive reviews, and improve your reputation among future customers.
Consider combining the methods listed above for stronger performance. By optimizing your selling strategy, you'll find ways to thrive on Amazon, even with the presence of Amazon Basics.
Conclusion
Competing with Amazon on its own platform is challenging but entirely achievable with the right strategy, starting with smart product selection. Consider using AMZScout to identify high-potential products and boost their visibility. By focusing on the right opportunities and optimizing your approach, you can increase your chances of standing out and achieving lasting success.
