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Measure the Market Share of Your Competition Using Terapeak

By Aron Hsiao  on January 11, 2017

Before you begin to sell a product, you should know the market share and pricing strategies of its top current sellers. These numbers tell you:

  • How easy (or difficult) it will be to break into a new product area

  • How your pricing decisions are likely to affect your success

  • Which prices you'll need to be able to meet in order to reach which percentage of customers

Here's how to use Terapeak to find the market share of the top seller (or top ten sellers, or top 25 sellers, etc.) for any product.
 

  1. Start the Product Research tool. Log into Terapeak and select "Product Research" from the Research menu to start the Product Research tool.

     

  2. Enter search keywords, then select the top sellers view. Enter keywords or a product make and model whose competition you'd like to research. When results are displayed, click on the top sellers view icon (it looks like a silhouette) to open the top sellers view. You'll see a list of the top performing sellers for the products matching your search.

     

  3. Select a longer date range. In this tutorial, we're looking to understand market share, which isn't easy with the default seven days of data. Open the date range selector on the right of the page and select a longer time period, like the most recent 30 days.

     

  4. Select the narrowest possible category. Use the category selector to narrow your search to include only products in the category you're interested in. For example, if you're searching for "iPad Mini 4" you should narrow your category to "Tablets & eBook Readers" under "Computers, Tablets & Networking." That way, the results aren't skewed by related data (say, protectors and accessories) that doesn't actually interest you.

     

  5. Survey the list of top competitors. After conducting your search, selecting the top sellers view, and setting your date range and category, you'll see a list of the top-performing sellers for your product, along with detailed sales metrics like total sales, total listings, and total items sold for each. Note the values for sellers at the very top of the list. In this case, for example, the top seller's sales volume for this product is $145,669.29 over the last 30 days.

     

  6. Copy data for the top sellers, then total it in Excel (optional). To make it easier to calculate the market share of a number of sellers (say, the top ten sellers, or the top 25 sellers) you can highlight an entire block of data, copy it to your clipboard, then paste it into a spreadsheet program like Microsoft Excel. This makes it easy to total up the sales volume or items sold figures for an entire group of sellers.

     

  7. Switch to the high-level information view. With figures for competing sellers in hand, click on the high-level information view (it looks like a bound notebook) to see overall sales figures for the product in your search. Your category and date range selections will be preserved.

     

  8. Note the overall sales figures and data. In the high-level overview, find the General Stats box, which shows information about the total sales volume and number of items sold for your product. Unless you've customized your Terapeak view, the General Stats box is usually located at the upper-left of the search results.

     

  9. Calculate the percentages. Note the figures for total sales and items sold. Divide these into the same numbers for the top seller (or group of sellers) whose market share you'd like to measure. The top seller of this item saw $145,669.29 in sales over the last 30 days. The item had sales of $1,058,301.19 overall over the same period. Dividing $146,669.29 by $1,058,301.19, we know that the product's top seller controls about 13.7 percent of the market. Similarly, by adding up the sales figures for the top ten sellers and dividing again, we know that the top ten sellers control about 37.2 percent of the market.

     

After performing this market share calculation, you know how open a particular product or family of products might be to a new sellers like you.

And by looking at the average prices for each of the top sellers, you'll also know just how pricing affects sales performance for the product and translates to market share—and you'll be able to adjust your strategies and your margins accordingly.


Research a full year of online sales in detail for any product or keyword—average prices, sell-through rates, top listings, and more. Try Terapeak Professional today!

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