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 for any product:
1. Select "Product Research" from the Research menu to start the Product Research tool.
2. Enter keywords or a product make and model whose competition you'd like to research. When results are displayed, click on the "sellers" view. You'll see a list of the top performing sellers for the products matching your search.
3. 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.
4. After conducting your search, selecting the "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 $161,460.93 over the last 90 days.
5. 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.
6. Note the overall sales figures and data. Locate the high-level metric boxes at the top of the page. Among other figures, you should see metrics indicating the total number of items sold for this search, and the total revenue for this search.
7. 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 $161,460.93 in sales over the last 90 days. The item had sales of $3,978,991.39 overall over the same period. Dividing $161,460.93 by $3,978,991.39, we know that the product's top seller controls about 4 percent of the market.
8. View the total market share for the top 10 sellers. While market-share calculations for individual sellers should be done manually, the "Sellers" view has a metric showing the market share for the top ten sellers. This metric can be located at the top of the "sellers" table.