The global e-commerce is expected to hit sales of $58.74 trillion by 2028. Since this spike in e-commerce sales in 2020, a majority of consumers have been making a majority of their purchases online.
The ecommerce industry is expanding at an unprecedented rate. Due to this rapid growth, businesses are being presented with opportunities and challenges.
There has been an increase in the number of online platforms. Staying ahead of the competition has become difficult. This is due to the increase in competition and consumers’ changing preferences.
Keep reading to learn how to use ecommerce competitive analysis.
Reasons to Leverage Competitive Analysis
Businesses cannot afford to operate in isolation in the competitive world of ecommerce. Conducting a competitive study helps businesses identify competitors, identify trends, and benchmark performance.
Identify the Competition
Market research lets companies can identify their direct and indirect competitors. This knowledge is critical for understanding the competitive landscape. Knowing your position in a saturated market can help you make data-driven decisions.
Find Trends in the Market
Studying the activities of competitors can uncover new market trends and advances in the industry. Finding these trends can help you proactively plan for an evolving market’s shifting needs.
Companies can use competitive analysis to compare their performance with the competition. Using benchmarks helps establish realistic goals and expectations for your business. You can grow your business by focusing on promoting your strengths and mitigating deficiencies.
How to Perform Ecommerce Competitive Analysis
Extensive competition analysis gives you the tools you need to beat the competition. Below we will list the different steps in a competitive analysis.
Define Objectives and Scope
The best research is done when your goals are clear from the start. Begin by explicitly stating the analysis’s objectives. You can use AI technology to quickly pull this information together.
Determine whatever areas of the business you want to review. Look at the pricing, product variety, customer service, or marketing techniques.
Research the Competitions’ Websites
Your competition’s website is home to a slew of information. Consider their product offering, pricing, promotions, user experience, and general design. Take note of any unique selling aspects or value propositions they highlight.
Track Marketing Efforts
Examine your competitors’ digital marketing activities. By reviewing their social media ads, content marketing, and SEO techniques, you can see what messaging the clients respond to. Doing this may spark new campaign ideas.
Pricing is an important aspect of ecommerce success. Compare your pricing ensures that you are generating the highest profit margin possible. Be sure to look at the total cost once you include discounts, sales, and shipping costs.
Conduct a SWOT (Strengths, Weaknesses, Opportunities, and Threats) study. Doing this on your competitors will make you aware of their successes and shortcomings. This exercise will provide a clear view of their market advantages and risks.
Invest in Ecommerce Competitive Analysis
Ecommerce businesses must constantly adapt to changing client wants and market trends. Ecommerce competitive analysis gives businesses valuable insights about competitors.
In an evolving market, this technique is a critical part of the business process. Investing in research will lead to increased profitability and long-term success.