How to Beat Your Biggest Competitors on E-commerce Marketplaces?
E-Commerce Competitor Analysis: How to Get Ahead
The e-commerce industry fosters fierce competition as businesses large and small vie for a leadership position. Even when you’ve cornered a market, shoppers are fickle and customer loyalty can’t be taken for granted. In order to get an edge on the competition, you need to know what it’s doing. This process is known as competitor analysis. We’ve outlined a few reasons why it’s important and listed some tips for effective e-commerce competitor analysis.
When you’re competing against international giants, it’s important to be honest about where you can, and can’t compete. Mid-sized e-tailers and giant conglomerates are different animals and that should inform their business strategies. For example, don’t try to compete using the same model as a company that may have vast resources when you don’t. Instead, explore new business models to differentiate yourself. Exploit your differences as a strength and look for novel ways to leverage your advantage.
Understand the Demand
Before pouring all your resources into one area, test the demand and set your strategy accordingly. While research may be the least interesting part of an e-commerce business plan, it will help you plan your steps for a successful outcome. Consider running marketing demos online and offline to understand how consumers react to your new brand, product or concept.
As of May 2015, Google announced that mobile searches outnumber searches on PCs. Any business who isn’t optimizing its online presence for mobile devices is behind the curve. Customers share their shopping experiences, look for solutions online, and make recommendations through social media. And they do it on the go. They browse catalogs from the couch, compare prices while they’re at the mall, and place orders while they’re out running errands. If you’re not optimized for mobile, the time to do it is yesterday.
Pay attention to your competitors’ businesses and you’ll find plenty of opportunities to learn, both from their successes and failures. This information is free and can be invaluable. All you have to do is pay attention.
Offer a Better Deal
Part of e-commerce competitor analysis is following your competition’s pricing models. If it’s practical, consider integrating repricing apps to help you monitor competitor prices. These apps help keep your prices in line with the competition and give you the option to offer a better deal.