Starting an e-commerce business is not that difficult these days. But the struggling part is making it nourish with customers, relevant search traffic, content ranking, and audience response towards the product.
In the present time, no matter how unique you are, there is already some organization that has built an e-commerce marketing field for that product or service.
And the gruesome truth is, there can be a hundred e-commerce sites similar to your start-up business.
We can’t change other people’s concerns, nor convince them to shut their businesses. But the thing is we don’t even have to. Because you can change your life by changing your approach. Without controlling your rival companies, you can create an ecommerce business without any problem.
All you need is some general ideas on e-commerce competitor analysis.
Here, we will briefly explain about e-commerce competitor analysis and how to use it in business.
This article will help you to understand;
- What is e-commerce competitor analysis?
- How to conduct one?
- What are the benefits of e-commerce competitor analysis to my business?
A Quick Overview of E Commerce Competitor Analysis
“Competitor analysis is a marketing and management strategy, that checks the impact, threat, weakness, and opportunities of the present and later competitors.”Wikipedia.
So, in business, competitor analysis lets check out your competitors. You can analyze their business patterns, relevant traffic form the web, content marketing strategy, and current position in this business type. So, it will be easy to know your suppressing capabilities.
Furthermore, this strategy allows to sharpen your skills in business.
For these reasons, an e-commerce competitor analysis is not a single thing. More likely, it is a combination of multiple techniques.
Hence, the best-suited definition can be-
“A relevant business methodology that focuses on defining possible competitors and their functioning process, and evaluate based on their business strategy, by taking necessary steps to be better, advance, and more engaging.”
7 Best E Commerce Competitor Analysis
There are a lot of variables that we need to consider before starting. Also, you may need help from paid apps, SEO(search engine optimization) experts, and comparison websites.
These factors will help you to gain knowledge over your competitors.
Finding Direct Competitors
With the help of the advanced network, searching for competitors is not that tough.
1. Market Study
Analyze the market of your product and audiences. You can discuss with your sales team and discover your competitors selling process. List out all the direct, indirect, and future competitors.
By taking these steps, you will be able to get reliable knowledge about your rival companies, their commodity, and build your workflow management system to exceed them.
2. Prioritizing Customer Feedback
Sometimes changing the strategy helps to open new windows of possibilities. When audiences become your product tester and buyers, you can use them to know about your competitors.
Furthermore, you can use their pieces of data to find those rivals who were not on your radar.
In your website’s Q&A, you can randomly ask about your products and which products that your customer appraises most.
Sometimes, potential consumers reveal unexpected competitors.
Moreover, prioritizing your buyer’s feedback will help you to create a close relationship with your buyer, help them choose a product, and develop your product quality further.
3. Online Communities, Social Media, And Community Forums
Your customers can’t physically appear and buy your product. In the e-commerce marketing methodology, all kinds of customers exist on a social media platform.
They are likely to be in these platforms,
- We heart it
- Snap chat
By analyzing your customer conversations and activities on these platforms, you can identify your direct competitors at ease.
Research papers of Deloitte show that 50% of millennials were influenced before, taking their buying decisions by a friend or family member on a social media platform.
Furthermore, 27% of both millennials and Gen Z get recommendations from friends and family from a social media platform before proceeding into buying decisions.
Most importantly, social media sites help you to attract customers locally and boost your business unimaginably.
So, the moral of the story is, social media sites can provide you with appropriate information on your competitors more than any other website.
Finding Indirect Competitors
This process is a bit different than direct competitor methods.
Keyword Researching Related to Your Product
In the indirect competition type, keyword analysis is the most dependable way to find your indirect competitors. This step is 40% of your e-commerce competitor’s analytics.
Prioritize Google for your research. The purpose of this keyword research is to,
- Determine all the potential businesses that compete with you for space on google.
- Which of their contents ranked on google.
- Selecting other websites that are not relevant to your business but competing for the same keyword.
- Gather as much data as possible.
- Prioritize essential pieces of information.
Only relying on google might help you, but some paid apps and websites can give you the best data you seek.
Best SEO Tools for Keyword Researching
Some of these apps have a trial period, repeated subscription, and free. But trust us, these apps are incredible for keyword researching. It helps you to get your work more efficiently.
Every beginner SEO expert’s journey starts from Google Search Console, and why not it’s free;
Through Google search console, you can literally manage a lot of things on your website.
You can optimize your content, examine google crawls on your content, which countries are responsible for most of the traffic on your website, and Google indexing in search results.
Using Google Analytics with it is the perfect combo for tracking all movements and measurements for your website.
When it comes to funnel down the most relevant keywords to your business, then Ahrefs is your tool. Ahrefs is one of the best SEO tools out there, and the best part is there is no limit.
You can compare millions of keywords from their keyword explorer app and categorize keywords based on search volume, monthly searches, difficulty, keywords type, etc.
Moreover, Ahrefs can analyze competitor’s web pages and keywords too.
Comparing to the traditional SEO tools, Soovle works a bit differently. Soovle is an SEO tool that converts different search engine results into one platform.
So, it’s more like a search engine designed to query different search results at the same time, then comparing additional keyword preferences.
The information provided by Serpstat comes handy when performing in-depth competitor and competition analysis.
Serpstat compares different keyword attributes and relatable questions. You can also obtain knowledge of historical position data, Page range, and rank distribution percentage.
The intriguing thing is Serpstat’s data changes for google algorithms and current updates. So, it’s reliable.
The easy-to-use and user-friendly SEO(search engine optimization) tool Ubersuggest helps new SEO experts to learn the basics.
Ubersuggest can analyze a single word and generate ideas about the term. This SEO tool also compares data by search volume, CPC, and competition on the keyword.
Creating content but not making it fertile with relevant LSI(Latent Semantic Indexing), that’s not good. So it’s crucial to add relevant and ranked LSI keywords to your content to make it rank.
LSIgrapghs is a small SEO platform that generates LSI ideas in one single term.
Buzzsumo is not a keyword researching tool. But it does have some relativity to keyword researching.
Recently, Buzzsumo created a tool “Question Analyzer.” This tool is useful for competitive analysis strategies. And why is that?
Question Analyzer works on millions of questions asked by people on the social media platform and stored in the Buzzsumo database. It may not help to get accurate keywords but assist the user, getting grossing topic ideas.
Examining Results on the Google Search Engine Pages
When online businesses try to make their products unique, attractive, and user-friendly other business competitors try to copy those qualities. Any business’s individuality can be called a “value proposition.”
This “value proposition” can be similar for many competitors, whether it is a brand article, blog post, etc.
To find these indirect competitors, search plainly the keyword in the google search engine. You can add quantifiers and wh-questions in the search bar to be more specific.
If you see any ranked keyword-based articles and blog posts, which are similar to your brand’s “value proposition” than these contents holders are your indirect competitors
Paid Data Analysis
Sometimes to get more traffic on websites, e-commerce, software developer brands, and plug-ins creators, use Google ads. You may also need to use it at some point in your business.
The point is, these competitors buy ads for these keywords and build competition for space in Google with your content.
While you dig deeper into it, these competitors are new, and you didn’t archive them before.
So, paid data analysis is a reliable source to find indirect competitors.
Determining the Type of Competitors
How will you compete with your competitors if you don’t know which kind of competitors they are?
Let’s break the indirect and direct competitor types and learn about them further. Each of these described types has a different threat level to your business.
Knowing your competitor’s type will help you grow your business more.
These competitors are directly trying to achieve the same goal that you are aiming for in your business.
Every business start-ups have this kind of competitor, and it’s normal. These competitors have a higher threat level for your business.
In the direct competition type, the competitors who are selling the same product but outside your business zone can be described as potential competitors.
These competitors possess a little less threat to your business. But, the crucial thing is, potential competitors can move to different competitors categories.
Furthermore, their threat level might change also.
They are just the opposite of direct competitors and don’t hold any threat first.
Because these competitors offer similar products and services, but their target audience is
When indirect and potential competitors that may change or modify their overall aspect, which is literally the same to your business, are called the future competitors.
An example is an SEO service selling company that just established a cloud-computing business like you.
These competitors have products that are different from your merchandise but solve the same problems as you.
They can be more likely compared to the brands which are providing other businesses with their necessary items.
If you are an electronic devices retailer, then electric device repairs are your replacement competitors.
Above all categories, competitors may fight with you on the web over the same purpose. And another thing to consider is to find the exact future and present competitors to your business, now that all small and big corporations concentrate on digital marketing.
Know About the Competitor’s Detailed History
It is not that mandatory, but for competitor analysis, it is notable. And the best thing is, these pieces of information are open to the audience.
All businesses try to be clear and conscious about their motives. It helps a brand to grow, build the audience’s trust, innovate new things, get positive feedback from their loyal audience pool, and a rising community dedicated to growing their business.
So, every company never leaves this kind of opportunity and hides into the shadows.
In the steps of growing, story-telling about your brand will not only help to grow but also help the business to stay in the market with other competitors.
Reviewing your competitor’s history will give you precise information about them and will help you to improve your storytelling to the audience.
On their website, go to the about section, where all the history is stored. And, only prioritize the direct competitors.
Analyze their Unique Selling Point
All types of businesses have a Unique Selling Point(USP). It may be unique or sometimes pure ordinary.
A selling point is a core component for a business, and every brand tries to make it unique.
Moreover, a unique selling point will require a lot of time and individual ideas to form. Not all brands put that much brainpower and have a base design to be recognized on the web.
In e-commerce, having only a beautifully designed website can’t define a business’s selling point.
If you study some of your competitors, you will be able to have a clear idea about their business position. You may even find that some competitors don’t even have a comparable selling point to you.
Having a weak selling point is like staying in the desert, without water. These businesses can’t compete with their overall power, can’t suppress their competitors, and eventually, they are out of the market.
So, the question is, how will you identify a unique selling point? Trust us it’s, not that difficult to find, and it is one of the best business strategies for e-commerce competitor analysis.
Look out for these things,
- A quality that is owned by a particular business, other businesses don’t possess it.
- They can be a catchphrase form.
- Brands work hard to maintain it.
Let’s give an example, FedEx used this slogan for their USP
When it absolutely, positively has to be there overnight.
Monitor Competitor’s Key Metrics
Key metrics are a term used for focusing on an exact spot and rendering it with numbers.
In e-commerce competitor analysis, you will focus on a weak spot of your competitors. The idea is to check their weak key metrics areas and create a strategy to be better than them.
This way, you will not lose your concentration and will be able to act upon less amount of data.
Furthermore, monitoring your competitor’s key metrics allow you to know your competitor’s overall specifications, their competing strength, their focusing point of growth, and compare your business with their businesses.
For example, if your competitor has an affiliate marketing website that relays on backlinks to rank in Google. Your first priority should be finding out those backlinks and interpret those backlinks.
Monitoring key metrics are like ethical hacking; you are doing the non-decent thing for your well-being.
But the present market condition is comparable to a warzone. Due to the Corona pandemic, the situation is more complicated.
If it’s possible, then why not try. After all, everything is fair in love and war.
Monitor these Key Metrics,
- Social share
- On-page changes
- Client satisfaction
- Domain authority
- Content updates
- Competitor’s Google AdWords
- Customer Q&A
- Traffic volume
You can use tools like AWR Cloud, Linkody, CognitiveSEO, Buzzstream, Followerwonk, TweetDeck, Ahrefs, Majestic SEO, etc.
However, These tools are not enough for checking key metrics. Combine SEO tool sufficiency with your skills to get the best outcome.
Content Marketing Strategy
The real game begins at this stage. How well you are doing this step will reflect your success in e-commerce competitor analysis.
Before starting any business, marketers create a base foundation for a web-based digital marketing platform. All brands do this and prioritize their content marketing strategy.
Moreover, Creating different types of content and blog posts helps the audience to grow noticeable organic traffic for their sites.
Content marketing strategy is an entirely different thing, but crucial for competitor analysis.
Here are 3 best tricks for content marketing analysis,
- Take a quick look at the competitor’s inventory.
- Sign up for campaigns.
- Examine the content quality.
Take a Quick Look at the Competitor’s Inventory
Different kinds of content reach separately to the audience. There are articles, webinars, podcasts, blog posts, E-books, and videos.
So, your work is to go to your competitor’s site and make a record of each content medium. Create this for every competitor individually.
Later, this catalog will give you in-depth knowledge about their investment, audience satisfaction, Range of ranked keywords, popular topics, and help you to build a strategy to improve your content.
Sign Up for Campaigns and Newsletters
Even without releasing a product or service, brands try to create a straight audience pool, who will receive their emails for new content, are fully aware of their products, and ready to take the buyer’s journey.
Signing up for their campaigns will help your marketing team to understand the competitor’s business culture, business news, content publishing dates, and their method to target the audience. Your precise teamwork can help you to defeat your competitors with ease.
Examine Content Quality and Quantity
Once you have followed the above two tricks, it’s time for you to analyze the contents. This step can also be compared to a product analysis example.
You can create a competitor’s content creation framework for this. For detailed information on the contents, add fields like publishing dates, the weekly number of content publishing, the quantity for every website individually, frequency, and quality.
Furthermore, in the quality section, check out for these components number of words, video quality, amount of shares, likes, and Q&A hostings.
You can use apps like Google Sheets, Microsoft excel online, Zoho sheets, and Airtable.
Build a Competitor Review Framework
Your competitor analysis will remain a pile of knowledge that doesn’t have any visual principles to understand. To help your business associates, you will have to create a visible framework for them.
Later, when doing competitor analysis repeatedly, this framework will help you again.
FAQs Regarding E Commerce Competitor Analysis
What is the term "e-commerce competitor analysis."?
E-commerce competitor analysis is a process that identifies potential competitors, adapts to their strategies, and determines strength, weaknesses, and opportunities for your business.
What is the purpose of a competitor analysis?
The purpose of a competitor analysis is,
1. Create successful adapting strategies.
2. Break boundaries.
3. Prevent business competition.
4. And finding out exploitable weaknesses.
How many types of competition are in business?
1. Perfect competition
2. Monopolistic competition
3. Oligopoly competition
4. Monopoly competition
How an e-commerce site works?
An e-commerce site works like a chain of commands. Firstly, a customer scroll through a series of products from a digital platform. Secondly, the customer chooses the product and orders it.
Thirdly, that order data gets transferred to the nearest provider point for the fastest delivery. Finally, you get the product.
You may choose COC or the online payment method.
How many prime types of the market are there?
There are two types,
1. Consumer market platform
2. B2B market platform
What is Headless eCommerce?
If you want to shine in the eCommerce business, you should know about Headless eCommerce. The term refers to a separation between the front end and back end of an e-commerce platform.
It eventually increases customer engagement.
Finishing up With Some Words on E Commerce Competitor Analysis
Starting an e-commerce business and maintaining tons of work. In this time, conducting a competitor analysis is more difficult but necessary.
The present e-commerce business is a competitive landscape. And there are several reasons for that.
Let’s review some practical statics,
- The present e-commerce business has an estimated value of nearly 25.6 trillion dollars. – source (UNCTAD)
- There are 20 million and rising e-commerce businesses worldwide in 2020. – source (WEB)
- At the beginning of 2021, e-commerce sales will reach nearly 4.3 trillion. – source (WEB)
- Asia is the first in e-commerce sales, the second is the USA, and the third is Western Europe. – source (Statista)
- By 2040, nearly 95% of all shopping will be in e-commerce platforms. – source (Nasdaq)
Why did we tell you the numbers? because we wanted you to be aware of the near future.
This business platform is rapidly growing and building thousands of opportunities across the globe. For these reasons, competition is natural.
All you have to do is keep tabs on your competitors. You have to keep your focus sharp and agile. This way, you will be able to competing in the marketplace on the basis of a competitive advantage.
Not keeping eyes on your competitors for one moment will make you pay with losing customers, less organic traffic, unhappy clients, and will block you from the overall growth rate.
And to overcome your competitors, All you have to know about is AID,
Adapt, Innovative, and Deliver.
If you have any additional quarries regarding E Commerce competitor analysis, then let us know the comment section. Have a nice day.