What are the advantages of E-commerce products' competitor analysis?
E-commerce competitor analysis is an essential tool for any online business. It enables you to track your competitors and analyze their strategies, performance, and operations to identify opportunities for your own business. Conducting an E-commerce competitor analysis helps you stay one step ahead of the competition by identifying threats and options so you can take correct steps to improve your company's performance. E-commerce competitor analysis gives insight into how market dynamics may affect your business, where your competitors are doing well, what they could be doing better, and how they react to potential new threats or opportunities.
This blog post will give you an overview of how E-commerce competitor analysis works, the different techniques you can use to analyze your competitors, and how these techniques can help drive a more effective strategy for your business.
While competitive analysis is commonly associated with "traditional" industries, it is also a critical tool for ecommerce companies. Product competitor analysis is the process of gathering data about your competitors to understand them better on how your competitors operate and inform your own strategy. This process can help you discover new opportunities, identify potential threats and risks, and gain insights that are critical to driving a more practical approach.
Track your competitors' performance
The first step in any ecommerce competitor product analysis is to track your competitors' performance. At this stage, you're tracking the data behind your competitors' strategies to understand how they win in the marketplace. One of the best ways to start tracking your competitors' performance is to create a baseline projection of your company's current performance. By comparing your recent sales, costs, and profit against your projected numbers, it's possible to see where your competitors are outperforming you (and where you're outperforming them). Combining this analysis with an audit of your competitor's products can help you uncover opportunities for improvement. You will see where your competitors are lagging behind and where you may be able to enhance your own strategy.
Track your competitors' strategies
After tracking your competitors' performance, you should shift your focus on your competitors' strategies. Tracking their strategy can help you understand how your competitors are driving their success and identify opportunities for improvement. One way to uncover your competitors' strategies is to analyze your competitors' marketing channels. Which social media channels are they using? Where they are investing their time and money? What type of content are they publishing? What kind of language are they using? Getting answers to these questions will help you understand your competitors' strategies and drive a more effective strategy for your business.
Track your competitors' advertising and marketing
Beyond marketing channels, you should also track your competitor's advertising and marketing activities. Monitoring how your competitors are promoting their products can help you understand their strategies and identify opportunities for improvement. One way to track your competitors' advertising and marketing is to examine their paid advertising and marketing campaigns. What are they promoting? Where they are investing their money? What type of advertisements are they running? Answers to these questions can help you identify the strategies of your competitors' and identify opportunities to improve your advertising and marketing activities.
Track your competitors' product category mix
Product category mix is the relative mix of products your competitors sell and the associated SKUs. It includes the product categories (e.g., electronics) and the subcategories (e.g., TVs, smartphones, laptops). Understanding your competitors' product category mix can help you know their customers, the products they're selling, and their overall sales strategy. One way to uncover your competitors' product category mix is to analyze their website's category page. Which categories are they focusing on? What types of subcategories are they focusing on? What product categories are they underselling? These questions can help you better understand your competitors' overall sales strategy and find ways to enhance your product mix.
Track Your Competitors' Qualitative Information
Beyond tracking your competitors' quantitative data, such as their sales, profits, and product mix, you can also track qualitative data. It includes qualitative data points such as your competitors' marketing tone, operations, and company culture. One way to track your competitors' qualitative data is to read their blog posts and social media posts to understand their company culture and strategies better...
Product Competitive analysis is an essential tool for any business with online sales. It enables you to track your competitors and analyze their strategies, performance, and operations to identify opportunities for your own business growth. E-commerce competitor analysis helps you stay one step ahead of the competition by identifying threats and options so you can take actionable steps to improve your company's performance.
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