As an ecommerce business owner, you should always be looking for ways to improve your marketing strategy and gain an edge over your competitors. One of the most effective ways to do this is by conducting a thorough competitor analysis. By understanding your competitors’ strengths and weaknesses, you can refine your own marketing strategy and make better-informed decisions that will help you stand out in a crowded marketplace.
In this article, we’ll explore how to use competitor analysis to improve your ecommerce marketing strategy. We’ll cover everything from identifying your competitors to analyzing their strategies, and we’ll provide examples to help you understand how to put these concepts into practice.
Part 1: Identifying Your Competitors
The first step in conducting a competitor analysis is identifying who your competitors are. Your competitors are any other businesses that are selling products or services similar to yours. It’s important to note that your competitors may not be limited to other ecommerce businesses – you may also be competing with brick-and-mortar stores or even individual sellers on platforms like Amazon or eBay.
Here are some ways to identify your competitors:
1. Google Search
Start by conducting a Google search for the products or services you offer. Take note of the businesses that appear on the first page of search results, as these are likely your strongest competitors.
For example, if you sell organic skincare products, you might search for “organic skincare” or “natural skincare” and take note of the businesses that appear in the top search results:
2. Social Media
Social media can also be a useful tool for identifying your competitors. Search for hashtags related to your industry or products on platforms like Instagram and Twitter to find businesses that are targeting similar audiences.
For example, if you sell sustainable fashion, you might search for hashtags like #sustainablefashion or #ethicalfashion to find other businesses in your niche:
3. Online Marketplaces
If you sell your products on online marketplaces like Amazon or Etsy, search for similar products and take note of the sellers who are offering them.
For example, if you sell handmade jewelry on Etsy, you might search for “handmade earrings” and take note of the other sellers who appear in the search results:
Once you’ve identified your competitors, it’s time to start analyzing their strategies.
Part 2: Analyzing Your Competitors' Strategies
Now that you know who your competitors are, it’s time to start analyzing their strategies. By understanding what your competitors are doing well and where they’re falling short, you can make informed decisions about how to improve your own marketing strategy.
Here are some areas to focus on when analyzing your competitors’ strategies:
1. Website Design and User Experience
Start by taking a look at your competitors’ websites. How are they designed? Is the layout easy to navigate? Are there any unique features that make their website stand out?
Pay attention to the user experience (UX) – how easy is it for customers to find what they’re looking for? Are there any barriers that might prevent them from making a purchase, such as a complicated checkout process or a lack of payment options?
For example, take a look at how sustainable fashion brand Everlane’s website is designed. The layout is clean and easy to navigate, and there are clear calls-to-action (CTAs) throughout the site:
2. Product Offerings and Pricing
Next, take a look at your competitors’ Product offerings and pricing are also important factors to consider. Are your competitors offering a wider range of products than you are? Do they offer products at different price points? Understanding your competitors’ product offerings and pricing can help you make decisions about which products to offer and at what price points.
For example, take a look at how beauty brand Glossier offers a range of products at different price points. They offer everything from affordable skincare products to higher-end makeup items:
3. Content Marketing
Content marketing is an important part of any ecommerce marketing strategy. Take a look at your competitors’ blogs, social media channels, and email marketing campaigns to see what type of content they’re producing.
Are they creating high-quality blog posts that educate and inform their customers? Are they using social media to showcase their products and engage with their audience? Are they sending out regular email newsletters that provide value to their subscribers?
For example, take a look at how outdoor retailer REI uses their blog to provide informative articles about outdoor activities and gear:
4. Advertising and Promotion
Finally, take a look at how your competitors are advertising and promoting their products. Are they running Facebook ads? Are they offering discounts or promotions to incentivize purchases? Understanding how your competitors are advertising and promoting their products can help you make decisions about how to allocate your own marketing budget.
For example, take a look at how fitness apparel brand Lululemon uses Facebook ads to promote their products:
Part 3: Using Competitor Analysis to Improve Your Ecommerce Marketing Strategy
Now that you’ve analyzed your competitors’ strategies, it’s time to use that information to improve your own ecommerce marketing strategy. Here are some tips to help you do that:
1. Refine Your Unique Selling Proposition (USP)
Your unique selling proposition (USP) is what sets you apart from your competitors. By analyzing your competitors’ strategies, you can identify areas where you can differentiate yourself from the competition.
For example, if you notice that all of your competitors are using a similar marketing message, such as “all-natural ingredients,” you might consider emphasizing a different aspect of your product, such as its sustainable packaging.
2. Optimize Your Website and User Experience
If you notice that your competitors have a more user-friendly website or checkout process than you do, it might be time to invest in some improvements. Make sure your website is easy to navigate, with clear calls-to-action (CTAs) and a streamlined checkout process.
3. Expand Your Product Offerings
If your competitors are offering a wider range of products than you are, consider expanding your product offerings. This can help you appeal to a wider audience and generate more sales.
4. Invest in Content Marketing
If you notice that your competitors are producing high-quality content, such as blog posts or social media content, consider investing more time and resources into your own content marketing efforts. This can help you establish yourself as a thought leader in your industry and build a loyal following of customers.
5. Experiment with Advertising and Promotion
If your competitors are running Facebook ads or offering promotions, consider experimenting with these tactics yourself. Test different ad formats and messaging to see what resonates best with your target audience, and offer promotions to incentivize purchases.
Conducting a competitor analysis is an important part of any ecommerce marketing strategy. By understanding your competitors’ strengths and weaknesses, you can refine your own marketing strategy and make better-informed decisions about how to allocate your marketing budget and resources.
Keep in mind that competitor analysis is an ongoing process, as the ecommerce landscape is constantly evolving. Be sure to regularly review and update your analysis to stay up-to-date on the latest trends and changes in your industry.
In addition to analyzing your direct competitors, it’s also important to keep an eye on indirect competitors and emerging players in your industry. These can include companies that offer similar products or services, or new startups that are disrupting the market.
