Before you begin any business venture, especially one that is conducted online, you must first have a thorough understanding of the market in which you will operate. This necessitates a thorough examination of two factors right away: You’re in a market. You’re up against some tough competition. To enhance your business online you need competitive analysis so that you will be one step above your competitors. You should develop your fundamental value proposition and strategy based on these two studies. The benefit of E-commerce Competitive Analysis in digital commerce is that most of the information you want will be easily available on the internet. Most organizations do not have the luxury of picking which market to enter since they are already in business in that industry. They may, however, change their E-commerce approach to the most effective manner to outperform their competitors.
Steps to Gaining a Better E-commerce Competitive Analysis and Market Opportunity
The E-commerce competitor analysis‘ purpose is to provide you with a comprehensive grasp of: What is your target market and how should you compete in it? Who are your main rivals? Understanding your rivals’ value proposition can help you figure out what your value offer is. There are seven phases in a basic IRP competitor research analysis. Make a note next to each point if it is: The goal (a number), Personality (a judgment). Recognize Your Market Potential What is the scope of my entire possible opportunity? You should acquire a sense of the entire market size as well as the percentage of that market that is sold online. While your primary focus will be on your local market, you should also consider the foreign market, since overseas sales will account for a significant amount of your total sales.
Concentrate on the following areas of your market: Size of the domestic market, an overview of the online market, the size of the online market, and the extent to which domestic internet sales are restricted. Know who your competitors are. You must be aware of who your competitors are and how successful they are. Make use of analytical tools to figure out: Make a list of your rivals, including their basic information, financial numbers, and resources. Consider their motives and goals. Make certain you include the following information: Name of the business, The Company’s background, URL of the website, Locations, Capacity for several channels, Those who are involved, The number of employees, Turnover, Turnover on the internet, Online time, Unique selling point and value proposition, Digital ambitions on the internet, Rank on Alexa, UK’s Alexa ranking, Visitor percentage in the United Kingdom, Rate of re-entry, Page views daily, Time spent on the job every day.
Recognize the Marketing Channels Used by Your Competitors, What are the digital marketing channels that my rival is using? You should know how much digital marketing your competitors are doing. What channels do they use? The amount to which they participate in those channels. You should also inquire about who handles their web marketing. Is it done in-house or with the help of other firms? Examine their websites if they utilize outside firms. Google Search Engine Marketing, Bing Search Engine Marketing, Affiliate marketing, Remarketing, The Internet and Social Media, Marketplaces, Content Creation, Email Marketing, Marketing across several channels, Other Sources of Information Look into the following figures for your competitors:
· The total volume of traffic
· Organic traffic as a percentage
· Paid traffic as a percentage
How you can explore your pros and cons through E-commerce Competitive Analysis
Understanding your competition and your market relies heavily on E-commerce competitor analysis. Your value proposition and digital strategy should be informed by it as well. The data you collect should show you where you are strong, where you are weak, where you have opportunities, and where you have dangers. Competition exists in all marketplaces, but it is critical to select conflicts that you can win. Competitor research is an important element of developing a digital strategy, and it’s something you should revisit regularly. Let’s look at a few additional reasons why performing a competitive analysis is beneficial: Aids in identifying your product’s distinctive value proposition and what sets it apart from the opposition, which may be useful for future marketing efforts.
You’ll be able to see the updates regarding your competitors. It tells you where your rivals are falling short, which may help you spot market possibilities and test out fresh, distinctive marketing methods that they haven’t tried before. You must first create a baseline before you can fairly compare your competitors. This is also beneficial when performing a SWOT analysis. Examine your company, sales, and marketing data objectively using the same measures you use to assess your competitors. Keep track of this data, just like you would with a rival, and use it as a starting point for comparisons across the board.