Why is competitive analysis so important in ecommerce?
“OK, but why does competitive analysis matter for me as a business owner or marketer?” you might be thinking.
The fundamental reason for this activity’s importance is that you can’t effectively compete until you know who your competitors are, and you can’t differentiate yourself unless you know what makes you unique.
If you’re beginning an eCommerce shop, a competitor analysis can help you:
– Make more educated marketing choices
– Recognize industry trends.
– Compare yourself to the competition.
– Create a one-of-a-kind value proposition.
– Establish a price range (upmarket, down, or mid)
– Discover new ways to communicate with customers, or even new customers to communicate with. Look for a marketing gap and make sure there’s a market for it.
This type of research isn’t just for first-time eCommerce merchants. Competitive analysis may and should be a live document that evolves over time as a business grows and matures.
Maintaining a resource like this is not only a great way to stay on top of how your brand compares to the competition right now, but it can also help you chart a course for future success.