Planning to perform a competitor analysis for your Ecommerce business?
| It’s the process of studying competitors’ pricing, content, and marketing strategies to identify opportunities and gain a competitive edge. |
As 2025 approaches, the Ecommerce space is more competitive than ever. Digital marketing tactics, consumer preferences, and trends constantly change, making Ecommerce success more challenging.
To survive with your E-Commerce store, you will need precise knowledge of existing competitors and the ability to adapt or improve on their strategies.
Let’s learn how to perform competitor analysis and gain crucial insights about your rivals.
What is Ecommerce Competitor Analysis?
Ecommerce competitor analysis means looking at other online businesses that sell similar products or services to you. This process helps you analyze what their rights, wrongs, and struggling areas are.
By studying their prices, marketing, website, and customer service, you can find ways to improve your own business.
This process helps you spot new trends, find gaps in the market, and create better strategies. Whether starting an online store or trying to grow your business, you can get valuable insights from a competitor analysis.
Some key aspects of Ecommerce competitor analysis,
- Compare pricing on similar items.
- Analyze website design and functionality.
- Identify competitors selling similar products.
- Assess product quality and differences.
- Review customer service and support.
- Study marketing, SEO, ads, and social media.
- Conduct a SWOT analysis.
- Monitor customer reviews and feedback.
- Check for advanced tools and technology.
- Track promotions, discounts, and loyalty programs.
- Observe market trends and competitor growth.
- Drafting Google sheet files and sorting information.
Why Should You Perform a Competitor Analysis?
Keeping up with the competition helps you understand the market and improve your business.
🔶 To Understand Your Customer Expectations
Customers have many choices when shopping online. They expect high-quality products, fast delivery, and excellent service, so analyzing your competitors can help you learn what customers like or dislike.
You can also see which products are popular and what features attract buyers. You can avoid the same mistakes if customers complain about slow shipping or poor customer service. The more you meet customer expectations, the more likely they will choose your business.
🔶 Identifying Market Trends
The Ecommerce industry changes quickly. Constant trends in products, tech, and marketing demand attention; fall behind, and so is your business.
However, studying competitors helps you spot trends early. You can see what new products are gaining popularity, which marketing strategies are working, and how customer preferences are shifting. Staying updated will help you stay competitive.
🔶 Discover Gaps and Opportunities
Not every competitor meets all customer needs, and there may be areas where they are lacking. By carefully analyzing your competition, you can find gaps in the market, like they may not offer a particular product or have poor customer service.
Take Tesla’s electric cars as an example. For years, major car brands like Ford and GM focused on gasoline-powered vehicles and were slow to develop electric cars. Tesla identified this gap and built a brand around fully electric, high-performance cars with cutting-edge technology.
They also improved the buying experience by selling directly to consumers instead of through dealerships.
🔶 Stay Ahead of Industry Changes
We all know that Ecommerce is constantly evolving. New technology, payment options, and marketing methods appear regularly. Customers also change their shopping habits based on trends and new conveniences.
If you watch your competitors, you can see their changes. They may have introduced a new checkout system or improved their mobile shopping experience.
🔶 Strengthen Your Brand Positioning
Your brand sets you apart from competitors. A strong brand attracts and keeps customers, but to refine your strategy, you need to analyze how competitors present themselves. How do they use messaging? What makes them appealing?
By studying their approach, you can highlight your unique strengths, whether it’s a better shopping experience, faster shipping, or superior quality.
A clear, well-defined brand position helps you stand out in a crowded market and makes customers choose you over the competition.
10 Expert Tips to Perform an Ecommerce Competitor Analysis
Businesses can refine their strategies, provide better customer experiences, and improve growth by systematically evaluating their competitors.
1. Identify Your Direct and Indirect Competitors
Identify both direct and indirect competitors in your market. Direct competitors offer similar products or services to the same target audience, while indirect competitors provide alternative solutions that fulfill the exact customer needs.
For instance, if you sell fitness equipment, direct competitors might include other online fitness gear retailers, whereas indirect competitors could be subscription-based fitness apps.
To compile a comprehensive list, utilize tools like Google search, industry directories, and platforms like SimilarWeb or Alexa, even Reddit.
2. Analyze Competitor Product Offerings and Pricing
Analyze your competitors’ product range and pricing strategies. Are they budget-friendly, premium, or mixed? Do they offer discounts, bundles, or subscriptions? Understanding these tactics helps you position your products effectively, whether through better pricing, added value, or unique features.
Consider the following,
- What features do their products have that yours might lack?
- Are they offering discounts, promotions, or exclusive products?
- How do their prices compare to yours?
Creating a comparison table can help visualize gaps and opportunities. It also enables you to position your products more effectively in the market.
3. Evaluate Website Design, Speed, and User Experience
A well-designed website improves customer experience. Look at your competitors’ websites’ layout, navigation, and mobile friendliness. Check how fast their pages load and whether their checkout process is smooth.
For instance, if your competitor’s website loads in 2 seconds while yours takes 6 seconds, potential customers may leave your site and buy from them instead.
Use tools like Google PageSpeed Insights to test website speed and see where improvements are needed.
4. Study SEO Strategies, Keywords, and Backlinks
Search Engine Optimization (SEO) is crucial for online visibility. Analyze your competitors’ SEO efforts by examining:
- The keywords they rank for
- The number and quality of backlinks to their site
- Their organic traffic volume
Using SEMrush or Ahrefs can provide insight into their SEO strategies, allowing you to refine your own and targeted competitors’ high-value keywords.
You can also create a Google Sheets containing all your valuable keywords, like this,
5. Monitor Social Media Presence and Engagement
Social media is an essential tool for attracting customers. Check how often your competitors post, what type of content they share, and how they interact with followers.
Are they using Instagram stories, running giveaways, or responding to customer questions quickly?
You should do the same if your competitor posts customer photos and pet care tips on Instagram. Using a tool like Hootsuite can help you keep track of your competitors’ social media activity.
6. Assess Paid Advertising and Marketing Campaigns
Understand your competitors’ paid advertising strategies. Look at their ad efforts on Google Ads, Facebook, Instagram, and other platforms to see what works for them.
- Types of Ads: Identify whether they use search ads, display ads, video ads, or sponsored social media posts.
- Ad Content & Copy: Analyze their headlines, descriptions, images, and call-to-action. See if they promote discounts, new products, or customer testimonials.
- Target Audience: Check which demographics, interests, and locations they focus on.
- Ad Frequency & Placement: Check how often they run ads (in search results, social feeds, YouTube, etc.).
- Promotions & Offers: Look for limited-time deals, free shipping offers, or bundle discounts in their ads.
Use tools like SpyFu, SEMrush, or Facebook Ad Library to uncover their ad spend, keyword targets, and engagement levels.
By studying their approach, you can adjust your advertising strategy to reach more customers effectively.
7. Review Customer Reviews and Feedback Patterns
Customer reviews give insight into what people like and dislike about a product. Read Amazon, Trustpilot, and Google Maps reviews to see what customers say about your competitors.
For example, if a competitor’s online store sells wireless earbuds and many reviews mention poor battery life, you can highlight your product’s longer battery life in your marketing.
By doing so, you can address market gaps and increase customer satisfaction.
8. Track Competitor Promotions, Discounts, and Sales Tactics
Monitor your competitors’ sales tactics to attract customers, especially during peak seasons or special events. Pay attention to:
- Seasonal Promotions
- Limited-Time Offers
- Loyalty Programs
- Referral Discounts
- Bundling & Freebies
- Personalized Offers
Understanding their pricing and sales tactics will help you develop competitive strategies.
If you run an online clothing store and your competitor offers a 10% discount for first-time buyers, you might consider offering free shipping instead. It’s pretty much the same, but it influences the buyer to make a better decision.
So, keeping track of their promotions helps you stay competitive without losing profit.
9. Identify the Tools and Technologies They Use
Many Ecommerce stores use different tools to improve their business, such as CRM systems, email marketing software, and payment gateways. You can find better ones for your store if you identify your competitors’ tools.
Imagine a competitor uses Mailchimp, Zoho Campaigns, and Klaviyo for email marketing; consider using a similar or better setup. Websites like BuiltWith can help you discover what technologies your competitors use.
10. Compare Their Brand Positioning and Unique Selling Points
Each brand presents itself to customers in a unique way. Study your competitors’ branding, mission statements, and messaging to see how they position themselves.
Remember, most competitors market themselves as a “luxury” brand, while you focus on “affordable quality,” so your marketing strategies will differ.
Understanding these differences helps you highlight your unique selling points and attract the right audience.
FAQ
What is a business competitor?
In marketing, competitors are analyzed based on their strengths, weaknesses, strategies, and market positioning. By doing so, businesses can identify opportunities, mitigate threats, and refine their approach.
What is a competitor analysis in marketing?
The term “competitor” in commerce refers to businesses that sell similar products and services, targeting the same customer group. They challenge each other through pricing, quality, marketing strategies, and innovation to capture market share.
What is SWOT for competitors?
A SWOT analysis examines competitors’ strengths, Weaknesses, Opportunities, and Threats. Companies use this tool to assess their competitors’ market positions and identify areas where they can outperform or adapt strategically.
What are competitors in commerce?
The term “competitor” in commerce refers to businesses that sell similar products and services, targeting the same customer group. They challenge each other through pricing, quality, marketing strategies, and innovation to capture market share.
What are the three types of competitors in Ecommerce?
Well,
– Direct Competitors: Sell identical products to the same audience (e.g., Pepsi vs. Coca-Cola).
– Indirect Competitors: Offer different products fulfilling similar needs (e.g., Chipotle vs. Chick-fil-A).
– Replacement Competitors: Provide alternative solutions that could replace existing offerings (e.g., apps replacing traditional services)
Start Your Ecommerce Competitor Analysis Today to Stay Ahead in the Game
Making smart business decisions starts with knowing what your competitors are doing.
When you understand their strengths and weaknesses, you can improve your strategy and stay ahead. Use helpful tools and follow proven tips to make better choices.
Ecommerce is ever-changing, so it’s crucial to keep up. Focus on factors such as content marketing, pricing, and giving customers a great experience. Focus on new trends and be ready to adjust your plan when needed.
Keep learning, adapting, and winning!