eCommerce has the potential to grow into a massive business, but it’s also highly competitive. When you’re in the eCommerce field, you have to figure out ways to set yourself apart from the enormous amounts of competition that exist. From small companies to big ones like Amazon, there’s no shortage of other online retailers, and you’re all vying for the same customers.
There are tens of millions of eCommerce sites around the world, in fact.
So how can you be more competitive and grow your online business?
1. Never Step Learning
One of the best things you can do for your business is to learn from people in the industry. If there are eCommerce industry events available to you online or in-person, take advantage when you can. The more you can learn from people who are experts in eCommerce, the more you can not only grow your business and learn from their know-how but also avoid their potentially costly mistakes. It’s also advisable for business owners to learn on the side with online MBA degrees.
Learning from experts in the industry can turn into actionable insights, and so few people are willing to take the time to listen that it can become a significant differentiator for you.
Also Read: 9 Tips for Success in Ecommerce
2. Analyze Your Competition
If you want to be competitive in anything, you need to know what you’re up against. With that in mind, try to learn from your competition because this will help you see new trends and anticipate possible shifts in the market.
Do regular competitor analyses. Keep track of your competition on an ongoing basis.
You can identify your key competitors by using Google, Amazon, Ahrefs, or other similar tools.
Once you have a broad list of potential competitors, you can begin to organize them based on how directly they’re in competition with you. Your primary competitors are your direct competition, meaning you’re targeting the same audience or offering the same products or services.
Secondary competitors might sell similar products and services, but their audiences could be different. Tertiary competition is businesses that are related to yours and may sell to a similar audience, but their products are somewhat different than your own.
3. Establish a Brand
The main thing that successful companies do differently, even when they’re in a competitive industry, is that they put a lot of their time and energy into creating a unique brand. People are always bombarded with advertising and marketing messages, and it can feel like an overload.
You want to break through the noise with your brand. Start by thinking about what it is you do and also why you do it. Your values will define your mission, and these should be the foundation of your brand.
4. Remember the 3 Ps
In eCommerce, there are three Ps to be mindful of—prices, product, and placement.
Starting with prices, if you’re too high, you potentially alienate at least part of your customer base. If your prices are too low, you might not be able to make a profit. You want that balance. Finding the right pricing balance is one of the biggest struggles for eCommerce businesses. There are pricing tools you can use that will help you learn more about what your competitors are doing as they price similar products. You can also look at historical data to help you make decisions.
You may wonder how a company can sell something incredibly common that’s available anywhere. You have to think about the products you’re selling, but more importantly, how you sell them. Think about the type of customers who are most likely to prefer your product at the price point that you’re offering it.
Placement is the third P, and this refers to where you’re selling your products. Are you just selling in your own store? The benefit of that is the complete control you can have, but if you’re not taking advantage of other places, then you’re missing customers. For example, if you’re only offering products on your site, but someone doesn’t like your checkout options, they might head over to Amazon and look for the same thing.
Also Read: How to Get Started with Ecommerce?
5. Know Your Customers
Finally, many of the above tips do rely on knowing your customers. Get insight from customer support feedback and reviews. Frequently read your reviews and make changes based on what you’re seeing. Ensure that your support team follows up with customers so you can get more details.
You can also gather analytical data to understand your customers’ buying decisions.
Do surveys and market research, and then you can start to understand the customer journey more, so you can tailor it to your audience and be more competitive.