Starting a business, whatever its sector of activity, means being wary of fierce competition. Even if your ecommerce business has incredibly unique offerings or services, it’s probably not the right fit. First of all company of this type to enter the market. Ecommerce businesses will have many direct competitors to watch out for, many of which can be covered in their business plan. There may even be indirect competition in the form of companies that later prove to have a competitive advantage.
Staying ahead of the competition doesn’t mean you have to ignore them. Rather, your ecommerce business should be aware of everything the competition does well, as well as what it fails at. Keep one eye on the price of small business success and the other diligently monitor your competitors with these tips.
1. Read industry reports.
Before you can further research your company’s competitors, you need to have a thorough understanding of your own industry. Do you run a consulting firm where you advise companies on their corporate culture? Consult the strategic planning guides provided by Gartner. Read their special reports that can shed light on trends in your industry, such as “Five things inclusive leaders do differently.” You can also find forecasts and additional information from a market research company. Forrester.
One of the best ways to stand out and stay ahead of the competition is to understand your industry, inside and out. Know what’s trending and newsworthy and how your ecommerce business can contribute to that conversation.
It’s a little more strategic than going to the competitor’s Facebook page, scrolling quickly, and leaving. You should be able to study their social pages in depth and come away from each with key takeaways about where they succeed and where they make mistakes. Consider the following when monitoring a competitor’s social media accounts:
- Where is the competition on social networks? Examine which platforms your competitor is visible on and which they are not. Remember, no business, including yours, needs to be active. each social platform if the market is not there. However, it may be beneficial for your e-commerce business to launch on emerging social platforms that other competitors are not yet present on, like TikTok, where a relevant audience can discover and learn more about your offerings.
- What is the competition publication? Is their content fun and creative, or professional and educational? How often do they post? What type of media is it, from video to photos?
- How does the competition interact with its audience? You may find that some businesses don’t respond to their fans or use a canned response when they do. Use what you’ve learned to build an engagement strategy on how to respond to fans in a timely and thoughtful manner.
3. Read their reviews online.
Chances are, competing businesses have Yelp and Glassdoor accounts. These pages can give you a deeper insight into the internal competition process. Are customers satisfied with their experience at this company? Do employees like working there?
Take notes on what customers and employees like and dislike about the company. While your own ecommerce business should still be able to differentiate itself from the competition, you’ll better understand how your offerings and your team can provide those customers with an experience that the competition can’t.