Are you prepared to transform your e-commerce strategy? The power to outshine your competition lies in your ability to analyze competitive products.
This isn't just a skill—it's your secret weapon. We've crafted a potent 4-step formula to transform your e-commerce business, giving you the competitive edge you've sought. This isn't about surviving in the digital marketplace but thriving.
Our formula, steeped in data-driven insights and battle-tested strategies, will give you the knowledge to dissect your competitors' offerings, supercharge your online presence, and skyrocket your market share. Whether you're a titan of e-commerce or a fresh face on the scene, our guide is your roadmap to success.
So, are you ready to dive deep into the e-commerce ocean, analyze competitive products, and unlock the untapped potential of your business?
Step 1: Use monitoring tools
The first step to analyzing your competitors' online sales is monitoring tools. These tools allow you to track the performance of your competitors, see what is selling best, and understand market trends.
Several monitoring tools are available in the market. Still, this new AI tool, Competitors Insights, is an excellent choice as it allows you to track the performance of your competitors in real-time. It provides you with information about top-selling products, top sellers, etc.
Competitors Insights is not just another tool for spying on ads. It goes further by allowing you to spy on the best products directly. With a database of over 3 million products, the technology behind Competitors Insights scans all Shopify stores and analyzes the best-selling products among your competitors.
This feature is a game-changer for brands. It allows you to see what products are trending, which ones are falling out of favor, and how sales are evolving. This information is invaluable in helping you identify the most profitable products to sell in your store.
Moreover, Competitors Insights provides the top 20% of products that make up 80% of your competitors' revenue. By focusing on these high-performing products, you can significantly increase your revenue.
Step 2: Analyze product performance
Once you've used a monitoring tool to track your competitors' performance, the next step is to analyze product performance. Competitors Insights lets you see the best-selling products on your competitors' sites. This gives you an idea of which products are most successful and how they are presented.
To calculate the conversion rate, it is necessary to know the number of sales and visitors. You can get the number of visitors using software like Semrush, UberSuggest, or Similarweb.
It is also possible to conduct comparative tests or market research to assess the relative performance of your competitors' products compared to your own. These methods can give you a general idea of how customers react to the same product.
If your competitors are selling the same products as you and making more sales, you may need to change your marketing approach.
Study the sales pitch of your competitors in their ads, emails, social media posts, and landing page…
How to measure roughly the Conversion rate: Thanks to Similarweb and Competitors Insights, you can have a glimpse of information about the profitability of your competitor’s products.
All you have to do is look on Competitors Insights for the revenue generated per product, then use Semrush or Ubbersuggest to analyze how many people went on a given product page.
Now you can estimate the conversion rate of a product by dividing the number of sales by the number of visitors on the page.
Even though having an idea of the conversion rate can help you choose a product, remember that the product is not the only metric contributing to the success of a brand. Other factors, such as product quality, price, customer service, and your overall business strategy, also play an essential role.
Step 3: Follow a Structured Analysis Process
After collecting data using your benchmarking tools of choice, arrange and analyze your e-commerce business performance. Concentrate on the essential KPIs you discovered, identify performance gaps, and develop practical plans to enhance your e-commerce operations.
For example, you could compare your unique selling point (USP) against your rivals. This allows you to understand what distinguishes your brand and what encourages shoppers to select your brand over others.
Once you’ve identified your USP, you can leverage it to outperform your branding, marketing, and sales competition.
Your USP could be, for example, extra fast shipping, the quality of your product, or the fact that your product is tailored for a specific niche.
Another method is to utilize Competitors' Insights to assess your Market Segment Performance. You may use the program to find consumer categories where you outperform your competition. This may help you increase your success in these sectors by optimizing your product variety, price, and promotions.
Overall, examining data through Competitors' Insights will assist you in making data-driven decisions that will propel your e-commerce business toward success.
Step 4: Implement, monitor, and iterate to Ensure Ongoing Improvement.
Based on the data and insights you've collected, you can make a plan for making strategic changes to your e-commerce business.
Cultivating a growth mentality that stresses constant progress and flexibility in the face of change allows you to :
- Enhance the User Experience (UX): The user experience is critical in driving conversions and customer satisfaction.
- Evaluate your website's overall design, navigation, and functionality to ensure a seamless user experience.
- Consider factors such as page load times, mobile responsiveness, intuitive navigation, and visually appealing design.
- Implement user-friendly features like clear product descriptions, easy checkout processes, and personalized recommendations.
- Regularly gather user feedback and conduct usability tests to identify areas for improvement and make data-driven optimizations.
- Refine your Pricing Strategy: Pricing plays a significant role in influencing purchase decisions.
- Keep a close eye on your competitors' pricing to maintain competitive pricing and offer attractive deals to your customers.
- Conduct regular pricing analyses to assess profit margins, market demand, and customer perceptions. We recommend iterating your prices by 30-50% to see if the change is impactful.
- Consider dynamic pricing strategies, such as tiered pricing, promotional discounts, or bundling options. That will increase your average order value and push people to buy now.
- Explore Diversified Marketing Channels: To expand your reach and tap into new customer segments, consider exploring new advertising channels beyond your usual marketing mix.
- Investigate opportunities in podcast sponsorships, TikTok Ads, Google Ads, native advertising, SEO blogging, influencer collaborations, or social media marketing. Each channel has unique advantages and audience demographics, so carefully select the channels that align with your target market.
- By diversifying your marketing channels, you can increase brand exposure, drive traffic to your website, and attract a broader customer base.
- For example, Google ads are great for branding campaigns, Tiktok and Meta Ads are perfect for testing new products, and Pinterest is great if you have a product for a +40-year-old female in the US…
- Invest in Customer Retention: While acquiring new customers is essential, nurturing and retaining your existing customer base is equally crucial for long-term success.
- Provide personalized experiences through tailored discounts, exclusive offers, and customized recommendations based on their purchase history.
- For that, you should build at least four automatic flows on your email marketing software: welcome sequence (4 mails), abandoned cart (3 mails), browse abandonment (1 mail), and post-purchase upsell (1 mail). For more information, you can check this article.
- Implement a customer loyalty program that rewards customers for their repeat business, using tools like Sparktool. Make it look like a game for your clients to share your product.
- Leverage email marketing campaigns to stay connected with your customers, share valuable content, and inform them about new products, promotions, or upcoming events.
Frequently Asked Questions
What are Competitors' Insights?
Competitors Insights is a software tool that allows you to spy on your competitors' e-commerce stores. It lets you see which products sell the best and how sales evolve.
How do Competitors Insights work?
Competitors Insights works by scanning all Shopify stores and analyzing the best-selling products among your competitors. It also tracks the evolution of sales over time, giving you a clear picture of which products are profitable.
What makes Competitors Insights unique?
Unlike other tools, Competitors Insights gives you the top 20% of products that make up 80% of your competitors' revenue. This information is invaluable in helping you identify the most profitable products to sell in your store.
Can I import high-potential products to my store?
Yes, with the one-click export functionality, you can import the most profitable products to your store in a single click.
How do you think you could use Competitors Insights?
To better understand how Competitors Insights works, you can check out this video that provides a comprehensive tool walkthrough.
Our journey began with the deployment of monitoring tools, the silent observers that provide you with crucial insights into your competitors' strategies. We then delved into the science of analyzing product performance, a skill that lets you dissect your competitors' offerings and identify their strengths and weaknesses.
We then adopted a structured, systematic analysis process that guarantees thorough examination… Finally, we explored the ‘implement, monitor, and iterate' cycle—a mantra for continuous improvement and adaptation in the dynamic e-commerce arena.
Remember, the key to outshining your competition lies in effectively analyzing competitive products. This is not a one-off task—it's an ongoing learning, adapting, and evolving journey. With these steps, you're not just surviving in the digital marketplace but thriving.
To help you out, we negotiated a deal with the founder of Competitors Insights so that you can have 20% off on your subscription with the code ECF20.
To use this coupon code, click on this link.