E-commerce market research. What is worth including in them?
Do you know why some e-commerce businesses have created a buzz among consumers while others are trying hard to stay afloat? The former are acing their market research game!
Research shows that more than 70% of consumers research and compare products online before they purchase any offering. Successful businesses have thus turned to thorough market research practices to position and price their products such that they come across as the best deal providers when potential consumers scan through websites. Want to join them but don’t know what to include in your market research? Here are five important factors you need to focus on.
1. Market Overview & Trends
First up, understand the market you are in thoroughly and what’s trending and what’s not in your particular niche. Factor in things like industry growth statistics, key trends, current market size, and predicted CAGR (Compound Annual Growth Rate) and size. For instance, did you know that more than 43% of e-commerce sales in the US happened using mobile phones last year? Keep an eye on such numbers and trends to identify opportunities and customize your strategies, such as making your website more mobile-friendly, using social media advertising, etc.
2. Competitive Landscape
Next, keep a tab on all that your competitors are up to. Figure out who your direct competitors are, what they are doing, and factors that are contributing to their sales. That’s not all; see what they are offering, at what price point, and what their customer satisfaction rate is. All of this will help you figure out where you stand and identify gaps you can benefit from. Let’s say you saw a competitor struggling with customer service; improve yours and gain customer loyalty.
3. Pricing Strategies
Pricing is one of the most important factors for your customers, and so it should be for your business, too. When you’re conducting market research, don’t forget to monitor your competitors’ pricing strategies and approaches. Use a clear Price Monitoring Guide (https://dealavo.com/en/price-monitoring-guide) and advanced competitor price tracking tools like Dealavo to see the deals and discounts your competitor businesses are offering in real time and adjust your prices accordingly to secure your market share.
4. Customer Behavior & Preferences
Understand the behavior and preferences of your existing and potential customers. This is another cornerstone of your market research. Look into their shopping habits, pain points, or demands for products or services through surveys and online feedback. Figure out what your potential clients value the most. Free shipping, competitive pricing, huge discounts? Getting the answers will help you customize your offerings to their preferences.
5. Marketing & Sales Channels
Finally, analyze what are the most effective marketing and sales channels that are helping e-commerce businesses expand their reach. There’s social media marketing, influencer collaborations, email campaigns, and others, but you need to grasp which channels resonate the best with your particular audience.
Final Thoughts!
All in all, if you want to grow your business, e-commerce market research isn’t just some nice-to-have anymore but an absolute necessity. It will help you position your businesses and offerings optimally in the market. Ready to boost your sales and reach by closely tracking your competitors’ pricing actions? Include the factors above in your market research and use Dealavo to track competitors’ pricing and benefit from dynamic pricing.
