Many ecommerce brands focus on improving their products and marketing but overlook a critical factor: their competition. Businesses make decisions based on assumptions instead of real data without studying how competitors attract customers, convert sales, and retain buyers.
A weak pricing strategy, ineffective branding, or a poorly targeted audience can lead to lost revenue. Worse, competitors who understand their market better can easily outperform those who rely on guesswork.
This guide lays out a step-by-step approach to ecommerce competitor analysis. You’ll learn how to gather insights, identify target market gaps, and adjust your strategy to stand out.
Step 1: Identifying the Right Competitors to Analyze
Identifying competitors is the first critical step in competitor analysis. Ecommerce businesses must focus on potential competitors that impact their market position the most.
How to Find Relevant Competitors
- Use Search Engines to Identify Market Leaders. Google, Bing, and other search engines show businesses ranking for industry-related terms. Brands that appear consistently are likely direct competitors.
- Analyze Marketplaces Like Amazon and Etsy. These platforms provide insights into best-performing products, pricing models, and consumer behaviors in different niches.
- Check Social Media Platforms. Competitors actively engaging on Facebook, Instagram, and TikTok often have strong customer engagement and effective content marketing strategies.
- Study Review Websites and Industry Reports. Sites like Trustpilot, G2, and Capterra reveal customer sentiments and pain points related to competitors’ products.
Creating a Competitor Tracking Template and Example Table
Once competitors are identified, organize them into a competitor analysis sheet:
- Company Name & Website
- Type of Competitor (Direct, Indirect, Replacement)
- Product Offerings & Pricing Strategies
- Marketing Strategy & Channels Used
- Customer Reviews & Feedback Trends
Here’s an example competitor tracking template formatted as a table. You can use this to organize and analyze competitor data efficiently.
| Company Name & Website | Type of Competitor | Product Offerings & Pricing Strategies | Marketing Strategy & Channels Used | Customer Reviews & Feedback Trends |
| Example Brand 1 (examplebrand1.com) | Direct | – Sells eco-friendly skincare products- Uses a tiered pricing model with discounts for bulk purchases- Offers a subscription model | – SEO-optimized blog content- Google Ads and Facebook retargeting- Influencer marketing on Instagram | – Highly rated for product quality but negative feedback on slow shipping |
| Example Brand 2 (examplebrand2.com) | Indirect | – Sells organic wellness supplements- Uses dynamic pricing based on demand- One-time purchases with seasonal promotions | – Heavy use of TikTok and YouTube influencer partnerships- Email marketing with loyalty rewards- Paid advertising on search engines | – Strong engagement on social media- Customers complain about limited product availability |
| Example Brand 3 (examplebrand3.com) | Indirect | – Provides DIY skincare ingredient kits- Flat pricing across all products- Offers digital guides as an upsell | – Content marketing strategy focused on Pinterest- Email sequences with educational resources- Referral program for returning customers | – Customers love customization but mention steep learning curve for DIY |
Step 2: Collecting Competitive Intelligence (What to Analyze & How to Do It)
Analyzing competitor data provides comprehensive insights into their market position, business operations, and digital presence.
Tracking key performance metrics ensures ecommerce businesses make informed decisions about their own strategies.
Pricing & Product Strategy
- Identify best-performing products and pricing models competitors use.
- Compare discounts, subscription plans, and complimentary products they offer.
- Evaluate profit margins to see how competitors balance pricing with revenue.
Marketing & Customer Acquisition
- Study SEO efforts by reviewing competitors’ search visibility and content strategies.
- Analyze Google Ads, influencer partnerships, and content marketing strategies used.
- Examine engagement levels on social media posts, paid ads, and email marketing campaigns.
Customer Reviews & Social Proof
- Track customer sentiments to understand pain points and positive feedback.
- Evaluate customer engagement on social media platforms and influencer promotions.
- Identify gaps in competitor user-generated content strategies. RaveCapture helps brands gather and leverage UGC for credibility and conversions.
Competitor Website & Customer Experience
- Examine checkout processes to ensure ease of use.
- Analyze customer support speed and response quality.
- Review site speed, mobile responsiveness, and overall checkout experiences.
By collecting these valuable insights, businesses can refine their approach and gain a strategic edge in competitive markets.
Step 3: Identifying Market Gaps for Competitive Advantage
Market gaps represent potential opportunities where customer demand isn’t fully met. Identifying these areas allows ecommerce businesses to develop products or marketing strategies that competitors overlook.
How to Identify Market Gaps
- Customer Feedback & Reviews. Analyze complaints and missing features in customer reviews across multiple platforms.
- Product Development Trends. Monitor stockouts across ecommerce platforms to find products in high demand.
- Industry Reports & Market Trends. Use ecommerce analytics and industry standards to find shifting consumer preferences.
- Competitive Pricing & Positioning. Identify price-sensitive customers looking for alternative options.
Validating Market Gaps with Data
- Use Google Analytics & AI-based Tools. Predict consumer behaviors based on browsing history.
- Run Targeted Surveys. Gather direct customer feedback on unmet needs.
- A/B Test Marketing Strategies. Test messaging that highlights potential market gaps.
Brands that address these gaps gain a competitive advantage by offering product features and pricing models that align with consumer preferences.
Step 4: Turning Insights into an Actionable Strategy
Once competitor insights are gathered, ecommerce brands need to translate them into actionable strategies that improve their business operations.
Refining the Unique Selling Proposition (USP)
- Position branding around solving competitor weaknesses.
- Focus on customer loyalty through strong engagement strategies.
- Highlight differences in product quality, advanced features, or checkout process.
Optimizing Marketing & Content Strategies
- Improve search engine optimization (SEO) to increase search visibility.
- Adjust content quality and types of content based on competitor gaps.
- Launch social media strategy adjustments based on competitor performance.
Using Social Proof as a Competitive Advantage
- Showcase customer reviews, UGC, and testimonials to improve trust.
- Use RaveCapture to collect and manage UGC for social proof and conversions.
Businesses that apply these insights gain a strategic advantage and increase their market share.
Step 5: Creating a Competitor Analysis Framework for Long-Term Success
Competitor research is an ongoing process. A structured competitor monitoring system helps brands track market shifts and competitor activities in real-time.
Building a Competitor Dashboard
- Use competitor analysis tools to track pricing, product launches, and digital presence.
- Maintain an ongoing spreadsheet tracking key differentiators.
Routine Competitor Research & Performance Metrics
- Quarterly competitor deep-dives for structured evaluations.
- Real-time monitoring of new marketing campaigns and SEO trends.
Adapting to Industry Trends
- Keep up with emerging competitor strategies and consumer preferences.
- Optimize pricing models and business strategy based on real-time competitor data.
This structured approach creates a long-term competitive strategy that supports sustainable growth.
Implement Competitive Intelligence to Strengthen Your Ecommerce Brand
Ecommerce competitor analysis guides better business decisions by providing clear insights on pricing, positioning, and marketing strategies. Without it, businesses risk losing sales to brands that know their market better.
By following this step-by-step method, ecommerce store owners can:
- Identify the right competitors
- Analyze pricing, marketing, and customer sentiment
- Spot market gaps for differentiation
- Turn insights into concrete strategy changes
- Maintain ongoing competitive tracking
Start applying these insights today to gain a strategic edge and improve conversions.
For brands looking to leverage social proof for an advantage, RaveCapture helps businesses collect and showcase UGC seamlessly.