Analysing Competitors of E-Commerce Startup: What You Can Learn Before Launching Your Store.
Launching an e-commerce startup can be an exciting venture, but diving in without thoroughly understanding the competition is a common pitfall that can lead to wasted time, money, and missed opportunities. One of the smartest moves you can make before setting up your online store is conducting a detailed competitor analysis. Knowing who you're up against, what they do well, and where they fall short allows you to build a better, more innovative e-commerce business from the start.
In this article, we'll break down how to analyse your e-commerce competitors effectively and explain what key lessons you can extract from this process to give your new store the best chance of success.
Why Competitor Analysis Matters in E-Commerce
Competitor analysis isn't about copying others—it's about understanding the landscape. Here's why it's crucial:
- Identify market gaps where competitors fall short
- Understand pricing strategies and product offerings
- Uncover marketing channels that work well in your niche
- Discover what customers love and hate about existing options
- Avoid costly mistakes by learning from those who've already launched
By analysing competitors, you'll save months of guesswork and build your store on data instead of assumptions.
Step-by-Step Guide to Analysing E-Commerce Competitors.
7 steps you need to check and learn from your competitors.
1. Identify Your Top Competitors
Start by listing your direct and indirect competitors:
- Direct competitors sell the same products or serve the same customer segment.
- Indirect competitors sell alternatives or operate in related categories.
Use tools like:
- Google Search (search product keywords)
- Amazon and Flipkart (for bestselling competitors)
- Social media platforms (Instagram, Facebook ads library)
- Tools like SimilarWeb, Ubersuggest, and SEMrush for traffic and keyword insights
Create a spreadsheet to track:
- Website URLs
- Product categories
- Price range
- Social media links
- Market positioning
2. Evaluate Their Website Experience
Visit each competitor's website and ask:
- How fast does the site load?
- Is the user interface mobile-friendly?
- How easy is it to navigate and find products?
- Is the checkout process smooth?
- Do they offer live chat or customer support?
What You Can Learn:
- Best practices in UI/UX
- Check out the design that improves conversion
- Technical features you may need (e.g., filters, wishlist)
- Ideas for product bundling or upselling
3. Analyse Their Product Range and Pricing
Next, examine:
- How many products do they offer
- How often are new items added
- Price range across categories
- Product bundles or discounts
- Product descriptions and images
What You Can Learn:
- The average price that customers are willing to pay
- Whether there's room to offer better pricing
- What kind of product content helps convert visitors
- Opportunities for launching bundles or exclusive collections
4. Study Their Marketing Strategies
Observe how your competitors attract and engage customers:
- What keywords are they targeting? (Use Ubersuggest/SEMrush)
- Which platforms do they advertise on?
- What kind of content do they post on social media?
- Do they use influencer marketing?
- Are they investing in SEO, blogs, or YouTube videos?
What You Can Learn:
- Where your audience spends their time
- High-performing content ideas
- Email marketing offers and timing
- Effective ad creatives and copy
You can also subscribe to their newsletters to stay informed about their email campaigns and sales strategies.
5. Check Their Customer Reviews and Feedback
Customer reviews are goldmines of insight. Visit:
- Product reviews on their website
- Google reviews and Trustpilot
- Social media comments
- Amazon/Facebook product ratings
Look for:
- What customers praise (fast shipping, packaging, product quality)
- What they complain about (delays, poor return policies, bad customer support)
What You Can Learn:
- What to focus on (e.g., better packaging, faster response times)
- Gaps you can fill (e.g., improved quality, better sizing charts)
- Product ideas based on what customers are asking for
6. Understand Their Brand Positioning and Messaging
Ask:
- What values or emotions are they selling?
- Do they focus on premium quality, sustainability, affordability, or innovation?
- What language and tone do they use?
- Are they B2B, B2C, or hybrid?
What You Can Learn:
- How to differentiate your brand tone and message
- What values matter to your audience
- How to present your Unique Value Proposition (UVP) clearly
7. Observe Their Logistics and Return Policies
Details like delivery times, shipping partners, and return policies often make or break customer satisfaction.
Analyse:
- Delivery speed and cost
- Return/exchange conditions
- Packaging style
- Use of tracking and shipping notifications
What You Can Learn:
- Where can you offer better shipping or free returns
- Ways to reduce cart abandonment
- Third-party services they use (courier, warehousing)
Common Gaps to Look Out For
Through your analysis, you'll begin to spot patterns and gaps. Some common areas where new e-commerce stores can outperform include:
- Personalized customer service
- Transparent and faster shipping
- Engaging product videos or 360° views
- Better mobile experience
- Smarter product recommendation engines
- Content-driven marketing (e.g., blogs, guides, UGC)
How to Use Competitor Insights to Plan Your Launch
Here's how to put your research into action:
Competitor Insight: What You Should Do
Weak social media engagement: Build a stronger, consistent presence
Confusing website navigation: Design a smoother, mobile-first experience
High product prices offer more value at a competitive price
Slow response to queries. Use chatbot + live support for faster service
Bad reviews about product quality. Source better suppliers or test thoroughly
This not only sets you apart but also significantly reduces your trial-and-error phase.
Bonus Tools for Competitor Tracking
- SimilarWeb: For website traffic and source data
- BuiltWith: To check the tech stack of a competitor's site
- BuzzSumo: For top-performing content in your niche
- AdSpy / Meta Ads Library: For Facebook & Instagram ad tracking
- Wappalyzer: For tracking marketing tools, competitors use
Conclusion
Competitor analysis is not a one-time task; it is an ongoing process. As you grow, continue to monitor your competitors to adjust your strategies accordingly. Treat this as an ongoing intelligence-gathering mission that feeds your business decisions—from product selection and marketing to pricing and customer service.
By deeply understanding your competition before launch, you're not just preparing to compete—you're positioning your e-commerce startup to lead.
