How Do You Conduct eCommerce Market Research?
For an entrepreneur, market analysis is a way to find answers to what and how to sell. Qualitative research opens up new niches for trading, helps to identify competitors’ advantages, and studies the desires of its target audience. Market research keeps you ahead of your competitors. How do you conduct eCommerce market research?
Marketing research of the eCommerce market allows you to assess the prospects for creating a new business startup, learning how to stand out in eCommerce, or adjust the development strategy of an existing one. Companies that analyze the state of the market are faster at reaching the desired level of income.
Why Research the Ecommerce Market?
Goal setting is the first stage of marketing research. If the range of tasks is defined correctly, you will not waste time collecting and processing unnecessary information. The subject of research can be one of the structural components of the market:
- Free niches. Assessment of competition in segments, search for unoccupied niches for the introduction of a new business;
- Market condition. Current economic situation, the structure of industries;
- Similar offers. The number of offers of a similar product in the selected segment, sales volume;
- The target audience. Peculiarities of customer behavior in the selected segment, product requirements;
- Competitors. Identifying the strengths and weaknesses of competing companies and their products;
- Prices. Features of pricing in the industry, the cost of similar offers from competitors.
To determine the direction of your marketing research, make a list of questions to which you want to find answers. The to-do list can serve as a prototype for a plan from which further research will be built.
The most general classification assumes division into marketing and complex research.Marketing analysis is aimed at studying a specific market segment. The subject of study is data about a particular product, its target audience, product price, and competitor’s offers. Marketing analysis is used to build or update development strategies, attract new revenue streams and improve product performance.
Complex research includes the study of all segments and industries of the market. Usually, this method is used when a specific line of business has not yet been chosen. The researcher is looking for free niches to target, evaluating development trends, purchasing power, and what makes a good eCommerce experience.
Sources of Information for E-Commerce Markets
Often, the methods of collecting data for market research are limited by high-security barriers to e-commerce sites. To get around these obstacles, it is necessary to use residential proxies. Large enterprises have funds for sociological research, while small entrepreneurs are limited to data from the Internet.
To get the complete picture of the state of the market, we recommend using several information channels at once. In addition to traditional polls, questionnaires, interviews, social networks, thematic forums, and other Internet resources, it is worth using unusual methods. Online maps and navigation software are suitable for collecting competitor data. This information will come in handy during the competitive analysis phase.
Key Steps to Research E-Commerce Markets
Each marketing research of e-commerce markets is carried out according to an individual plan, as it aims to solve the problems of a specific business, and make your eCommerce business thrive.
However, the fundamental analysis steps are the same for most processes:
- We collect data. Collecting information about the state of the market over the past 3-5 years. The more complete picture of market activity can be made, the more accurate the forecast of the firm’s development will be.
- We define the target audience. The following analysis stage is to identify the category of buyers who bring the company most of the income. As a rule, buyers are divided into groups according to general characteristics: age, gender, social status, income level, etc. It is required to identify the number of potential buyers in each of the categories.
- We study external factors. The market is influenced not only by buyers and sellers but also by outside participants. The activities of companies are affected by such external factors as legislative changes, economic processes, technological development, and various fashion trends.
- Getting acquainted with competitors. If you are launching a new and unique product, you should not be afraid of competition in your segment. In other cases, you need to study the advantages and disadvantages of your rivals in advance. Also, pay attention to the pricing of competing companies. Do they market their product as economy or luxury class products? This will help determine the positioning of your brand.
- We are looking for sales channels. How and to whom you will sell goods and services is one of the essential issues when organizing a business. Marketing research of the market will make it possible to determine the distribution channels through which the goods will go from the supplier to the consumer.
- We conclude. When all the data is collected and structured, you can start analyzing the results. Consider two popular data processing systems.
Conduct eCommerce Market Research
Marketing research of the e-commerce market is a long process that requires money and time. For the efforts to be justified, it is necessary to organize collecting and analyzing data properly. Technology is constantly reshaping E-commerce. There are no analytical methods that will 100% protect a company from failure. However, competent eCommerce market research will help you choose an effective development strategy and significantly increase your chances of success.