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Your biggest competitor launched a new product, and suddenly, your sales dipped. Then, you wonder—what are they doing differently?
In this article, we will dive deep into ecommerce competitive analysis and when to do it. We will also give you a step-by-step guide on how to do it right so you get valuable insights that strengthen your business strategy.
By the end, you will be ready to track competitors, analyze pricing, spot marketing gaps, and even identify a winning product you can use to your advantage.
Ecommerce competitive analysis is the process of studying your competitors to gain insights into their:
It also helps you identify gaps in your own approach and uncover opportunities to outperform them.
But this is more than just spying on competitors. It is a structured approach to competitive benchmarking, using relevant data to refine pricing, marketing, and customer experience.
With this process, you are not just reacting—you are making smarter, data-driven moves that set your ecommerce business apart.
Here are more benefits you can expect if you track your competitors:
Your competitors’ ads, reviews, and content reveal what your ideal customers love—and what frustrates them. Instead of guessing, you gain insights directly from real buyers.
Suppose you sell eco-friendly water bottles, but sales are slow because of complaints about leaky lids. Meanwhile, your competitor’s user reviews reveal that their best-selling bottle gets praise for its spill-proof design. Instead of guessing, you redesign yours with a better seal and highlight it in ads. Sales spike.
Not every ad platform or social media channel brings results. Studying competitors’ campaigns reveals where they succeed, so you can focus your budget on what converts.
For example, let’s say you are in the health niche like this pre-workout supplement provider. You are running Facebook ads, but conversions are low. You analyze a top competitor and notice they focus on TikTok, using fitness influencers to demo their products.
Their posts rack up thousands of views, and their discount codes drive sales. Instead of wasting money on underperforming ads, you shift your budget to TikTok, partner with micro-influencers, and promote limited-time offers. Engagement skyrockets and your supplement sales start climbing.
Analyze how others present themselves to refine your messaging to stand out—not blend in. With this, you control the narrative to make your brand the obvious choice.
Let’s say you sell premium protein bars, but your analysis shows that competitors all push “high protein” and “low sugar” but no one talks about the taste. So you shift your messaging to “Crave-Worthy Flavor with Clean Ingredients.” With that, customers looking for both nutrition and taste choose you over the usual bland options.
Trends shift fast. Competitor analysis helps you spot underserved needs, whether it is a missing product feature or a better checkout experience. This lets you innovate rather than play catch-up.
Suppose you run an ecommerce business selling air humidifiers, and you notice competitors are now selling large-capacity models. Reviews show users love the coverage but complain about bulky designs and high energy use. You use Sell The Trend to find an alternative and discover a portable mini humidifier gaining traction.
Instead of copying competitors, you launch a travel-friendly version with adjustable mist settings and highlight its convenience and energy efficiency in ads. While others struggle with space-hogging models, you attract customers looking for a compact, hassle-free solution.
Spot opportunities to refine your online store using these insights. Some changes might be quick fixes, while others can require a bigger strategy shift—either way, start listing ideas.
First, let’s tell the difference between the 2:
Why do this?
You cannot do proper competitor research if you do not know which businesses to compare your store to. It is like trying to win a race without knowing who else is running.
But when you identify both types of competitors, you can see who is fighting for your customers’ attention—and who’s quietly influencing their choices.
Google your products to see who ranks for your keywords. Going back to our example, if you are selling organic skincare, here are your competitors based on Google results:
You should check Amazon and other marketplaces too and look at the top sellers in your niche, like this:
Additionally, use social media to see who your target market follows and engages with. You can also use the Meta Ad Library to check who advertises similar products, like this:
Review industry blogs as well to see which brands get featured in your niche. Look at forums, Reddit, and review sites too to know where your competitors engage with customers.
You cannot stand out in a very crowded competitive landscape if you do not know what your competitors offer. Analyze their product offerings to see exactly how they attract your target customers—and where they fall short.
With this, you can also identify areas where your own business can shine and build a stronger unique selling proposition (USP) that sets you apart.
For example, let’s say you sell pergola kits online. Competitor analysis shows other brands offer affordable pricing but use cheap pine that does not hold up in harsh weather. Reviews also reveal complaints about complicated assembly instructions.
To refine your USP, highlight your premium cedar pergola kits known for their durability and natural resistance to rot, along with easy, step-by-step guides. Showcasing these perks in your marketing positions your brand as the top choice for long-lasting, hassle-free pergolas.
Review your competitor’s product description and check the key features they highlight and what is missing. Suppose you sell gazebo kits, and your competitor’s product description highlights UV-resistant fabric and easy setup.
But there are no details about wind resistance or snow load capacity. Fill this gap by highlighting reinforced frames and all-weather durability in your description to make your gazebo the better choice for year-round use.
Make sure to also read user reviews of your competitors to understand how customers perceive the value and quality of their products. While you are at it, check their product variety—are they overwhelming buyers with too many options or missing key products your target customers want?
Lastly, compare pricing strategy. See if they compete on price or value and adjust your approach.
For example, if you sell outdoor fire pits, a competitor might offer lower prices but charge extra for essential accessories like covers or spark screens. To adjust your pricing strategy, bundle these add-ons to offer better overall value while keeping your price slightly higher—and more appealing to customers.
Some brands might get tons of likes and shares but struggle to convert those into sales. To get past that challenge, study your competitors’ marketing tactics to understand what messaging resonates with your target audience.
Use this to gain a competitive advantage and craft campaigns that:
Analyze their social media presence to see their engagement rates, post frequency, and content style. To do this, use tools like Sprout Social to monitor your competitors’ social media profiles.
Also, review their blogs, videos, and emails for topics, tone, and value. You can sign up for their emails to study their email sequences, designs, and promotions. Check their influencer partnership too to see who they collaborate with and how much engagement they get.
Try to also understand your competitor’s timing for sales or promotions. For example, if you are in the health niche as an authorized reseller of these medical alert watches, you might notice a competitor running big promotions around National Seniors Day or during the holiday season when families buy gifts for elderly loved ones.
By spotting this pattern, you can launch your sales earlier or create family-focused bundles to stand out before the market gets flooded with similar offers.
Last but not least, conduct a SWOT analysis for their marketing. Here’s an example of a competitor SWOT analysis if you are in the medical alert watch niche:
To help you with all these tasks, it is best to hire a marketing manager. They can analyze competitors, refine your marketing strategies, and uncover growth opportunities. With their expertise, your campaigns will be more targeted and effective.
Even the most polished sites can hide friction points that frustrate customers like:
When doing ecommerce competitor analysis, evaluate their websites to spot areas where they are losing or attracting potential customers. But this is not simply about seeing what looks good; it is about understanding how their UX impacts customer satisfaction.
With this step, you can design a smoother experience that keeps visitors on your site longer and converts them into buyers.
Test their site speed. To do this, use Google PageSpeed Insights to check their load times. Here’s an of what it looks like:
As you scroll through the PageSpeed results, you will see detailed diagnostics highlighting performance issues. Use this data to pinpoint gaps and identify specific ways to optimize and improve your own website’s speed and user experience.
Another way to review their website is to navigate it as a customer. Browse their product pages, search bar, and checkout process. Note their color schemes, images, and layout too.
Next, check how well their site adapts to smartphones and tablets. You should also assess their site structure and see how easily you can find products or information. Explore their CTAs as well to see if they guide customers effectively.
Competitors who dominate search engines often grab the attention of your same audience, even if their offerings are not better. Evaluate their SEO and traffic source to find untapped keywords or content ideas they overlooked.
For example, maybe they rank for broad terms but miss long-tail keywords that bring in more targeted buyers. Use this as an opportunity to gain a competitive edge and capture a bigger market share through increased search engine visibility.
Additionally, understand their traffic source to know which channels drive real growth, whether it is organic search, paid ads, or referrals.
Use Ahrefs to check their top-ranking keywords, like this:
Next, assess their content strategy. To do this, look at their blogs, product pages, and FAQs for keyword usage. Check their meta titles and descriptions too to see how they optimize it for search engines.
As for the traffic sources, use Similarweb to check if they rely on organic search, paid ads, or social media. Simply input the website on the platform and you will get results like this:
You should also check your competitors’ backlinks because they can show which websites are linking to them and helping them rank higher on Google. Use this to find new opportunities to get your site featured on similar, high-traffic websites and improve your rankings. To do this, use Ahrefs’ Backlink Checker tool:
SEO can get complicated with all the data and tools. But you can get an SEO agency to handle the nitty-gritty of search engine optimization while you focus on other steps and strategies to drive your brand’s growth.
When doing ecommerce competitive analysis, looking into your competitors’ customer support and policies gives you a clear picture of how they handle:
But beyond finding flaws, take this step to understand customer preferences and expectations. Suppose your competitors have strict return policies or slow response times, leaving customers frustrated.
You can then offer better solutions that attract buyers and increase customer lifetime value. Strong support can also be the deciding factor between a one-time sale and a loyal customer.
Test their response time. To do this, send an inquiry and see how quickly they reply or call their support line. You should also check if they offer real-time support, like live chats, or just email.
Next, review return, warranty, & refund policies. Are they flexible or strict? Then, check their shipping options like the delivery times, costs, and tracking features.
Here are more ways to check their customer support and policies:
Watch for these common challenges as you work through your ecommerce competitive analysis, and review your process to spot where you can adjust, improve, and stay ahead in a competitive market.
Without a structured approach, you risk missing key insights, focusing too much on certain competitors, or comparing the wrong metrics. This makes it difficult for you to spot patterns or trends that can give you a competitive edge.
Meanwhile, a template helps you organize your competition research systematically. Use this to make sure you evaluate all the right areas—pricing, marketing, SEO, customer experience, and more—while making it easier to compare multiple competitors side by side.
Here’s how you can make and use a template:
Trying to track every player in your industry sounds thorough, but it often causes information overload. When you spread your focus too thin, you miss the chance to gain valuable insights that matter.
Why? Because not every competitor influences your market in the same way—some might dominate advertising campaigns, while others excel in customer service or pricing.
Here’s how you can avoid tracking too many competitors:
New technologies, shifting market trends, and changing customer behaviors can quickly make your competitor data irrelevant. If you do not stay updated, you risk basing decisions on outdated information.
When you keep an eye on what your competitors are doing and how industry trends are shifting, you stay flexible and ready to pivot when it counts.
Here’s how you can keep up with constant market changes:
With all these steps and best practices, it is time to dive into your ecommerce competitive analysis. Gather your team and map out an action plan with all the steps and tactics—whether it’s pricing, SEO, or customer support—and decide how to tackle them.
If you have limited resources, focus on quick wins first, like tweaking product descriptions or improving your website UX, then move on to bigger shifts. But make sure to monitor your activities to make sure you can adjust as needed.
To further improve your ecommerce journey, go to Sell The Trend. Without the right product to sell, your competitor research can go down the drain. Register now to start your 14-day free trial.
