How to keep track of your competition?

There is no precise data on the number of online stores in the world.

The WPForms platform estimates that we have already between 12 and 24 million online stores operating globally. Hundreds of new ones are created every day. This does not mean, however, that the market is already saturated - the vast majority of the e-commerces is very small - only about one million worldwide online stores generate more than a thousand dollars in yearly revenue.

This means that a typical e-shop owner will certainly face demanding and numerous competition, regardless of the vertical in which he operates. On the other hand, many of these entities will cease to be a threat to the company's position after implementing good practices and wise promotional activities.

The key is to find stores that are doing great, and in the next step to be inspired by their way of doing things.

What is worth monitoring

Competitive companies, especially those that pose a real threat, correct their actions on an ongoing basis and improve their strategy to maximize profits.

From the store owner's perspective, this means that thanks to their careful observation, on the one hand, it's possible to obtain valuable information about effective operating techniques, and on the other hand, to correct the overall strategy. Above all, it is worth taking a closer look into:

• Pricing strategy 
• Communication and new activations 
• UX and the shopping process in the store

Pricing and pricing strategy

According to a study by SW Research, consumers are mostly cost-concerned when choosing an online store where they will do their shopping - this factor was indicated by 16 percent of respondents. For comparison, the second most important factor - opinions of other Internet users - had 11 percent of indications.

When researching a competitor's pricing strategy, it's worth looking at:

• Price level - the basic parameter that allows you to determine how aggressively the competition is cutting margins and how to set your prices to remain attractive to customers
• Price changes over time - depending on the season, holidays, events, or optimization policy, competition prices may change - it is worth monitoring and tracking to effectively improve your prices
• Loyalty programs and promotions - the last element worth following are loyalty programs and promotions that can significantly affect the real price level.

Communication

The Internet has significantly shortened the distance between brands, store owners, and customers. The brand can speak its voice directly to customers. How it is perceived by the customer affects purchasing decisions. Young recipients expect a completely different message than older ones - even if it is about the same products.

Social media

SM monitoring tools can be used to find good opportunities to promote your store, as well as your brand. It is worth tracking the frequency, tonality, and hashtags used or following if influencers are engaged by your competition.

SEO

Visibility in the search engine and keywords that allow you to reach the store's website is one of the most important e-commerce resources. These words translate into tangible profits, and high positions allow you to download free traffic, which often translates into purchases.

UX and the shopping process in the store

Another element worth monitoring in the case of competing for online stores is User Experience and the related purchasing process. In this case, the test can only be performed by going through the analyzed process on the competitor's website. This can be done by both the store owner and a specialized agency that will prepare an appropriate report.

Summary

Skillful monitoring of competition brings many benefits. It allows you to easily preview the best ideas and practices and get inspired to create your strategy. At the same time, ongoing responses to promotional campaigns or dynamic price changes will allow you to better position your store and encourage regular customers to be loyal and convince new ones to make their first purchases.