An ecommerce market research is, in all likelihood, the tool you need to ensure the success of your marketing strategy.
Knowing first-hand not only your audience, but also your competitors and your market in general, will help you understand what your customers expect from you, prepare for unforeseen events and, of course, get more sales!
In this article we will talk about how to conduct a market research for an ecommerce and the importance of this study for the growth of your business.
Before we start talking about how you can do it, let’s go back to the concept of ecommerce or online business to make sure everything is very, very clear.
What is ecommerce?
Ecommerce, also known as electronic commerce, is the process of buying and selling products and services over the Internet. It can refer to either a single online business (your online T-shirt store, for example), or to the set of existing e-businesses on the Internet.
Over time, digital sales have evolved and companies have been able to take advantage of the benefits of digital commerce, allowing their products and services to be more easily purchased anytime, anywhere in the world!
Ecommerce allows you to create innovative strategies for the growth of your sales, since the initial costs and investments of this business model are lower than those of traditional commerce.
Introduction to conducting ecommerce market research
An ecommerce market research provides you with a wide variety of data for your ecommerce business and allows you to know the trends, products and services that online shoppers are willing to buy.
It is important to conduct this research before opening (or, at least, before launching) your online business. Market research allows you to know your target audience, improve your product features, and create a targeted marketing strategy for your brand.
Without it, you will not have a clear strategy and the chances of something going wrong with your business will be higher!
An ecommerce market research helps you determine the focus on your products, but don’t just look at your customers: remember to analyze your competition as well. This way you will be able to set the right prices and offer a unique value proposition that no one else offers!
Ecommerce market research objectives
An ecommerce market research is done to define and meet business objectives. As owner of your ecommerce, you are interested in:
Know the supply and demand of your products and services on the Internet.
Knowing the most appropriate digital media for the marketing of products and services.
Determine the target audience for your brand.
Create a marketing strategy that will be successful among your current and potential customers.
Launch innovative products that meet the needs of customers and face the competition.
Understand industry developments and current trends in the digital marketplace.
Improve the customer experience.
Promote and distribute products, adjusting them to the right price.
Knowing the competitors, their weaknesses and strengths.
An ecommerce market study can be conducted through:
Primary sources: This type of information is that which is collected directly, either through surveys of customers and employees or through field research and observation of a sample. It is basically information collected by you.
Secondary sources: This type of research is done through certified Internet sources, interviews to specialized people, online consultancies… It is information that a third party collects for you.
Advantages of conducting market research for your online store
Performing a market research for ecommerce has great benefits. Below, we have the most important ones for you:
It allows you to know who your target customers are and properly direct your marketing efforts.
It makes it easier for you to reach your target audience.
It helps you to know your competition and analyze their successes and mistakes to know which strategies are the most appropriate to implement.
By knowing the online market, you reduce the risks that may arise when launching a product.
You reduce investment costs when creating an online store.
You increase customer loyalty.
It helps you increase your digital customer base.
- Determine the size of your market
The first step in a market study for ecommerce is to know your market niche and define the audience you want to target with your products or services. This involves establishing the following points:
Industry: This consists of determining what are the trends and business conditions in your market niche, past and present.
Consumer: Determine what is the trend in the consumption habits of users, as well as the current demand for your product.
Competition: Know your competition, the way they solve consumer problems and their weaknesses.
- Understand your consumer
After establishing the size of your industry and market trends, it is time to understand your customer. This step involves obtaining socio-demographic, geographic and personal information.
A good way to get this information is through online surveys. There is nothing better than directly asking the people who buy your products about their interests, their tastes and after all, their way of life!
These surveys allow you to create consumer reports that will help you complete the information you collected on your own and give you a more accurate perception of their behavior.
- Research your competition
Knowing your competition will always put you one step ahead of them. To do this, use these questions to help you:
Which company dominates in your industry?
How many competitors are there in your industry?
What are the strengths of your competitors?
What are the weaknesses of your competitors?
After answering these questions, you need to put the answers into practice. Create a list of products that can help you stay ahead and determine if they are good enough to take on the competition.
- Start selling
After answering each of the above points, the best way to add value to your research is to start selling.
But watch out! Because you will have to renew the results of your market research as your business grows.
An ecommerce market research is an ongoing process, so you must use the right tools to do it correctly and boost your commercial strategies in the digital world.
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