Competitive research creates a good ecommerce business plan. Make sure you identify your competitors in your potential niche and gather the following information about your desired niche.
- How long have they been in space?
- Are they selling just a single product or multiple products?
- Who is their target audience?
- What is their sales strategy, and which digital channels do they utilize?
- Do they have a large social media following, and what is their level of engagement or interaction like?
- What is their traffic and backlink profile like?
Do the research and find top competitors in your space on their history and model, extract and research product ideas. Look into what people are interested in and how you can provide or satisfy their interest in your niche.
Get to identify the barriers to accessing your field and how you can tackle them.
- Will you need to invest in ads?
- Will you need ecommerce software?
- Pay for expensive photography equipment or design software?
If the answer is yes and you don’t necessarily have the money for it, what are the workarounds?
What can you do with what you’ve got? It's no issue when you start small and simple when setting up an ecommerce business.
Make an outstanding identification of any gaps in the market you think your products can fill in a way that nobody else can.
After you have successfully identified your position in the market and what value you'd bring to the customers, go ahead with a SWOT analysis- which stands for Strengths, Weaknesses, Opportunities, and Threats. With this, you're able to identify potential obstacles and plan ahead for your ecommerce business.
Strengths and weaknesses are basically things you can control, like; company culture, your reputation, partnership, your customer base, assets, intellectual property, and geography.
Opportunities and threats, on the other hand, are things you can’t control completely but that you can plan for, like; Regulation, the economy, market trends, your competitors, market size, gaps in financing, and what suppliers are in your market.