The growth of eCommerce has been extra-ordinary. An increasing number of fresh business owners are engaging in e-commerce by peddling goods on the internet. However, regretfully the bulk of them do not carry out correct market research, which results in the closure of their ambition to create the next Amazon, eBay, or Aliexpress too soon.
Going along with popular trends can only bring you so far and eventually lead to a downfall. In order to set up a thriving venture, you need to discover lucrative specialties or items where you still possess potential to stand out. Use Leisa Papa’s Little Kids Business, more commonly known as JOSHi, as an example.
Comprehensive market exploration can assist you in devising goods and services that have desires that no existing companies have satisfied or that have remained unaddressed.
In this blog entry, we will discuss a very significant tutorial on researching eCommerce markets. If you intend to start an e-commerce store, this is an essential piece of content for you to consider.
The Rise of eCommerce
The rise of eCommerce is a long talked matter. It has reached the point where large traditional businesses such as Walmart have to begin selling their products online as this is now where customers go to find what they need. When examining the data, it is clear that eCommerce already is the present, not the future. The fact that eCommerce sales have risen threefold in just six years doesn’t come as a shock. The upward trend has been consistent not only in the U.S., but globally. This information from Emarketer reveals that eCommerce worldwide is progressing as the figures are rising in every region.
What is eCommerce Market Research?
eCommerce market research is not a complex term. The definition is fairly simple. Studying the demands and desires of customers is what is referred to as market research according to the Oxford Dictionary.
By combining the definition of market research with eCommerce, we can confidently conclude that eCommerce market research involves acquiring knowledge about what products buyers are eager to purchase on the internet.
Research on eCommerce markets allows you to determine the demand for products that are in higher and lower demand from day to day. Making wise choices before starting a new eCommerce or introducing a new product aids you in being more intelligent.
How Does Market Research Help to Grow and Win
Market Research was not widely considered important for eCommerce a few years ago. Nowadays it is becoming essential. If there is one thing we can unanimously acknowledge, that is –
Data may disappoint, but it never lies.
– Jay Samit
By conducting market research, you can obtain accurate information that can assist you in determining the need for a product in the marketplace. You don’t have to depend on your gut feeling or the hype.
By not being swayed by popular opinion, you can identify and provide for your customer’s exact needs.
As an example, if you are interested in launching an eCommerce marketplace, it may be a good idea to offer Wooden Ornaments based on the fact that some of the people around you were wearing them. Do you have any evidence that the Wooden Ornaments are well-liked nationwide?
Fundamentals of Market Research
Investigating the market is included in your overall plan for marketing. In order to fully understand the concept of market research, it is necessary to be familiar with its fundamentals. Market research can be divided into four primary categories. Which are –
- Exploratory market research
- Descriptive market research
- Causal market research
- Predictive market research
Don’t fret, we’ll describe every kind of market research thoroughly.
Exploratory Market Research
Initial market investigations are the initial step of your investigation. At this point, there is no definite product chosen. At this point, you need to locate items that you can put on the market. Compile a list of possible items that can be found with the aid of a range of solutions, like Google Search, Google Trends, Amazon and nearby groceries.
Create a plan to get rid of all ideas that are unrealistic, cannot be done with the resources and abilities you have. Only those choices remain that you believe to be feasible and within your means. That propels us onward to our next phase, which is conducting a thorough market study.
Descriptive Market Research
Exploratory market research delves more deeply into the chosen goods and services and assists in pinpointing the perfect specialty. In this step, you must discover the answers to inquiries such as who could possibly purchase the item? and what is the need for the product? When does the demand hit its peak? Who might be our rival companies? What do they excel at?
Predictive Market Research
As the title implies, predictive market research involves estimating or forecasting potential future success of a product. We no longer rely solely on our instincts to make predictions, but rather on information collected from sources such as Google Trends and statistics.
Accurately forecasting the expansion of a product can certainly aid in making a more informed judgement regarding the product.
What is the Purpose of Online Market Research?
Conducting proper online market research requires time and money. But investing those resources into ecommerce research makes sense for the following reasons:
1. Get a deeper understanding of your target audience.
Realizing who your intended interest group is basic for concocting new item plans, constructing an effective advertising technique and delivering content that changes over.
Personas in ecommerce help make sure that the customer’s wishes and requirements are met exactly.
It is essential to be aware of who your desired audience is, however this alone is not enough.
Apart from recognizing your intended audience, it is essential to comprehend what they think, feel and appreciate.
Studying online markets, especially with qualitative research, can help uncover what drives someone to make a purchase.
2. Learn customer behaviors.
Gaining an insight into how your desired consumers make purchases on the web can assist you in advancing the user friendliness of your site and offer a greater customer experience. Any location of difficulty in the shopper’s route detracts from their delight and heightens the possibility of leaving their shopping cart, missing out on additional sales, or not retaining customers.
Internet-based market research can aid you in locating the aspects that cause difficulty or obstruct completion of a deal. Then use your knowledge to make it easier to explore the site, make finding products easier, and increase the amount of sales.
3. Find new business opportunities.
Lots of ecommerce business opportunities are out there that can make your company more successful:
Exploring the internet for business research and inspecting the market statistics can facilitate you in uncovering opportunities that are present and visible.
2 Types of Market Research
The notion of conducting “ecommerce market analysis” may appear intimidating. But when it comes to execution, you need to master just two research methods:
1. Primary research.
Gathering data yourself, through your own resources, is the basis of primary research.
Here are a few examples:
- Online surveys and questionnaires.
- In-person, in-depth interviews.
- Online focus groups.
In other words, when conducting primary research, you are the one responsible for gathering data and using that data to acquire valuable business information.
1. Conduct keyword research.
Researching keywords can aid in determining if there is a requirement for the item that you plan to sell on the web.
Even though it doesn’t necessarily guarantee a profitable concept, a high amount of searches by consumers still indicates genuine interest in the product.
In addition, keyword research is beneficial when crafting your inbound advertising plan since it enables you to find chances to produce unaided website visitors with search engine optimization (SEO).
2. Secondary research.
Making use of other people’s data and insights is referred to as secondary research.
Here are a few examples:
- Government statistics. For example, if you are in the healthcare industry, then the National Center for Health Statistics can be a valuable source of data.
- Industry statistics. Statista is a great website for learning more about a particular market. The Big-4 accounting firms also conduct a ton of original industry research.
- Industry reports. For example, HubSpot publishes an annual “State of Marketing Report” in which they share their online marketing research and provide an overview of the latest industry trends.
As a result, when it comes to secondary research, someone else gathers the information and then evaluates it for you.
2. Scope out the competition.
It would be beneficial to investigate the competition in your market in order to gain a better understanding of it. Look into who your most significant opponents are and evaluate them thoroughly.
It is important to remember that although you may be conducting market research for an ecommerce company, it is wise to broaden your scope and analyze other types of businesses too.
For instance, LARQ offers digital orders for water bottles but contrasts with both online trading centers and small scale web shops. Prior to beginning his business, Justin Wang conducted considerable research into the market to ensure that no other establishments offered the same product or services.
Once you have a list of the key players in your industry, you should look into their:
- Business model. How are they sourcing their products? Are they dropshipping or carrying inventory? Do they use third-party logistics (3PL) services? What is their pricing strategy? What is their marketing strategy? What is their returns policy? Jot down all the answers.
- Sales funnel. How do they attract potential customers to their website (content marketing, paid advertising, SEO, etc.)? How do they convert those site visitors into paying customers? Do they upsell? Cross-sell? Down-sell? Do they send automatic abandoned cart emails? You may want to go through their entire sales funnel to see how everything is set up.
- Website. Which type of ecommerce platform do they have? How long does it take for their site to load? Does their online store design look professional? What branding elements do they use? How does their checkout flow work (the number of steps, the number of field forms, etc.)? Overall, do they provide a satisfying user experience?
3. Research current trends.
When investigating ecommerce items, it is imperative to explore the current customer habits. Use Google Trends to uncover those.
Here are the two questions that can help with online product research:
- Is the interest in this product declining, stable or growing?
- Is the interest in this product seasonal or does it remain the same all year?
Enter a related word or phrase and select a timeframe.
An example of this would be if someone entered “artificial plants” and chose the time period of the last five years. It looks like this term has been consistent in its popularity over the period of time, with a notable spike in interest in the most recent year.
A reasonable but steady rate of interest could be indicative of a chance to develop a viable, enduring venture.
4. Utilize social media.
Social media is a treasure trove of consumer insights. This is the spot where people communicate their discontentment, desires, opinions, and goals. In order to uncover those precious gems of intelligence, you will need to delve into a thorough exploration.
To avoid getting too deep down the internet rabbit hole, keep your online business research focused on:
- Following influencers in your industry . Analyze their opinions, conversations and past partnerships with brands.
- Monitor relevant hashtags . Identify the most relevant hashtags for your products and then make it a habit to monitor them regularly.
- Analyze competitor sentiment. Keep an ear on what people are saying about your competitors. This is a great way to figure out what their strengths and weaknesses are. Note that the most valuable information often lies in posts that mention a competing company or their products but don’t tag them.
5. Build an online ecommerce store and test the waters.
It’s time to shift from talking about it to actually doing it. Once you have collected sufficient data and knowledge, check the viability of your venture concept by presenting it to the public. In the end, the reaction of the intended audience is the only thing that counts.
Here’s how you should go about it:
- Pick an ecommerce platform . Popular options include BigCommerce, Shopify, WooCommerce, Magento, etc. Do your research and pick a solution that suits your needs best.
- Set up your ecommerce website. You will need to sort out web design, write the copy and create product pages. You can do all this yourself or hire agency partners to help.
- Drive traffic to your online store. SEO, content marketing and social media are all great, but they are long-term strategies that require time to work. Meanwhile, if you want to put your products in front of your target customers quickly, your best bet is performance marketing .
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