How to Conduct Competitor Analysis in eCommerce

eCommerce competitor analysis is essential — it helps identify both the strengths and weaknesses of your competitors, which can highlight potential growth opportunities for your business. Additionally, it’s a great way to gain a detailed understanding of the market landscape.

In this article, Promodo experts explain how to conduct competitor research, what to focus on, and how to apply the insights in your eCommerce strategy.

Why Competitor Analysis Is Essential for Business Growth

Competitor analysis is a systematic study of your key market rivals that helps you understand their products, sales strategies, marketing efforts, and overall development direction. In fact, 72.7% of surveyed managers from eCommerce companies conduct such analysis specifically to identify new trends and points of differentiation in the market.

Competitor analysis is worth conducting in order to:

• Discover what digital marketing strategies your competitors use. Identify their main traffic sources and estimate their marketing budgets;
• Understand the direction your business should take to grow market share and increase profits;
• Learn about the functional features of competitors’ websites and identify their weak points — and take them into account when developing or improving your own site;
• Identify industry standards and customer expectations. For instance, market leaders may offer free delivery or seasonal discounts — setting a service benchmark that you should aim to meet or exceed in order to remain competitive;
• Develop a unique selling proposition (USP). By analyzing your competitors’ product range and services, you might come up with a more attractive loyalty program or improved customer service — things they may be missing. This helps you differentiate your brand and secure a strong market position.
  
  

eEcommerce competitive analysis is not a one-time task but an ongoing process. Understanding the direction your competitors are moving allows you to anticipate market trends and strategically plan your own growth.
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How to Do a Digital Marketing Competitive Analysis

Stage 1. Market and Competitor Analysis

The first stage involves a comprehensive examination of your market environment and identifying your competitors. You need to outline the key players in your niche and collect essential information about them.

Who is My ompetitor? How to Classify Them?

Start by identifying and analysing competitors in your niche. Gather information using Google searches, specialized analytics tools (Ahrefs, Semrush, Similarweb), marketplaces (eBay, Amazon), and social media platforms (Instagram, TikTok, Pinterest). Use relevant keywords, hashtags, and categories to streamline your search.

Classify competitors into the following groups:

• Direct competitors: Businesses with similar products, target audiences, and resources;
• Indirect competitors: Businesses selling similar products, but targeting different audiences or using different distribution channels.
• Potential competitors and partners: Companies that aren't direct competitors yet but could become so in the future, for example, if they expand their product range. These companies could also be potential partners in affiliate marketing or other forms of collaboration.
  
  

Consider Competitor Analysis Techniques and Factors

The competitor analysis data can vary significantly by product category:

• Clothing: In addition to specialized online clothing stores, competitors include global brands with eCommerce presence and marketplaces that host numerous fashion sellers.
• Electronics: This category faces strong competition from large players like Rozetka and Comfy, but smaller niche stores (e.g., gadget or accessory retailers) are also worth tracking.
• Cosmetics: Competitors include both specialized online beauty stores and large retail chains with online shops (e.g., EVA), as well as small businesses focused on niche products.
• Home goods: Watch out for large retail chains with eCommerce branches, online furniture and decor stores, and relevant marketplace sections.
  
  

While the primary focus should be on direct competitors — since they're targeting the same customers — don’t overlook indirect and emerging players. They influence customer choices and could rapidly intensify the competition.
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Tip: Once you’ve built a complete list of competitors, create an organized spreadsheet (e.g., in Excel) and log key information for each: category (direct/indirect), product range, pricing segment, unique features, brand strength, online/offline presence, etc.

Trends Influencing the eCommerce Market

In 2025, the eCommerce market is shaped by the following key trends:

• Personalization and Artificial Intelligence: AI is increasingly used for personalized product recommendations, demand forecasting, and logistics optimization.
• Growth of Social Commerce: Sales through social media platforms like Instagram, TikTok, and Facebook are rapidly expanding.
• Sustainability and Conscious Consumption: Consumers are more focused on eco-friendly brands that offer products made from recycled materials, safe packaging, and sustainable logistics.
• Mobile Commerce: There is a significant rise in purchases made via smartphones, along with the growing number of branded mobile apps.
  
  

SWOT Analysis of Competitors: How to Identify Your Advantages

A SWOT analysis helps you identify your strengths and weaknesses in comparison to competitors, as well as spot new opportunities and threats.

• Strengths: Define what you do better than competitors — for example, product quality, unique service, fast delivery, or brand reputation.
• Weaknesses: Identify where you fall behind and create an improvement plan, such as product range, pricing, or website usability.
• Opportunities: Pinpoint market trends and areas your competitors haven’t yet mastered or are underperforming in.
• Threats: Analyze potential risks stemming from competitors or market changes, such as new regulations, economic instability, or technological shifts.
  
  

What Can a Competitor SWOT Analysis Reveal?

By identifying competitors' weaknesses or blind spots, you can turn them into growth opportunities. For instance, if competitors offer slow delivery, you can make fast shipping your unique selling proposition (USP).

Their strengths, in turn, show what’s essential for success in your market. If multiple top players offer excellent customer support, this is likely a basic customer expectation, so you need to match or exceed that level. If they all offer free shipping over a certain amount, consider implementing a similar threshold or an appealing alternative to remain competitive.

You don’t have to copy competitors blindly, but you must ensure you meet all industry "must-haves" to avoid losing customers over basic shortcomings. Competitor analysis helps you identify such standards.

Step 2: Analyzing Niche Leaders' Websites and Identifying Weaknesses

After identifying and classifying your competitors, one ofthe competitor analysis steps is to analyse competitors website. This step includes an external online competitor analysis (UX/UI, SEO and content strategy, loyalty programs) and internal service quality assessment through test purchases.

Competitive Analysis UX

Conduct usability testing of UX design competitive analysis on websites by walking through the entire customer journey, from the first visit to placing an order. Pay attention to:

• How intuitive, user-friendly, and modern the design is
• Whether the site is mobile-friendly and if a branded mobile app is available
• Ease of navigation and product filtering
• Quality of visuals: do they use custom, professional photos or standard stock images?
• Product pages: are there clear calls-to-action (CTAs), complete product information, and customer reviews?
• Placement and relevance of promotional banners
• Integration of social media into the site interface
  
  

Note all the features you’d like to implement on your own website. If specific product categories underperform in terms of traffic and revenue, but competitor sites rank higher, it’s worth conducting a separate category-level competitor analysis.

Competitors’ SEO and Competitor Content Marketing Analysis

Evaluate the effectiveness of your competitors’ SEO and content efforts:

• What keywords are they targeting?
• How frequently is their blog or content section updated?
• Is the written content unique, relevant, and optimized for search engines?
• What types of content (articles, videos, infographics) do they use to engage their audience
• How do they implement internal and external linking strategies?
  
  

Loyalty and Bonus Programs

Analyze how competitors encourage repeat purchases:

• Do they offer loyalty or bonus programs?
• What benefits do returning customers receive (discounts, bonus points, exclusive deals)?
• How clear and convenient is the registration and use of bonuses?
  
  

Become a Mystery Shopper: Evaluate the Customer Service Experience

To dig deeper, make a few test purchases. This step helps you improve your own customer service by learning from competitors' mistakes. Be a “difficult” customer to uncover potential issues.

Consider the following:

• Do they have a cart?
• Is it possible to save items in the cart?
• How easy is the purchasing process?
• How quickly do they respond?
• How do they communicate with customers?
• Are transactional emails sent immediately, and what do they look like?
• How do they handle delivery issues?
• What is their return process like, and how long does it take?
• Do they have physical stores or showrooms?
• What follow-up emails do they send after you visit their website?
  
  

Step 3: Studying Competitors’ Business Strategies

To ensure sustainable growth and strengthen your online store's competitiveness, it's crucial to thoroughly analyze the business strategies of leading companies in your niche.

Analyzing Pricing Policies and Product Assortments

Price and product range are key factors that influence customer decisions. Here's how to analyze them effectively:

• Create a comparison table of prices for similar or identical products from key competitors.
• Pay attention to the frequency and conditions of discounts and promotions (seasonal, holiday-based, personalized).
• Check for dynamic pricing by monitoring how prices change throughout the day or week.
• Assess the breadth of the product range: identify which categories are most represented, which products are bestsellers, and which are niche.
• Determine whether competitors offer exclusive or private-label products that give them a unique advantage.
• Explore how they implement upselling (offering more expensive alternatives) and cross-selling (suggesting complementary products) — and evaluate how frequently and effectively these tactics are used.

How to Identify a Unique Selling Proposition (USP)

A USP is what sets a brand apart in the eyes of customers. To uncover competitors' USPs:

• Conduct a content audit of their websites and social media to understand the messages and values they communicate.
• Identify any special delivery options (e.g., same-day free delivery), money-back guarantees, quality certifications, or eco-standards.
• Analyze customer reviews and comments to learn which elements of their USP resonate most with their audience.
• Observe how they highlight their USP visually and textually in ad campaigns and on their websites.
  
  

Marketing Channels and Advertising Strategies

An effective analysis of marketing channels helps you understand how to best allocate your own marketing efforts:

• Use tools like SimilarWeb, SEMrush, and Ahrefs to determine which channels (SEO, paid ads, social media, email marketing) drive the most traffic to competitors.
• Analyze competitors' ad campaigns on platforms like Facebook, Instagram, TikTok, and Pinterest, and identify popular ad formats (video, carousels, interactive posts).
• Study the frequency and structure of competitors’ email newsletters; assess how they attract and retain customers.
• Check for the presence of affiliate programs and collaborations with influencers or bloggers. Evaluate their effectiveness by examining audience engagement, click-through rates, and reach.
  
  

Step 4: Website Competitor Analysis Tools

There are many helpful digital competitive analysis tools and platforms available to support in-depth competitor research.

Traffic and SEO Analysis Tools

• SimilarWeb – Offers detailed data on traffic sources and user behavior.
• SEMrush – Delivers in-depth SEO and paid traffic reports, plus multi-competitor comparisons.
• Ahrefs – Excellent for analyzing keywords, backlinks, and content strategies.
• Google Trends & Google Keyword Planner – Useful for tracking search interest and predicting demand.
• BuzzSumo – Helps identify high-performing content topics in your niche.
• Hotjar – Provides behavioral insights into how users interact with competitors' sites.
  
  

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Price and Assortment Monitoring Tools

• Competera – AI-powered pricing analysis and assortment management. Automatically adapts to market shifts and competitor behavior.
• Price Control – Suitable for both brands and online retailers. Tracks prices, product availability, promotional offers, reviews, and more. Offers manual, automated, or hybrid comparison modes depending on product category.
• Pricer24 – Gathers data from online stores, marketplaces, and price aggregators. Updates occur several times a day. Offers various reports like “Price Comparison,” “Price History,” “Market Analysis,” and more. Supports customization with tags and segmentation filters.
  
  

Automating Competitor Data Analysis

Google Looker Studio is a free tool for aggregating, integrating, and visualizing data from multiple sources in the form of interactive dashboards and reports.

• You can connect it to platforms such as Google Analytics, Google Ads, SEMrush, SimilarWeb, Facebook Ads, Google Sheets, SQL databases, and more.
• Set up automatic data imports to always have up-to-date insights on competitor rankings, campaign performance, and key metrics.
  
  

For example, you can create a dashboard that automatically imports keyword rankings from SEMrush or Ahrefs, or compare your campaign performance in real time using data from Google Analytics.

Step 5: How to Use Competitor Analysis Results to Grow Your Business

Competitor analysis isn’t a one-time project — it’s a continuous improvement cycle that helps you stay ahead by offering customers the best the market has to offer.

Implementing Insights into Your Own Strategy

Competitor research provides practical insights that should be directly applied to strengthen your business.

Pricing Strategy

If your analysis reveals that competitors regularly adjust prices or offer discounts on popular products, consider adapting your own pricing policy. For example, if competitors launch sales before holidays or special events, plan similar or better promotions in advance to retain customers.

SEO Optimization

Identify which keywords bring organic traffic to your competitors and optimize your content for the same or related queries. For instance, if your competitor has a high-performing blog featuring product reviews or how-to guides, create similar (or even more engaging) content.
In 2025, also consider emerging SEO trends such as voice search, AI-driven content optimization, and visual search.

UX/UI Enhancements

Pay attention to site speed, mobile usability, navigation, and product page design.
If your competitor's checkout process takes only 2–3 steps and yours takes 5, simplify it.
Incorporate features that competitors offer and users love — product filters, comparison tools, customer reviews, AI-powered chatbots, etc.
A better UX/UI experience directly boosts conversion rates, so use competitor insights to eliminate friction points and make the customer journey smoother and more enjoyable.

Content Strategy

Examine what types of content your competitors use to attract and retain their audiences, and strengthen your own content strategy accordingly. This includes everything from product descriptions to blogs, video reviews, and newsletters. The goal is not to copy, but to do it better: offer unique, expert value where your competitors fall short. In 2025 and beyond, Google is placing increasing emphasis on video content. Be sure to incorporate video into your strategy, both on social media and directly on your website.

Loyalty Programs

Analyze how your competitors retain loyal customers and consider how you can improve your own loyalty program. This may include point-based systems or cashback rewards, free shipping, personalized discounts, exclusive early access to sales, referral programs, and more. In 2025, technology allows you to automate purchase analysis and deliver tailored offers via CRM tools, using email campaigns or push notifications to drive repeat purchases. The ultimate goal: to ensure your customers have no reason to leave for better service elsewhere.

Why It's Important to Regularly Repeat Competitor Analysis

A one-time competitor analysis isn’t enough — the eCommerce market in 2025 is evolving too rapidly to rely on outdated data.

Competitors don’t stand still — they launch new products, change pricing, and revise marketing strategies. New players constantly enter the market. Even if your niche seems relatively uncontested today, new competitors — such as startups or companies from adjacent industries — can appear overnight. Regular monitoring helps you stay alert to such changes and prepare accordingly.

Your business strategy must evolve along with the market. Competitor analysis acts as a mirror, showing where you're lagging or leading. Without regular reviews, you risk losing your competitive edge. Many companies mistakenly rely on gut feeling or assumptions instead of a systematic approach — this creates dangerous blind spots. To avoid them, schedule competitor analysis cycles (e.g., quarterly), and update your SWOT or strategic plans based on fresh data. This allows you to make timely adjustments — to your product offering, pricing, or promotions — before small weaknesses become serious threats.

Conduct competitor research ahead of key business decisions. For example, before launching a new product category, identify dominant players, pricing levels, service expectations, and their marketing tactics. This helps you enter the market better prepared — with competitive pricing, a unique value proposition, and a clear point of differentiation. Likewise, before holiday sales or seasonal campaigns, analyze what your competitors did last year, from promotions and website design to marketing channels. Armed with this data, you’ll plan smarter and outperform them with more impactful campaigns.

Regular competitor analysis also helps you spot emerging market trends. eCommerce is constantly introducing innovations — from AI chatbots to augmented reality product previews. Staying on top of competitor activity keeps your strategy agile.

Conclusion: Competitor Analysis as a Tool for Business Growth

In a world where every customer has dozens of alternatives, your ability to observe, analyze, and quickly respond to competitor moves is key to success and customer loyalty.
Make competitor analysis a regular practice — and you’ll stay one step ahead, unlocking new opportunities for sustainable growth and innovation.
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