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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 analysis, what to focus on, and how to apply the insights in your eCommerce strategy.
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:
In eCommerce, competitor 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.
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.
Start by identifying 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:
The competitive landscape can vary significantly by product category:
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.
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.
In 2025, the eCommerce market is shaped by the following key trends:
A SWOT analysis helps you identify your strengths and weaknesses in comparison to competitors, as well as spot new opportunities and threats.
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.
After identifying and classifying your competitors, it’s time to perform an in-depth analysis of their websites. This step includes an external evaluation (UX/UI, SEO and content strategy, loyalty programs) and internal service quality assessment through test purchases.
Conduct usability testing on competitors’ websites by walking through the entire customer journey, from the first visit to placing an order. Pay attention to:
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.
Evaluate the effectiveness of your competitors’ SEO and content efforts:
Analyze how competitors encourage repeat purchases:
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:
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.
Price and product range are key factors that influence customer decisions. Here's how to analyze them effectively:
A USP is what sets a brand apart in the eyes of customers. To uncover competitors' USPs:
An effective analysis of marketing channels helps you understand how to best allocate your own marketing efforts:
There are many helpful tools and platforms available to support in-depth competitor research.
Google Looker Studio is a free tool for aggregating, integrating, and visualizing data from multiple sources in the form of interactive dashboards and reports.
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.
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.
Competitor research provides practical insights that should be directly applied to strengthen your business.
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.
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.
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.
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.
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.
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.
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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