How to conduct eCommerce market research like a pro?

E-commerce market research essentially entails finding out evolving consumer taste and market gaps. Decision-makers use the niche information from the research to craft a relevant position in the market. However, no decision-maker wants to be overwhelmed with facts and figures.  This is where the market research vertical of processing of raw information and an effective presentation comes into the picture. The eCommerce market research serves as a means to make an informed choice for an eCommerce business. 

A great way to gauge target audience behavior is market research. It helps bridge the expectation gap—the shortfall between customer expectation and delivery from the producer. Market research ensures the gap amongst the potential competitors is within manageable capacity.  This is also a great way to connect the different aspects of eCommerce, like branding, products, customer and client service, marketing, & sales. 

So, eCommerce market research helps in understanding: 

1. Customer – current, past / ex customer, potential new ones, influencers  
2. Company – pricing of product, placement, servicing 
3. Competitors – and how they interact with customer  
4. Industry in general and their growth prospect  

The importance of eCommerce market research is reiterated by some baffling numbers. Projections show that by the end of 2024, the market research service would have grown to $82.62 billion from $76.62 billion. The importance of eCommerce market research gets even stronger as, more often than not, it does away with subjective bias.  However, with the advent of data, streamline flow eCommerce market research has gained much ground. 

Big Data and eCommerce market research  

1. An inseam flow of data and that too from varied sources, market research has become more robust. Strategy backed with data makes an informed decision.  
2. Big data analytical tools and predictive algorithms for future trend analysis help in customer segmentation.  
3. Data scrapping tools and intelligence platforms like Beehexa solutions provide competitor analysis, thus helping in price modeling, market position and customer reviews.  
4. Search Engine Optimisation analytics helps in web tracking, keyword rankings and click through conversion rates. This certainly could improve search engine visibility and drive a good deal of traffic.  
5. Data market research could substantiate supply chain optimization thus saving from possible supply demand mismatch.  

Types of eCommerce Market Research 

There are two kinds of eCommerce market research i.e. Primary research & Secondary research. The basic difference between the two of them germinates with the act of data collection. 

Primary research entails collecting data through the use of surveys, interviews, or focus groups. It’s fresh and unused and gives a new perspective. However, the large volumes of data seem daunting and unmanageable for smaller businesses. 

Secondary research entails accessing data profiles that have already been collected, analyzed, and published in the public domain. Even if the collection and analysis of the data are not done keeping a certain business in mind, it still works well for those with budgetary constraints to conduct primary research. If you want to generate revenue for your eCommerce market, then implement the below marketing strategies. 

Conducting research like a pro

1. Understanding the target audience 

• The total accessible market has to be filtered to pick out the best target audience segment.  
• Knowing your target audience would enable a tailor-made approach to strategizing, persuasive writing, and marketing campaigns. 
• An ideal customer profile can be created. 
• The product ideation to product launch could actually be done keeping the potential audience in mind.  

2. Conducting Keyword research

• Keyword search is a good place to start comprehending the target eCommerce market segment.  
• Tools available are Google Keyword Planner & SEMrush etc.  
• Searching for a word in search engine and then scrolling down the Search Engine Result Page (SERP) the results there can be potentially used to build customer profile.  

3. Identify key industry players and trends

• A great idea needs at least a better implementation, so viability of the idea needs to be tested. This would require a scrutiny of the market landscape identifying the opportunities and limitations of the vertical or niche. 
• Then accessing secondary market research to find out the market gap.  
• With the tools in Google like trends or analytics change in trend could actually be scrutinised, if the trend is fleeting or evolving change in taste.  

4. Keeping your competitors in close quarters 

• The best way to keep up with this game is by researching a competitor’s website. Collecting data and observing trends there could prove useful in staying afloat.  
• The quality or feature of the product not offered by the rival could be used to our advantage.  
• From payment methods, Unique Selling Propositions, and price difference to product positioning all could be analyzed from the competitor’s perspective.  

5. E-commerce trend in the particular industry can be analyzed  

• eCommerce market size projection should be of paramount importance because a growing market could present itself with limitless opportunities, whereas a market in its saturation could cut out on expanding prospects.  
• Online Consumer behaviour insight can actually provide you with a plethora of opportunities to create a niche for ourselves.
  • The customer’s barrier and entry point, shopping frequency, average time spent, payment methods and popular delivery preference – speaks volume about improvement in the system thus providing ample opportunities to grow.  

6. Social Media outlets and their usage

• Following up social media diligently is another great way in gaining insights into what troubles the consumer.  
• It is where they air their grievances, share their joys and follow their likes and preferences.  Thus, following the hashtags could leverage a step ahead in this game.  
• It’s actually a great place to keep a tab on your competitors and they interact with the consumer base.  
• It’s also a good place to win brownie points for customer loyalty. 
• Textual analysis of social media conversations with Machine Learning models could scheme through a great deal of information like preferences from banal texts.  

7. Consumer Statistics on the online store of business 

• Statistics for customers visiting the store are a good way of accruing primary data.  
• Their behavioral antics including at which point do they back out from purchasing and at what time do you see a spike footfall is worth following through Google Trends and analytics.  

8. Creating a virtual eCommerce store and see how things go 

• Put up an online store front using software like BigCommerce, Shopify etc. Find out and apply options that work best for you.  
• Launch your online ecommerce store.  
• Acquire consumers to visit the online store front. Performance marketing initially could work wonders putting the product right in front of a new consumer base.  
• Studying this market could actually ease out the real-world market study a bit.

Also Read:Stages of a Successful Product Development Strategy for E-commerce

9. Consumer Survey

• This helps identify potential customers in the target audience. 
• Data accrued from here when compared with that from secondary research provides valuable insights.  
• This identifies factors that influence a decision of a consumer.  

Wrapping up 

So, conducting eCommerce market research for eCommerce is essential. It not only builds an ideal consumer base but also helps deal with potential competitors. It takes into account each aspect of the business, starting from product to advertising and operation. Good eCommerce market research will always pay its dividend. It serves as a deterrent against the fleeting eCommerce trends of the market and instead focuses on the stable market. 

So, to stay aloof from misaligned consumer needs and missed opportunities in the eCommerce market and to secure a good competitive edge over potential competitors, eCommerce is the best arsenal to shoot an arrow from.