How to research your competitors: 5 steps

Competitor research in e-commerce is not about learning once who sells what. It is about following what changes, regularly. This guide works whichever tool you use.

1. Pick your competitorsChoose five to ten stores that look most like yours: same product type, similar price band, selling to the same country. Stores of a size you can reach teach more than the biggest brands.
2. Map products and pricesFor each store, note the number of products, the price range, the products they push hardest and the tone of their promotions. If you sell the same item, write down the price gap.
3. Watch the changes every weekNew products, price and stock changes, removed items: look at what changed week to week rather than one snapshot. On campaign days, compare before and during.
4. Look at their adsIn public ad libraries, see which products a competitor advertises, with what message, and for how long. An ad that stays live for a long time is usually one that works.
5. Read numbers as rangesEvery revenue or sales figure seen from outside is an estimate. Look at the range, the confidence level and the data date rather than one number, and compare trends between stores.

Next: How to read a Shopify revenue estimate

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