We suggest analyzing sales in Shopify in two directions: 1) analyze the sales of your competitors and 2) analyze the situation in your store. Only such a comprehensive approach will help you see an objective picture.
The application from Mipler Shopify inventory value is what you need always to be aware of which your profits or expenses, how many goods you have in stock, and which ones need to be purchased. Moreover, with the help of inventory value reports, you will always have accurate information about the products available in your locations (warehouses).
Study the competitors! Do even better!
Amazon founder Jeff Bezos on the question: “Why study competitors?” answered at the time as follows:
“It is essential not to close yourself off in your little world. But, the goal of monitoring competitors should not be to copy but to get food for inspiration. So you can add… something unique.”
We completely agree with Jeff Bezos and encourage you to study your competitors to understand their strengths and weaknesses and make decisions that will put you ahead of them.
Where to start?
- Search for public data: statistics, annual reports, and case studies.
- Specially developed tools for monitoring competitors.
Public data to see how many sales your Shopify store has.
One such tool is Shopify’s blog. This blog occasionally publishes articles about successful stores. Another accessible source of information is eCommerceBytes, where you will find news and trends in online retail.
However, there is one problem: there is no accurate way to check how much money a Shopify store makes. You can’t just go to Shopify, enter the store’s domain name you’re interested in, and get a report on its monthly revenue.
There are also workarounds when you can find out the approximate income data in the niche you work in:
- See website traffic statistics. If a store gets a lot of traffic, it’s probably selling a lot.
- See store conversion rate. A high ratio will also indicate good sales.
- The most reliable way is to ask the store owner what profits he receives. However, there is a risk that you will be denied this information.
Let’s list some paid tools
Immediately note that you should not cover a large number of competitors. Research has shown that it is enough to study 3 direct competitors (who make a similar product for the same audience as you). 2 indirect competitors (similar products, but for different audiences. For example, Nike and a regional shoe factory). One third-tier competitor (sells to a similar audience but a similar product).
Briefly, with a list, since this article does not involve a detailed analysis:
All product information is available online.
How to complete this task?
It is not enough to collect information; it must be processed, and conclusions must be drawn. There are many methods of processing information about competitors; here are the most important:
- Comparative analysis. This method is suitable for any business. The essence of the process is a comparative analysis of competitors according to the given parameters. Such parameters include the strengths and weaknesses of your competitors and you—threats, target audience, marketing strategies, sales and delivery channels, etc. For small companies and brands, 5-10 parameters are enough; for large businesses, it is sometimes worth selecting about 100 such parameters.
- SNW analysis. It is an abbreviation of the following words: Strength, Neutral, and Weakness. It is these aspects of competitors that are evaluated in the analysis process. You are not comparing competitors with each other, but the average market indicators according to the selected parameters.
- SWOT analysis. Stands for Strengths, Weaknesses, Opportunities, and Threats. Such an analysis is best suited for thinking through strategy. The more data you analyze, the more objective the result will be. The peculiarity of the method: lack of precise analytics. You think of a development strategy based on your general potential client.
Unfortunately, we cannot dwell on all these methods in this article, but you will familiarize yourself with them.
Thorough customer research is essential for Shopify store success. Understand your target audience’s needs, preferences, and pain points. Analyze their online behavior, purchasing patterns, and feedback to tailor your product offerings effectively.
Utilize surveys, focus groups, and social media analytics to gather valuable insights. Customer research enables you to align your products, customer service, and marketing efforts with your audience’s expectations, increasing the chances of conversion and customer loyalty.
A well-thought-out pricing strategy is crucial in a competitive landscape. After competitor analysis, determine the right pricing model for your products or services. Consider factors like production costs, competitor pricing, and perceived value. Price competitively to attract customers while maintaining profitability. Additionally, explore dynamic pricing strategies, discounts, and bundling options to appeal to different customer segments and maximize revenue.
Marketing and Advertising
Marketing and Advertising strategies should align with your competitive analysis. Identify gaps in competitor marketing efforts and leverage them to your advantage. Craft compelling messaging that highlights your unique selling propositions.
Utilize digital marketing channels, such as social media, SEO, and email marketing, to reach and engage your target audience. Monitor campaign performance and make data-driven adjustments to optimize results. Effective marketing and advertising campaigns can drive traffic, conversions, and brand awareness, giving your Shopify store a competitive edge.
Are you starting a business? Wondering about the best niche to choose? Here are some high-converting Shopify niches to consider:
- Gift Ideas: Everyone loves gifts! Specializing in gift ideas can be profitable, but understand your customers’ preferences.
- Pharmacology: Post-pandemic, online pharmacies are in high demand.
- Clothing and Shoes: This is one of the most popular trends in e-commerce and consistently ranks among the top three online sales.
- Sports: With a growing trend towards healthier living, there is a persistent interest in sports, making it an excellent niche for selling sports equipment.
- Jewelry: The enduring fascination with beauty ensures a timeless interest in jewelry.
When choosing a tool for competitor analysis, selecting one that helps you efficiently address complex questions is crucial. A good tool will help you quickly and efficiently deal with complex questions.
And good luck with creating a successful business strategy! Good sale!