The importance of market research should not be undervalued or overlooked, especially if you are planning to start an online e-commerce business. To create a strong and firm ground for your business, market research proves to be very beneficial. From exploring potential competitors to preparing the business for any threat, you always have an upper hand and a competitive edge.
Starting an online e-commerce business may seem a little overwhelming, hence performing market research can make your business a success as you will have all the information you need to grow your business. If you do not spend time conducting marketing research, you might not have enough information on how to start an ecommerce business. Studies reveal that 90% of e-commerce startups fail in the initial 120 days. Thus, market research is important to validate your business model and avoid the probability of failure.
- To Know Your Customers
Before starting any business, you need to ensure there are customers for you to sell your products. Market research will enable you to know your audience and their needs. For instance, if there’s a low demand for the products or services you are selling, you should analyse your business plan once again and then move things forward in the best possible direction. Also, if you found promising demand in the audience for your products and services, you can make better decisions on how to increase sales.
- To Understand How to Sell
Understanding how to sell your products to the audience should be the priority in any new business. This is especially important because customers keep changing and evolving with time. With a better knowledge of your audience, you can not only know whom to sell, but how to sell as well.
For example, if you know that your target audience is home-makers, then you must focus on the market on platforms where they are usually on the net, for example cooking videos, etc. By doing extensive market research, you can get a clear idea about the best platforms to sell to your customers. Learning how your customers’ shop can be very helpful for the success of your business.
- To Identify Your Competition
It’s necessary to know your competition when starting an online e-commerce business. If you are aware of your direct as well as indirect competitors and their business foundation, you can work upon issues that may threaten your business. Moreover, you will remain ahead in the competition race by being proactive in promoting your product with the shared audience.
Online market research will always give you the upper hand. By knowing your competition, you can plan business decisions strategically to keep your products in the limelight. Customer’s loyalty keeps changing and hence without knowing your competition, you can find yourself feeling like a tiny fish in a pond.
- To Lower Business Risks
According to the Bureau of Labor Statistics, about half of the businesses do not survive for more than five years. If you want to ensure that your business runs successfully for a longer duration of time, you need to streamline your sales and customers. For this, market research is needed!
To minimize business-related risks, meeting the needs of the audience is important and regular market research will be your way to keep track of the same. If you have plans on changing on updating your products, you should experiment with it on the smaller section of the audience before going all-in with it.
ECommerce Market Research Tools
There are two ways to conduct online market research
- Google Trends
- Google Keyword Planner
- E commerce Research Paper
- Use Social Media