In this startup era, various business models eye the international market. Many of them perform well in some parts of the world, but they could not sustain themselves in other countries. What if the company could have estimated it beforehand. For this purpose, proper market research might have helped the business plan to be successful. Let’s talk about market research briefly in the next section.
What is Market Research?
The process of discovering more about the target market and evaluating the prospects and feasibility of a new product or service is known as market research. It includes the survey for the opinion of the potential customers to make more informed decisions. It could be done by the company itself or outsourced from organizations with expertise in interacting with the public.
Why does an e-commerce business need Market Research?
Well-planned market research tells us all about the vital aspects of the e-commerce business you wish to enter. It provides insights about the product demand in the market, market size and share, customer behaviour and trends, supply chain network, sales channel, payment options, and various other issues that affect the business. It helps formulate informed market decisions based on your research and analysis observations. The sole purpose of market research is to understand public opinion and analyze the market associated with the products you want to sell. The market research for e-commerce could determine the marketing strategy and outline the consumers’ priorities in advance.
It is a tool for gathering critical information about the whole business landscape. You get to know your customer well and increase your business potential with an accurate view of the market. Along with it, market research helps accomplish some of the goals such as:
- Investments and funding
- Finding new business opportunities
- Foreseeing and avoiding business failures
- Making the right business decisions
How to do Market Research for eCommerce startup:
Every eCommerce business or product/ service type is unique in its pros and cons, strengths and weaknesses. A business is dynamic and needs to adapt to the continuously changing market. The need to assess the market at a macro level arises. This market research can be divided into primary and secondary research, which will eventually help you position your business plan in the targeted market. Let’s have a brief look over some essential steps of market research.
Understanding the Market & its Overview
Classify or segment the market based on distribution channels, product portfolio, gender, age groups of the end-users. A detailed market overview is the first necessary step for launching and growing your online website. Various market research tools (polls, questionnaires, etc.) are available for startups. A proper market overview is not just limited to conclusions from statistics; you need to gauge customer behaviour, analyze the reason behind the success of ongoing trends, and have customized solutions for any issue.
One of the critical steps to do market research is correctly deciphering the target market and mapping the competition. Analyzing your competitors is necessary to formulate effective marketing strategies for your product or service. To give your venture a successful start, one should comprehensively analyze what your competitors are offering, their website and app marketing, profit margins, advertisement policies, distribution channels, and other meaningful insights.
Data Analysis and Research
Your data analysis results can help you know what your customers are likely to buy. Your market research could help you spot loopholes or gaps in your eCommerce startups, from the bottom line to upfront. These analytics work magically for your business and assist you in building a robust supply chain. Data analysis facilitates the marketing researchers to forecast the inventory for next season, detect possible frauds, and introduce personalized products for your regular customers based on their feedback.
Trend and Pricing Research
You may be wondering how much you should charge for your product. In the eCommerce industry, pricing research is a prerequisite. The product’s availability and its demand directly influence the product’s price. Marketers should always analyze how competitors manage their pricing policy and use predictive analysis to determine the price range for the product. They should also focus on what a consumer is willing to pay for the given product. Recommendations for pricing research, conjoint analysis, and pricing elicitation pricing methods are available for doing pricing research.
Pricing research for maximizing profit is the new normal to scale business growth across industries. Checking on whether sales are drawing optimum profit or not is made easy through eCommerce analytics and dashboard.
How YRC Can Help You
Getting started with eCommerce can be a daunting task for startups. We at YRC aim towards helping our clients adopt a better competitive stance for an upper edge over their competitors. Your Retail Coach, YRC, provides an insightful blend of segmentation, comprehensive research, differentiation, marketing strategy, and a personal touch to your brand in this competitive world.
As a progressive consultancy firm, YRC uses cutting-edge advanced technology equipped with extensive eCommerce market research tools. We have expertise in almost everything related to retail, market research, and analysis. Our experienced analysts effectively use data to provide recommendations for your business growth. Our in-house consultants formulate and implement the strategies to keep your future goals.
YRC and its team have years of experience in the retail and eCommerce business. We have helped an array of eCommerce startups evolve as a brand at a global level and closely studied the market and its complexity throughout these years. Our team has developed an unmatchable research service for those who wish to enter the eCommerce market. We handle everything from the beginning, whether it’s SOPs, Business Process Solutions, Business Intelligence, Finance, or a variety of other retail-related issues, whether for a small business, a huge corporation, or a startup. With YRC, you get a commitment and surety of success and growth in your respective eCommerce venture. We choose a startup-friendly approach and keep the process transparent for client satisfaction. So contact us today for a promising future and prosperity.