Market research is crucial to any online e-commerce business, especially if you are planning to just start it. For a business to stand on firm ground, market research proves very helpful. Market research can help you make your business a success. You will be armed with all the information needed to grow your online e-commerce business. Whether it’s discovering potential competitors or preparing for any potential threats, you’ll always have the upper hand. 

If you don’t conduct marketing research, you may not have enough information to start an eCommerce business. As per new research by Marketingsignals, 90% of e-commerce startups fail within the first 120 days. This can be due to pricing and cost issues, a poor marketing strategy, or the wrong business model. Hence, eCommerce market research plays a crucial role in validating your business model and avoiding failure.

Why is Market Research important in E-Commerce?

Research into a market not only provides us with a clear picture of what that market entails but also provides us with a clear picture of how to develop strategies for that market. There are several parameters to consider, such as demand and sales of the product, its share in the market, demographic factors associated with sales, customer behavioral trends, competition in the market, and financial feasibility for a complete e-commerce business validation. To gain a better understanding of your business, a market research report on e-commerce should be prepared. To learn why you should place Ecommerce market research at the top of your checklist when starting an eCommerce business, read below.

  • To know the Demand for the Product

For the business to be successful, it is necessary to know whether the products or services you wish to sell are in demand or not. Another factor to consider is how much the demand is!  E-commerce businesses must analyze the demand if they wish to determine their commercial viability. An accurate and comprehensive demand analysis allows you to assess your business idea well. Choosing a product line and identifying the market demand are probably the first steps in demand analysis. Tools like Google Trends, Google Ads, and KTD (keyword tool dominator) can be used to understand the market demand as well as the locational demand and thereby assess a business’ viability.

  • To know your Target Customers

To start a business, you must make sure some customers are willing to buy your products. By conducting market research, you can understand who your target market is and what they need. If, for instance, there is a low demand for your product or service, you should review your business plan once more and make the best move possible. If you find a promising market for your products and services, you can also make better decisions on how to increase sales.

  • To Know how to Sell 

In any new business, understanding how to market your products to your audience should be the number one priority. Since customers keep changing and evolving, this is particularly important. It’s not just knowing whom to sell to, but also how to sell, and that’s only possible with an improved understanding of your audience. You can find out which platforms are best for selling to your customers when you conduct extensive market research. To say it all, the success of your business can be greatly enhanced by understanding how your customers shop.

  • To Identify Your Competition

Because customers’ loyalty changes, you can feel like you are a tiny fish in a big pond if you don’t know who your competition is! When starting an online e-commerce business, you should know your competition. By knowing your direct as well as indirect competitors and their business foundation, you can address issues that may affect your business. By knowing your competitors, you can make strategic business decisions to keep your products in the spotlight. In addition, you will stay ahead of the competition by being proactive in promoting your product to the same audience. Finding out what your major competitors are selling, what their marketing strategies are, and how they manage their business can help you build a better strategy for improving your sales and overall management of your e-commerce business.

  • To Lower your Business Risks

About half of the businesses fail within five years, according to the Bureau of Labor Statistics. To continue running a business for a long period, you need to streamline your sales and customers, and market research will help you achieve this! Regular market research will allow you to keep track of the audience’s needs, which will help minimize business-related risks. However, you should experiment with changing or updating your products on a smaller section of your audience before going all-in with it.

How to do market research for eCommerce?

Utilizing paid Ecommerce market research tools for analysis can be a great idea, but you must always focus on tools that provide relevant information be it free or paid. Here are some tools you can use if you are wondering how to get started with market research:

  • Google Trends

The Google trends feature can help you identify what people are searching for online, and you can then analyze the data based on that information. With Google Trends, you can see a wide array of information about any search query you enter. For example, It is easy to check trends for women’s dresses if you are interested in starting a clothing business and want to know what the audience would like! E-commerce startups with budget constraints can make use of this Google-powered tool because it is free and easy to use.

  • Google Keyword Planner

Keyword research gives you a clear idea of what consumers around the world are looking for! Conducting keyword research is another easy and free way to check the demand for your products and services. You can find out how many people are searching for a product type by using Google’s keyword planner. Also, you can use this tool to generate relevant keywords for your product names or website pages. 

  • E-commerce Research Paper

E-Commerce market research reports are often overlooked by entrepreneurs. Searching for market data based on a specific industry is a good idea before launching a potential business. Just by conducting a few quick searches, you will gain a better understanding of the market. Several e-commerce publications are available, such as Harvard Business Review, First Round Review, Inc, WWD, etc.

  • Use Social Media Platforms

A great way to conduct marketing research may be through social media, as it is likely to include the most passionate audience. It is the foundation of any business to understand the needs and demands of its target audience, and social media can help with this! You can gain an understanding of how customers are reacting to particular products or industries by looking into various social media platforms. Like Google Trends, you can use Instagram’s search tool to keep a tab on different hashtags and what’s trending at a particular time.

YRC Consultants for E-Commerce Market Research

A new business owner may feel confused and unclear about marketing tactics. A business expansion consultant like YRC can help you with marketing research in such situations. Your Retail Coach (YRC), an eCommerce consulting agency has worked closely with a variety of e-commerce startups and conducted market research for a variety of clients. Our team has the special expertise and knowledge required to perform market research for e-commerce businesses. We develop market research papers and other documents to offer clients recommendations based on our profound experience.

As a part of our eCommerce consulting services, we employ a variety of market research tools and resources to conduct effective e-commerce market research. Afterward, our market researcher creates an exclusive research report for your company. As part of the report, we aim to include a short-term growth-led strategy as well as a long-term plan. Each suggestion in the research paper would be accompanied by a document that outlines the relevant steps and guidelines. Implementing the recommendations mentioned in the report can give you an unsurpassed position in the market. 

By conducting market research, your business will be better able to grow from a marketing perspective. There are numerous ways to win with the help of research tools. For more information, you can refer to the videos on our Youtube channel, https://www.youtube.com/c/YOURRETAILCOACH