Market Research for eCommerce Has Never Been More Required

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December 10, 2022 Marketing

ECommerce businesses have surged in popularity during the last decade as more and more entrepreneurs choose the digital route to promote and sell their products and services. This is, indeed, a go-to option for many companies, but this doesn’t mean it’s the easiest variant. If you don’t conduct strategic and thorough research on the actual market’s needs, you have only a slight chance of winning.

Whether you’ve just set up an eCommerce business or plan to extend by launching a new line of products, one of your top priorities in each case is to conduct appropriate market research. We know that the general premise of such a business is that once you discover a great product idea, build a top-notch brand, and design a slick website, you’ll sell, sell, and sell your way to a worldwide takeover. Well, even if it would be excellent for things to be that simple, they’re not. Great success demands great visions, strenuous work, and proper documentation.

That being said, you should never overlook this one thing that can lead your business to tangible success.

The purpose of market research

Market research, in a nutshell, is the action of collecting data about consumers’ preferences and needs so that a particular business can make better decisions regarding products and services offered. Without conducting adequate market research, a company wouldn’t be capable of meeting the current market’s needs and hence end up barely selling something. Nonetheless, market research isn’t only about this – it’s about business opportunities, eCommerce trends, as well as competitor and social media analysis.

Market research is categorised as follows:

Predictive market research
Causal market research
Descriptive market research
Exploratory market research

As for the methods employed, you need to master:

Primary research – It comprises information collection done individually by using internal resources. Some examples include focus groups, experiments, observations, surveys, and interviews.
Secondary research – This means you’ll make use of insights and data gathered by someone else. Some good examples in this regard include industry reports and statistics, as well as government statistics. This approach is usually recommended when you’re looking for generally valid information, as some sources might be too old and thus not specific enough for your company’s needs.

The advantages of market research

Regardless of your industry or niche, market research can deliver numerous upsides to your business, and these mentioned below are just some of the most prominent:

Gain a more profound comprehension of your audience

There’s no chance of running a profitable business without a definite target audience. After all, these are the people you’re going to sell your products to. But if you don’t know them, how would you be able to market appropriate goods? You won’t. The best you can do is to conduct thorough research on customer behaviour and delve into their interests and needs. Knowing your target audience’s demographics is crucial, but it’s not enough. Comprehensive surveys are required to get a grasp of things like psychographics, geographics, and behavioural patterns. Once you have a complete picture of all these aspects, you begin to understand what your target consumers think, feel, and value, and hence, connect with them more effectively.

Identify opportunities for development

New business models, subscription offerings, cross-border sales, and product development are all opportunities that can push your company forward. However, understating the definition of a market assessment is a must for these opportunities to be reachable. Various eCommerce opportunities are out there that are able to take your business to the next level, from subscription offerings and meaningful partnerships to product improvements and unreached segments. Online market research is the best method to uncover those opportunities that wait right around the corner. And remember that this sometimes implies change, but growth often comes with a shift in perspective, so be brave – great things are coming.

Stay on top of trends

Even corporations with an impressive progress history need constant market research to meet consumer needs that are constantly changing. Secondary research is a recommended option in this sense, as sources like competitor research studies and industry reports can provide powerful insights into the actual market and trends that help meet its expectations. Through secondary research, everything from messaging and advertising channels to customers’ purchasing behaviour and product features can be successfully documented. Nonetheless, be sure you don’t imitate what your competition did last year but only get inspiration from there and, preferably, personalise your marketing strategy according to your company’s and audience’s very peculiarities.

Determine your competition

Apart from helping you get a grasp of insight into consumer behaviour, market research enables you to understand your competitors. In business, it’s crucial to know your “fellows” so that you can develop a better product based on their strengths and weaknesses. Competitive research is the preferred option, as it can give you a full picture of the marketplace, including your competitors’ marketing strategies, the latest business concepts, and product developments. Plus, it helps you identify gaps – situations where consumers were dissatisfied – and further pinpoint these gaps to reach actual customers’ desires.

Mitigate risk by testing concepts

Risk isn’t as scary as you might think. It’s actually a paramount part of any eCommerce venture. If you take no risk, you also limit your gain potential. However, you can avoid risky situations and still push your business forward if you’re mindful of a robust strategy. Many companies strategically minimise risk, and market research is one of their most employed tactics.

One of the best methods to mitigate risk is by ensuring product or service demand. The truth is that many products nowadays fail to meet consumers’ expectations. According to Inc, the failure rate is approximately 95 percent. You surely don’t want your products to end up in clearance bins, so ensure you conduct proper and deep market research before launching something, whether by yourself or working with professional agencies.

If you’re serious about market research, achieving business success is no longer a fantasy.