E-commerce Competitive Intelligence in 2023: 5 Benefits & Tools

As more startups join the e-commerce industry, the level of competition rises (Figure 1). Achieving competitive intelligence has become crucial for online businesses aiming to succeed in today’s highly competitive market. By understanding the competitive landscape, e-commerce businesses can make informed decisions and strategically position themselves to stay ahead of the curve.

This article will delve into what competitive intelligence means for the e-commerce sector, how online businesses can achieve it, and the top 5 benefits it offers. Moreover, we’ll explore the top 5 considerations when selecting the right competitive intelligence tool for your e-commerce business.

Figure 1. The European e-commerce sector grows

What does competitive intelligence mean for the e-commerce sector?

In the e-commerce world, competitive intelligence refers to the process of systematically gathering, analyzing and leveraging data and information about your competitors. This intelligence helps businesses to make data-driven decisions, identify trends and opportunities, and ultimately gain a competitive advantage in the market.

Achieving competitive intelligence for online businesses

This section covers some steps to achieve competitive intelligence for e-commerce businesses.

1. Identify competitors

Initially, you need to identify your main competitors, both direct and indirect. Direct competitors are those who sell similar products or services, while indirect competitors target the same audience but offer different products or services. For instance:

2. Collect data

Collect information about your competitors, such as their product offerings, pricing, marketing strategies, customer reviews, and social media presence. You can do this manually or with automated tools such as web scraping.

3. Analyze data

Analyze the collected data to identify trends, strengths, weaknesses, opportunities, and threats. If the data from your competitors is large, you can use a sophisticated e-commerce analytics tool with built-in competitive intelligence capabilities.

4. Leverage insights

Use the insights gained from your analysis to make strategic decisions, such as refining your product offerings, adjusting pricing strategies, or improving your marketing efforts.

5. Monitor and update

Continuously monitor and update your competitive intelligence practices to ensure that you stay ahead of the game.

Figure 2. Process of achieving competitive intelligence

Why is achieving competitive intelligence necessary for online businesses?

Studies show that Big data and analytics are most effective in helping companies achieve competitive advantage (Figure. 2). Competitive intelligence is a set of practices that can help your online business harness the power of big data and analytics.

Figure 2. Technologies that are most likely to help businesses achieve competitive advantage in the future

Here are some benefits of competitive intelligence in the e-commerce sector:

1. Enhanced product offering

Analyzing competitors’ data allows e-commerce businesses to identify gaps in their product offerings and make informed decisions on which products to introduce or discontinue. 

For instance, an online clothing retailer may discover that their competitors offer a wider range of eco-friendly products, prompting it to expand its sustainable clothing line.

2. Optimized pricing strategy

By analyzing competitor pricing data, online businesses can establish an optimal pricing strategy that balances profitability and competitiveness. A consumer electronics retailer might discover that its competitors offer free shipping on orders over a certain threshold. With this data, it can implement a similar or better policy to remain competitive.

3. Improved marketing efforts

Competitive intelligence helps e-commerce businesses identify successful marketing tactics used by competitors and adapt them to their own campaigns. An online cosmetics store, for example, might notice that a rival is generating significant engagement through online influencer partnerships (such as with popular YouTubers) and decide to pursue a similar strategy.

4. Superior customer experience

Understanding the customer experience offered by competitors allows e-commerce businesses to identify areas for improvement in their own user experience. 

Suppose an online furniture store discovers that one of its competitors offers 3D visualization features to improve its customer experience. This can inspire the brand to incorporate similar technology on its website or mobile app.

5. Focused innovation

Competitive intelligence can reveal market trends and emerging technologies, empowering online businesses to innovate and stay ahead of the competition. You can keep an eye on what new technologies are being used by your competitors and improve or enhance your technological capabilities accordingly. 

One of the main reasons this approach is effective is because whatever solutions your direct competitors use will fit perfectly (or with minor tweaks) in your business operations since they are similar. 

Recommendations

The data and insights gathered from competitive intelligence approaches should not only be used to copy competitors’ practices and initiatives. In some cases copying works, but the data can also be used to offer something even better. So it is important to consider improvements or adding your own personal touch to whatever practices you decide to incorporate into your business.

There are various sophisticated tools on the market that are specially designed to help e-commerce businesses implement competitive intelligence. These considerations can help you narrow down your options. 

1. Comprehensive data collection

Choose a competitive intelligence tool that offers comprehensive data collection capabilities, including product listings, pricing, customer reviews, and social media activity. This will ensure you have access to the most relevant and up-to-date information about your competitors.

2. Ease of use and integration

Select a tool that is user-friendly and easily integrates with your existing e-commerce platform and business workflows. This will help you quickly incorporate competitive intelligence into your daily operations and decision-making processes.

3. Scalability and customizability

As your business grows, your competitive intelligence needs may change. Opt for a tool that is scalable and customizable, allowing you to expand its features and adapt to your evolving requirements.

4. Data visualization and reporting

Effective competitive intelligence tools should provide clear data visualization and reporting capabilities, enabling you to quickly understand and interpret the information gathered. This will help you make data-driven decisions and identify trends and opportunities more efficiently.

5. Financial considerations

Implementing digital solutions can be expensive, so it is important to consider financial factors. You can consider the following:

• See what packages the vendor offers. Consider if they offer free trials/versions or custom packages
• Consider what extra costs or discounts are offered for scalability
• Consider if there are any costs involved in integrating the solution into your business
• Consider if the vendor offers any training (if the solution requires training to be used by your team) and if there are any costs involved in onboarding your team

Comparison of the 5 best e-commerce competitive intelligence software providers on the market

Table 1. Vendor comparison

Vendors	Year Founded	Company Size (Employees)	Price	Free-trial	ISO 27001 Certification	Customization
Bright Data / Bright Insights	2014	450+	Prices are claimed to be in the range of $1.5k to $2.5k/M	Available	Available	Available
SimilarWeb: Digital Marketing Intelligence	2007	1,250+	Prices are claimed to be in the range of $199/M to Custom	Available	Available	Available
SEMRUSH	2008	1000+	Prices are claimed to be in the range of $119 to $449/M	Available	Not available	Not available
Klue	2015	150+	Not available	Available	Not available	Available
Crayon	2014	3,300+	Not available	Available	Not available	Available

Notes:

• The vendors compared in this table were selected based on the relevance of their offerings and having 100+ employees.
• The info added to this table is based on vendor claims.

Transparency statement:

AIMultiple serves numerous emerging tech companies, including such as Bright Data.

Further reading

If you need help finding a vendor or have any questions, feel free to contact us:

Find the Right Vendors