eCommerce market research plays a pivotal role in understanding the rapidly evolving landscape of online shopping.
An analysis of the market is essential for companies to make informed business decisions, from identifying consumer trends to assessing the competitive environment.
It empowers businesses to tailor their strategies, optimize their operations, and ultimately enhance their market presence.
With the boom of online presence for most consumers, the eCommerce boom has been reinventing the shopping experience and consumer expectations.
This dynamic market needs ongoing research to find key factors that influence online purchase decisions and to distinguish fads from lasting shifts.
Market research for eCommerce brands encompasses the systematic gathering and analysis of data about the market.
It places a strong focus on understanding the trends, consumer behavior, the competitive landscape, and overall profitability within a specific product space or market niche.
The goal is to enable eCommerce businesses to acquire insightful knowledge about their target audience.
They can then craft more effective business strategies, appealing product offerings, and persuasive marketing campaigns.
We are all familiar with the survey links at the end of comically long receipts from a pharmacy or grocery store. In theory, this is a good idea, except it is a serious challenge to motivate customers to type the link into their web browser.
Fortunately, eCommerce allows you to apply the same concept of a follow-up survey but keep it all in the digital space.
These are usually systems that automatically email an online survey to a customer after they complete an online purchase.
When is the best time to send a follow-up survey?
Some businesses send the survey immediately following the transaction if the objective of the research is to understand the buying experience.
Surveys that focus more on the experience with the product or its delivery may be sent a few days or weeks later to ensure the product is received first.
How long should my follow-up survey be?
These surveys are often most successful when they are kept short and sweet.
Asking too many questions that go beyond the customer’s purchase is likely to hurt or impact your survey response rates.
As a rule of thumb, any survey that requires over five minutes to complete is probably too long for this type of engagement.
For more insight here, read our blog post How Many Questions Should I Ask In My Survey?
Reminder: Look at trends over time
Another benefit of eCommerce follow-up surveys is the ability to look for trends in the data over time.
If you administer the surveys every time a customer makes a purchase over a year, see how satisfaction correlates with specific events.
In summary, follow-up customer satisfaction surveys are a great option for an eCommerce business. This research is cost-effective, reliable, and actionable.
Recommended Reading: The Benefits of Continuous Customer Feedback Surveys
Interested in assessing the customer experience for yourself on eCommerce storefronts?
Mystery shopping allows you to evaluate subtle details of the browsing, ordering, shipping, and delivery experience with the help of undercover researchers.
Traditionally, this research has been conducted in-person at retail businesses. Adapting the same practices for online shopping, however, has unquestionable value for eCommerce companies.
How does online mystery shopping work?
Mystery shoppers can complete test purchases at competitor websites and report back on every aspect of their experiences.
It can be challenging to avoid biases in market research. However, this methodology allows for an unbiased assessment of your own eCommerce store, as well as competitors.
An analysis of all the data will reveal who in the competitive set is best-in-class (and worst-in-class) for various steps in the purchasing process.
Consider throwing in some different scenarios to explore the customer experience from every angle. This may include:
Because most of the customer experience is directly influenced by your virtual storefront, you want to be sure the user interface is as good as it can be.
Therefore, user experience (UX) market research is a definitive approach for understanding and optimizing your eCommerce platform.
Websites or applications for online shopping are designed with the user in mind, but you will not know how well it functions until customers are actively shopping.
How do web interviews work for an eCommerce site?
The process of executing UX interviews records a participant via both their screen and camera as they complete a set of tasks on the platform.
Depending on your objectives, you may want to observe if it is easy to navigate, the right content is on the home page, or loading times are appropriate.
When should my eCommerce site conduct UX research?
Our eCommerce market research company finds this methodology especially useful if your brand or company is in the process of initially launching a digital platform or wondering if the existing design needs to be revamped.
Even if your product is perfect, you will fail to generate business when customers struggle to use your website or app.
Key steps in the buying process you may want to evaluate include:
The results from the interviews will speak to what users find intuitive and where they see room for improvement.
Here is a case study that explains how our market research firm helped an eCommerce company improve its user experience, partner integrations, and online advertising.
eCommerce is witnessing the integration of augmented reality (AR) and virtual reality (VR), which are providing interactive shopping experiences.
Customization engines enable highly personal product offerings, leveraging these technologies to allow customers to visualize products in their own space before purchasing.
Artificial Intelligence (AI) and Machine Learning (ML) are revolutionizing e-commerce through predictive analytics and personalized recommendations.
These technologies enable the analysis of vast data sets, leading to more efficient inventory management and enhanced customer experiences.
AI-driven chatbots provide 24/7 customer service, responding to queries and assisting in the shopping process.
Technology adoption is notably driving growth in the eCommerce market.
Consumers are increasingly using eWallets, while retailers are employing omnichannel strategies to offer a seamless shopping experience.
Data indicates a significant rise in online shopping for consumer packaged goods (CPG), with 40% of U.S. households engaging in both online and offline shopping, demonstrating the hybrid nature of modern consumer behavior.
The eCommerce market is expected to grow from an estimated USD 8.80 trillion in 2024 to USD 18.81 trillion by 2029.
This projection indicates a robust annual growth rate of nearly 15.80%, suggesting a doubling of market size within a five-year period. An increase in global smartphone usage and internet penetration is central to this expansion.
eCommerce market research is the systematic gathering and analysis of data regarding market trends, consumer preferences, and the competitive landscape within the online retail industry. This research helps retailers make informed decisions about product offerings, pricing strategies, and marketing strategies.
To conduct eCommerce product research, retailers should evaluate market demand, assess competitive products, utilize analytical tools, and gather consumer feedback. This involves analyzing data on consumer behavior, market size, and economic indicators to forecast potential sales and profitability.
Research is fundamental in eCommerce as it informs business strategy, identifies market opportunities, and mitigates risk. Understanding the market demand and staying ahead of trends enables eCommerce businesses to tailor their offerings and ensure alignment with customer needs and expectations, ultimately supporting sustainable growth.
Drive Research is a national market research company. Our experts have helped many clients from across the country take their eCommerce business to the next level. Check out our market research services.
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