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Niches and product range

Competitor analysis for an online store: how to assess a niche before launch

How to analyze competitors of an online store before launch: types of competitors, what to compare, free tools, conclusions for prices, assortment and ads.

About us

Who we are and how we work

Competitor analysis for an online store before launch is a structured collection of data about the businesses that already sell similar products to the same audience: assortment, prices, delivery terms, website quality and customer acquisition channels. The result is a comparison table and an answer to the question of where your store will be at least on par and why customers will choose it.

In brief

  • Competitors are divided into direct, indirect and marketplaces; a few representatives of each group are enough for the analysis.
  • You compare assortment, prices, delivery and return terms, website quality, content, presence in search and ads, and service.
  • Free sources are Google search, ad libraries, marketplaces, social networks and a test purchase; paid services give traffic estimates with a margin of error.
  • The result is presented as a table with conclusions: where you are stronger, where you are weaker and which open position you will take.
  • The analysis is repeated after launch because the market changes.

Who your store's competitors are

The list is built around buyer behavior: where a buyer will go when looking for the same thing you sell.

  • Direct competitors are stores with a similar assortment for the same audience.
  • Indirect competitors are other ways to solve the customer's problem: a different product category, a service or making it yourself.
  • Marketplaces are large platforms where the customer compares prices and reviews.
  • Manufacturers and wholesalers who sell directly, as well as sellers on social networks.

To find them, enter 10–20 queries your buyer would search for into Google and write down who ranks at the top. Add stores running ads in the search results, social media accounts with similar products and offers on marketplaces. From the resulting list, keep 5–10 representatives of different groups.

What to compare: a checklist

AreaWhat to check
AssortmentBreadth and depth, unique items, availability and lead times
PricesRange, positioning (budget, mid-range, premium), promotions and discounts
TermsDelivery, payment, returns, warranty, minimum order value
WebsiteSpeed, mobile version, filters, photos, product pages, reviews, checkout
ContentDescriptions, reviews, blog, videos, buying guides
SearchWhich pages are visible for key queries, site structure, headings
AdvertisingPresence in Google Shopping and search ads, promotions, ad copy
Social media and serviceActivity, response speed, chat, phone, messengers

For each area, give a score on a simple scale and add a short note: this shows where a competitor is weak and where your store can win.

Free methods and tools

  • Google search in an incognito window: top positions, ads, image and question blocks.
  • Google Ads Transparency Center and Meta Ad Library: which ads competitors are running.
  • Marketplaces: number of sellers, prices, reviews, popular items.
  • Test purchase: order a product from two or three competitors to assess packaging, speed, communication and returns.
  • Paid SEO and advertising services such as Semrush, Ahrefs or Serpstat show traffic and keyword estimates. These figures are approximate, so they are used to compare websites with one another.

How to turn data into decisions

A comparison table is useful when decisions follow from it. Answer five questions:

  1. Where do customers lack choice, speed, information or service?
  2. Which position will you take: the widest choice, expertise in a narrow category, the fastest delivery, the best warranty?
  3. Which pricing policy will withstand the competition, given your purchase prices?
  4. Which channels will help attract the first buyers: search, ads, social networks, marketplaces?
  5. How much will it cost to acquire a buyer, and will the margin cover it?

For the last question, make a rough calculation with hypothetical numbers. For example, if a click costs UAH 10 and one order takes 50 clicks, advertising for one order will cost about UAH 500. If the order margin is lower than this amount, the channel is unprofitable, and you need a different price, a different product or different acquisition channels.

Signs of a saturated and an open niche

Signs of high competition

  • The top of the search results is dominated by large stores and marketplaces with strong brands.
  • Ads for the main queries are expensive compared with the margin.
  • Everyone has the same assortment and prices, and there is almost no difference in service.

Signs of open space

  • Competitors have weak product pages, few photos and reviews, and a slow website.
  • There are narrow subcategories or queries nobody serves.
  • Delivery, warranty and support in the segment are slow.

Open space does not yet guarantee demand, so it is verified with search queries and conversations with potential buyers.

Analysis in practice: prices, website, test purchase and summary

How to compare prices correctly

Compare prices for identical products with the same configuration, warranty and delivery terms. Build a sample of several dozen typical items: bestsellers, mid-range and expensive products. Record the price on the page, promo code discounts, the delivery cost and the minimum order value for free delivery. This shows the real cost of a purchase and the pricing policy: who keeps a low price on popular items and who earns on related products.

A quick assessment of a competitor's website

  1. Open the website on a smartphone and assess how fast the first screen loads.
  2. Find a product through the menu and through the site search.
  3. Add the product to the cart and go to the last checkout step without paying.
  4. Review the product page: photos, description, specifications, reviews, delivery terms.
  5. Pay attention to contact options: chat, phone, messengers, working hours.

Record the result in the comparison table together with the scores for the other areas.

How to make a test purchase

  1. Choose a mid-priced product that all the main competitors sell.
  2. Place the order the way an ordinary buyer would and save screenshots of the steps.
  3. Note the manager's response time, the confirmation method and how you are informed about the status.
  4. Assess the delivery: the actual lead time, packaging, the condition of the product and whether documents are included.
  5. Test the return or exchange process on a small item if the terms allow it.

A test purchase shows what you cannot see on the website: service standards, small problems and the strengths customers mention in reviews.

What to look at on marketplaces

A marketplace shows demand in numbers: the number of reviews and orders (where they are displayed), seller ratings, price trends, promotions and paid placements. See which products reach the top positions and how they differ: price, photos, reviews or shipping speed. This tells you what buyers expect in the category and helps you decide whether a marketplace suits you as an additional channel.

What to check before concluding that a niche is open

Before calling a niche open, make sure demand exists: look at the number of search queries for the main categories, the trend of interest in tools such as Google Trends and whether advertisers appear in the search results. The presence of ads means the niche brings orders to at least someone. The absence of ads may indicate weak demand or a low margin.

Ethical limits of the analysis

Use open information: websites, ads, reviews, public profiles. Do not log into closed systems, do not use other people's accounts and do not mislead sellers during test purchases and inquiries. You may study competitors' texts and images; copying them is off-limits.

An example of an analysis summary

The summary takes one page and consists of three parts. Below is a hypothetical example for a pet supplies store.

  • What we see: large stores and marketplaces dominate search, product pages in narrow categories are thin, there are few reviews, and delivery across the country takes several days.
  • Where we can win: detailed product pages with sizes and composition, a consultation in a messenger within a short time, fast same-day shipping.
  • What we do first: launch two narrow categories, prepare content for search queries and test ads on a small budget.

The hypothetical example shows the logic: numbers and observations lead to a short decision with specific steps. The exact conclusions depend on your niche, country and budget, so the summary is reviewed after the first months of operation.

Common mistakes

  • Comparing competitors by price alone.
  • Copying a competitor's website: texts and photos are protected by copyright, and duplication hurts SEO.
  • Ignoring the marketplaces where customers compare offers.
  • Treating traffic estimates from services as exact.
  • A one-time analysis without saving the results, which makes it impossible to see changes later.
  • A competitor list so long that the essentials get lost.
  • A table without conclusions and decisions.

Questions and answers

How many competitors should you analyze?

To start, five to ten representatives of different groups are enough. A longer list complicates the work without benefiting the decisions.

Do you need paid services?

The first analysis can be done manually. Paid services add scale and traffic estimates, though their figures are approximate.

How often should the analysis be repeated?

Before launch, then regularly, for example once a quarter, and before seasonal peaks.

Can you copy the structure of a competitor's website?

Studying the structure and approaches is useful; copying texts and photos infringes rights and hurts search visibility.

What should you do if marketplaces dominate the niche?

Look for a narrow subcategory, service or expertise, take commissions into account and combine your own website with selling on a marketplace.

Conclusion

Competitor analysis turns assumptions into verified decisions: you see who works in the niche, what customers lack and which position you can take. Keep the comparison table, update it before seasons and use it to choose your assortment, prices and promotion channels. Add the date of the check, the source of each figure and your own conclusions so that in a few months you can compare the market with its initial state. This makes the analysis a working tool, and decisions about purchasing and advertising rest on facts. If you need help assessing a niche or a website, the LightSEO team from Mukachevo can help with an SEO audit of your website and with choosing a solution for your niche.

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