The eCommerce sector is growing quickly and in a few short years has ballooned into a Wild West of competing businesses who vie for customers daily. Spotting gaps in the market is tricky, but certain golden rules apply.
In terms of competition, it’s important to know that the rules of ecommerce are identical to those of traditional commerce. By that we mean the rules of the game are the same on and offline; for example entering a crowded market online is as ill-advised as setting up a market next to a branch of Tesco.
What you think is a good idea for business might not be, simply because established companies might already be doing it – and to a better standard than your start-up could aspire to. Just like in the physical economy, the first thing to ask yourself when starting an online shop is ‘can I do it differently or better’.
Once you’ve had an idea for a business, say selling fishing tackle online, you should research the market for existing competition. Do a search for key phrases relating to your business: ‘fishing tackle for sale’ being an obvious one, and take a good look around the websites that appear in the list of results.
At this stage in the game, there are very few original ideas around, so the likelihood is you will come across established competition to some degree. The ‘opportunity’ exists not in the idea itself, but in how well the market is currently being served.
Having made a thorough assessment of websites selling to your would-be customers, ask yourself whether there is room for a fresh retailer in the sector. What can your business bring to the table? Can you sell more cheaply, more efficiently, or provide better customer service?
It is in these details that the ‘opportunity’ lies, and only through full consideration of the market, your future customers and the costs involved will you know if your opportunity is genuine or not.
Thinking of something that no one has thought of before is the golden ticket to commercial success both off and online. But if your idea is genuinely new and different ask yourself whether the reason is a simple oversight by all the other businesses in your market, or whether it’s actually a bad idea in reality.
The biggest online retail brands, including names like Amazon, Play.com and Tesco.com are all based on simple models that already existed. So the opportunity lies not in reinventing the wheel, but in making it run smoother.
ssment of websites selling to your would-be customers, ask yourself whether there is room for a fresh retailer in the sector. What can your business bring to the table? Can you sell more cheaply, more efficiently, or provide better customer service?
It is in these details that the ‘opportunity’ lies, and only through full consideration of the market, your future customers and the costs involved will you know if your opportunity is genuine or not.
Thinking of something that no one has thought of before is the golden ticket to commercial success both off and online. But if your idea is genuinely new and different ask yourself whether the reason is a simple oversight by all the other businesses in your market, or whether it’s actually a bad idea in reality.
The biggest online retail brands, including names like Amazon, Play.com and Tesco.com are all based on simple models that already existed. So the opportunity lies not in reinventing the wheel, but in making run smoother.
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Setting up a market next to a branch of Tesco is actually a good idea because a Tesco generates lots of traffic. The skill is then to sell something in a niche which Tesco cannot or won’t compete in. For example, Aldi likes to be near to a Waitrose – and both businesses benefit.