When it comes to growing your eCommerce business, it can be hard to come up with a plan. What’s your objective? What are your action plans, and will it truly help you achieve your initial objectives? These are not new problems, and these concerns are pretty common among online eCommerce businesses.
The good news is there are simple business and marketing methodologies that can help you create a solid marketing plan. And one of our favourites is the traditional SWOT analysis. In this article, we’ll talk about how a simple SWOT analysis can help you determine how best you can achieve eCommerce success.
But first, let’s answer a simple question….
What Is a SWOT Analysis?
For starters, a SWOT analysis contains four quadrants: Strengths, Weaknesses, Opportunities and Threats.
Below we’ll discuss what each category in-depth and provide you with a series of guide questions to help you create your own SWOT for your business.
Strengths – describe what your business is good at. What are you good at? What’s your advantage against your competitors? What resources do you possess?
Weaknesses – describe the areas of your business that need improvement. What does your business lack? What are the products that don’t sell? Do you lack certain resources? Do you have the requisite marketing and SEO skills in-house? Where are your competitors stronger than you? What do your competitors do better than you?
Opportunities – are a set of circumstances that can enable you to grow your business. What are the opportunities in your industry? Are there any marketing trends you can leverage?
Threats – are factors that can pose a risk to your business. Do you have new competitors aggressively gathering market share? Are there factors that are decreasing your revenues or potential profits? Is the gap between you and your competitors growing?
Strengths and weaknesses are internal factors that may impact your organization, whereas opportunities and threats are international factors that may impact the landscape the company operates in.
To help you recognize how vital a SWOT analysis is to your eCommerce business: let us consider the following fictional business: Mandy’s Graphic Tees.
Mandy just started selling graphic tees on her online website, and the problem is she does not have a lot of customers. Her website is optimised, her products are organised and she has an online presence. However, since she just started out, she has a few problems.
Mandy’s business lacks a social media following and her online content is only picking up a few engagements. She does not rank on the first page and she doesn’t get much traffic via search engines. She has also identified commercial keywords but currently ranks around the bottom of page 5 for these terms.
Mandy has a lot of competitors online, yet there are opportunities in the local market in her area. In her area, she has 2 competitors that have been going for nearly 2 years, yet they lack an engaging online presence. She’s hiring a content creator, social media specialist and SEO experts to get her business off-the-ground.
Given this data, Mandy’s SWOT could look like this:
Through a simple SWOT analysis, Mandy is able to clearly identify what she needs to do in order to achieve eCommerce success.
How does your SWOT analysis look like? Let us know how we can help.
Interested in how we can help you make the most of your online store? Digital Cake are Shopify experts, as an agency, we know what will help you be better online.