How to Find eCommerce Market Gaps and Transform Them into Revenue-Boosting Opportunities

With so many products and services flooding the market each day, it can be hard to imagine where any gaps might be. But, with all innovations, there usually comes a need. For example, the invention of the car led to a demand for tires, the iPod created the need for better-quality headphones, and the smartphone created a market for protective cases.

Free to use image from PixabayIt’s not always a new technology that creates market gaps. Gaps occur because of changing customer tastes too. Especially in the world of eCommerce when instant access to products, fast shipping, and high competition can lead to a quicker shift in trends.

Identifying these gaps in the eCommerce market can be challenging if you don’t know where to start. Here we’ll look at some simple ways to identify gaps and get you started on the road to boosting your revenue.

What are eCommerce Market Gaps?

Gaps in the eCommerce market are customer needs that are not being met. In other words, useful products and services that are not currently available to buy. Gaps in the market usually fall into one of three categories:

• Something new and unique that’s never been seen before.
• A significant upgrade of a product that’s already available.
• The product is already available to some but could be introduced to a new market.

They can form part of your strategic business capabilities in terms of planning and executing change.

How to Identify eCommerce Market Gaps

Spotting gaps in the eCommerce market is something you can do to improve your customer experience, boost sales, or set up a new venture entirely. Tapping into market gaps can also boost your brand and help you stand out above the competition. Here are some tips on how to find them.

1. Track your Customers’ Behavior and Gather Feedback

Knowing your customers' buying behaviors can highlight their pain points and unmet needs. It can help you identify where customers feel your products or services are not meeting their needs, for example, poor post-service experience. By listening to customers, you can make improvements that improve retention and attract new buyers.

A great example is the Amazon review process. This enabled the business to become more customer-centric and demonstrated that Amazon cares about its customers. The company uses reviews to improve the customer experience and also their own services such as its online help

2. Keep up-to-date with Market Trends

Whether you’re an established business looking for a gap, or new to eCommerce and thinking of buying a Shopify store, market trends matter. Markets have shifted quickly in recent times, so keeping up-to-date with trends can help you spot both emerging and established gaps. You can do this by conducting an in-depth analysis of a particular market. Taking an objective viewpoint can help you identify gaps without jumping to any conclusions. For example, in 1876, Sir Wiliam Preece, the then chief engineer of the British Post Office, stated that “the Americans have need of the telephone, but (the British) we do not.” Making that assumption was a clear oversight of a huge gap in the market.

There are ways you can rack market trends. These include:

• Trend-tracking platforms that help you stay up-to-date on hot topics before they hit the mainstream.
• AI-powered analytics can help you run trend simulations based on past data to make predictions on emerging trends.
• Industry events such as trade shows to help keep abreast of industry developments, new technology, and products. This can help you see the direction competitors are heading in.

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3. Conduct an Internal Audit

Not all opportunities come from external markets. Sometimes, the best place to look for gaps is within. An internal audit requires an in-depth review of your products, website, and business as a whole. Spotting internal gaps means you can refine your operations, improve your products, or develop new ones more efficiently.

Being able to adapt and move into new markets means having a good, scaleable business structure. It’s important to have value streams and processes in place to support the end-to-end operations of order fulfillment. It’s important to look for improvements in these areas to help ensure a seamless customer experience.

4. Follow Pending Legislation

New regulations are often talked about before they become mandatory. Keeping up to date with pending legislation can help you foresee gaps in the market. In terms of eCommerce, for example, regulations regarding data protection have been tightened up in the EU and USA in recent years. This created a gap in the market for compliant database software.

Google alerts are an easy way to keep up-to-date with legal changes but you can also sign up for updates from different trade organizations.

5. Look for Gaps Globally

If you run an eCommerce business and you’re not exploring foreign markets, you could be missing gaps that you already have the products to fill. For example, if you produce maple syrup cheese in Vermont, could you sell it in Japan? Or could English vineyards sell wine in Singapore? eCommerce has opened up even small businesses to a global audience, but there are still untapped gaps to look out for.

6. Stand out from your Competitors

To find new revenue streams, it’s important to differentiate yourself from competitors. Take Korean beauty products, for example. Sold mostly online, they have become a popular choice for skincare fanatics who love it for high quality, competitive price points, and great results. The trend for K-beauty has come from marketers and influencers shining a light on high-quality of South Korean products.

A staggering 94% of people have avoided a company because of negative reviews. A great tip here is to look at your competitors and see how they’re struggling to meet customer expectations. What do the negative reviews say? What don’t people like about their product or service that you can do better?

Fault products, late delivery, and price are some of the reasons people leave negative reviews. This allows you to look at how to make inroads and be more competitive, for instance, by launching new protective packaging, reviewing your courier service and delivery options, or looking to see how you can improve the price point.

Using customer feedback to stay ahead of the competition is a great way to exploit market gaps. In eCommerce, composable commerce can be used to improve the UX. This, too, can help you stand out from and beat the competition.

7. Research keywords

Looking at what your target market is searching for online can help you identify gaps. A tool such as Google Keyword Planner can help you see the popular keywords and phrases people are looking for. For example, if your eCommerce store sells kitchen utensils, and there is a trend for people searching for pink kitchen utensils, you’ve identified a potential gap. A simple search can help you determine if other companies are already making pink utensils.

8. Dive into niche markets

Niche markets are small but can be lucrative. Look for niche markets where customers are either under-served or poorly catered for. The important thing to consider with niche markets is whether or not there’s an identifiable customer base.

To spot niche market gaps, look for similar products that fill a gap that could be applied to a different market. For example, in the niche of conscious shoppers, vegan cosmetics filled a need for ethically minded, beauty-conscious vegans. Other products that emerged from this niche filled gaps in sustainability, such as beeswax wrap to replace cling film.

What Next?

You’ve identified a niche, but what next? Before jumping into product development, it’s a good idea to test the water. You can do this by gathering data from your customers. This could be through a survey sent via email or on your website. Using their feedback can help you determine if the product is viable, or if it could be improved further to meet customer needs better.

Final Thoughts

eCommerce gaps can be a great discovery to act upon and boost revenue. The key to a successful strategy is to keep looking. Continuously monitoring the market, trends, competitors and customer feedback means you’ll be well-positioned to act upon any emerging gaps.

It’s important to make sure you have the business structure set up in a way that enables you to adapt to change quickly. This means sourcing the right materials and looking at your supply chain and customer service. Remember, everything fits together like a jigsaw, and any missing pieces can impact the success of any new products you launch.

Caution aside, identifying eCommerce market gaps is exciting and can give your business a worthwhile boost.