9-Step Competitive Product Analysis Guide & 25 Top Tools for Success

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Staying ahead of the competition can constantly challenge running an online store. You might be able to differentiate your ecommerce business with a unique selling proposition, but that won’t stop rival sellers from copying your product offerings and tiktok ecommerce strategies. Before you know it, your sales start to stagnate, and you’re left wondering what happened as your once-thriving business begins to lose profitability. Competitive product analysis uncovers valuable insights about your competitors to help you mitigate market threats to your business and avoid falling into a “one of many” position in your niche. In this article, we’ll explore how to perform a competitive product analysis to help you dominate your market by making data-driven decisions that boost sales, optimize product offerings, and consistently stay ahead of competitors, ensuring sustained growth and profitability.

Shophunter Shopify sales tracker is a valuable tool for achieving these objectives. With Shophunter, you can uncover your competitors' sales data, products, and marketing strategies and make informed decisions that improve your business's performance.

What is a Competitive Product Analysis?

Competitive Product Analysis

Competitive product analysis involves evaluating your competitors’ products to determine their strengths, weaknesses, and current position in the market. It also allows you to analyze the current demand for your product and help you plan appropriate strategies to outperform them.

The most basic value proposition canvas for competitor analysis divides customer behavior into fears, wants, and needs. A customer buys a product for fear of losing it, the luxury of having it, or the need to use it. The canvas also separates the product into three parts:

Benefits

Features

Experience

Customers prefer to purchase products after comparing the features, understanding the benefits, and evaluating their previous or current experience with the business selling the product.

Doing a product competition analysis helps identify how your competitors’ products help your target audience overcome their fears and fulfill their needs. Competitive product analysis also includes analyzing your competitors’ sales and marketing strategies.

By doing this, you can implement robust business strategies that are better than the approach used by your current competitors. When you have full knowledge of your competitors, defeating them and acquiring the largest market share is easier.

What Should a Competitive Analysis Include?

Competitive Product Analysis

Your competitive analysis should include anything that can help you improve your product and generate more sales. You must include the following things in your product competitive analysis.

Company Overview

This gives you a summary of your competitors, their resources, and their number of customers. Go through the career section of the company's website to identify who they are hiring or which teams they are expanding. Knowing this will give you a fair idea of the steps they are about to take.

Product Features

Analyzing all the features of your competitors’ products will allow you to make your product unique and better.

Pricing

Check how much they charge. Do they offer their product as a one-time purchase or as a subscription-based model? Analyze if their pricing plans don’t satisfy a segment of customers. For example, if they offer plans for large businesses only, you can offer a plan for small companies or startups.

Perks

Do your competitors offer an additional product or service with their product? It could be anything from a free tool to a discount coupon for another product.

Share of voice is the percentage of exposure a product gets on the web and social media. Tools like Brandwatch can help you measure the share of voice of your competitors’ products. For example, the screenshot below displays the share of voice of the top five airlines. Jet Airways has the highest share of voice (32%), followed by Royal Airways (27%), and Air Atlantic (21%). This will help determine which of your competitors are dominating the market.

Sentiment Analysis

Sentiment is the measure of how satisfied customers are with a particular product or brand. Measuring sentiment analysis can help you find the real sentiments of the customers, such as:

Happy

Neutral

Geography

Which markets are your competitors focusing the most on? This could help you find both established and emerging markets for your product.

Analyze which social networks they use the most. What kind of posts are they publishing, and how frequently?

SEO

Check whether your competitors are doing SEO for their products. If they are, then what aspects of SEO are they focusing on most?

Blogging

Are they publishing blogs or articles related to their product on their website? Check the topics of their blog posts and the engagement level of the audiences.

Video Marketing

Determine if your competitors create videos or conduct webinars to promote their products. If they are, watch the videos to determine whether video marketing is feasible for you and how to make it unique.

Paid Ads

Tools like SimilarWeb show whether your competitors are running ads and, if they are, what the top keywords they are targeting are. For example, Salesforce attracts the highest-paid traffic from the keywords:

Salesforce

Sales force

Quip

Salesforce certification

Customer Acquisition Process

Check whether your competitors have created unique ways to acquire customers, such as referral programs, affiliate strategies, or other innovative ideas.

Sales

It is crucial to understand what sales strategy your competitors are using. The best way to analyze it is by booking a demo yourself. Do they provide free product demos? How long do it take to respond to your demo request? How many fields do they require you to fill out before you can book the demo?

Net Promoter Score

NPS determines how likely customers are to recommend the product to people they know. If the NPS for your competitors’ products isn’t high, you can target a larger market. You can find the NPS of my competitors’ products by conducting a survey.

Including all these will give you a 360-degree view of your competitors’ strengths, weaknesses, and opportunities to capture the market.

E-Commerce Advertising

Ecommerce Sales Strategy

Ecommerce Monitoring

Ecommerce Search Metrics

Ecommerce Marketing Budget

Ecommerce Marketing Ideas

How to Conduct Competitive Analysis in 9 Quick Steps

Competitive Product Analysis

1. Identify Your Rivals: Determining Your E-commerce Business Competitors

Identifying competitors is the first step in conducting a competitive analysis. Start with a broad list of competitors. From there, you can narrow the field based on your goals to determine your most important ones. Your competitor products analysis may include different types of competitors, which may include:

Direct competitors: These competitors are in the same category and offer similar products or services to similar target markets, such as two fast-food restaurants that offer cheeseburgers.

Substitute or indirect competitors: This type of competitor includes those in the same category who offer different products or services to similar target markets that are similar enough to act as substitutes for each other. An example is a fast-food restaurant that offers cheeseburgers and a fast-food restaurant that offers chicken tenders.

Similar, phantom, or replacement competitors: These are competitors in different categories that offer similar products or services to similar target markets, such as a meal from a fast-food restaurant and a bag of frozen chicken tenders from a grocery store.

To get an up-close look at what your target audience is saying about your competitor's products (and yours), you need to be a fly on the digital wall, which social media listening enables you to do. With social listening, you listen in the digital space to filter out mentions of your competitors’ products, brand names, and keywords even if your competitors, and you, for that matter, aren’t tagged.

3. Check Out Their Reviews: Analyze Competitors’ Online Customer Reviews

Reviews written about your competitors are a valuable resource for competitive product analysis. You likely already have a system for managing online reviews for your business and product, adding analyzing competitors’ reviews. Dig into reviews, good and bad, about your competitors and their products on their site:

Google reviews for official review sites

TripAdvisor for experiences

Yelp for the food industry

G2 for tech products and software

Reddit, and any other sources you can think of

Digging into what people love or dislike about your competitor’s products and offerings can unearth opportunities and inspire new products or adjustments to existing ones.

Any social media pro knows customer feedback and questions don’t just come in through reviews. They also show up in the social comments section every single day. Use social media monitoring tools to track people's opinions about your products and competitors. It’s the perfect way to outpace them and constantly improve your offerings simultaneously. It’s best to formally track this feedback so you don’t have to dig through hundreds of comments to resurface input later.

With a tool like Sprout’s Smart Inbox, you can manage mentions of your brand even when you’re not tagged with keywords and incoming messages across all of your channels in one central hub. And use Tags to keep track of product feedback by creating a special label like:

Product Feedback: Positive

Product Feedback: Negative

5. Buy What They’re Selling: Try Competitor Products for Yourself

This is one of the more hands-on methods. Trying a competitor’s products for yourself is one of the best ways to get an up-close understanding of their product, from functionality, to areas of frustration you experience to design triumphs and shortcomings. Pairing firsthand experience with the feedback you see from customers is a powerful way to get a 360-degree assessment of the situation and how yours might stack up against it.

6. Get Help: Use Third-Party Research to Analyze Competitors

Competitive research is a large task, especially within industries with saturated markets. You can always employ third-party research to learn more about your competitors, their products, and how people feel about them.

For example, hiring an outside company to survey your target market is a great way to get in-depth, direct information about how your target market feels about your industry, competitors, and what they love or hate in a product.

7. Get Insight from Their Customers: Talk to Competitors’ Users and Potential Customers

Depending on the objectives you’ve set for your research, you’ll want to talk to potential customers who are using or have used, your competitor’s product. During these conversations, ask questions that will give you insights into the following:

What they like and dislike about a tool like yours

What you’d need to do to get them to change providers

What they use the tool for

What other tools do they use to do their job

How much money they’re willing to pay for a tool like yours

This information helps you understand potential customers and their role in the market. It also enables you to know how they feel about the options they have at hand and what their expectations are about a similar product offering.

The next step in conducting competitive product analysis is to monitor market trends and anticipate future changes. You can follow industry influencers, read academic publications, press releases, and business trends reports, run surveys, and attend industry events to note those trends.

By getting early information on market trends, your innovation team can work on developing new key features or products to capture early adopters. Hopping on trends early can help you gain authority and get new eyes on your product.

9. Conduct a SWOT Analysis of Competitors' Products

A SWOT (strengths, weaknesses, opportunities, and threats) analysis is a strategic planning tool for assessing your competitors’ products. It means writing down the strengths and weaknesses, as well as external opportunities and threats of competitors. A SWOT analysis gives insights into your competitors and how to get ahead.

Strengths: What your competitors are excelling at and the things users value the most

Weaknesses: The things they’re lacking and the reason users leave bad reviews

Opportunities: What they could be doing better (but it’s not necessarily causing a bad user experience)

Threats: External factors that could harm the product.

For example, let’s come back to the no-code tool. Your competitor’s strengths could be that the tool is free and fast to load. Weaknesses include the fact you can’t take the application’s code elsewhere, and sometimes, you need to save the progress manually. The customization options are limited, so that’s an opportunity for you. The sudden boom of tools like GitHub Copilot that can write AI-generated code threatens it. Using this information, you can conduct further research to identify how strongly users feel about those weaknesses and opportunities and work on building a solution to close those gaps.

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24 Competitor Analysis Tools for Businesses in 2024

Competitive Product Analysis

Competitive product analysis in ecommerce allows you to understand better how your products stack up against the competition. You can uncover gaps in the market, identify growth opportunities, and optimize your strategies to boost sales and revenue.

Leveraging competitor analysis tools will help you quickly gather the data you need to make informed business decisions. Here is a list of 25 tools to help you get started.

1. ShopHunter

ShopHunter's Shopify sales tracker is essential for e-commerce founders, particularly those within the Shopify ecosystem. At its core, this tool uses a custom algorithm to estimate sales for entire stores and individual products, helping users quickly validate product potential.

Key features include:

Sales estimates for both stores and products, offering insights into market opportunities.

Ad spy tool to track advertising activity across multiple stores, allowing you to spot trending products and winning marketing strategies.

Whether you're a dropshipper, a Shopify store owner, or a newcomer to e-commerce, ShopHunter simplifies product research and minimizes the risk of investing in low-performing items.

Sign up for a free trial (no credit card required) to our Shopify sales tracker tool to find your next eCom opportunity or to level up your current eCommerce store by learning from your competitors.

With social media ranked the No. 1 channel for connecting with customers, there’s no better starting point for competitive analysis. Sprout Social enables you to understand competitor performance on social media from multiple angles and data points. You can use Sprout’s suite of competitive reports to assess and optimize your social strategy with rich data points you can track across:

Facebook

Twitter

Instagram

Whether you want to get a sneak peek at what your competitors are posting or benchmark your growth against the average of the profiles being compared, it’s all a click away, minus the tedious manual research and messy spreadsheets.

3. Phlanx

This Instagram engagement calculator tells you how active any account’s followers are. It is an awesome resource for analyzing your competitor’s Instagram presence and determining whether an influencer has a legitimate following. Phlanx’s engagement ratio is calculated based on the number of followers an account has versus the rate at which followers interact with content (likes, comments, etc.).

A fun tool for checking out bigger brands is Social Blade. It assesses follower counts on:

Twitter

Instagram

YouTube

Among other services. Although often used to assess the popularity of celebrities and YouTubers, there are some interesting insights here for marketers.

For example, their Twitter competitor analysis applies a grade based on their average number of retweets and likes. Perhaps most notably, Social Blade provides a day-by-day follower update and a live follower count. Another cool feature is the ability to stack brands’ social presences against each other.

5. Kompyte

Kompyte is a competitive intelligence tool that automatically pulls competitor updates into a single, easy-to-monitor dashboard. This includes updates from their:

Website

Review sites

Content

Social media

Job openings and more

Easily monitor competitor updates to keep a clear eye on what other brands in your industry are doing online. Plus, Kompyte helps put together sales battle cards based on your competitive findings that your team can use to close sales.

6. Crayon

Crayon is an artificial intelligence tool that can help with competitor analysis and competitive intelligence. It helps users create a dashboard of automatically compiled and organized competitor updates so brands can always know what their competitors are doing.

Crayon also has collaboration features, ensuring teams can manage and monitor competitive insights. Crayon also offers the ability to create sales battle cards and customizable reports and dashboards.

7. SEMRush

SEMRush is one of the market's most widely used SEO tools, but its competitor analysis features set them apart from the pack. For starters, you can use SEMRush to pull your competitor’s backlinks and monitor changes in their ranking.

And here’s the piece of the analysis that provides a by-the-numbers view of who’s competing for their keywords: SEMRush can tell you who else is competing for your traffic. This is an invaluable tool for understanding your competition from a strictly SEO perspective. Likewise, highlighting what keywords competitors target directly influences your content strategy.

8. Ahrefs

Another staple competitor analysis tool for SEO is Ahrefs’ site explorer, which allows you to check any URL’s top organic keywords. You get a rough estimate of how much traffic a competitor receives on those keywords. Ahrefs examines your competitors' organic traffic. It’s easy to check out a site’s highest-performing content based on backlinks (as opposed to shares).

This information teaches you what products or messaging works best for a brand. Ahrefs can identify the source of your competitor's backlinks. And in addition to the highest-performing content, you assess what keywords bring the most traffic to a competing site. The takeaway here? Your competition’s traffic doesn’t have to be a guessing game when you’re regularly running your reports.

9. MozBar

This browser extension from Moz provides a surface-level view of how authoritative a site is in the eyes of Google. Based on Moz’s domain authority (DA) metric, MozBar assigns sites a DA score based on their likelihood to rank in search engines (based on factors such as backlinks). The higher the DA score, the better. Settled atop your browser, the MozBar is a valuable tool to quickly determine a site’s search potential performance at a glance.

MozBar is a competitive analysis tool that looks at a site's Domain Authority. When enabled, you also see how competing sites compare in a Google query. MozBar analyzes the domain authority of competing Google results. MozBar allows you to conduct a passive competitive analysis as you examine competing sites to determine how long they’ve been around and whether or not they’re winning backlinks.

10. Buzzsumo

Buzzsumo allows you to examine the top-performing content on relevant topics for your brand and specific competitors. The tool looks at a piece of content’s engagement on social sites and its total shares across the web. Buzzsumo highlights the top-performing content in your industry.

Not only does this clue you in on who’s killing it in terms of industry content but also it helps you identify potentially hot topics to explore yourself. Buzzsumo highlights your competitors' most popular pieces of content. Whether you’re looking for movers and shakers in your industry or a new idea for a blog post, Buzzsumo provides you with definitive answers.

11. Similarweb

Similarweb is an insanely comprehensive tool for both content and SEO. The tools help you dig deep into your competitor’s content and where their traffic comes from. For example, you can determine a site’s referral traffic and where it sends visitors.

SimilarWeb provides a report of where your competitors' referrals are coming from. More importantly, for content marketers, it shows what topics visitors search for and what other relevant sites they visit.

12. Feedly

If you’re looking for a way to keep an eye on a competitor’s content without checking up on their blog constantly, look no further than Feedly. Feedly is a content aggregator that stores and organizes content as it’s published, including that of your competitors. This allows you to see hot topics covered by your competitors, all on one page.

13. Mailcharts

Email marketing is one of the most tedious channels for competitive analysis. Recognizing this, Mailcharts aggregates emails from competing campaigns to help influence your own. In addition to grabbing subject lines, Mailcharts pulls data such as send frequency and compares it to your business’ campaigns to see where your emails stand. Additionally, the tool compares your campaigns to their massive library of marketing emails to ensure you’re in tune with best practices:

Timing

Frequency

subject line length

Mailcharts track the performance of competing email campaigns. Not only is Mailcharts a powerful competitor analysis tool, but its website offers a ton of email examples to draw inspiration. Pulling from some of the biggest campaigns, you get a better idea of today’s top-performing emails.

14. Owletter

This tool automatically aggregates emails from competitors and organizes them into a simple, user-friendly dashboard. Owletter’s analytics spots changes in your competitors’ email frequency and likewise picks up on trends to help you optimize when you should send your emails.

Owletter aggregates competing email campaigns for analysis. This represents an efficient, data-driven alternative to keeping up a dummy email account to spy on competitors.

15. iSpionage

If you’re interested in a competitor’s paid ads, iSpionage is definitely for you. This tool analyzes multiple aspects of PPC campaigns, including how many keywords a brand targets on AdWords: iSpionage tracks the performance of paid ads. You can see what their target PPC keywords are.

iSpionage provides a list of competitor keywords for PPC ads. You also see who else competes for PPC ads for a particular topic and how much their projected monthly budget is: iSpionage can determine which competitors are paying for ads on a certain keyword. For brands considering PPC, such a tool is essential for keeping realistic expectations for ad spend.

16. Owler

This industry analysis tool uses community data to curate data and content from startups relevant to your niche. Again, this tool is reserved for bigger brands. You input brands to create your own custom dashboard of industry names to watch.

17. Surfer

Surfer is a search engine optimization (SEO) analysis tool that helps improve your written

content for higher search rankings among your competitors. It provides real-time suggestions to improve your text, such as:

Optimizing keyword usage

Improving structure

Enhancing readability

Whether you’re a content marketer or an SEO expert, Surfer can help you create high-quality, SEO-optimized articles.

18. Google Trends

Google Trends is a free competitive analysis tool that tracks the search frequency of specific keywords or phrases. It offers insights into a word or phrase's global and regional popularity.

This free tool allows you to observe changes in popularity over time, making it an excellent resource for identifying user trends and patterns. Use this data to inform your overall marketing strategy and plans.

19. Google Analytics

Google Analytics is a powerful tool that gives you deep insights into your website’s traffic. It provides information about your visitors, including their demographics, geographic location, and general behavior.

You can understand how users engage with your site, such as the pages they visit, how long they stay, and their actions (e.g., making a purchase or filling out a form). These insights help optimize your website for a better user experience and increased conversions.

20. Majestic

Majestic is an SEO competitor analysis tool that specializes in backlink analysis. It gives you a comprehensive overview of your competitors' backlinks profile. These insights help optimize your link-building strategy and, in effect, improve your site’s overall SEO performance. Majestic is popular among website owners, SEO experts, and digital marketers looking to boost their site’s domain authority and search engine rankings.

21. Hootsuite

Hootsuite is a comprehensive marketing strategy and social media management tool many teams use for competitor analysis. You can simultaneously post to different social media accounts from a single dashboard and stick to a regular posting schedule.

You can also use Hootsuite to streamline your social media activities (e.g., viewing your home feed, responding to comments, etc.) without visiting each site separately. It’s a great tool for businesses struggling to manage their presence on multiple social media platforms.

22. SpyFu

SpyFu is a comprehensive SEO tool that provides detailed data on your competitors’ SEO strategies. It offers insights into their most profitable keywords, paid and organic search, and ranking history. SpyFu is an excellent tool for PPC competitors’ research and can help you discover new keywords to target.

23. Pi Datametrics

Pi Datametrics allows you to measure your competitors’ performance. It enables you to identify the “what” and the “when” by analyzing market trends. You can track the audience’s intent and tweak your marketing message to persuade your customers to try your product instead of your competitors. The following graph shows the search volume for different auto brands in the U.S market. It also displays the trend in branded search volume. This helps determine which of your competitors’ products are in demand now.

24. Prisync

Prisync helps you to keep an eye on your competitors’ prices. Knowing your competitors’ pricing strategy allows you to adjust your pricing accordingly to acquire more customers.

Why Do a Competitor Analysis?

Competitive Product Analysis

Analyzing competitors offers insights into what others in your market do well and where they fall short. Understanding these strengths and weaknesses can help you identify opportunities for your own business. For example, if you uncover that an industry leader has a large market share due to their impressive social media presence, studying their posts and audience engagement can reveal how to improve your performance.

If you find that this competitor has received several negative reviews about the quality of their products, you can use this information to improve your offerings and marketing messaging. You can also develop a plan to avoid making the same mistakes if you can successfully overtake them in the market.

Find New Opportunities For Growth

Conducting a competitor analysis can be hugely beneficial for brands. It can be an affordable way to identify many opportunities to improve your business. You might uncover market gaps to help refine your product development strategy. You can also build a picture of messaging that works by analyzing what your competitors say about their products or USPs. This information might inspire your marketing.

Rachel Andrea Go is a marketing director who uses competitor analysis to learn what messages resonate with her audiences. She recommends, “Instead of saying, ‘Best project management software,’ one of your competitors might say, ‘Get time back by letting our software manage your projects.’ By framing their software as ‘time-saving,’ your competition positions their software not only as a solution for project managers but also as a way to save time. “Look at the language they employ on their websites, landing pages, and social media posts to communicate their USPs and pay attention to how their followers react.”

There are tools available that will help you analyze a competitor thoroughly. You do a lot of digital competitor analysis. Competitor analysis alone can find so many opportunities that you could keep your client’s team busy for months.

Top tip: It’s easy to get carried away with competitor analysis and lose sight of what matters and drives your business. Don’t get too hung up on closing the gap on competitors. You must keep your business front of mind at all times.

Identify Your Differentiators

Think of competitor analysis as a chance to reflect on your business and discover what sets you apart. There will be some key differentiators between your business and your competitors.

Many will be for good reason, and you’ll be glad to see it. But if you keep an open mind while conducting your analysis, there’s a good chance you’ll find differentiators in messaging, word choices, and USPs, some of which may make you think about your own business differently.

Get Closer to Your Target Audience

When reviewing competing brands, customers evaluate what they:

Dislike

Prefer to complain about

You can discover how your audience talks about competitors, what they love so you can emulate it if it makes sense, and what they loathe so you can avoid it or use that to your advantage. Social media, forums, and review sites are excellent sources of qualitative data where you can learn your audience's feelings in their own words.

Discover New Competitors

This one might sound backward. Don’t you need your competitors before you can start competitive analysis? As mentioned above, many brands fall into the trap of analyzing aspirational competitors and miss out on brands attracting their audiences and winning business where they should be. Dan White is an SEO consultant who conducts competitor analysis for his clients. White says, “One of the big things I tend to focus on is who [my clients] share similar keywords with. It opens their eyes to understanding who they think their competitors are and who their competitors are, which are two very different things in Google.”

White raises an excellent point. When it comes to digital competitor research, SEO, and content, you often refer to competitors as business and content competitors. Think of your business competitors as the businesses who do the same kind of work you do, the businesses you might lose business to. Content competitors may serve your audience online, bring them into communities, or provide alternative solutions that could leave you forgotten. In a digital world, it’s almost impossible to know who all your competitors are, and those locals may not be the only competitors to keep an eye on.

Set Benchmarks for Success

Competitor analysis gives you a realistic idea of mapping your progress with success metrics.

While every business has its path to success, you can always look at a competitor’s trajectory to assess whether you’re on the right track. If you have the privilege of checking in regularly, say every quarter, every six months, or even every year, you can keep a note of some KPIs to monitor business growth. You tend to do competitor analysis every year or so for your clients. You can compare reports to years previous to track everyone’s trajectory.

The Shopify sales tracker from ShopHunter takes a unique approach to estimating sales for online stores and products. At its core, the tool uses a custom algorithm to provide sales estimates for Shopify stores and products. This helps eCommerce entrepreneurs quickly validate product potential and make informed business decisions.

Beyond basic sales tracking, ShopHunter's sales tracker features an ad spy tool that monitors store advertising activity. This combination lets users spot trending products and successful marketing strategies early on. ShopHunter aims to streamline product research and reduce the risk of investing in low-performing items whether you're a:

Dropshipper

Shopify store owner

Someone looking to enter the eCommerce space,

How ShopHunter's Sales Tracker Works

To use ShopHunter's sales tracker, eCommerce entrepreneurs first enter a Shopify store or product page into the tool. The dashboard then populates an overview of the estimated sales, including total sales over time and sales by the last month.

For even more detail, users can click through the dashboard to access information on:

Sales over time

Sales by the last month

Additional ads running for the store or product

This allows users to quickly validate product potential and uncover existing marketing strategies to help inform their own.

Benefits of Using ShopHunter's Sales Tracker

ShopHunter's sales tracker helps eCommerce entrepreneurs validate product potential before investing time and money into a new business venture. By providing detailed estimates of store and product sales, the tool helps users make informed decisions about what to sell in their Shopify stores. The additional data on existing advertising strategies can also help jumpstart a new store's marketing efforts.