by Donna Talarico, Interactive Marketing Specialist

Welcome. You’ve got competition.

Boundary-scanning is an age-old method of scoping out the competition. For instance, if you were opening a restaurant, one of the first things you’d likely do is start eating out at all the other local restaurants. How is the service? Do they have specials? Is the place clean? Is the food tasty? How varied is the menu?

The same techniques can work when it comes to opening or operating an eCommerce business. You have a world of research at your fingertips when you land on a competitor’s website. If you suspect that a competitor is outperforming you, spend some time on their eCommerce website and figure out where you can improve your own online business. You can also find weak points in the competitor’s service to learn where to put your strength.

Remember: It is important to stand out and be unique with your own eCommerce venture, so use competitors only as a reference and learning tool, not as a place to get content and ideas.

Here are some boundary-scanning tips to use when checking out your online competition:

Scan the Website – Do a web search to seek out competitor sites, specifically sites that have higher rankings than yours. Checking out a competitor website may seem like a no-brainer, but you have to look below the surface. Just because the site may have a cool logo or look flashy does not mean it functions well or makes for an easy shopping experience.

Spend some time going through the online store, click around. Are the products easy to find? Are the product descriptions–descriptive? Assume the role of a consumer. Jot down your likes and dislikes. See where you may have an edge. Share your findings with your eCommerce developer and find out more about online store features you’d like to implement. Ask questions, too. The competition may have a feature that looks great, but decide if it would benefit your site.

There is a great tool called MarketLeap at www.marketleap.com, which allows you to compare your link popularity with up to three other URLs. See how you compare to similar online retail stores.

The About Us and Career Pages on any eCommerce site can be very telling. The careers page can give you a glimpse into the size and growth of the company. Are they hiring? The About Us page can give information on the history of the company, where their roots are, what other companies they may own, what professional associations they have and more.

Make a Purchase – You may not want to give your competition money, but think about it. If you purchase from your competitor, you will be rewarded with some great information. You will participate first hand in the total shopping experience from that eCommerce website. You will get to see how smoothly the transaction goes, if the order arrives when promised, and in what condition and how the item is packaged. If you want to delve further into the investigation, return or exchange the item and see how that process works as well. As a bonus, you will get an up close and personal look at a competitor’s item. Mystery shopping companies do this all the time for clients; be your own mystery shopper.

Call Customer Service – How is the competition treating your customers? Call the customer service line with a question about a product. Ask a question where the answer is provided on the website just to test the rep’s knowledge. Customer service is a crucial link between eCommerce website and consumer and something you should provide at the highest level. So, see how your competition is handling it.

Check Social Networking – Check Twitter, Facebook, forums, blogs, etc. to see how active your competition is in social media. In this more laid back atmosphere you may find some great information such as gossip, customer feedback, and news.

Add a Google Alert – Get real-time updates on what your competition is up to. Add their name to your Google Alerts. This will provide you with information from various news outlets and blogs.

Of course, the goal in eCommerce is to build your brand. However, having a handle on what the competition is doing and how they are doing it will provide important information and better enable you to improve your business.

This article originally appeared in the eBiz Insisder in February 2008.