How to analyze competitor product offerings?

Running a smart, profitable, and sustainable eCommerce business requires owners to know competitor product offerings. 

You can’t stand out if you don’t know what you are standing next to. 

If your products are too similar with nothing extra to offer, you are at the risk of becoming just another option. Or worse yet, the worst option.

Perhaps there’s a chance to capitalize on the fact that your competitors aren’t offering certain sizes, colors, or styles. 

Also, your customers are definitely comparing your product offerings with your competitors.

As you can see, knowing your competitors’ product offerings helps you position and differentiate yourself, avoid becoming redundant, spot market gaps in product assortment, and improve the overall customer experience of your store.

Competitor product offering categories

In the context of analyzing your competitors’ product offerings, there are three categories of products you want to have in mind:

• Directly competing products – These are the products that serve exactly the same purpose as the products you are selling. Your competitor also targets the same customer segment when trying to sell to them. These products are likely similar or the same in price, features, and positioning. Perhaps most importantly, these products could be your customer’s 1-to-1 replacement for your product.
• Indirectly competing products – These products solve the same or a similar problem as the product you are comparing them with, but usually in a different way or in a different context. Your competitors may target a different customer segment, or these products may have different features or pricing.
• Substitute products – These products do not compete directly with each other. However, one can be chosen over the other because they solve the same underlying problem. Usually, these products are not in the same category. 

Why Documenting Competitor Product Offerings Matters

Spotting competitor trends is one thing—tracking them over time is where the real value lies.

You can’t analyze what you can’t organize. That’s why having a centralized, well-structured spreadsheet is so important. It turns raw product data into insights you can actually act on.

Whether you’re tracking competitor product assortment, identifying pricing trends, comparing stock status, or reviewing how your product offering stacks up over the months, a good spreadsheet becomes the foundation of your competitive analysis. It’s also the easiest first step before moving into automation or more advanced BI tools.

How to organize your competitor product offerings spreadsheet?

The most important columns your spreadsheet should have are:

• Product ID
• Product Name
• Competitor Name
• Competitor Product Name
• Product URL
• Category
• Competitor Price
• Your Price
• Price Difference
• Stock Status (Competitor)
• Date Collected
• Notes

Extra tips

If you want to make your spreadsheet more actionable, here’s what you can do:

• Color-code the price differences (e.g., make the cells green if you are cheaper, red if you are not).
• Add filters for dates, categories, competitors, and stock status.
• Update regularly.
• Keep a time series. In other words, maintain historical data. For this, using multiple sheets may be a good idea, in order to avoid things getting messy.
• Normalize your data. This means keep the product names and IDs consistent by using your own internal SKUs/IDs.
  • Bonus tip: If your competitor products don’t have a standard ID, create a unique key such as [competitor name] + [product name].

If you’re ever building this into a database or BI tool later, your historical data will already be in a clean, query-ready format. Future you will thank you.

Analyzing Competitors’ Product Offerings

Here’s how to turn your research into a strategy.

Spot Direct Threats

Look for products that mirror yours in every way: features, pricing, and target audience. These are your direct competitors—the ones most likely to steal your sales if you’re not offering something better.

If you’re selling a minimalist white sneaker at $89, and a competitor sells a nearly identical pair for $79 with free shipping, that’s a direct threat. You either need to justify the extra $10 or rethink your price or value add.

Start with these questions:

• Is their product better reviewed?
• Are they bundling extras (free returns, accessories)?
• Is their positioning more appealing?

Knowing your direct threats helps you pinpoint where you need to level up.

Uncover Gaps and Missed Opportunities

Now shift your focus to what’s not there. What product variations, categories, or bundles are your competitors not offering?

A sustainable skincare brand realized none of its competitors were offering mini versions of full-size products. By introducing travel-sized kits, they attracted first-time buyers and increased cross-sells.

Gaps like this can help you:

• Launch exclusive items
• Expand your product offering in underserved segments
• Stand out without starting a pricing war

Sharpen Your Positioning

Use the insights to fine-tune how you present your products. Maybe you’re the only one highlighting ethical sourcing, local production, or lifetime warranties.

If you’re not the cheapest, that’s okay—just be crystal clear about why. Messaging aligned with your strengths can tilt the decision in your favor.

Tip: If everyone is focusing on product specs, try highlighting lifestyle or emotional benefits. A tech brand, for example, shifted from “long battery life” to “no charger anxiety for 3 days”—a subtle but powerful move.

Revisit Your Pricing Strategy

Side-by-side competitor pricing data helps you understand whether you’re underpricing, overpricing, or perfectly positioned.

Rather than racing to the bottom, use this info to:

• Justify your premium pricing (with stronger value)
• Spot margin improvement opportunities
• Set rules for automated repricing tools

Insight: One electronics retailer noticed a competitor was consistently $5–10 cheaper, but also frequently out of stock. Rather than price match, they leaned into messaging about reliable delivery and support, and kept their margins intact.

Prepare for What’s Next

A competitor’s product offering isn’t static, nor should yours be. Use this data to anticipate trends, seasonal shifts, or upcoming product launches.

If a competitor suddenly adds multiple outdoor gear items in spring, chances are they’re planning a seasonal push. You can respond with promotions, content, or even preemptive new launches of your own.

Insights Shape Your Product Offering Strategy

Once you’ve collected and analyzed the data, it’s time to take action.

Ask yourself:

• Are your products competitive in price and features?
• Is there something your catalog is missing?
• Can you offer something extra, like unique sizes, bundles, or styles?
• Are you overwhelming customers with too many options?

Tools That Can Help

Manual tracking works – up to a point. But if your store grows or you’re monitoring multiple competitors, automation is key.

That’s where Price2Spy can help. With capabilities like:

• Competitor price and availability tracking
• Product assortment comparison
• Time-based analysis and reporting
• Clean, export-ready data

…you’ll spend less time digging and more time deciding.

Analyzing competitor product offerings isn’t about copying your rivals. It’s about knowing the landscape so you can stand out in it.

Your product offering is what your customers experience first. When real competitor data informs it, it becomes your biggest asset.

So take the time to get it right—and let your competitors play catch-up.