Competition in e-commerce refers to the rivalry between online businesses operating in the same industry or selling similar products or services. It involves the struggle to attract and retain customers, increase market share, and achieve sustainable growth in the digital marketplace.

Competitive strategies in e-commerce are the tactics and approaches adopted by online businesses to gain a competitive advantage over their rivals. These strategies aim to differentiate the company from its competitors, attract customers, and generate higher sales and profits. Here are some common competitive strategies employed in e-commerce:

1. Pricing Strategy: Offering competitive prices is a popular strategy to attract customers. Online retailers can implement various pricing strategies such as cost-based pricing, market-based pricing, or price discrimination. For example, Amazon uses a dynamic pricing strategy by constantly adjusting prices based on market demand and competition.

2. Product Differentiation: Creating unique and innovative products or offering a wide range of product options can help e-commerce businesses stand out from the competition. For instance, Apple differentiates itself by offering premium and high-quality products with a sleek design and advanced features.

3. Customer Service: Providing exceptional customer service can be a competitive advantage in e-commerce. Businesses can offer 24/7 customer support, easy returns and exchanges, personalized recommendations, and quick response times to customer inquiries. Zappos, an online shoe retailer, gained a competitive edge by focusing on outstanding customer service and building strong customer relationships.

4. User Experience (UX): Offering a seamless and user-friendly online shopping experience can attract and retain customers. This includes having a well-designed website, easy navigation, fast loading times, and secure payment options. Companies like ASOS and Shopify prioritize UX to enhance customer satisfaction and gain a competitive edge.

5. Marketing and Advertising: Effective marketing and advertising strategies can help e-commerce businesses reach a wider audience and build brand awareness. This can be achieved through search engine optimization (SEO), social media marketing, influencer collaborations, and targeted advertising campaigns. Dollar Shave Club gained significant market share by utilizing humorous and viral marketing videos.

6. Supply Chain and Logistics: Efficient supply chain and logistics management can provide a competitive advantage in e-commerce. Timely delivery, order tracking, and a reliable fulfillment process are crucial factors in customer satisfaction. Companies like Amazon invest heavily in their logistics infrastructure to ensure fast and reliable deliveries.

References:

• Laudon, K. C., & Traver, C. G. (2017). E-commerce: Business, technology, society. Pearson.
• Chaffey, D., & Ellis-Chadwick, F. (2019). Digital marketing: Strategy, implementation and practice. Pearson.
• Li, E. Y., & Zhang, Z. (2019). E-commerce competition and consumer welfare: An empirical analysis of Amazon.com. Journal of Retailing, 95(1), 1-15.