When it comes to e-commerce, understanding the right problem to solve is crucial. As an entrepreneur, it’s easy to fall into the trap of focusing solely on the solution you’re offering. But here’s the thing: customers don’t just buy products—they’re paying for solutions to problems they’re already aware of, care about, and are willing to invest in fixing.
Many entrepreneurs think that if you have a great solution, every problem must look like a perfect fit. It’s like having a hammer and seeing every issue as a nail. But here’s the truth: customers aren’t just looking for any solution—they want something that speaks directly to their pain points. So, how do you figure out what that is?
Quick Summary
In this article, you’ll learn practical strategies for analyzing your competitors and positioning your store in a way that attracts customers and encourages them to switch. By understanding how customers make decisions based on gains (improvements) and losses (fixing problems), you’ll discover how to frame your product as the better, safer choice. You’ll also learn how to identify existing alternatives, highlight competitors’ weaknesses, offer low-risk entry points, and emphasize the broader purpose your product serves. These insights will help you create a compelling case for why customers should choose your store over the competition.
Table of Contents
For Your Customers, Better is Relative
In the world of e-commerce, customers are constantly comparing new products to what they already know. So, how do you get their attention, build trust, and ultimately win their wallets?
It all starts with understanding two key things:
- What your customers are already using.
- How they define “better.”
Think about it this way: A new eco-friendly water bottle isn’t just competing with other water bottles. It’s being compared on several levels, such as price, convenience, and sustainability. So, if you want your product to stand out, offering just a slightly better version isn’t enough. You need to aim for something significantly better—something that feels 3x-10x more impactful—or, even more effectively, offer something different.
Here’s how you can do that:
- Identify two unique strengths where your product truly excels.
- Highlight these strengths in your unique value proposition.
Take, for example, a new direct-to-consumer mattress brand. Instead of just offering a slightly better mattress, they might focus on easy delivery and a risk-free trial period—completely changing how customers compare mattresses. Suddenly, the entire comparison game is different.
But beware! Picking the wrong comparison point can make even the best differentiators irrelevant. The key is to make sure that your differences matter to your target audience. So, dig deep into what truly matters to them and tailor your product’s strengths to meet those needs. This is how you create a product that stands out, earns trust, and drives sales.
How to Research What Matters to Your Customers

To create a product that resonates with your audience, you need to know what they care about. Here are some actionable ways to research customer priorities:
- Read Customer Reviews
Look at reviews on platforms like Amazon, Etsy, or your competitors’ websites. Pay attention to what customers love about existing products and, more importantly, what they don’t like. Are they frustrated with delivery times? Do they mention problems with product durability? This will give you insight into what matters most and where your product can stand out. - Ask in Customer Groups
Many industries have Facebook groups, Reddit communities, or other niche online forums where customers discuss their preferences. Join these groups and start conversations. Ask what they like about existing products and where they see room for improvement. This can give you raw, real-world insights straight from the source. - Engage in Forums
Platforms like Reddit, Quora, and niche-specific forums are gold mines for understanding customer needs. You can search for threads related to your industry and see what customers are saying about existing solutions. - Review Competitor Feedback
Look at the feedback on your competitors’ products. What are people saying about their strengths and weaknesses? Pay close attention to recurring themes, whether it’s issues with customer service, pricing, or a particular feature. This will help you identify gaps in the market that you can fill. - Conduct Surveys or Polls
If you already have a customer base, or even a small following, reach out to them directly. Use tools like Google Forms or SurveyMonkey to create quick surveys asking about their pain points and product preferences. Incentivizing responses with discounts or freebies can increase participation.
By tapping into these sources, you can uncover what’s truly important to your customers and adjust your product offering accordingly. The goal is to create something that not only meets their needs but exceeds their expectations. With the right insights, you can ensure that your product stands out and addresses what matters most to your audience.
Why Customers Hesitate to Switch

Buying decisions aren’t just logical—they’re emotional. Customers evaluate products not just by cold facts and features, but by how they feel about them. That’s why your product only needs to feel 3x-10x better than the competition to make the switch worthwhile. Emotions play a huge role in decision-making, and a recommendation from an authority or a positive review can already make a product feel like a much better option, even before they’ve tried it.
But even with that emotional pull, customers often hesitate to make the switch. Understanding the psychological factors behind this hesitation can help you break down their resistance and win their trust.
Loss Aversion
Customers tend to feel the pain of losing something familiar much more strongly than the potential benefits of trying something new. Even if your product or store is better in some ways, the thought of giving up what they know—despite its flaws—can hold them back. This is called loss aversion. For example, if customers are used to shopping at a particular store with a certain experience, the thought of switching to your store might feel risky, even if your offer promises something better.
Reference Points
Customers also compare your offering to what they already know and trust, not to an idealized or perfect version of a product. So, if they’re comparing your product to a competitor’s, they’re not looking for the “perfect” option—they’re looking at how your product stacks up against the familiar. This means that for your product to stand out, it needs to be significantly better than the competition to overcome their resistance to change.
How Much Better Do You Need to Be?
When considering switching, customers weigh the benefits against the risks. Here’s how you can frame your offering to appeal to their natural instincts:
For Gains (Improvements)
When you’re presenting your product as a gain—something that offers better features, prices, or service—customers are more risk-averse. They’ll stick to the familiar unless they see a clear advantage in making the switch. For instance, let’s say your store offers free shipping, but a competitor already provides fast delivery with a small shipping fee. In this case, your customer might stay with the competitor unless your shipping option is faster, more reliable, or comes with other added benefits (like guaranteed delivery or bundled perks).
Key Insight: To convince customers that switching is worth it, your product or service must feel 3x-10x better than the alternative in key areas like price, convenience, or customer support. If the gain isn’t clearly superior, customers are likely to stay where they are.
For Losses (Fixing Problems)
On the flip side, if switching is framed as avoiding a loss (e.g., fixing a pain point like poor quality, slow delivery, or customer service issues), customers become more risk-seeking. In this case, they’re more willing to take a chance on your product if it promises to solve a problem they’re dealing with—something the competitor doesn’t fix.
For example, if a competitor’s product is known to break frequently, and your product is guaranteed to last, customers might be more open to trying your brand, even if they aren’t sure about other features. They’re prioritizing solving the issue of poor quality over sticking with the familiar.
Key Insight: In these situations, you need to clearly highlight the competitor’s weaknesses and show how your product solves those issues, all while minimizing any risk to the customer. This approach helps make the switch feel less like a gamble and more like a necessary improvement.
Understanding why customers hesitate to switch—and how to frame your product or service in a way that appeals to their decision-making psychology—can be a game changer. By offering a solution that feels significantly better or addressing a clear pain point, you can reduce resistance and encourage customers to take the leap with your product or store.
Practical Tips for Analyzing Competitors and Positioning Your Store

Motivating customers to switch from an existing alternative can feel like a challenge, but by understanding what drives their decisions, you can create a compelling case for why your store is the better choice. Here are some practical strategies for positioning your store in a way that resonates with customers and encourages them to make the leap.
For Gains (Improvements)
- To overcome customer risk aversion, your store must feel significantly better than what they’re used to. If the perceived improvement isn’t obvious, customers will likely stick to the familiar.
For Losses (Fixing Problems)
- When customers are dissatisfied with their current product or store, emphasize what’s broken and how your product eliminates those issues. Frame your product as the solution to their pain points.
Make the Transition Feel Safe, Easy, and Worth It
- In both cases, the key is to make the transition from the old product or store to yours feel like a no-brainer. Use the principles of Prospect Theory and loss aversion to position your store as the low-risk choice that addresses your customer’s biggest problems better than the competition.
Actionable ideas to apply to your own strategy

Identify the Most Popular Existing Alternatives
- To understand your competition, first ask yourself:
- What do customers currently use to solve this problem?
- What indirect solutions might they be turning to?
For example:
- Traditional shampoos compete with solid shampoo bars.
- Energy drinks compete with coffee, tea, and even productivity apps.
Most alternatives won’t look exactly like your product, but they serve the same purpose. Knowing these alternatives will help you position your product effectively.
Identify the Competitor’s Reference Points
- What are customers already used to with the competitor’s product or store?
- What are the perceived benefits (gains) of sticking with them?
- What are the downsides (losses) that customers may be unhappy with?
Understanding these reference points helps you frame your store as a better alternative. Focus on their weaknesses and show how you can meet or exceed customer expectations.
Frame Your Store as the Safer, Better Choice
- Emphasize guarantees and certainty in your offering. This could include things like free returns, secure checkout, or consistent product quality.
- Offer a clear, tangible improvement over your competitor’s weaknesses. If a competitor’s product has issues with quality, speed, or customer service, highlight how your solution is better.
Show the Cost of Staying with the Alternative
- Use loss aversion to your advantage by framing the competitor’s weaknesses as risks or costs. Customers will be more likely to switch when they feel that staying with the current option is actually costing them more in the long run.
Example: “Are you overpaying for slow delivery? Switch to us for free next-day shipping.”
Provide Low-Risk Entry Points
- Lower the perceived risk of switching by offering trials, discounts, or guarantees that make trying your product feel safe. This encourages customers to take the first step without feeling like they’re taking a big gamble.
Example: “Try us today—your first order ships free, risk-free!”
Understand the Broader Purpose Your Product Serves
- Every product exists to fulfill a broader purpose. Ask yourself, “What is our product really for?”
- A home decor store isn’t just about selling picture frames—it’s about creating a warm, inviting space.
- A fitness brand isn’t just about selling gear—it’s about helping customers achieve health and confidence.
Understanding the deeper purpose of your product helps refine your marketing strategy and customer messaging, so you can connect with your audience on a more emotional level.
Highlight What’s Broken with Current Alternatives
- This is where you can really set yourself apart. Show why the current options fall short and how you fix those issues.
For example:
- If existing products are inconvenient, offer a simpler solution—like subscription models for household essentials.
- If they lack personalization, offer tailored solutions—like skincare regimens based on user data.
Customers will consider switching when the pain of staying the same outweighs the effort of change. So, the more you highlight how your product solves issues in a better, easier, and more convenient way, the more likely customers will be to take action.
Conclusion
To stand out in a competitive e-commerce market, you must position your store as the obvious, low-risk choice that solves the customer’s problems better than the competition. By analyzing existing alternatives, framing your store as the better choice, emphasizing guarantees, and highlighting what’s broken in the market, you can motivate hesitant customers to make the switch. Focus on what matters to your customers, and use these practical strategies to create a product and experience that they can’t resist.