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How do you build moats around your e-commerce business?

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door123

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Apr 4, 2020
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I'm just starting out in e-commerce & I'm seeing lots of sellers flooding the online marketplace, especially in Amazon.

Say for example your selling sleep masks for $15.99 & other sleep wear online, (Amazon, Social Media Ads). What type of moats would you build around your company to keep competitors at bay. How do you keep from getting into a price war with your competitor? Screen Shot 2020-11-25 at 10.47.15 PM.png
 

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Vadim26

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How do you keep from getting into a price war with your competitor?

Quick answer:

1) find a way to differentiate;
2) build a brand.

Regarding sleep masks, it could be: higher density and softer foam, the antimicrobial fabric it's made from, "anti-slip" design, etc, I’m just making the stuff up.. go over the reviews.

If you want to take it to the next level, find a way to innovate - a new design for a sleep mask, for example. This could potentially be a “moat” for your business.

The more challenging the problem is - the longer your “moat” will last (before some Chinese factory sells your product for twice as less)...

...so build a brand, spice it up with a unique USP that's based on the biggest thing people care/worry about when buying the product (“Deep sleep guarantee” - guaranteed comfort thanks to our custom shape design OR "Anti-slip design" - stays on as good as swimming googles idk lol), consistently improve your product based on reviews, create more products that would be of interest to your target audience.

If improvements you add to the product are your moat, a good brand is like a fu**ing fence.

Maybe you should ask @biophase or @MoneyDoc about it.

Footnote:

I wouldn’t touch this product, as I don’t see enough room for improvement to make a truly unique product or a “know-how” about how you could build a brand of this.
 
Last edited:

BLIM

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How do you keep from getting into a price war with your competitor?
My though is you can see the review from other customer regarding the product and from the positive/negative review you can try to make it better and get sample before you order in a bulk
 

door123

Contributor
Apr 4, 2020
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40
107
USA
Quick answer:

1) find a way to differentiate;
2) build a brand.

Regarding sleep masks, it could be: higher density and softer foam, the antimicrobial fabric it's made from, "anti-slip" design, etc, I’m just making the stuff up.. go over the reviews.

If you want to take it to the next level, find a way to innovate - a new design for a sleep mask, for example. This could potentially be a “moat” for your business.

The more challenging the problem is - the longer your “moat” will last (before some Chinese factory sells your product for twice as less)...

...so build a brand, spice it up with a unique USP that's based on the biggest thing people care/worry about when buying the product (“Deep sleep guarantee” - guaranteed comfort thanks to our custom shape design OR "Anti-slip design" - stays on as good as swimming googles idk lol), consistently improve your product based on reviews, create more products that would be of interest to your target audience.

If improvements you add to the product are your moat, a good brand is like a fu**ing fence.

Maybe you should ask @biophase or @MoneyDoc about it.

Footnote:

I wouldn’t touch this product, as I don’t see enough room for improvement to make a truly unique product or a “know-how” about how you could build a brand of this.
Good points, I think in the short term, its product innovation and in the long term a well-known brand.

Interesting though that some companies don't necessarily innovate product-wise, but innovate in terms of their product offering.. ie. dollar shave club, toms.
 

door123

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Apr 4, 2020
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USA
My though is you can see the review from other customer regarding the product and from the positive/negative review you can try to make it better and get sample before you order in a bulk
yep, thats exactly my strategy now with my products. works pretty well unless the improved version is patented by a manufacturer. Which is okay, until manufacturer turns on you & sign exclusive contract with other sellers. Had that happen to me just recently
 

100k

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1) Branding.
2) IP.
3) Endorsements from "government" bodies and associations.
4) Celebrity endorsement / brand ambassadors.
5) Service
6) User experience / buyer journey
7) Distributions (where you sell)
8) Add-ons / gifts
9) Community / following / tribe
10) Lobby your politicians to create license requirements.
11) Press - make your brand the "real mccoy" and paint all the competition as cheap knock-offs.
 
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Private Witt

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1) Branding.
2) IP.
3) Endorsements from "government" bodies and associations.
4) Celebrity endorsement / brand ambassadors.
5) Service
6) User experience / buyer journey
7) Distributions (where you sell)
8) Add-ons / gifts
9) Community / following / tribe
10) Lobby your politicians to create license requirements.
11) Press - make your brand the "real mccoy" and paint all the competition as cheap knock-offs.

Nice little checklist that would be good to maintain and keep in mind what needs strengthening now and over time.
 

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