Shopify Competitor App Analysis: Methods to Find Market Gaps

Knowing the competition you’re up against is just as important as having a great Shopify app idea.

When you know what other apps are doing (or not doing), you uncover market gaps everyone’s missing.

Gaps that will open massive opportunities to stand out and succeed.

This guide walks you through expert methods to analyze competitor apps and find those untapped opportunities. 

Ready to find out the apps and competitors you’re going on a fight with?

Why You Can’t Skip Market Gap Analysis

Skipping competitor analysis before building a Shopify app is highly risky. 

If you don't understand the market, you risk two things: 

• Creating an app that duplicates existing solutions, or 
• Solving a problem no one cares about

When you understand market gaps, you can build a product merchants truly need and are willing to pay for.

Here’s why market gap analysis is crucial:

• Reduce Risks: Avoid wasting resources on an app with low demand or too much competition.
• Spot real pain points: Know merchant pain points that existing apps fail to address.
• Unique Value Proposition: Outline how your app stands out in a crowded market.
• Maximize Profitability: Solve high-value problems that merchants want to invest in.

Competition Analysis Methods and Strategies

To find market gaps, you need a clear picture of what’s already out there. Here are the best methods and strategies to analyze your competition:

Explore the Shopify App Store

Your competition analysis will start from the Shopify app store in the category your app fits into. Explore similar apps and list them down with a structured strategy. 

You have to collect data and take not on app features, pricing models, and customer reviews.

What to Look For:

• App Categories: Such as email marketing, inventory management, customer reviews.
• Pricing Models: Common pricing structures (free, freemium, subscription-based).
• Merchant Reviews: Look for patterns in negative feedback or requests for features.

Pro Tip: Use filters like “Newest” and “Most Installed” to explore emerging trends and popular solutions. 

Analyze App Reviews

Read both positive and negative reviews to see what merchants like and dislike and take notes for yourself. 

The high 5-star ratings and pissed off 1-star ratings may look the obvious to look in. But it’s the middle tier 3-star reviews where you’ll find the most constructive reviews.

Look for recurring complaints or feature requests which you can directly put on your feature list. 

Analyze Competitor Features

Dive Into Functionality Pick 3-5 direct competitors and create a feature comparison table. List their features, pricing, user interface (UI), and integrations.

Questions to Ask:

• What are the core features they’re offering?
• Are there advanced features merchants consistently request in reviews?
• How intuitive is their UI/UX? Is it user-friendly?

Look for Rising Trends in E-commerce

Trends like AI, automation, and personalization are shaping the future of e-commerce. You have to know how these trends come in application for Shopify merchants.

How to Spot Trends:

• Follow Shopify blogs and newsletters.
• Attend e-commerce webinars and Shopify Meetups.
• Analyze reports from firms like Statista or McKinsey.

App store specific trends:

Keep an eye on trending apps in your target category. If a competitor app is doing better than the others, there must be something they’re doing differently. 

For new apps: Analyze how they gain traction and what features merchants are happy about.

Especially beware of apps who have “Build for Shopify” badge, are in the “Spotlight”, or ranking high as a new app.

Use Competitive Analysis Tools

To further research how your competition is doing, you can use competition analysis tools. 

Use tools like Similar web or Koala Inspector to analyze their traffic sources and engagement metrics.

App Store Research and Shopify App Store Insights provide valuable data about competitor performance and market trends.

Also, use the App Store’s comparison feature to see how the competitors stack up. 

What You Can Learn:

• Download and revenue estimates.
• User engagement levels.
• Trends in app popularity and category growth.

We’ve discussed analysis tools for Shopify apps before. Do check that out.

Monitor Social Media and Forums

You must join Shopify-focused Facebook groups, Reddit communities, and other forums while Generating Shopify app idea. 

These are places where people discuss what you’re looking for: industry gaps.

Look for merchant discussions about apps they use or wish existed. Actively engage in conversations to understand their challenges.

Do Some Mystery Shopping

Once you have in your note your primary and secondary competitors, test their apps by installing them.

Go through their features and see what they did, where they lack, and what they’re missing.

What to Evaluate:

• Ease of setup and onboarding.
• Performance and reliability.
• Value for money.
• Support quality.

These will give you deep understanding of what to do and what no to.

Survey Merchants Directly

Conduct surveys to collect opinion of the merchants you’re going to serve. Ask what they’re using currently to solve the pain you’re trying to solve.

However, don’t forget to focus on specific industries or store sizes for the survey to be effective.

Example industry gaps you might see from your survey:

• Poor customer support from competitors.
• Limited customization options.
• Missing integrations with popular tools.

It’s one of the hacks that work the best for Shopify app idea validation. 

Consider Niche Categories

While popular categories are crowded, niche markets often have fewer competitors and more opportunities.

How to Find Niches:

• Industry-Specific Apps: Explore solutions tailored to specific industries like fashion, food, or B2B wholesale.
• Merchant Size: Identify gaps for small businesses or enterprise-level stores.
• Geographic Needs: Look for apps catering to region-specific compliance or logistics requirements.

Pro Tip: Underserved niches might not have flashy apps but can represent a lucrative opportunity with high merchant loyalty.

How to Apply Your Findings

Finding market gaps is just the beginning. What you do with this knowledge is what sets your app apart. 

Here’s how to turn your competitor analysis into action:

Validate Your Findings

Once you identify a potential market gap from the analysis, validate it before investing in developing the app . Use methods like:

• Merchant interviews to ensure demand.
• Landing pages to see if people are interested.
• Surveys to refine your app’s concept.

Pro Tip: Combine multiple validation methods for the most reliable insights.

Refine Your App Concept

The first version of your app idea will most likely be different from the last version. Refine your app’s features based on the gaps you identified. 

Avoid replicating existing solutions. Instead, innovate or simplify to differentiate.

Competitor Case Studies

Study apps that successfully filled gaps, like how Re Convert targeted post-purchase upselling. Analyze their growth strategies and adapt them to your niche and market gap.

Avoid Common Pitfalls

Don’t overanalyze and delay action for tiny perfections. Once you know you have a market for the app and there’s demand, iterate quickly.

Avoid adding too many features from the get-go. You have to launch your Shopify app MVP as soon as possible.

Monitor Competitor Marketing Strategies

A competitor’s success isn’t just about their app. It’s also about how they market it. Know their strategy to refine your positioning.

What to Analyze:

• Ad Campaigns: Use tools like AdSpy to monitor their ad creatives.
• SEO & Keywords: Check their app store listing for keywords they target.
• Content Marketing: Analyze their blogs, case studies, and social media posts.
• Partnerships: Note collaborations with influencers or agencies.

Collaborate With Agencies and Experts

Agencies that work with Shopify merchants have deep insights into what apps are missing or underperforming.

Even if you’re developing the app yourself, collaboration always wins. Consulting expert who launched successful apps already will give you a competitive edge.

Final Advice

Competitor analysis isn’t just about copying what others are doing. It’s about finding what they’re missing and what you can offer better. 

With systematic market gap analysis and validation, you can position your Shopify app as a better solution to the merchants. 

Start analyzing, start validating, and get ready to build something extraordinary. 

Reach out to Jouleslabs team for expert input from years of building successful Shopify apps.