How to create a Competitive MOAT (opposition moat) for your e-commerce business.

Selling well today, tomorrow is cut? The real problem that E-Commerce people do not want to meet.

Have you ever felt like this? ... Your product is good. Marketing is done fully. I never shoot. But one day, there are new shops that appear to sell similar things, but "cut price" is 5-10% cheaper than you. Customers who have bought with you will disappear one by one. You try to reduce the price. Finally became a price war that no one won. The profits were shiny and terrified. Or worse is Customers buy only one time because they meet better pro from other stores. And never come back again ...

If you are nodding Show that your e-commerce business is facing problems. "Lack of sustainable advantage" or in the world of investment is called "No moattive moat" (Competitive moat). It is the feeling of creating a sand castle on the beach. Not long ago, the new wave (competitors) was easily destroyed. Everything down.

Prompt for illustrations: Graphic images, comparing 2 E-Commerce stores, one shop is busy with the discount tag to fight with rival rivals. While another shop has a customer queue happily and loyal to the brand

Why "moat" has become necessary for E-Commerce this era?

In the past, having good or cheap prices may be enough to survive the business. But nowadays that everyone Can open an online store in a few clicks This battlefield has changed completely. The main reason why we are stuck in the price of the war and can't find the solution is:

• Low Barriers to Entry: With a platform like Shopify, Lazada, Shopee, or even Tiktok Shop, allowing anyone to import products from China. Or create your own brand to compete with you in a short time
• Products are easily imitated (Products Are Easy to Copy): No matter how good your products are. But soon, there will be people looking for similar sources or producing the same things to sell. Cut you always.
• The competition focuses on superficial factors: most businesses choose to compete at the "price" and "promotion", which is something that competitors can immediately imitate and do. It is not a true advantage.

These situations make your brand fragile and easy to attack. The competition on these basis is no different from running in the field where everyone has the same strength. Finally, we have to go to the temple that anyone is longer. Which is not a way to build a sustainable business at all

Prompt for illustrations: simple infographic images Shows the 3 Low Barriers to Entry, Easy to Copy Products, Price Competition), which is squeezing a small E-Commerce store in the middle.

If allowing the "without moat" business, what will happen? The disaster that is waiting for the destination

E-commerce business operations without Competitive MOAT are like fighting without protective armor. Even today you may still go well But the risk is always accumulated and ready to explode into these serious impacts:

• The profit that is to be terrifying (Margin Eroy): When the only way to fight is the price reduction. Your profit per piece will be thinner. To the point where there is almost no profit left The budget to shoot at the new customer has become a loss.
• Zero Customer Loyalty: Customers will see that your shop is just a "option". They don't have any reasons to come back and buy again if they find other stores that give better prices. Your brand will never get in their minds.
• Become a commodity (Commoditization): Finally Your products and brands are no different from general products. Go to the market at the temple at the price only There is no emotional value or any bond. Which is the most dangerous position in doing business
• The risk of disappearing from the market: When the profit is not Customers are not loyal. And nothing is a feature It's just a matter of time that your business will have to close down. Because he could not bear the wounds of the price and the fierce competition

Strong branding is therefore a good protective armor. Read more about The effect of creating brands on the organization website In order to see how strong brands can make a difference

Prompt for illustrations: The picture shows the graph that goes down. With signs of "profit (profit)" and "Loyalty loyalty" with a picture of a shop that gradually disappeared

Survival way is not a discount: start building "Competitive moat" for your business.

The good news is that we don't always have to fight in a price war. The more sustainable solution is to change the battlefield to create "advantage" that competitors are difficult to imitate. Also known as "Competitive moat", a concept published by legendary investors like Warren Buffett . And the moat is a wall to prevent the castle from the intruders

For the E-Commerce business that is strong and able to actually build. There are 3 main formats that we should focus:

1. The moat from the brand (Brand moat): When customers "think of" this type of product "Your brand name" must bounce up as the first name. They agree to pay more expensive to buy. "Trust" "story" and "image" that your brand gives
2. The moat from Switching Costs: The customer to move to buy things from other brands is a "complicated" or "not worth", whether because of the loss of benefits that have accumulated. Or have to start learning all new usage
3. Community Moat: Create a group of people who love and bond with your brand tightly. Until they became part of the brand and didn't want to move anywhere Because here there are "friends" and "value" that are more than just the product

the inventor of Aggregation Theory , explained that in the internet era, the "customer relations" control is the true power. The creation of these moats is the heart of building relationships.

Prompt for illustrations: beautiful infographic images Show a strong castle in the middle and have 3 floors of moat. Each floor has a sign of "Brand", "Switching Costs", and "Community".

Examples from the real thing: when "Glossier" uses "Community" to create a castle that no one can overthrow.

If talking about the brand E-Commerce that uses the "moat", the name of the "Glossier". The American cosmetic brand must be ranked. Glossier does not start with the production of cosmetics. But starting with the Blog named "Into The Gloss" before!

Starting problem: Cosmetics market is very competitive. There are many major brands in the market. Notifying birth as a new brand is almost impossible.

How to build a moat: Emily Weiss, the founder, does not start by creating products. But started by creating a "community" via her blog. She interviewed a real woman about Routine. Taking care of their skin, creating a huge conversation and gathering in -depth information about what women really want when she has a strong community and trusting her in her hand and then developing the first product using information from people in the community.

Amazing results: Glossier becomes a brand that customers feel. "Co -owners" they didn't just buy lipstick. But is supporting "friends" who really understand them. Glossier's moat is "Community Moat" that is very strong. Competitors can copy cosmetic formulas. But cannot copy the relationship and trust that Glossier has created with customers for many years This is a clear example that creating a community is not limited to the software business. But very powerful in the E-Commerce world as well

Prompt for illustrations: story style Show the Glossier's timeline, starting with a small blog with a group of people talking happily. Expanded into a product that that group helped design And finish with the brand's success images that have lovers around the world

It's your eyes! Checklist creates a "moat" for your E-Commerce (immediately).

Read here You probably already see that building a moat is not just a big company, but it is something that all sizes can do. And should start from today! Try using this checklist as a guideline for creating each type of moat for your business.

1. Build a moat from the brand (Brand moat)

• [] Find your "WHY" to meet: Why do you sell this product? What is the story behind? Communicate it on the About US page or in your content.
• [] Defining the "identity" of the brand: How do you want customers to feel when you think of you? (Such as fun, reliable, luxurious) and then use communication tones and images to be consistent.
• [] Create a memorable experience: since the beautiful packaging Thank you card for writing with heart Or customer service that is especially attentive These things can make a lot of differences.

2. Build a moat from Switching Costs.

• [] Use a member system or Loyalty Program: Let customers accumulate points to receive discounts or special prizes. Causing them to feel "regret" if having to move to start collecting again with other brands
• [] Consider the subscription model: If your product is to buy repeatedly (such as coffee, dietary supplements, household items). The subscription membership system is the best Switching costs.
• [] Use information to create Personalization: Customer's purchase data (First-Party Data) to introduce products that are right. The better you know customers They do not want to move to people who do not know him at all. Having a first-party data strategy is very important.

3. Build a moat from the power of the community (Community Moat).

• [] Create space for them to meet: may be Facebook Group, Discord Server, or Line OpenChat especially for your customers.
• [] Create a special content for people in the group: give special privileges such as Live Questions-Answer, Behind the scenes of product making, or secret promotions only in the community.
• [] Organize activities for people to participate: such as a prize contest, request for feedback for new products, or small Meetup to create a bond that other than trading.

Prompt for illustrations: Beautiful checklist images are divided into 3 parts according to the type of moat (Brand, Switching Costs, Community) with icons in each item for easy understanding.

Questions that E-Commerce people often doubt about the creation of "moat".

Creating a Competitive moat is a matter of time and understanding. I have compiled a common question. With clear and straightforward answers To help you start confidently

Small shop or newly opened Can really create a moat against a big one?
Certainly and maybe even better! Because the smaller person has a higher flexibility You can create a very specific Niche brand. Create a small, small, but easier Community. And provide a super private service, all of which is very difficult. The heart is "Do not try to be everything for everyone" but "is everything for a small group of people" a group first.

How long does it take to see that we have a strong moat?
Creating a moat is not a marketing campaign that has finished in 3 months, but it is a long -term foundation. You may start to see a good signal within 6 months, such as having more customers to buy repeatedly without having to use the promotion, there are positive people talking about your brand (Organic Word-Mouth), or start to ask for your Community, but the really strong moat. It may take 1-2 years to build and prove yourself.

What kind of moat should be started first?
The best answer is "Depending on your business model" but if you have to choose only one I recommend starting from "Brand Moat" always first because the brand is the foundation of everything. Having a clear brand will make the creation of Community and Switching Costs easier and has the right direction. If you sell products that are often repeated, Switching Costs (such as Subscription) may be the next interesting. But if your product has a lot of stories to talk to, Community is a great choice.

Prompt for illustrations: Image icon, large question mark Surrounded by Brand, Community icons, and Switching Costs to convey the decisions and questions.

Conclusion: Stop fighting with price Then began to create a "value" that no one could copy

The E-Commerce world is crowded and fierce. This is not a stand for "The cheapest person" always, but there is a stand for "The most valuable person" in the heart of the customer always Dedication of time and resources to create a "moat" or Competitive moat is not just "choice", but it is a "survival" that will make your business grow sustainably.

We have already seen that all 3 important moats, whether it is a Brand moat that creates trust, Switching Costs that create loyalty, or Community Moat that creates a bond. Are all assets that competitors cannot use money to buy or copy overnight It is the investment that provides the most worthwhile return in the long run.

Don't wait for the day you have to reduce the price until there is no profit and then start to do it. Start with the easy checklist that we provided. Try to choose 1-2 items that you think can do immediately. And start building your strong castle from today Because businesses with stable moats only That will be able to stand up to the storm, competition and continue to grow elegant

Is it time to change the battlefield? If you are ready to create an e-commerce brand, not just selling well. But is loved and difficult to overthrow Consult our premium e-commerce website experts. We are ready to help you design and create the strongest castle online.

Prompt for illustrations: Before the left is a sand castle that is about to break. The right side is a strong stone castle. With a moat around And there is an elegant flag of the brand Conveys changes from fragile businesses to sustainable businesses.

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