"I saw a product selling well on Takealot, so I listed an identical one—but I only made three sales in a month. Why?"

Because you’re only seeing the surface-level fact that “it’s selling well” without analyzing why the competing products are doing so well. It could be due to brand recognition, effective SEO, heavy advertising spending, or a large number of accumulated reviews. Blindly copying competitors without analyzing them results in a failure rate exceeding 80%.

This article establishes a systematic methodology for competitive analysis to help you make data-driven decisions before launching any product.

💡 Want to conduct a competitive analysis? Add WeChat ID jxhcyb or call 18148556832, and send “competitive analysis” to get a free analysis template.

I. A Three-Tier Model for Identifying Competitors

On Takealot, competitors aren't just "people who sell the same products." Competitors are categorized into three tiers:

Level 1: Direct Competitors. These are identical or highly similar products that appear in the top 20 search results on Takealot when searching for core keywords. These are your most direct competitors.

Level 2: Substitute Competitors. Products in different categories that address the same need. For example, if you sell phone cases, phone insurance services are substitute competitors. Substitute competitors affect overall market demand.

Level 3: Potential Competitors. Products that are not yet listed on Takealot but may be added in the future. By analyzing popular products in the Chinese supply chain, we can predict which products are likely to enter the South African market.

II. 10 Dimensions for Analyzing Competitor Data

Once you’ve identified your competitors, analyze them based on the following 10 dimensions:

Most of this data can be viewed directly on the Takealot website without the need for third-party tools.

III. Methods for Estimating Sales Volume

Takealot does not disclose sales figures for its competitors, but they can be estimated using the following methods:

Method 1: Estimating sales based on the number of reviews. Takealot’s review rate is approximately 5%–10% (i.e., 1 review for every 10–20 orders). If a competitor has 200 reviews, estimated sales are approximately 2,000–4,000 orders. Combined with the product’s listing date, this can be used to estimate average monthly sales.

Method 2: Tracking Inventory Changes. Check the inventory quantity on a competitor’s product page, then check again a few days later; the decrease in inventory represents an estimate of sales. Takealot displays “Only X left” on product pages when inventory falls below a certain quantity.

Method 3: BSR (Best Seller Rank) Tracking. Takealot displays best-seller rankings on certain product category pages. By tracking changes in the position of competing products on these rankings, you can assess sales trends.

IV. Product Selection Decision Model

Based on competitive analysis data, establish a product selection decision-making scoring model:

Rate each dimension on a scale of 1 to 5, and calculate the total score using a weighted average. Products with a total score greater than 3.5 are worth listing; products with a total score less than 2.5 should be discarded.

V. Pricing Strategy

Pricing isn't a matter of guesswork; it's a strategic decision based on competitive analysis.

Strategy 1: Penetration Pricing. When launching a new product, set the price 10%–15% lower than that of competing products to quickly drive sales and gather reviews. Once you’ve accumulated more than 50 reviews, gradually raise the price. This strategy is suitable for product categories with a small number of reviews.

Strategy 2: Premium Pricing. If a product offers clear differentiation (better materials, more features, or better packaging), price it 10%–20% higher than competing products. Support the premium price with A+ content and high-quality main images. Suitable for brand-oriented sellers.

Strategy 3: Match Pricing. Maintain prices that are the same as or close to those of your main competitors, and compete on service (faster delivery, better after-sales support). Suitable for FBL sellers.

Strategy 4: Promotional Pricing. Set the original price high—10%–15%—and then display a “Was/Now” discount price to make buyers feel they’re getting a good deal. Takealot allows you to set “Was/Now” prices, but the discount must be genuine (the original price must be an actual selling price from the past 30 days).

VI. Mechanisms for Continuous Competitor Monitoring

Competitor analysis is not a one-time task. We recommend establishing a mechanism for ongoing monitoring:

Mechanism 1: Weekly Monitoring. Check the price changes, new reviews, and inventory status of the top 5 competitors every week.

Mechanism 2: Monthly Reports. Produce a monthly competitive analysis report covering competitor activity, market trends, and comparisons with our own products.

Mechanism 3: Early Warning System. When competitors significantly lower their prices (by more than 15%), launch new SKUs, or receive a large number of positive reviews, adjust your strategy promptly.

Mechanism 4: Quarterly Product Selection Review. Evaluate the competitiveness of your SKUs each quarter, phase out products that are consistently outperformed by competitors, and introduce new products.