How to create a unique value proposition for your e-commerce business

For e-commerce businesses, the competition is massive and ever-increasing every day where new businesses and start-ups are launched with new features ensuring that they are better than the existing brands. In this situation, it becomes difficult to retain your customers and attract new customers who might be influenced by their offers.

So how does your brand make you different and better than your competitors?

Even though selling the same product what makes your business different from your competitors?

What are the benefits your customers will gain after buying products from your brand?

It’s your business’s Unique Value Point (UVP) and Unique Selling Point (USP).  Though it is interchangeably used but it differs in some ways. Both terms represent your brand merits, advantages, expertise, features, experience, benefits to the customers, credibility, dependability and most importantly trust in your brand. Both USP & UVP serve the same purpose to show the people how beneficial your brand is.

So what is a Unique Value Proposition (UVP)?

From the term we can come to know the meaning, unique value means what value or benefits your brand will provide to the customer so that they will prefer purchasing from your brand instead of the rest of the brands available in the market (competitors). A UVP is a collection of different ideas about the different services and benefits your brand can give to the customer that state your overall marketing strategy.

What is a Unique Selling Point (USP)?

Unique Selling Point (USP) is specific to your brand sets you apart from your competitor and sharply points to the solution for the problems facing your targeted audience. USP lets people know what your business is known for.

What is the difference between the two?

The key difference between a USP & UVP is, in the former case it’s not necessary to revolve around the benefit of the product but the overall benefit that the customer will get by doing business with your brand. In the latter case, it highlights the benefits that a customer will get after buying the product from your brand.

Let’s take an example to better understand the difference, it is a common problem for a person who wears specs he/she needs to be careful enough because the eyeglasses are so sensitive that they can break very easily. 

Lenskart the eyewear e-commerce brand in India offers lightweight and Air-flex eyeglasses that are easily bendable and sturdy and don’t break very easily even after falling from a great height is Lenskart Brand UVP, whereas eyeglasses made by robots, with no involvement of middle man that incurs extra cost and less expensive eyewear are the USP of Lenskart.

What are the benefits of UVP?

  • UVP lets to complete the sales of the funnel with reference to USP and other marketing campaigns.
  • It distinguishes between you with your competitor by letting the buyers realise how better you are in comparison to your rival.
  • UVP & USP represent your brands’ worth and customers’ useability.
  • Increases customer engagement, preferability and loyalty. 
  • Improves your brand recognition and reputation.

A step-by-step guide to setting a UVP for your business

1. List down all the requirements and pain points of your customers

To propose a UVP, you need to understand what different problems your customer faces during the different stages of the purchasing process. Know what are the most common problems faced by your targeted audience in your niche so that you can make planings and strategies accordingly to provide better and unique benefits to your targeted audience.

For example, if your business is related to online designer clothes, the most common problem the customers face in your niche is the quality and colour difference that the customer has viewed in the image of the particular cloth.

So to this problem, you can propose a UVP like “We guarantee to deliver you the exact look of the cloth you have seen in the image. No colour difference. No quality difference”

To know what requirements and different issues your customers face throughout the different stages of the buyer journey, ask your loyal and existing customers through surveys,  feedback, behavioural analysis and other demographic information. 

The more detailed the knowledge you have about your customers, the more precise you can come up with. 

2. Find out your competitors’ UVP

You are not a single player in the market that provides the solution to the customers there are many other players too. In this competitive game find out what UVP your rival provides to the customer so that you won’t leave any points in your UVP. 

But is it worth it to examine all the competitors’ UVP?

Not really, check out the top competitors’ strategies and what things they are providing to the people.

After you are done with the competitive analysis think about how you can make a better UVP that makes you distinctive and competitive to your rival with a Unique Selling Point (USP) to convince the buyers to prefer your brand to make a business.

3. Craft UVP that provides customers with Solutions

Your UVP must be customer-centric and resolve the problems of the customers in your niche industry. After you have done with the competitors’ and customer pain point research your work is to provide better solutions that your customers are looking for.

Your UVP must be flexible and can be applied to different buyers’ personas and at different buying stages.

When we talk about e-commerce solutions it can be free delivery, fast delivery, refund policy, various payment options, various product options and many more that will encourage buyers to choose your brand for purchasing products.

4. List down all the sensible and unique possibilities that you can provide to your customers 

Your UVP should be sensible, transparent, concise and unique for your customers. Don’t just copy your competitors’ strategies and use them in your business. Come with an innovative idea that meets the needs and is new in the market.

Your UVP should be sensible so that you can keep consistency throughout the business and should imply the inbound marketing strategies where it should balance by showing the benefits of your business with generating leads.

5. Test your UVP

To decide UVP is not a simple process as all your marketing strategies depend on it. Once you have listed down the UVP don’t just directly implement it to your business website. Try A/B testing for UVP on product landing pages, analyse the result and make decisions based on the highest customer response.


Your value proposition is the core of your business that provides a basis for your whole marketing planning and strategies. Brainstorming a meaningful UVP to be exceptional from your competitors can be a daunting process but it will help to set you apart from the rest.

We hope this article provides the information that you were looking for and was helpful for you. 

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