Product selection is a "persistent difficulty" for many sellers : they can't find suitable categories, blindly follow the trend to launch new products, only look at sales but ignore costs, resulting in mediocre performance… Newbies are on the road, facing more difficulties in product selection I was at a loss and had to "each come up with a unique trick".
Follower sellers : Everyone is selling this product, it must be very profitable, here I come!
Seasonal sellers : Winter is coming again, quickly remove all air-conditioning quilts, and put duvets and fiber quilts on the shelves.
Profitable sellers : The gross profit margin of these products is less than 30%, pass all of them!
Buddhist seller : Let’s do whatever you want when you’re tired, sell whatever you have in hand, don’t choose …
Are there any shadows of you among the various types of sellers' selections on the website?
Novice sellers are mostly confused. In the final analysis, the product selection problems encountered by novice sellers can be generally divided into four sections: market, product, pricing, and operation:
How can overseas sellers achieve high-quality product selection? With such doubts, Xiaobai, who is also a novice seller, consulted the " Dayai Think Tank ". Mature big sellers start from these four major sectors and use their own experience to teach Xiaobai a more refined and data-based approach. "Systematic Product Selection Methodology".
Find sub-categories in the big market, gain insight into demand and competition
Xiaobai: Can I just choose a market that I am popular to enter? I think the courtyard market has been very hot in recent years. Most of the crooked nuts have courtyards. Can they enter the game?
Mature big seller Steven : First of all, you have to look at the big environment, lock in the big trend, look at the market capacity and growth, and find the most suitable subdivision track in a big track. Secondly, look at the competitive environment to find differentiation. In addition to looking at its capacity, ceiling, and annual growth rate, you must also consider its competitive environment, whether there is a head brand monopoly, the distribution and trend of brand sales, and so on. Finally, look at the market threshold and make sufficient preparations before entering.
Finding market segments first and then locking in specific products is the normal path for product selection. Furniture seller Steven also considered from multiple perspectives when deciding whether to enter the yard supply business: overseas demand for garden supplies is huge, and he has the foundation to make furniture, but at the same time, the supply chain of the garden supply industry is stable, and it is difficult to break through with many brands. Therefore, how to accurately find potential market segments is the key to product selection. Through the Amazon Business Opportunity Detector, Steven searched and analyzed layer by layer with market segment search words as the core, and found that "outdoor garden umbrella" has a relatively high demand in the track and has not been occupied by leading brands. Too much market share, for The new brand is also relatively friendly to subdivided products, and achieved a sales surge of 1310.58% in just 3 months1 !
When judging the difficulty of competition, provide a little trick. If more than 50% of the sales of this category come from the old listings three years ago, it means that the old brands are difficult to be shaken, and new brands are more difficult to enter. If the new product in this category is launched quickly and has a high degree of activity after launch, for example, if you can get a lot of consumer reviews soon, it means that the category has many opportunities and great potential, and it is worth entering!
Step2: Product differentiation
Look for differences and discover product opportunities
Xiaobai: Got it! So after I lock in this category, how can I quickly break through and stand out from the crowd?
Mature Big Selling Leo : Look at the market macroscopically, look at products microscopically, product analysis and innovation are essential. We must fully consider the characteristics and preferences of the target group: what kind of products do consumers like? What pain points do they have that have not been met so far? Then fully consider the market, product iteration speed and its own situation, and choose an appropriate product innovation path, such as occupying product innovation, customized innovation, etc.
If product selection design and development are separated from consumers and do not capture consumer preferences, product design will be like a castle in the air, and it will be difficult to get consumers' approval. This point, Leo , a clothing seller, is deeply touched. As flexible products, clothing products have strong seasonality and subjective aesthetic trends; the clothing track is updated quickly, with strong seasonality and rich optional categories. Only by effectively solving user pain points and fitting user preferences can it be formed. Differentiated competitive advantage. In this regard, Leo focuses on user feedback .
In addition to screening new products using insights from buyer reviews, Leo also skillfully uses the "search terms" of the business opportunity detector to improve the functions, parameters, colors and sizes of the clothing on sale, bringing the products on sale back to life.
Among Leo's products on sale is a fashion sock set for autumn and winter. At first, Leo only sold black and white colors, and the sales volume has remained steady. Through the "search term", Leo found the crux of the problem: he sorted the keyword "leg warmer" in descending order of search volume, and found that the search volume of "pink warmer" was particularly high, and discovered this unmet buyer demand. The pink socks that Leo quickly produced and put on the shelves quickly boosted sales.
Use tools skillfully to position product prices scientifically
Xiaobai : I know what I want to sell, but I don’t know how to set the price. If I sell it too high, I will not be competitive in the same category. If I sell it too low, it will be a price war.
Mature big seller Kenny : There are many product pricing methods, and you need to choose the pricing method that suits you according to the characteristics of all products. In addition, you can use relevant analysis tools to analyze the conversion rate and profit of different price bands, as well as the pricing of top brand products accounting for the main sales volume, and then choose the most suitable product pricing for you.
Product selection and pricing complement each other, different pricing strategies will affect product selection, and different products also require different pricing strategies . As for how to choose a pricing strategy for new products, Kenny, a big-selling player who specializes in sweeping robots, has a great say. With the help of the stay-at-home economy, sweeping robots have become the best-selling household robots overseas. However, this sub-category has mature technology and many competitors. Kenny was hesitant before entering, but he quickly found it through analysis. Opportunity price range Select pricing, approach to market.
Optimize operations and quickly achieve product sales
Xiaobai: When it comes to operation and operation, you will encounter many problems. No matter how good the product selection is, the sales volume has always been mediocre. Could it be that I chose the wrong one?
Mature and popular Felix : Good selection must be accompanied by excellent operation to become a hot product and a high-quality product. You need to formulate different operating strategies at different life cycle stages of the product. For example, during the creation of new products, you have to optimize your operations in terms of listing, return rate, stocking, etc., and create explosive products, which is considered a successful product selection.
The life cycle of a product has four stages: introduction, growth, maturity, and decline . In different stages, the focus and strategy of operations also need to change from time to time.
In the product introduction period, it is necessary to promote the rapid cold start of new products, gain more consumer awareness, accumulate sales and review praise. To do this, a good operation is the key. When he first landed on Amazon, the "operational barrier" was the most difficult barrier for Felix, a seller of beauty care tools: the unstoppable traffic and conversion rate, and the uncontrollable rhythm of promotions made Felix deeply disturbed. It wasn't until Felix discovered that he could use Opportunity Finder's popular search terms and the "Trends" module to optimize operations , everything suddenly became clear.
After reading the dry goods selected by mature sellers based on their personal experience, do novice sellers have a clear idea of product selection? From the selection of market segments, to product design and development, to product pricing and operational operations, every link requires sellers to systematically deploy troops.
In the era of big data, through systematic product selection methodology, use data selection to make up for the lack of product selection experience and improve the success rate of product selection, you can also successfully create explosive products on Amazon!