Last week, Hui.com invited Lenny Ash, an American Amazon seller with more than 20 years of operating experience, to share with many Hui members. At the same time, you can also see how U.S. sellers maintain or even increase their sales profits in the face of increasingly fierce competition for Amazon advertising. After the sharing, many Hui members also asked us, no matter how advertised for products with a unit price of about $10, it is unprofitable or even loss-making, so there are other ways to save these listings.
Today, we will also summarize some of the experience in Huiwang Zhiying, and share with you how to make products with $9.99 or extremely competitive prices profitable.
Part 1: Look at Amazon's new product selection
Huiwang has now started to push new product suggestions for Hui members participating in the smart camp every week. The data dimensions of the selection are very many and very complex. We have seen some members with very rich operational experience who can even do very comprehensive and in-depth data analysis. Everyone's selection ability is also very strong. Here we also share some of Huiwang's own new selection experience with you.
We need to analyze with you according to the two levels of "new product selection" and "old model maintenance".
We will analyze from the "Keyword Search Homepage + Current 50 Pages of Precision Category", because if you promote related products, you will basically only be displayed on these two pages, and the ranking of the precise category represents the accuracy of your products. In addition to keywords, the degree to which Amazon is exposed for you under other search terms. At the same time, the number of products on the two pages tends to be similar;
We will first divide the total sales of all listings on the relevant page in the past 30 days into several gears to judge the market demand:
Total sales: $1 million/month, with little market demand Total sales: $1-5 million/month, sufficient market demand Total sales: $5-10 million/month, strong market demand , the market demand is very strong
From the perspective of market competition, we mainly look at 3 dimensions in related pages:
Mature Listing: Quantity and price of products with more than 1,000 reviews on the page
The so-called additional cost is the return rate of the product. This indicator can generally be seen from the evaluations of the above competitors. If there are generally bad reviews on the homepage of each Listing, and the star rating is not high, then your return rate will be higher. It will cause additional costs, and the maintenance cost of Listing after the negative review will be very high, and even the situation of abandoning the inventory;
The so-called sales profit is the gross profit of the product. In this place, we suggest that it should be above 40% as much as possible, the higher the better. Because the rational range of the current advertising ACOS (unless the product price is very high) is generally around 20, which means that 40% of the gross profit can give you 20% of the profit;
So here are 3 more questions:
1. Should products and categories with large overall sales volume be included?
First of all, you need to see if the new product you choose meets the four indicators in 2-5 above. If it does, I believe you have found a treasure! However, even if you discover this category for the first time, it does not mean that you will always be ahead, because we see that similar categories generally have to start to face more and more new products in about 3 months. Compete on price and ad bids or even spoof.
2. Do you want to sell products with monthly sales of less than $1 million?
From the observation of Huiwang, if the above four indicators are qualified, such products will have several advantages for new products:
Low competition: Most sellers don’t like this type of product High gloss rate: You can enter the keyword search homepage and precision category soon Products, the number of shipments of each product is 50-100 at a time, and similar products will continue to be listed in stores. Low promotion costs: basically, as long as these products have sales, they will have BSR and homepage rankings, and there is almost no evaluation pressure.
But people will also worry that there are not many sales of this type of product, but from our perspective, this type of product has its own unique opportunities:
First of all, this kind of product will win the #1 Best Seller very quickly; secondly, the probability of this kind of product entering the first page of keyword search will be very high. At the same time, if you look at the product categories around this kind of product, it is very likely that the competition is very fierce. But sales are great. Then you can pack a related product from each of these two categories into a package, and soon you will get: sales, #1 Best Seller tag, keyword search ranking, and Amazon is likely to put your product on the 2 precise sub-categories, greater exposure!
3. How to achieve more than 40% gross profit?
This is what we discussed with the American guests in our live broadcast last week. Both Hui.com and the American guests believe that products of around $10 are unlikely to be profitable from Amazon advertising. Lenny's suggestion is that the unit price of the product should be at least $20 or more. And our recommendation is at least $30 or more.
Part 2: How does a $9.99 Amazon Listing make money?
This is also a problem we have seen many mature members encounter during the smart camp process, but all these Listings seem to have something in common:
There are already a lot of product reviews, many of which are around 1,000 reviews. The product has a high star rating and has a lot of inventory.
If we want to make these products profitable, we need to realize a few things:
1. Refinement and expression of the selling point of the product
It is almost impossible to make a profit at a product price of $9.99, although this is a harsh reality, but we still need to face it. The only solution is to increase the price of the product. However, if the unit volume of similar products decreases as soon as the price increases, the only reason for this problem is that the product homogeneity is too high, except for the excessive price increase. Consumers have little chance of finding unique selling points and value in your products and other cheap items, so they simply churn.
Therefore, everyone needs to re-optimize product descriptions, pictures, A+, and videos from the perspective of consumers and the visual habits of different cultures. Instead of introducing your product from the factory and product perspective. To give an example: the advertisement of Nike sneakers will emphasize the use of the scene and the substitution of the model's body language and facial expressions, rather than only introduce the function of the sneakers.
After all, the only reason for consumers to pay is "identity". When the sense of identity is not strong, they will pay more attention to the "price" and "evaluation" other than the product. This is also the reason why everyone sees that Huiwang Zhiying will almost make major changes to the product copy after taking over the product. However, I believe you can also see that the conversion rate after the modification has been significantly improved!
1 ► Nike sneakers product images
2 ► Amazon seller product images
2. The role of the upgraded product in the variant
We will also see the same situation in the process of smart camp analysis, that is, everyone's $9.99 products have rarely added variants since they were put on the shelves (the existing variants are basically only the difference in pictures, sizes, and colors). Of course, there will be Amazon's consideration for variant requirements, but if the number of reviews for this product is close to or exceeds 1,000, why don't you upgrade and develop the same product, but start from 0 to make a new Listing? ?
Here's a way to increase price and profitability by adding upgrades to variants:
Here we take a swimming shoe that has been on the shelves for a long time as an example. The number of reviews is close to 4,000. With a star rating of 4.3, we can know that the conversion rate will be very high. The price is $9.99. According to the current ranking, it can be said that this product is not profitable.
However, the previous style is basically the same, but the material has been upgraded, and a few points are emphasized in the copy: 2022 year, new, product material, selling point, and highlighted in the title, picture, and description of this variant , and then marked the price at $24.99 and opened a set of ads specifically for this variant, I believe many customers will buy this product. Because, after all, everyone wants to give themselves the best they can afford, and although $24.99 is nearly 3 times higher than $9.99, who can't afford a $24.99 product for Amazon Prime customers?
3. Differentiating quotes for variants
What I believe you can see in the sharing event last week is that American sellers will not pay much attention to the ACOS of a single ASIN, but will pay great attention to the advertising investment TACOS of all variants of the entire Listing. In addition to the specific content shared last week, you can see the replay in today's Huiwang class, in addition to this, Huiwang shares another tip with you on how to make profit on $9.99 products, which is to find in all variants A low-converting variant sets a very low price to attract customers, but each variant requires a price adjustment based on sales and inventory. I believe that soon, you will see that there are not many listings with a low price of $9.99, and more products of $15-30.
I hope today’s sharing will inspire you, and I hope you will see that after last year’s baptism, there are fewer and fewer Amazon sellers competing with each other for land prices. Opportunity to make more money on Amazon!