Let me introduce myself first. I joined the current company in 2018, and I have been in contact with Amazon since then. From the beginning, I don’t know anything, and now I have a certain understanding of my own, and occasionally I will share some of my operating experience with you on the self-media, I am very happy.
Let me first talk about our current company, which should be fairly well-known in the industry. From 18 years, the annual GMV was only tens of millions, and now it is nearly 1 billion. Last year, we also successfully obtained financing. The level of operation is evident.
At the beginning of March, I looked at the operating data, and there are more than 20 stores with monthly sales of more than 100,000 US dollars. The highest single-month sales exceeded $960,000. Many new sellers will be curious, what products are these stores selling, and how can they quickly find popular products?
It is definitely inconvenient to say what products are being sold. It's my fault that the boss and customers don't hammer to death. However, I can tell you how the product department selects products. This method is very worthwhile for new sellers to learn from.
Well, not much nonsense, let's go straight to the dry goods.
1. Product form. When choosing a product, you need to know enough about a product. When we launch products, we usually communicate with the factory for a long time, and we have a deep enough understanding of the advantages and disadvantages of the products, so as to discover the selling points of the products, so as to write high-quality copywriting to describe the use of the product, otherwise the copywriting written is tasteless and even more Can't show the essence of the product.
Therefore, when new sellers are choosing products, it is recommended to start from a field they are more familiar with, or to look for them in the industry belt around them. For example, in the Amazon home textile category, there are many small categories of head sellers in Nantong or Shaoxing. Local. When they first started to do Amazon, they started to develop from the industrial belt around them, which not only has a price advantage, but also prevents the risk of out-of-stocks, and at the same time has better control over the quality of products.
2. The second step is data analysis. There are many softwares for analyzing data, such as JS, softime, amzcout, etc. All of them can be used, and some functions can be used for a fee, which is rather pitiful. We use JS commonly, and beginners can use the trial version.
The data that needs to be analyzed include the search popularity of keywords, the average popularity of the last 3 months and the last 12 months, the depth of keywords, search results, the number of homepage reviews, the popularity of competition, and so on.
From these data, we want to find products with relatively moderate search popularity, number of advertisements, and competition. The higher the search popularity, the greater the competition; the lower the search popularity, the smaller the market size.
These are the data of the Amazon platform. In addition, we also need to pay attention to the heat outside Amazon, the most important of which is Google Trends.
Google Trends can well reflect the search popularity of keywords, and the seasonality of products can also be judged from the curve. This is an important reference indicator for sellers to analyze products through data.
3. Analysis of similar products. The first two steps are to look at the market demand of the product from a macro perspective. Next, we also need to look at the overall performance of the product in the sales process. Here, we need to analyze the brand, price, monthly sales, estimated sales, monthly sales, launch time, launch year, gross profit, number of reviews, star rating, ranking and seller type (that is, Amazon self-operated or seller-operated). ), product color, properties, material, whether there is a patent, etc.
Through these data, we can see how well this product is accepted by buyers and how it performs in the market overall. At the same time, we can also compare and analyze the data, we can see the overall competition of the product and find out the difference between our product and other similar products, which is very helpful for us to find the advantages of our own products, when writing listings Play the whole ground to show.
4. Competitive analysis. From the above data, select the competitive products that are closest to your own products in terms of appearance, price, parameter attributes, materials, and launch dates, and combine your own products to analyze the size of the opportunities to judge how competitive you are.
This step is very critical. If there are many competing products, and they are all mature, then you will face a lot of competitive pressure; some people sell well and some do not sell well, then you need to compare the reasons for the bad. See if your product has this problem.
5. Profit accounting. This is a very important step in the Amazon product selection process. So much data has been analyzed before, such as market volume, product attributes, pricing, reviews, etc. If you choose products in this way, can you make a profit?
Profit accounting depends on the product packaging size, weight, freight, purchase cost, selling price, distribution fee, platform commission, etc., and by comparing all income and expenses, the final profit of the product can be calculated.
In the above table, as long as we fill in the above data, the company will automatically calculate the profit margin of the product. If you want this table, you can leave a message below or privately message me.
We generally recommend that products with a profit margin higher than 30% can be made, and the minimum profit margin cannot be lower than 20%, otherwise it will be difficult to make a profit.
The above is the first step in our operation when doing Amazon product selection – market research, there is a lot of data, and it looks very complicated, but as long as you master the method, it is actually not difficult, usually 2-3 hours to make a comparison Complete market research.