The evaluation of a product can be done from the following aspects:
(1) The target customers of the product.
At the beginning, the seller does not need to target the target customers very accurately, but at least he should understand the type, age, online purchasing ability, etc. of the target users.
If a product is suitable for teenagers, since people of this age group generally do not have credit cards, most of them use online payment methods: if the product is for the elderly, they generally have no online shopping experience, and even if they do, they will not shop as frequently as young people. These are all issues that sellers need to consider.
For example, Clothes for Seniors is a store that provides customized clothing for the elderly. The direct target group may not often go online, so it is necessary to adjust the sales strategy or focus on marketing to their children.
(2) Calculate profit.
Calculating profit is very important for any seller. If you do not consider it carefully in advance, various unknown expenses will reduce the profit of the product when you actually start selling.
For example, a pet pedometer. Referring to the prices of other pet pedometers, the selling price can be set at US$24.99. I found through other websites that sellers can sell the product for $2.
But after careful calculation, the packaging fee, labor fee, and purchase price totaled $17.04. The sales price and shipping fee of this product totaled $29.99, and the final profit was only $12.95. Compared with before, the profit was reduced by half. Therefore, before actually selling, you must predict the profit of the product.
(3) Product pre-sale price.
As we all know, low-priced products need sales volume to ensure profits; while high-priced products need time for consumers to know the advantages of this product. Generally speaking, products with a price range of $75 to $150 are recommended because this price range is acceptable to most consumers.
Let’s continue with the pet pedometer as an example. A product has a profit of $12.95. If it is replaced with other similar products, the selling price is $100, which is 4 times the price of the pet pedometer. After deducting its cost, the profit is as high as $76.75!
(4) Whether the product can be subscribed.
A report pointed out that the time spent on developing a new user is six times the time spent on maintaining an old user, so many old sellers are more willing to spend time on maintaining old customers, and various subscriptions can allow old users to automatically complete orders, which is a very good way to increase sales to old customers.
Dollar Shave Club often sends people some consumables, such as razor blades. The price is very cheap, but for the club, this subscription model is very effective. The blade subscription starts at $1 per month. They sell to the same subscriber in this way, and sales are very stable.
(5) Product size and weight.
“Dear, is the shipping free?” This is a sentence that many users will ask customer service when purchasing products. As the online shopping model becomes more and more mature, many users hope that the products they buy can be shipped free of charge. So now there is also such a phenomenon that if the product is not shipped free of charge, the seller will reduce a lot of orders, and the size and weight of the product have a greater impact on shipping costs and profits.
If you do not plan to use drop shipping, you need to consider shipping costs, warehousing costs, etc. If you order directly from overseas, the cost of the product will be greatly increased.
This oversized yoga mat costs $99. If it is shipped to Canada, it only costs $40; but if it is shipped to other places, it costs $80. In other words, if this product is sold outside of Canada, the profit will be very low.