On the premise of meeting the market/brand positioning, the product selection concept should be refined. The product selection concept is not the method mentioned in the product selection strategy matrix, nor is it the specific practice mentioned later (such as product selection on the Amazon platform). It can be considered as the selection of product selection factors and their importance ranking. For example, when choosing brand products, the company has obtained the most stringent international certification to ensure safety in use and provide thoughtful after-sales service. The definition of these factors and their importance ranking can be solidified as the product selection concept to guide product selection practice.
Pursue product selection style. The product selection style is different from the product selection concept. Common styles include fast follow-up product selection (competitive style), quantitative analysis product selection (rational tendency style), personal preference product selection (experience-dependent style), etc. Product selection certainly has scientific methods, but also artistic attributes. Sometimes “feeling” is also an important decision-making dimension. Of course, when “feeling” is contrary to logical analysis or trial sales results, don’t insist on following the “feeling”. That is not the art of product selection, but too willful.
The general recommendation for standardizing the product selection process is to “first horizontal and then vertical, alternate between expansion and contraction, gradually refine, make quantitative decisions, and make dynamic adjustments”, namely:
(1) Horizontal strategy first and then vertical strategy. Horizontal strategy is more objective and relatively easy to operate.
(2) Alternating between expansion and contraction of product selection can take into account both the depth and breadth of product selection, so that the main products are selected accurately and other products are properly coordinated.
(3) Gradual refinement means first selecting large categories, then gradually selecting subcategories, until specific varieties and models.
(4) Quantitative decision-making means that it is necessary to calculate whether the selected products are profitable. Generally, the ROI must reach 3 or above before the product can be selected with confidence.
(5) Product selection is a process of continuous optimization and iteration. It is necessary not only to test sell but also to monitor sales throughout the product life cycle and make timely dynamic adjustments. The above are the four basic principles of product selection. Under the premise of meeting the market/brand positioning, if cross-border e-commerce companies have a clear product selection concept, formed a product selection style, and standardized the product selection process, I believe they will be more relaxed in the complex and high-risk product selection work.