One of the issues that e-commerce companies are concerned about is the ranking of their own products in the relevant categories of the e-commerce platform. After buyers enter the keywords of the products they want to find in the navigation bar of the e-commerce platform, they can filter the search results they want and sort the products according to factors such as popularity, sales, credit, price, etc. At the same time, these factors are also the key points that affect the ranking of products, and e-commerce companies need to conduct in-depth analysis on them.
In addition, when analyzing search traffic, paid traffic is a relatively important data and a reference indicator for product promotion plans. For example, after changing the main promotion image of a product, e-commerce companies can observe whether the ranking of the product has changed, and whether the search traffic and category traffic have fluctuated, and make the next decision based on this.
Search traffic analysis helps e-commerce companies observe the sales of products. In addition, e-commerce companies also need to conduct profit and loss analysis on products. The operating model of e-commerce companies is retail, and retail should be for the purpose of profit, so in data analysis, the profit and loss of products must also be paid attention to.
How should e-commerce companies analyze the profit and loss of products? You can create a table to list the product’s traffic data, expense expenditure, sales volume, postage expenditure, cost, Tmall deduction points and other items in the table, and calculate the product’s daily profit and loss and cumulative profit and loss. By recording all the data related to the product in the table, you can see which product is profitable, which product is loss-making, and how much the product’s profit/loss is.
The data that affect the product’s profit and loss include the ratio of paid traffic (the ratio of paid traffic of a single product to the total traffic of a single product), paid PPC (the average cost of paid traffic, in layman’s terms, how much money each paid traffic costs), and total conversion rate. At the beginning of the listing, whether the product is the main promotion route or the explosive route, it may be in a loss state. After all, profit requires a process. However, as long as e-commerce companies grasp the key data, reverse it in time when the data performance declines or has a downward trend, and optimize the traffic share in a targeted manner, then the product’s profit level is likely to continue to rise.
Tips
Search traffic analysis is an important task of data analysis. The more search traffic, the better the product’s sales will usually be. E-commerce companies should analyze the profits and losses of products, comprehensively consider the profits and losses of products, and adopt measures to promote the survival of the fittest to ensure the effectiveness and stability of operations.