On AliExpress, many sellers choose the low-price route to attract customers. However, for some new merchants, there is still hesitation on whether they should choose low-price products. So, what are the benefits of low-priced products? This article will start from experience and conduct a detailed analysis of the advantages of opening a store to sell low-value goods on AliExpress.
1. The benefits of opening an AliExpress store to sell low-value goods.
First of all, low-priced products of the same type are more attractive and easier to transact, so they can guide traffic and attract more customers.
Secondly, low-priced products can gain more attention and sales in the early stage. In the past, AliExpress has provided certain traffic support for products with low selling prices and good sales. However, the platform no longer supports lowering selling prices to obtain traffic.
However, not all products must choose the low-price route, and the decision needs to be based on the profit of the product and the industry. Some products may be more appropriately priced at a higher price. Therefore, when listing products, you can understand the average price in the industry through methods such as the Ali Index, and then set prices. A customer price that is too high or too low is not good for the store.
2. What can it bring to the store?
First of all, the cost of maintaining old customers is much lower than the cost of developing new customers. Most people usually rely on money-burning methods such as paid promotion to develop new customers. The cost is high, but the number of new customers is small. In contrast, the maintenance cost for old customers is low, and regular maintenance can be carried out through shopkeeper advice, free shipping, etc. The main purpose is to leave a good impression on customers, thereby increasing the repurchase rate of old customers.
Secondly, the contribution of old customers to the store accounts for more than 80% of the total revenue. The cost of attracting new customers for an online store is usually more than 8 times the maintenance cost, and these old customers create 80% of the store’s revenue and profits, so their importance is self-evident.
Third, the profits obtained from old customers are higher than the profits obtained from new customers. Regular customers are familiar with the store, so they do not worry about quality issues when placing orders and usually purchase a variety of products. And new customers usually only try to buy one item first.
Finally, retaining old customers can also significantly reduce costs. At present, many people tend to participate in promotions, trials and other activities to obtain new customers at low prices, but this method is often loss-making, hoping to make profits through customers’ repeated purchases. Therefore, making profits from new customers is not easy.
There are many benefits to opening an AliExpress store to sell low-value goods, such as attracting customers, increasing transaction rates, reducing maintenance costs, etc. However, there are also certain risks, such as lower profits and difficulty in ensuring product quality. . Therefore, when choosing low-price products, merchants need to carefully consider the profit of the product and the industry situation, and avoid blindly following the trend. At the same time, merchants should also focus on the maintenance and development of old customers, reducing costs, increasing profits, and creating sustained business growth by retaining old customers.