Market analysis methods
(1) Evaluation data analysis
Evaluation data analysis includes negative review data analysis and positive review data analysis. Among them, negative review data analysis is to collect negative review data of hot-selling products on the platform, find out the customer dissatisfaction, and then improve the product. The negative review data analysis method focuses on capturing negative review data, while also analyzing the product positive review data to find out the customer’s real demand points and expectations for the product. The evaluation data analysis method is to dig out the demand “pain points” from the product positive reviews, find the product’s shortcomings from the negative reviews and improve the product. Choosing products that can meet customer needs will naturally increase the product’s exposure rate and thus increase sales.
(2) Product portfolio analysis
Product portfolio analysis refers to selecting products with the thinking of product portfolio. When establishing a product line, core products account for 20% to obtain high profits; “explosive” products account for 10% to obtain traffic; and basic products account for 70% to cooperate with sales. Product selection should take into account different target customers. Not all products should be selected in the same price range and maintain the same quality level. Products with different prices and different quality levels can attract different target customers and generate more orders.
For core products, you should choose niche and high-profit products; “explosive” products should choose popular products or products that follow the current hot spots and will become popular; basic products should choose products with high cost performance. Whether it is a core product, an “explosive” product or a basic product, the gross profit of the product must be evaluated when selecting products. The formula for calculating gross profit is as follows:
Single product gross profit = sales unit price – purchase unit price – single product shipping fee – platform fee – drainage cost – operating cost.