There are many techniques for selecting products, but not every technique is very useful. Sellers can try different techniques first, and find the selection techniques that suit them in the process of trial and error. The following shares several selection strategies, hoping to help all sellers.
1. Evaluation data analysis method
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 what customers are dissatisfied with, and then improve the products, or develop products that can solve customer pain points. The negative review data analysis method is mainly to capture product data, and at the same time, it is also necessary to analyze the positive review data of the products to find the real needs and expectations of customers for the products.
In summary, the evaluation analysis method is to dig out the demand pain points from the positive reviews of the products, find the shortcomings of the products from the negative reviews and improve the products. Choosing products that can meet the pain points of customer needs will naturally increase the exposure of the products and thus increase sales.
2. Commodity combination analysis method
Commodity combination analysis method refers to selecting products with the thinking of commodity combination. When establishing a product line, core products account for 20% to obtain high profits; hot-selling 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, and not all products should be selected in the same price range and the same quality. Different prices and different quality levels can attract different target customers, thereby generating more orders.
Core products should be selected as niche and high-profit products; hot-selling products should be selected as popular products or products that follow the current hot spots and will become popular; basic products should be selected as products with high cost performance. Whether it is a core product, a hot-selling product or a basic product, the gross profit of the product must be evaluated when selecting products. Simply put, the formula for calculating gross profit is as follows:
Single product gross profit = sales unit price – purchase unit price – single product freight cost – platform fee – drainage cost – operating cost
3. Industry dynamics analysis
Study categories from the perspective of the industry. Each category is based on the entire industry background of Chinese-made goods exported overseas. Understanding the market size and country (region) distribution of the category in China’s export trade has a great guiding significance for understanding the operating space and direction of the category.
At present, there are mainly the following ways to understand the export trade situation of a certain category.
(1) Industry or regional market research reports released by third-party research institutions or trade platforms
Third-party research institutions or trade platforms have independent industry research teams. These institutions have global research perspectives and resources, so the research reports they publish can often provide us with more systematic industry information. The following are the industry research reports currently publicly released:
① Made-in-china.com-Member e-home;
② Dunhuang.com-Industry dynamics.
(2) Industry exhibitions
Industry exhibitions are a kind of promotional activities carried out by suppliers in the industry to showcase new products and technologies, expand channels, promote sales, and spread brands. Participating in exhibitions can obtain the latest industry dynamics and corporate trends.
(3) Export trading companies or factories
When developing products, product specialists need to communicate directly with suppliers. Suppliers with more experience are very clear about the export situation and market distribution of their industry, and product specialists can obtain more valuable market information from them. It should be noted that product specialists need to master certain industry knowledge before communicating with suppliers, otherwise they are likely to be “fooled”.