In the cross-border e-commerce industry, there is a widely circulated motto: “70% product selection, 30% operation”. This sentence profoundly reveals that in the e-commerce business, the importance of product selection far exceeds the subsequent operation work. Therefore, in the cross-border e-commerce operation, accuracy and caution in the product selection process are particularly critical. This article will introduce the seven factors that need to be considered in the cross-border e-commerce product selection process, and reveal to you how the right market research tools can help you select products.
7 factors to consider in product selection
Market demand: The first consideration for product selection is the market demand for the category in the target area. Categories with great market potential and high profit margins are often our priority. Specifically, we need to pay attention to the actual situation of market demand. Categories with large market demand and small supply often have higher profit margins, which can even reach more than 50%, or even higher.
Easy to transport: The transportation cost of goods directly affects the final sales cost and profit margin. Therefore, when selecting products, we need to consider factors such as the volume, weight, and packaging of the products. Choosing products that are small in size, light in weight, easy to pack, and not easy to break can greatly reduce logistics costs and the probability of cargo damage.
Simple after-sales service: Choosing products with simple after-sales service can effectively reduce the cost of customer service in the later stage. Therefore, when selecting products, try to avoid products that require complex after-sales service, or ensure that simple and effective after-sales solutions can be provided.
High added value: The high added value of the product means that the transportation cost of a single product can be reduced and the profit margin can be increased through package sales and other methods. For products with a value lower than the freight, you can consider selling them in packages to improve operational efficiency.
Uniqueness: Choosing products with unique functions or designs can attract more consumers’ attention and desire to buy. Therefore, when selecting products, try to choose unique products, including unique functions, designs, packaging, etc., to enhance the attractiveness and competitiveness of the products.
Reasonable price: The price of the product should be reasonable and should not be higher than the local market price in the destination country or higher than other online sellers. Reasonable price is one of the important factors to attract consumers to buy, so pay attention to the price setting when selecting products.
Compliance and legality: Finally, the product selection must comply with the regulations of the platform and the laws and regulations of the destination country. In particular, pirated, counterfeit or contraband goods cannot be sold, and sellers need to carefully check whether the products they want to sell infringe.
The above seven factors are important factors that need to be considered in the cross-border e-commerce product selection process. Only with full consideration and careful selection can the accuracy and effectiveness of product selection be ensured, laying a good foundation for subsequent operations. Therefore, in cross-border e-commerce operations, accuracy and caution in the product selection process are particularly critical.