In Amazon’s operations, the “boutique operation + hot-selling” operation model is undoubtedly the most attractive to sellers. Nowadays, on the Amazon platform, sellers are competing fiercely. How can a product be efficiently and quickly made into a hot-selling hot-selling product?
By summarizing the operation practice, we can understand that the spiral operation method is the lowest cost, the best effect, and also the fastest way to create a hot-selling product. So, how should sellers build a spiral hot-selling model?
The first step is to activate sales. FBA warehouse entry, new products on the shelves, and orders are the top priority.
Many sellers have worked hard to select products, but because they have no operation ideas and methods, they have caused the state of “unsalable after being put on the shelves”. The products have been on the shelves for a long time without orders. As a result, they have no confidence in the products and operations. In order to prevent this from happening, after FBA warehouse entry and product listing, sellers can directly set the product price at a price slightly lower than the market average, activate sales at a low price, and achieve a breakthrough in the product page. Remember, for a newly listed product page, the significance of receiving orders is far greater than profit.
What the seller sees is the order, but what the system sees is the conversion rate. New products do not have much traffic, but with the low price, the order conversion rate will be much higher than that of peer sellers. At this time, the system will allocate more traffic to you. The more traffic, the more orders you will get. The first spiral rise is formed, that is, the traffic rises; at the same time, the first spiral rise is also formed, that is, the order rises, from nothing to something, from few to many; in addition, the third spiral rise is formed, that is, the BSR ranking [BSR is a product ranking method of Amazon, the full name is “Best Seller Rank”, which refers to the sales ranking of the seller’s products in a certain category. The BSR ranking of each product in different categories and different sites is different] rises. There is no BSR ranking for new products, but as the number of orders increases, its ranking begins to rise by leaps and bounds.
In this sense, taking orders at a low price means traffic, orders and ranking for building a product.
The second step is to actively increase reviews. In conjunction with orders, actively increase reviews to add word-of-mouth elements to the product page.
When a new product page is put on the shelves, there are no product reviews, and consumers may have doubts in their hearts. Although we used ultra-low prices to break the ice for consumers in the first stage, the appropriate low price is only a temporary means after all. Product reviews are a necessary factor for a hit product. In view of the current situation that the customer review rate on the Amazon platform is less than 1%, it is a bit difficult to naturally generate product reviews for a new product. In this case, it is necessary for sellers to take the initiative to add a certain amount of reviews to the new product page, such as Amazon’s VINE program.
A new product page with several product reviews will look much more perfect, which also makes up for the defect of no word of mouth, eliminates the doubts in the minds of consumers when placing orders, and the order conversion rate will also increase. But this is not enough. As the number of orders increases, product reviews should also increase proportionally. The product review rate does not need to be too high, and it can be guaranteed to reach about 3% of the total order volume. Whenever a bad review is received, the seller needs to add 3 to 5 good reviews to reduce the adverse effects of the bad review. At the same time, sellers should also analyze the evaluation content. If the review content is inconsistent or malicious, they should contact the customer and platform customer service in time to deal with it as soon as possible.
At this stage, a new spiral rise is formed, that is, the number of reviews increases with the increase in sales.
The third step is to place CPC (Cost-per-Click) ads on the site. Through in-site advertising, more accurate traffic, paid traffic and natural traffic are introduced to generate more orders, thereby gaining more market share.
The current Amazon platform competition is very fierce. Under fierce competition, natural traffic is limited. If sellers want to gain more market share, placing in-site CPC ads to obtain paid traffic has become an indispensable operating method. It should be emphasized that even if the conversion rate of in-site advertising is not high in the early stage and the ACoS value is high, as long as the seller receives one more order, it means that a competitor has one less order, so the seller’s overall ranking will be improved and the competitor’s ranking will decline.
From this level, the spiral rise is reflected in the increase in sales and the rise in ranking.
The fourth step is to create a trinity of sales, ranking and price. The three items are combined and adjusted flexibly to form a spiral upward channel.
Based on the preparation of the first three stages, the new product page being created begins to form the following cycle: because the product price is low, sales are generated, and sales bring rankings to the new product page. With the increase in sales and rankings, the new product page obtains more traffic with the active drainage of in-site advertising, so sales increase, rankings also rise, and sellers begin to gradually raise prices; if sales drop sharply after the price increase, sellers should lower prices, observe changes in sales, and further increase prices after sales stabilize. The price adjustment should be “small steps and slow jogging”, that is, small adjustments are made each time, and adjustments are made again after sales stabilize.
After such rounds of adjustments, the result is that the product price gradually increases until it is close to the expected price, and the product sales grow steadily; the ranking of the new product page gradually increases. This trinity interacts with each other, forming a spiral upward channel, so that a new product page develops from a state of no orders, no traffic, and no ranking to a state of stable sales and stable ranking.
The fifth step is ranking positioning, which is the most important step in the process of creating a hit.
To create a hit product, sellers need to put rankings in a more important position on the basis of the above methods, that is, all phased results return to the measurement of rankings. The same price, sales and ranking trinity strategy, the core is ranking. At some stages, profits can be sacrificed to ensure that the ranking rises. When the ranking reaches a certain level, the price can be gradually adjusted.
All methods should be carried out around the rise of rankings. When the ranking crosses a threshold, the price is raised, and the sales are observed. If the sales are stable, the price is reduced to impact the next threshold, and so on, until the ranking enters the current top five in the subcategory.
The sixth step is to ensure inventory, which is a necessary guarantee for the creation of hit products.
In the spiral hit model, because sales are in a state of continuous growth, the most taboo in this process is that the inventory does not keep up with sales, resulting in a mid-term out of stock. Once out of stock, the sales of the new product page will drop, the ranking will drop, and the advertising cost will increase exponentially. Out of stock has a huge impact on the weight of new product pages. Therefore, sellers must do a good job of sales evaluation and reserve enough inventory in the process of creating a hit product. It is better to prepare more inventory than to run out of stock.
The seventh step is to go all out. In the final analysis, the creation of a hit product tests which seller has invested the most effort in a single product.
Each seller’s store will have multiple products on the shelves, and each seller will consider the operation of each product during operation. This means that in operation, the seller will allocate his thoughts, energy and time to multiple products in the store, but such allocation will result in insufficient investment in one product. In the hit product creation model, each process of creating a hit product means going all out and investing all of your body and mind in a product to promote the sales and ranking of this product until it becomes a best-seller and stabilizes in the best-selling position.
Whether it is creating a hit product or daily operation, sellers can refer to the above methods to sell their products better.