Sales Principles
Sales principles refer to the principles that must be followed when selling goods. Understanding sales principles can help sellers achieve better sales of goods on cross-border e-commerce platforms and greatly help the development of stores. Sales principles mainly include product profits, product advantages, legal issues, and infringement issues. They are introduced in detail below.
1. Product Profit
Product profit is very important to sellers. Sellers spend a lot of energy on cross-border e-commerce, and their ultimate goal is to make a profit. In addition to the platform commission deduction and the cost of goods, the cost of cross-border transportation is also relatively high due to the long distance of cross-border transportation. Therefore, sellers should also consider the freight of cross-border logistics when considering product profits. For product profit issues, pay attention to the profit margin and value of the goods.
(1) Product Profit Margin
Product profit margin refers to the ratio of product profit to product cost price. Generally speaking, the profit margin of the goods selected by the seller should not be less than 50%, and the higher the better. In this way, after deducting the platform commission and logistics costs, the seller will still have a certain profit, otherwise he may face losses.
(2) Product value
Sellers should choose products with higher value. The higher the product value, the more profit the seller will get from selling a product. For example, if the product chosen by the seller is stockings, the purchase price of a pair of stockings is 15 yuan (RMB), and the seller sells it at 5 US dollars. After deducting the platform deduction and logistics costs, the seller’s profit is very small.
2. Product advantages
Product advantages mainly include product quality, product differentiation and supply capacity.
(1) Product quality
If the product selected by the seller has many quality problems and is complained by buyers, the Amazon platform will ban the sale of this product. Therefore, product quality is a very important principle. Sellers should strictly control the quality of products when selecting products.
(2) Product differentiation
There are differences between the products selected by the seller and the products sold by other sellers. Buyers will buy the seller’s products because of these differences. This is product differentiation. Product differentiation can improve the advantages of products and reduce competition between the same products. For example, other sellers are selling an egg beater, but their egg beaters are made of metal. Then the seller can produce egg beaters made of environmentally friendly materials and sell them to buyers as a differentiation.
(3) Supply capacity
During the sales process, the seller must ensure that the selected goods have a stable and high-quality supply. If during the sales process, the goods are out of stock and cannot be sold normally, the store’s sales performance will suffer a huge blow. Therefore, when choosing goods, you must pay attention to the supply capacity of the goods.
3. Infringement issues
Foreign countries have a strong awareness of protecting the intellectual property rights of goods. Therefore, when choosing goods, sellers must pay attention to whether the appearance of the goods infringes on the appearance patents of other goods, and even the pictures and videos taken of the goods may have infringement issues. If the seller’s goods have infringement issues, then the seller will face quite serious penalties.