As the first link, the importance of product selection is obvious. Product selection clearance mainly considers seven elements: competition, profit, sales, trend, innovation, risk and money measurement.
First, look at the degree of competition: many sellers are easy to follow in the process of product selection. When they see that their friends’ products are very popular, they will also sell them. But when he does this, the timing may have passed. Therefore, the seller shows off that he is doing the right thing at the right time, rather than blindly following the seller. So, what does the degree of competition depend on? 1. Search results for multiple keywords; 2. The number of BS in the first three pages of search; 3. There are currently more than 1000 reviews in more than 100 categories; 4. The cost that accounting needs to pay and the effect that can be achieved.
Second, look at the profit: including the current price of competitive products, the calculation of product procurement costs, the first transportation cost, FBA delivery costs, platform commissions, withdrawal rates, etc. Among them, profit = current price – cost price.
Various types of profit products: The reasonable profit margin is 20%-28% for air transportation and 30%-45% for sea transportation. Generally speaking, there are three types of stores, namely: 1. Small products: Purchase price 10 yuan, selling price 9.99 US dollars, profit 4 US dollars / 24 yuan (air freight red bill, the first choice for small sellers). Profit: low investment, fast turnover, more cost-effective output. Disadvantages: products are difficult to find and competition is fierce. 2. Large products: Purchase price 100 yuan, selling price 40 US dollars, profit 10 US dollars / 60 yuan (sea or rail transportation is the first choice for large and medium-sized sellers). Profit: products have barriers to avoid competition from most small sellers, and profits are high. Disadvantages: slow turnover and large investment. 3. Medium-sized products: Purchase price 50 yuan, selling price 35 US dollars, profit 7 US dollars / 42 yuan (air delivery combined with rail and sea transportation). Moderate profit, moderate investment, moderate turnover speed, and moderate competition.
Third, look at sales: “Everything should be comprehensive. You can’t just look at the sales of one product, otherwise there will be traps.” Sellers should choose multiple products for measurement. How to measure sales? 1. Use JS to see monthly sales; 2. Use data pulse to see sales every day; 3. Add shopping cart inventory subtraction method to see sales. In addition, the seller’s test time is at least two weeks, and the current season or holidays should be considered.
Fourth, look at trends: Sellers can select the corresponding website, time and multiple keyword dimensions through Google Trends to view trends and deploy one month in advance. For example, if the hot selling season is April-July, then the seller should ship in March, measure the increase in traffic in April, and push rankings in May. , Set sales targets and profit targets from June to July to harvest results.
Fifth, consider product differentiation and innovation: The products on the platform are relatively comprehensive at present, but in Skyla’s view, sellers still have opportunities. How to innovate products? How to make it easier for customers to use? How to reduce costs and prices? Etc., these are points that sellers can reconsider.
Sixth, risks: namely certification and brand. No matter how much the platform needs to provide certification, you must choose high-quality suppliers. At the same time, it is also recommended that sellers do not touch these risks; on the other hand, do not touch the keywords of brand labels, such as “for”, “with”, etc., otherwise it is easy to cause infringement.
Seventh, investment and income stage: the first 60 days are the investment stage; the last 60 days are the income stage. Therefore, 60 days is a very important node.