Products are the core of Amazon, and the grasp of the supply chain is the core of the core. Sellers need to find high-quality products, which is the first guarantee, otherwise it is difficult to become a “hot item”. After the product is made, the most feared thing is out of stock, so deepening the supply chain becomes the key. It can be seen that it is very important to do a good job in product line planning for Amazon store operations.
Amazon is a platform that focuses on products and pays little attention to stores. What kind of products to choose for sale is a question that sellers need to think about all the time. If the product selected by the wife’s family has no market, no matter how much effort is made, there will not be much gain. Therefore, for sellers without factories, these three things need to be done before selecting products: product development ideas, understanding the market capacity and trends of the product, and product research.
Product development ideas
Product development ideas are like direction indicators, guiding sellers’ product selection. If sellers have neither the basis for product selection nor the logic of product selection when selecting products, all choices are based on feelings alone. The result of this way of selecting products is that they are always busy choosing and never stop publishing. There are many goods in the store, but there is no product with good sales. It can be seen how important product development ideas are. There are three aspects to the development of Amazon products: starting from demand and following the market; aiming at profit; and focusing on a certain category.
(1) Starting from demand and following the market
Amazon is a product-oriented platform. Should sellers choose products that they are familiar with and have resources for? It makes sense not to make unfamiliar products, but sellers need to consider whether there is a large enough market space for their products. If there is, it would be the best; if there is no market but they still develop products, it will be a waste of time and resources.
In addition, sellers should pay attention to overseas markets. Some products are unsalable in China, but may sell very well in overseas markets. If sellers want to do a certain site on Amazon, they should understand what kind of products the market facing this site needs.
(2) Aiming at profit
There is no shortage of high-quality products on the Amazon platform, and there are also many Chinese sellers. Many sellers have established brands for protection, and the competition is very fierce. Whether to choose red ocean products or blue ocean products is a product selection problem faced by novice sellers.
The red ocean industry is highly competitive, but it is not without business opportunities. The reason why an industry or a category becomes a red ocean is that its scale and market demand are large enough. If sellers can make product differentiation in details, they will definitely have profit opportunities.
The competition in the blue ocean industry is relatively small, but the search volume is less than that of the red ocean. If sellers enter the blue ocean market, they need to do more exploration and undertake more development work, and the blue ocean market will not exist forever. The key to choosing red ocean products or blue ocean products is whether the product has profit margins.
(3) Focus on a certain category
On the Amazon platform, grocery stores with multiple SKUs have no competitive advantage under the platform’s A9 algorithm (a search formula that can scan, read, and classify platform data and provide assistance to sellers based on the results of data analysis). AliExpress, eBay and other platforms can win by distributing more products and volume, but Amazon is different. Products must be high-quality and sellers must operate in a refined manner. Therefore, focusing on a certain category is very important for sellers to select products.
In addition, when new buyers open a store in the early stage, their capital, manpower and other resources are limited, and it is impossible to put a large number of products on the shelves at the beginning, so sellers need to focus on a certain category when entering the industry. If sellers do not know the market of the category, they can browse the sales of subcategories on Amazon, including market research on stores with better operating conditions and products that sell well.