What kind of products sell best in cross-border e-commerce? What factors should be considered when choosing products? Which channels should be used to choose products? What issues should be paid attention to when choosing products? These are all issues that cross-border e-commerce companies should consider. Only by fully grasping these basic issues can cross-border e-commerce companies gain an advantage in the fierce competition.
8.1 Product selection basis
The quality of product selection directly affects product sales. We discuss how to choose products from the perspectives of market capacity, competition heat, profit margin, resource advantages, etc. to avoid detours.
8.1.1 Market capacity: an important reference for creating explosive products
When cross-border e-commerce companies choose products, they must first consider how big their product market is, that is, whether their products are needed by people and by which groups of people.
1. Number of consumers
Each product has its fixed user group, and the number of different user groups varies greatly. For example, the consumers of lipstick are mainly women aged 18-60, while school bags are targeted at students.
2. Quantity of goods
On the basis of having enough consumers, the quantity of goods will also affect the size of the market. As consumers continue to buy, the commodity market will continue to expand.
3. Consumer willingness to buy
If consumers have no willingness to buy the company’s products, or their willingness to buy decreases, it will cause losses to the company. Sellers can actively understand customers’ ideas, determine what target customers really need, what they don’t like, what they care about, and whether these products can meet their purchasing intentions.
4. Consumer purchasing power
The price of the merchant’s goods is a measure of the purchasing power of consumers. If the price of the goods is too high and consumers cannot afford it, then the purchasing power will also be reduced. Take the Eufy Genie robot product on the ANKER e-commerce platform as an example. Its functions are the same as those of the Echo Dot voice robot, one of Amazon’s most famous self-operated products, including access to the Alexa voice assistant and the ability to accept more than 15,000 voice commands, but the price is $15 cheaper than the Echo Dot voice robot. Therefore, for consumers, ANKER’s robot is more in line with their purchasing power.
The four factors of consumer quantity, commodity quantity, consumer purchasing intention and purchasing power are mutually restrained and complementary, and jointly affect the market size. Therefore, when companies choose to engage in cross-border e-commerce, they must fully consider whether their products have a good market environment and market size.