[Background of the problem]
Before putting any product on the shelves, you need to understand the market, whether someone has sold it, and whether there is a certain market demand. If you don’t even have an AliExpress account, you don’t need to consider the product category. Similarly, if a product is rarely sold in the market and no one is looking at it even if you open a through train, it is better to give up decisively. Liu Jing analyzed the industry intelligence and found that the women’s clothing category is a good choice, but Liu Jing thought that the world of women’s clothing is complicated and diverse, and he needs to continue to study which products in the women’s clothing category are more popular. Which tool does he need to use?
[Preparation required]
A registered and certified store has been completed to select the category.
[Operation skills]
Analyze the supply and demand index. Open the “Data Horizontal”-“Product Selection Expert” tool and select the clothing category. There are two tools: hot sales and hot searches. Hot searches are suitable for developing new products and exploring new business opportunities; hot sales are suitable for finding explosive products. Select the “hot sales” tool here. The larger the circle, the larger the market size, and the redder the circle, the more intense the competition.
Download the original data and you can see many entries and data
When selecting products, sellers hope that the products they sell have a large market, customers love to buy, and the competition is not fierce. Therefore, they will choose products with a large transaction index, a high customer purchase rate and a small competition index. Therefore, we can set the product selection index X, X=transaction index/browsing payment conversion rate ranking/competition index. This can be operated using formulas in EXCEL. The higher the X index, the higher the transaction index, the higher the purchase rate, and the smaller the competition. Through the above processing, we get a data chart with the order of product selection index. It can be seen that the dress, which originally had the first transaction index, has now become the sixth, and there is a big gap with the first panties. The reason is: we need to adjust the weight of the parameters according to our own situation. The transaction index of dress is not much higher than that of panties; the payment conversion rate of dress is not as high as that of panties, and the payment conversion rate of panties is the first in this category; the competition index of dress is too large, far higher than that of panties. At this point, we will initially think that panties are a more ideal product. However, in practice, it should be noted that the weights of the transaction index, payment conversion rate and competition index are not necessarily the same. For example, if I own a clothing factory and have a supply advantage, the most important thing for me is the transaction index, because I have a factory, I am competitive, and I am qualified and capable of becoming a top seller in the industry. I must pursue the top of the sub-category with the largest transaction volume. So my product selection index should be X=2X transaction index/browsing payment conversion rate ranking/competition index, that is, amplify the transaction index.
[Related links]
The category with a larger product selection index is easier to do;
After sorting by product selection index, it is necessary to study the reasons for such sorting, so as to better understand the market;
It is necessary to adjust the weight of the parameters according to one’s own situation.