1. Optimize product descriptions based on customer comments, reviews, and feedback
Product description optimization requires product-by-product analysis, and the direction of optimization depends largely on customer reviews and other feedback information. Summarize the reasons for negative customer reviews and optimize product descriptions in a targeted manner, so as to effectively reduce indicators such as refund rates.
For example: If customers generally say that the product is small, the size can be stated in the first sentence of the detailed description so that customers can more effectively choose the right product.
2. Optimize details after product changes
We need to continuously upgrade the product itself to enhance its competitiveness. A good product description should have the following characteristics.
(1) Grasp the psychology of consumers and display the characteristics of the product.
(2) Use separate keywords to describe each product to improve the optimization effect.
(3) The writing should be fluent, and the grammar, structure, and wording should be the most professional.
(4) Improve the organization of product introductions, add useful information to product introductions, and increase readability.
In addition, many times, some of the selling points and characteristics of the product cannot be shown through pictures, especially in terms of materials, so the description is an extension of the picture and a way to further introduce your product.
Price optimization
1. Price changes during the product cycle
Any product will have a life cycle, and hot products are no exception.
How to reasonably price products in each cycle to achieve the highest overall profit? The product cycle is generally divided into four stages: new product period, sales growth period, hot product period, and decline period.
?New product period: At this time, the price needs to be determined based on the same type of products.
?Sales growth period: Try to consider the coefficient of variation between product price and sales volume, and try not to adjust the selling price.
?Hot product period: At this time, competitors of similar products have already poured in, and price wars have begun. It is necessary to appropriately reduce the selling price to ensure the sales of the product and ensure that the traffic entrance is occupied.
?Decline period: The profit of products entering this period is already very low, so they must be sold at a low price under controllable conditions until the product is abandoned when there is no profit.
2. Set a price change range
The price setting of the product needs to have a range. For products with different life cycles, we need to set prices based on market feedback, but the bottom line is zero-profit sales. Zero-profit sales generally occur in the decline period of the product, which is convenient for clearing inventory. If the product has entered the decline period, you need to be particularly vigilant about the refund rate of the product to avoid unnecessary losses in profits. The high point of the price is generally the new product period. The pricing of products in the new period is basically based on the selling price of similar products and should not be too high. The pricing of products in the growth period should be slightly lower than the market average price of the product in order to obtain a higher conversion rate and increase the platform push volume. The pricing of products in the explosive period should be based on the minimum profit margin set by the merchant itself, and should be set as low as possible in the market for the product to grab the existing market share of the product.
3. Adjust the selling price based on the data
It is crucial to control the price during the hot period. It is necessary to do data statistics for the main competitors (existing market data analysis software websites can be used, such as Haiying Data, Miku.com, etc.), analyze the selling price and weekly sales of the other party’s products, and then compare them with the selling price and weekly sales of your own products to get the most reasonable selling price to maximize profits. For example: the actual weekly sales volume of a product in the store is 700 pieces, the average customer price is US$30, and the profit margin is 30%. It can be concluded that the weekly profit contribution of this product is US$6,300; the weekly sales volume of the same product in the competitor’s store is 1,000 pieces, and the average customer price is US$28. Under the same cost, the weekly profit contribution of this product is US$7,000. Under the premise of an acceptable profit margin, lower the selling price of the product to increase the weekly profit contribution of the product and maximize profits.