After learning so many product selection methods, the essence is to choose blue ocean products with market potential. However, it does not mean that after selecting the product, you can “do whatever you want” and do whatever you want. After all, this is a business. Risks need to be properly controlled. Every seller is pursuing hot products, hoping that their products can make quick profits. Of course, the way to make profits is to create hot products and continuously and steadily develop new products, but more importantly, how to control overseas warehouse inventory to a reasonable level. Just imagine, When you ship 3 products, after 2 months of operation and promotion, one of the products has exploded in orders, while the other two products only have a few orders a day. You will naturally be happy for the products that continue to sell orders, but how many orders a day? Products may take 2 to 3 months to sell out, and may even become unsalable “dead inventory” in the later stages. So, overall, the profit from a single product is shared equally with the cost of unsalable items. In the end, it means no money was made! Therefore, there are some bottom-line principles that sellers need to resolutely abide by.
1. When developing new products, a single product should have as few SKUs as possible
If a product has 20 SKUs, we need to analyze which styles or colors of competitors are best-sellers , select up to 3 SKUs to ship with FBA. Only when the sales of these best-selling models increase and have stable sales, can other best-selling models be gradually added.
2. Choose more different types of products
This may sound contradictory to the first point, but it is actually fundamentally different. After careful selection, the products will eventually be tested in the market. Reducing the number of individual products is to reduce the amount of investment in the early stage, while adding different types of products is to increase the probability of success in creating a hit product in the shortest possible time.
3. When using FBA to ship goods, the quantity should follow the principle of greater than 20 but less than 50 and the capping principle of 2,000 yuan.
When purchasing new products, even if the unit price is very low, the purchase quantity will be No more than 50, but no less than 20. If the unit price is very high, the purchase amount should not exceed 2,000 yuan. Of course, this is only suitable for small and medium-sized sellers with limited funds. If you have a few million dollars in funds, you can increase this limit. After all, “dead inventory” is inevitable for every seller. Minimizing risks in the early stage is a reasonable investment method.
In daily operations, even if there are several products with stable sales, inventory needs to be dealt with at any time, so that they cannot become slow-selling products, and cannot be out of stock, thus affecting the ranking. Only by doing a good job in supply chain management and optimization can Amazon sellers grow from new sellers to old sellers.