From the perspective of product pricing, some sellers never make products priced below $30, because low-priced products often fall into price involution and have low profits, but on the contrary, some sellers never make high-priced products and prefer low-priced products. Why? Let’s analyze low pricing and high pricing.
Low Pricing
Low-priced products are basically products priced between $1 and $30. This type of product has a low technical threshold, sales are easy to increase, brand dependence is weak, and the return rate is not high. In particular, some products with very low costs, although the investment is not much, the ROI will be relatively high. If sellers can operate a low-priced product with a relatively stable long-term and reasonable ROI, it is also a good direction. Amazon sellers with limited funds can seize the opportunity if they can develop several products with advantages at this price. It is easy to make some small and beautiful products, adhere to long-term fan operations, and easily form a good brand potential.
High Pricing
High-priced products are basically between $50 and $100, and more are above $100. For products in this price range, customers will pay more attention to the product brand, so the operation mode of high-priced products is different from that of low-priced products. The operation mode of high-priced products pays more attention to the operation of KOL. Produce a large amount of product content or brand stories outside Amazon or other offline channels, invest a lot of promotion costs, and import traffic to Amazon to facilitate transactions.
Take straws as an example. The product cost is not high. Under the condition of ensuring product quality, it is easier to sell at a low price by seizing the product cycle. The average monthly sales of the TOP100 nodes in the product category are more than 1,200, and the conversion is mainly formed by the traffic within the Amazon site. The unit price of sweeping robots is high, and they have more product technical thresholds. The monthly sales of the TOP100 nodes in the product category are more than 1,800. The promotion method mainly relies on brand building and Internet celebrity recommendations, and the conversion is mainly formed by the traffic outside the Amazon site.
Some sellers with many years of Amazon operation experience have certain KOL celebrity resources or other industry promotion resources. This type of seller will choose some blue ocean categories with high prices and high profits. The purpose of this product selection is to avoid the competition in the red ocean and sell products in categories that people don’t usually pay much attention to. Although the sales volume may be less than 10 orders a day, or even lower, the profit per order is nearly 100 US dollars. At the same time, the return rate is well controlled. Compared with many sellers fighting in the red ocean, this kind of product positioning must have the technical threshold of the industry, or advantages that other Amazon sellers do not have.