1. Product selection reference indicators
Before selecting products, we will formulate a target product standard based on the product selection logic, including:
?Target price: $25;
?Profit margin: 35%;
?Keyword search volume: 200-0000;
?Competing product ASIN evaluation: “500+” less than 5;
?Category sales ratio: relatively scattered, not concentrated on 2~3 ASINs;
?Listing monthly sales: 5000 pieces/month>3, and the number of reviews <100;
?Differentiated entry points;
?Standard size and weight;
?Sustainable brand product derivative series;
?Avoid too many fashion elements.
This standard is just a framework for sellers to refer to, not the only standard. You can refer to it in actual combat and summarize your own product standards.
2. Explanation of Terminology
1) Seller Type
Start-up Sellers: Sellers with a small budget, seeking target products with low returns and low risks;
Commercial Sellers: Sellers with sufficient budgets and long-term store management plans;
Mature Sellers: Sellers with rich operating experience, with a lot of money, seeking target products with high returns.
2) Niche Scoring
ZonGURU’s product selection data includes different reference indicators.
Scoring criteria: 80%~100%, very high; 60%~80%, high; 40%~60%, medium; 20%~40%, low; 0%~20%, very low.
Buyer Demand: Through big data analysis of the probability of users buying products in this category, the reference indicators include the monthly search volume of this keyword and the monthly sales brought by the natural traffic of the keyword’s listing.
Competitive opportunities: Through multiple data analysis, the competitiveness of the classified products selected by users and the degree of optimization of competing products are analyzed. Reference indicators include the Listing strength score and the ratio of strong and weak products among competing products. Among them, the Listing strength analysis refers to the category product evaluation, title, picture, features and A+ page ratio to calculate the competitive opportunities. The lower the Listing strength score, the more opportunities there are to stand out. For example, if the competitive opportunity of the embedded category is 100%, it means that the category has a great chance of success in competition and there are no strong competing products or brands.
Project budget: Estimate the project startup cost for the first three months, referring to the three-month inventory cost required for the average monthly sales of the category product keyword homepage listing. The startup capital for a brand is generally recommended to be 50,000 to 100,000 yuan. If the score is high, it means that the stocking cost for the first three months is relatively good. Otherwise, it may require a relatively large amount of capital investment.
Input-output ratio: The probability of investment profit is calculated based on the sales profit, sales speed and sales price of existing category products, that is, the input-output ratio (ROI). The higher the value, the better the opportunity.
Keyword search volume: the search volume of the keyword with precise matching within 30 days.
Average order sales: the average sales of the top 25 ASINs with the keyword ranking.
Average sales price: the average sales price of the top 25 listings with the keyword ranking.
Average number of ratings: the average number of reviews of the top 25 listings with the keyword ranking.
Average rating star: the average rating star of the top 25 listings with the keyword ranking.
Average revenue amount: the average monthly revenue of the top 25 listings with the keyword ranking.
Start-up budget: guarantee the sales volume of the homepage for 3 months, refer to the 30% cost budget.
Average listing strength: based on the optimization degree of the listing title, selling points, pictures, user reviews, A+ pages, etc. and the rating given by ZonGURU, the higher the score, the higher the conversion rate of the listing.
Amazon logistics ratio: the proportion of FBA sellers in the category products.
Ad bidding: keyword estimated CPC.
Keyword sales: estimated monthly sales of the top 25 listings with the keyword ranking.
Keyword title weight: the proportion of listing titles containing this keyword.