Lazada product selection strategy and cost management: key investments to improve e-commerce sales

The importance of product selection and market analysis

Product selection is crucial to the success of cross-border e-commerce. Many successful cross-border e-commerce sellers have precise and unique vision for product selection. They attach great importance to controlling the supply chain and focus on products. In order to succeed on a platform like Lazada, sellers need to consider multiple aspects such as the product’s market capacity, profit expectations, cost and quality.

Market Capacity Analysis

First, it is crucial to understand market capacity. Sellers need to start from the perspective of market capacity, understand the relationship between supply and demand, grasp consumer demand points, and ensure that products meet the development needs of the market. For novice sellers, choosing products is not an easy task. Even experienced market players need to conduct research to stand out in the fierce competition for product selection and create hot products.

Profit expectations

Secondly, profit expectations are also an important factor to consider when selecting products. It is best to ensure that the gross profit of the selected products is above 20%. Products with large absolute profits are worth choosing, especially for sellers who don’t have much financial advantage. Profits can support sellers to go further. In addition, the refund rate of the product (2%~15%), cost, etc. need to be considered. After comprehensive calculation, the net profit is preferably above 7%~8%.

Cost, quality and supply chain

Finally, cost, quality and supply chain are also factors that cannot be ignored. Does the supplier have the ability to continuously improve products? Can this product continue to be sold through continuous optimization? These are all issues that sellers need to consider.

Product selection skills and practice

Reference sources for product selection

Merchants can refer to two reference sources for product selection, inside and outside the Lazada site. Reference sources on the site include the category ranking column under the product description, which helps to obtain the most popular products on the current platform. Off-site reference sources include hot-selling products on social media platforms such as Tmall and Douyin.

Tips for product selection

• Market analysis and product selection: Analyze the development needs of the market through market capacity, supply and demand relationships, and consumer demand points to determine whether a product meets market demand and select products suitable for market development. .
• Self-analysis and product selection: Understand yourself deeply and choose products that suit you so that you can more fully understand these products and dig deeper into their market value.
• Competitor Analysis Selection: Understanding your competitors is the key to defeating them. During the product selection process, it is necessary to study the situation of competitors, avoid imitation and blind following, understand the competitors and make differentiated choices.
• Negative review data analysis and product selection: By analyzing the negative review data of popular products on the platform, we can understand consumers’ needs and dissatisfactions. Use this data to improve products or avoid products with high negative reviews.

The importance of product selection fees

Lazada product selection fees refer to the fees sellers pay to display their products on the Lazada platform, including but not limited to listing fees, booth fees, promotion fees, etc. The main function of the product selection fee is to provide sellers with the opportunity to display their products, so that they can attract more potential buyers and promote sales growth.

How to reasonably manage product selection costs

• Set a budget: Before starting sales, sellers should set a reasonable budget for product selection costs to avoid overinvestment or insufficient funds.
• Strategic selection: Choose appropriate product selection fee items based on the product’s market competition and target consumer needs.
• Continuous optimization: Regularly evaluate and optimize the effectiveness of product selection fees.
• Competitive Analysis: Pay close attention to your competitors’ product selection and cost strategies.

By investing reasonably in product selection costs, sellers can increase product exposure and promotion, optimize product display effects, and obtain valuable sales data and professional support. However, sellers also need to reasonably manage product selection costs to ensure the effectiveness and return on investment.