Full analysis of Amazon product development elements
On the Amazon platform, the success of product development is directly related to the seller’s business development. This article will explore the key factors of Amazon product development from multiple perspectives to help sellers better position their product selection strategies.
Product pricing and product selection strategy
Low-priced products
Low-price products ($1-$30) usually have low technical thresholds, are easy to increase sales, have weak brand dependence, and have low return rates. For sellers with limited funds, it is a good choice to choose low-priced products and operate them for a long time, and to build brand potential through fan operations.
Highly priced products
High-priced products ($50-$100 and above) require higher investment in technology and brand building, such as sweeping robots. These products are more dependent on brand stories and KOL promotion, and are converted into transactions through off-site traffic.
Market Capacity Positioning
Red Sea Category
Red Ocean categories refer to highly competitive markets, such as wireless Bluetooth headsets. Sellers need to have strong operational capabilities and resources to stand out.
Blue Ocean Category
Blue ocean categories refer to markets with less competition but huge potential, such as marine flashlights. Entering such markets requires a high degree of market acumen.
Analysis of number of comments
The number of reviews on an Amazon link reflects the level of competition for a product. If the average number of product reviews in a certain category exceeds 1,000 or even nearly 10,000, then the competition in this category is relatively high. The sales of a category can be judged by the review rate.
The importance of category scoring
A category average rating below 4 stars may indicate problems within the industry as a whole. A high score (4.5+) means the supply chain is mature and suitable for innovative design and development.
Considerations in seasonal product selection
Seasonal products such as heated clothing surge in sales during the peak season, but may have almost no sales during the off-season. It is recommended that novice sellers start with regular products and gradually accumulate experience before moving to seasonal products.
Technical threshold positioning
Products with high technical thresholds can form competitive advantages. Electronic products can achieve high premiums through functional upgrades or design optimization, while non-electronic products are prone to falling into price wars.
Hot and cold market positioning
Although the sales volume of unpopular products is not large, the profit margins are ideal. Popular products are sought after by consumers and sell quickly.
Differentiated innovation
Product differentiation through packaging design or bundling can help you stand out from the competition.
Cargo volume considerations
Small size and light weight products help shorten the logistics cycle and reduce costs.
Scale positioning
Select products based on the strength of the seller. Small sellers should choose products suitable for their own scale.
To sum up, Amazon product development needs to comprehensively consider multiple dimensions such as pricing, market capacity, number of reviews, category scores, seasonality, technical thresholds, market popularity, differentiated innovation, cargo volume, and seller size. . By carefully analyzing these factors, sellers can formulate more scientific and effective product selection strategies, thereby occupying a favorable position in the fierce market competition.