Amazon Product Selection Strategy: Avoiding Product Traps and the Importance of Data Analysis

When selecting products on the Amazon platform, sellers often encounter various problems. These problems will not only affect the sales performance of the products, but may also lead to serious consequences such as inventory backlog or capital chain rupture. The following are some common things to pay attention to during the product selection process.

Product life cycle management

Short life cycle or seasonal products

When choosing products with short life cycles or seasonal products, the most important thing is to grasp the timing of entering and exiting the market. This type of product requires sellers to plan in advance, enter the market when the market first begins to accept new products, and exit quickly when sales reach their peak. Otherwise, once you enter a recession and fail to adjust your strategy in time, you will face the risk of a large amount of unsaleable inventory.

Data analysis and decision-making

Comprehensive analysis of product selection data

The data used when selecting products should be comprehensive and accurate. Sellers should focus on product data under normal sales conditions rather than outliers. In addition, when conducting competitive product analysis, products with similar product types should be used as reference objects, so as to ensure that the conclusions drawn are closer to the actual situation.

Brand Monopoly Analysis

When a certain market segment is dominated by a few big brands, it means that there are high barriers to entry in this field. Even if the price advantage is obvious, it may be difficult to break through the existing pattern. Therefore, before deciding whether to enter a certain market, it is important to conduct an in-depth assessment of the brand’s monopoly status.

Price range analysis

Different categories of goods usually have their own specific price acceptance ranges in the market, especially products that focus on quality and safety, such as maternal and infant products. By studying the consumption habits of the target user group and finding out the most acceptable price range, it will help to formulate a more competitive pricing strategy.

New product promotion strategy

Market promotion of newly developed products

For newly developed products, due to the lack of consumer awareness, it may be difficult to effectively increase the conversion rate by relying solely on on-site promotion. At this time, appropriately increasing off-site marketing activities and enhancing brand exposure will help build consumer trust and thereby promote sales growth.

Fund management planning

Cost and benefit estimates

Before starting any new project, an accurate estimate of the required investment costs and expected returns should be made. Including but not limited to purchase costs, advertising fees and other expenses. Only by ensuring that there is sufficient liquidity to support the entire sales cycle can supply chain interruptions or other business crises caused by tight capital chains be avoided.

By grasping the above points, Amazon sellers can better avoid potential risks and achieve efficient and steady development. Of course, during actual operation, flexible adjustments need to be made based on specific conditions.