Amazon Product Selection Strategy: How to develop an effective product selection plan based on price range
Product selection is a crucial link in the operation of the Amazon platform, and the price range of the product plays a core role in the product selection process. A reasonable price strategy can not only effectively attract traffic, but also promote sales. When formulating a product selection plan, sellers need to select the corresponding product price range based on their own financial situation and market demand.
Ideal price range
Generally speaking, the suitable product price range should be between 10 and 50 US dollars. This price range has multiple advantages: first, it can stimulate the desire of potential buyers to purchase; second, for sellers with less capital, the threshold in this range is relatively low, making it easier to enter the cross-border e-commerce market. At the same time, production costs are relatively low, allowing sellers to obtain higher profit margins.
When considering the specific price range of product selection, sellers should calculate the actual cost of the product. The profit of a single product on the Amazon platform is composed of many factors, including sales, delivery fees, platform commissions, etc. For example, if an item sells for $50, the platform commission will be about $3, and the delivery fee will be about $11. Therefore, from these data, reasonable costs and profits can be calculated.
In addition, international logistics costs are also factors that sellers must consider. As a higher-cost option, express transportation is suitable for emergency replenishment; while air delivery and sea delivery are relatively cheap and long-term options. The cost and timeliness of each transportation method are significantly different.
Funding status and product selection strategy
The financial status of the seller not only affects the selection of products, but also determines the price positioning of the selected products. For sellers with less capital, it’s smart to look for items that have a lower unit price, are small, lightweight, and easy to ship. The demand for these products in the market is relatively stable, and rapid delivery and replenishment can be achieved. In contrast, sellers with abundant funds can choose high-unit price products that are large, heavy and require sea transportation. The market competition for these products is relatively small and the risks are relatively controllable.
In addition, the price range of product selection is not static. As sellers grow and adjust their operating strategies, sellers can flexibly change the direction of product selection based on market feedback. Some successful cases show that sellers with sales of over 100 million mostly use low-unit price products of less than 10 US dollars and achieve considerable profits through large quantities. Other small sellers, despite limited funds, may choose to charge no less than US$200 per item to achieve profitability through high unit profit.
To sum up, the product selection strategy of the Amazon platform is closely related to the financial situation. Sellers need to flexibly adjust the product price range according to their own resources and market conditions to achieve the best operating results. With the popularity of online shopping, reasonable product selection strategies will continue to play an important role in future market competition.