Full analysis of Amazon’s product selection strategy: from market capacity to consumer demand

For the operation of Amazon stores, product selection is a crucial step, and its importance even exceeds the subsequent operation work. Correct product selection can not only help merchants seize market opportunities, but also ensure store profitability. This article will discuss the factors that should be considered when selecting products on Amazon from multiple perspectives.

Market Capacity

Market capacity determines the potential sales of a product. A larger market means more buyers, higher sales potential, and a greater possibility of producing hit products. In order to evaluate the market capacity of a certain type of product, sellers can search for keywords on the Amazon platform to find the product links most relevant to the keyword, and analyze the sales data of these products in the past 30 days. In this way, the market size of this type of product can be estimated and more informed product selection decisions can be made.

Profit considerations

The ultimate purpose of opening a store is to make a profit, not charity. Therefore, the profit margin of the product must be taken into consideration during the product selection process. In the fierce market competition, the profit margin of some hot-selling products may not be high, and may even lead to losses. For small sellers, they are more inclined to choose products with low sales volume but high profit per unit. In addition, conducting market research to understand Amazon’s fee structure and calculating costs, advertising investment, and expected profits are also necessary steps.

Product life cycle

Each product has its specific life cycle, including the introduction period, growth period, maturity period and decline period. Seasonal products tend to have a shorter life cycle, which requires sellers to accurately grasp details such as product launch time and promotion timing. Otherwise, once the best sales period is missed, it may lead to inventory backlog and affect capital turnover.

The importance of the Amazon platform

As a cross-border e-commerce seller, you first need to realize that product selection means selecting products that can attract Amazon users. This means that the selected products should be able to meet the diverse needs of users. A deep understanding of this can help sellers develop more effective product selection plans.

Analysis from three perspectives

Market demand

It is crucial to choose high-quality items that have real demand in the market. This type of product is usually popular among consumers because of its reasonable price, aesthetic appearance design, reliable quality and practical function. Not only can they bring revenue in the short term, they can also form a stable customer base and generate sustained sales growth.

Consumer Perspective

It is also essential to think from the buyer’s perspective. Ask yourself: Why would a customer buy this item? Is it to meet a certain need in daily life or to solve a specific problem? Only by truly understanding the actual needs of consumers can we serve them better.

Product value

Finally, the commercial value of the product itself must also be evaluated, including but not limited to its quality level, appearance design, and functional features. These are all important factors that determine whether a product can successfully enter the market.

To sum up, Amazon product selection is a complex task. It requires sellers not only to realize the significance of the product to the platform, but also to comprehensively consider multiple dimensions such as market demand, consumer preferences and the value of the product itself. . Only in this way can we stand out in the fierce market competition and win the trust and support of more customers.