A comprehensive guide to the underlying logic of Amazon product selection

To make effective product selection on the Amazon platform, you not only need to understand market demand, but also need to have certain strategic thinking. This article will integrate knowledge from multiple aspects such as “determining categories”, “priority of rigid needs”, “breakthrough of differences” and “start-up budget” to help sellers better formulate product selection strategies.

1. Determine the classification

On Amazon, there are more than 20 first-level categories, and each category has multiple second-level, third-level or even fourth-level sub-categories. Therefore, determining the target category is the first step in product selection. In addition, sellers need to pay attention to classification review to avoid listing restricted or prohibited items. Specifically, we need to pay attention to the following aspects:

• Classification review: Ensure that the account performance meets the standards (defective rate <1%, cancellation rate <2.5%, late delivery rate <4%), and prepare brand authorization letters and purchase invoices .
• FBA restrictions: Even if it passes the classification review, it may not be included in the warehouse due to FBA restrictions. Sellers should learn more about the relevant regulations through “FBA product restrictions”.

2. Rigid needs first

Choosing products that are in urgent need means that consumers will continue to buy them no matter how the price changes. For example, clothing, food, housing, etc. are all rigid needs in the traditional sense. However, with the improvement of living standards, people’s consumption psychology is also changing, from “I need it” to “I want it”. Therefore, sellers must not only consider the functional needs of the product when selecting products, but also pay attention to its emotional value.

3. Difference breakthrough

In the case of serious homogeneity, how to make products stand out is crucial. Product iteration usually goes through a process from functional innovation to material improvement, and finally settles on design innovation. Sellers can achieve differentiation by adjusting product quantity, installation methods, accessories or usage scenarios. For example, an ordinary clothes hook can be given new meaning by adding a cute sticker.

4. Start-up budget

Financial strength directly affects product selection strategy. Hoarding high-priced items can cause greater financial stress. Therefore, it is recommended to set a reasonable investment amount in the early stage of product selection and choose products with high cost performance. At the same time, drawing on the ideas of “Tian Ji Horse Racing” and choosing products with “just right” quality can not only ensure cost control, but also meet consumer expectations.

Five. Three underlying thinking

You just need to win

It is easier to succeed if you choose products whose functional requirements are greater than their appearance attributes. For example, screwdrivers are more “rigidly needed” than clothes.

Tian Ji horse racing

By accurately positioning the target market and setting reasonable prices, we avoid direct competition with high-end products. For example, provide a more cost-effective product mix.

Stay away from infringement

Avoid selling products that may infringe on the intellectual property rights of others and avoid legal action. When selecting products, you should strengthen your understanding of the products and use the intellectual property query website to verify relevant information.

In summary, Amazon product selection needs to comprehensively consider factors such as market demand, product characteristics, financial status, laws and regulations. By following the above principles, sellers can stand out in the fierce market competition.