1, market capacity
Market capacity is also market demand, and output is determined according to demand.
Sellers should not think that they have discovered a new continent just because there are few houses. Some products look at only about 2000 houses, and you can reach the home page by brushing a few orders. However, due to their very small market capacity and limited demand, it is impossible to make explosions no matter what they do.
Market capacity can be judged by the following methods:
2, industry category analysis
Doing cross-border selection is just like doing the college entrance examination. Whoever can guess the questions in the college entrance examination paper and make preparations in advance is more likely to get high marks. The same is true for cross-border product selection. If you can find the potential explosion category first, you may be the next big seller. Let's analyze the popular categories in recent years.
3. Category node selection
When the seller chooses a product, he can analyze the product through the category node first.
For example, there is only one best-selling LED candle lamp in one category during Christmas. Sellers can use keywords to search the top five sales and which categories of products can achieve the best sales. If some goods sell for 10 a day, in your most accurate category at present, and in a small category, it is out of 1000 or out of 100, the seller can analyze whether there are adjacent categories that can achieve the best sales in 10, and strive for the best sales of that category. At the same time, sellers should not change categories at will. One of your categories must be responsible for accuracy, and the other category is to get the best-selling logo. This is a kind of operation skill.
Second, the product analysis of product selection dimension
1, search heat
The demand for products can be seen through the search heat. Through keyword search, you can see the monthly search volume of buyers, which represents the demand.
After understanding the buyer's market demand, choose products that are in short supply in the market. What is the shortage of products? That is to say, the search volume of buyers is many times larger than that of current competitors, usually a product comes with its own traffic.
2. Product trends
People change their clothes with the changes of the four seasons, and products are produced according to different needs.
For example, a student said that he used all the operating skills that the instructor said, but the product just didn't exist. Open his link and have a look. What kind of product is it? Last February, 65438+, he sold an outdoor stainless steel kettle. The tutor said that you took your core keywords to Google to see how many people needed this thing this season, and then he went to see it and said that the traffic has fallen to a low point. The reason why the student didn't have an order was that he was out of season. The most popular season for outdoor products is around August-65438+10, and 65438+February is a time of ice and snow. Who will use a stainless steel kettle outdoors?
Therefore, trend analysis is very important. On the one hand, it can let the seller know the hot period of the product and how long it takes for the seller to prepare in advance before it can seize its traffic export. On the other hand, remind sellers to filter out products that are not suitable for the season and not to make wrong decisions in the wrong season.
3. Calculation of profit rate
Every Amazon seller knows that in order to achieve the desired effect, there must be enough profit margin. Therefore, when choosing a product, the seller must comprehensively consider the costs of all aspects, calculate the profit rate of the product, and comprehensively decide whether to choose this product.
First of all, we must be clear about the various expenses that we may face after joining Amazon. Aside from the most basic expenses of running a company (procurement, labor, water and electricity), we will all face these expenses from Amazon: store rent, commission, FBA fees, various settlement fees and so on.
Sellers can choose products with high unit price and profit, and it is recommended that the profit rate be at least 30%-50%.
After all, in the current fierce competition, Amazon's operation is no longer a one-dimensional advantage. In order to succeed in operation, we must make full use of various operational skills, many of which require capital investment. It is conceivable that a product with high profit rate and low absolute profit value is not enough to support the active operation mode of advertising in the station.
As the saying goes, knowledge is power, and knowing what products can bring us is the first step to calculate and maintain sufficient profits.
4. Pricing analysis
For example, many domestic fashion underwear brands want to do swimwear category on Amazon. The seller thinks that a good brand with good quality costs at least $25. The current market price of swimwear is between 10 and $20. So the seller has to give up, because the price range of the platform represents the buyer's preference. If it goes beyond the price range, the sales volume will be limited.
Because foreigners usually buy swimsuits in winter and summer, but they are all for vacation. Throw it away after use and buy it next time. Such a shopping habit is not feasible if the seller wants to make a product with brand quality and high price, and the price must be close to the market.
The price is not set by the seller, but determined by the market. Sellers should price according to the general price range in the market, not just according to their own costs, otherwise it will violate the market rules.
So how to price it? When you don't have a product in your hand and don't know the sales price, cost price and logistics cost of the product, you can compare it from some channels. Regarding the sales price of products, we can make a comprehensive comparison through some shopping platforms; About the ex-factory price of products, you can go to some B2B websites to have a look.
In our product selection and development outline, there are also formulas and analysis articles about product pricing, and sellers can check some specific formulas and analysis.
Third, the competition analysis of product selection dimension
1, competitive list analysis
First of all, sellers can know the shelf time of competing products. Generally, competing products that have been on the shelves for more than two years, if the star rating and sales volume are still high, we don't recommend you to make this product. Because if the product quality is not too great, the price is not high, the volume is small, and the top five categories have a certain maturity, the seller will have no advantage in doing it again. As a new seller, unless there are some new functions to kill it and subvert it, it can't be taken away.
In addition, sellers need to analyze the listing and copywriting of competing products before selecting products. Know yourself and know yourself, and you will win every battle. Sellers should evaluate the strength of competitors before choosing to make products. Are they experienced and skilled operators?
Take a pet product as an example. There are only two sellers of similar products in the market. When we went in to have a look, the picture was extremely low and the copy was extremely poor, so we knew that this was an inexperienced seller.
When the seller analyzes the strength of the other party and then makes a product, he is more confident to surpass its current sales. If your competitors are big brands in 3C category, don't compete with them head-on, because their brand effect will absorb most (90%) orders in this category.
2. Sales monitoring
Needless to say, why do competitors sell well? An important reason is that the product is popular and meets the current market demand. Of course, when the seller finds that the sales data of a product is very good, it depends on whether the product belongs to seasonal holiday products and whether these products still have market potential in the future. At the same time, we should also evaluate whether our own manufacturers have production capacity and how long it will take to produce and put on the shelves. It is necessary to consider whether the product still has sales potential after these times. At the same time, looking at which model and color of competitors' products sell best can help them choose products in the early stage and get new products.
If you encounter a product that only the top 5 sellers at all levels have sales and the top 20 have no sales, you should be cautious. Because sellers may not be able to push to the top 5, and then even if they push to the top 20, there will be no sales. This product is of little significance.
3. Retrospective study
First of all, sellers can see how many evaluations competitors' products have in the category where their products are located. You should know that evaluation is an important factor affecting the transformation and whether the product can get a better ranking. If you see hundreds or thousands of comments on competitors' products, the seller can consider whether to sell this product. After all, this game is not generally big. From the perspective of product reviews, we can find out which products sell well, but not many products are reviewed.
In addition, comments are a good product feedback information. We need to know whether the market customers are satisfied with the product. From the point of view of reviews, we should find a list of reviews, list both good and bad reviews, and summarize the points that customers are satisfied with and dissatisfied with this kind of products. We can get the reasons why this kind of products are popular with buyers at present from the favorable comments, and summarize its advantages. In view of the dissatisfaction, see if you have the ability to improve and optimize the products, and sell the points that others can't do as their own characteristics, which can attract customers more; Otherwise, we must choose to eliminate products that cannot be manufactured.
4. Differentiation analysis
Male model products lack uniqueness, are easy to follow suit, have no bright spots, and are followed suit, which easily leads to the disorder of operation rhythm. Therefore, when choosing products, sellers should give priority to products that can be differentiated.
The differentiated transformation mentioned here is not simply that it must be a private model product. It means that small-scale changes can be made simply and quickly on the basis of existing products, so as to realize product differentiation or upgrade. These differential transformations can be screen printing Logo, changing the color of parts and customizing packaging independently.
Fourth, the dimension analysis of supply chain product selection
1, intellectual property risk control
2. Suppliers
When choosing suppliers, it is generally recommended that novice sellers choose Alibaba first, because everyone is familiar with this platform and can have a better grasp of suppliers. For suppliers, you should focus on product price, product generation time, product delivery cycle and product quality. In addition, sellers need to be wary of second-hand suppliers.
Sellers should try to choose high-quality products in the supply chain. A high-quality supply chain has three advantages: first, it can guarantee the quality of products; Second, in case the product becomes explosive, there is a stable and sufficient supply; Third, it can provide backup and motivation for product transformation.
3, logistics cost accounting
Many small and medium-sized sellers may give priority to products with small size and light weight at the initial stage of operation, on the grounds of convenient logistics and low transportation cost, which is true, but it is precisely because of this that such products have lower entry barriers and more competitors, so operating such products needs to face more fierce competition. Accordingly, if you have sufficient funds, you may wish to choose products with large volume and heavy weight that need specific delivery channels. There is no other reason, this is the threshold itself, which blocks a considerable number of sellers who have no strength.
At present, as Amazon, people pay attention to two logistics modes: FBA (Amazon completes delivery) and FBM (seller delivery). Comparatively speaking, FBA has more advantages by relying on Amazon platform. Distribution and after-sales service are completed by Amazon, but the cost is higher. It's a little troublesome to mention it yourself, and the seller needs to package and deliver it himself, and the after-sales service is not much guaranteed. Note: The choice of logistics depends on the consideration of logistics cost, after-sales and inventory management.
There is a saying circulating in Amazon: It is said that seven points depend on choice and three points depend on operation. This shows the importance of choosing products. Novice sellers, in particular, do not know where to start when choosing products.