How to choose a good product, sharing Amazon's product selection ideas
Product selection is the foundation of store operations and the focus of profitability. If the product selection is good, the subsequent store operation and traffic guidance will be easier. Today, I will share with you the underlying logic of Amazon product selection, hoping to help sellers choose products efficiently!
1. Sorting out Amazon’s product selection ideas
Amazon’s business philosophy is very special: focus on recommendation, light on advertising; focus on display, light on customers; focus on products, light on stores; focus on customers, light on sellers. It can be seen that the characteristic of the Amazon platform is that the product is king. Therefore, whether it is co-selling listings or self-built listings, product selection must be product-centric. Since Amazon is a platform that focuses on products and less on stores, the selection of products should consider whether the product and the platform have a certain degree of fit. In addition, the product listing and sales rules should be based on the selection and customer evaluation of the product.
2. Amazon product selection principles
1. The principle of interest
For the products you are interested in, you can invest more time to understand the functions, features, uses, and qualities of the products, and you can invest more energy to study the advantages, values, and users of the products. Only by fully understanding the product can we effectively answer the customer’s questions, so that the order will not be lost because of not understanding the product.
2. The principle of market demand
As we all know, products with large market demand can bring considerable sales; products with insufficient market demand cannot bring satisfactory sales. The selection of products should consider the needs of the market, which means that the consumption pain points of the target customer group should be considered, starting from the market capacity of the product, and using this principle to guide the decision-making of product selection.
3. Amazon’s selection basis
1. Select products according to platform characteristics
Different platforms have different characteristics. We need to know what the platform’s business philosophy is, which categories of the platform we create are popular, which categories are strongly supported by the platform, and which products are easily recommended.
2. Upstream supply is the first choice
When it comes to exporting cross-border e-commerce, it is best to choose the first-hand source of goods, rather than the products of agents at all levels. If you don’t buy from the manufacturer, then you won’t be able to maintain a sufficient price advantage or even make a reasonable profit.
3. Whether there is any infringement involved
In addition to considering the volume, weight and price of the product, the logistics and brand authorization of the product also need to be considered. The selection of products tends to choose products that are small in size, light in weight, have many styles and are updated quickly, have uncomplicated functions, and have high unit price, easy to transport, and low logistics costs. More importantly, you should choose a reliable supplier to avoid infringement.
4. Amazon product selection skills
1. Data analysis method of negative evaluation
The negative evaluation data analysis method refers to capturing the negative evaluation data of hot-selling products on the platform, to find out where customers are not satisfied, and then to improve products or select products from suppliers that can solve customers’ pain points.
The negative review data analysis method focuses on capturing the negative review data, and at the same time, it also focuses on analyzing the praise data of the products, and analyzes the real needs and expectations of customers. When doing data analysis, various research tools such as Terapeak, Trendsamazon, Digital Chief, etc. will be used, and it is likely that data analysts will be required to use data mining tools to analyze.
2. Product selection combination analysis method
That is, when building a product line, plan 20% of core products to obtain high profits; 10% of popular products to obtain traffic; 70% of normal products to cooperate with each other. The selection of products should be aimed at different target customers. All products cannot be selected in the same price range and the same quality. A certain price and quality ladder can generate more orders.
We can refer to Amazon’s sales rankings and refer to the popular products to set popular products. In addition, whether it is a core product, a popular product, or a normal product, we must evaluate the gross profit of the product when selecting products.
To put it simply, single product gross profit = sales unit price - purchase unit price - single product freight cost - platform cost - drainage cost - operating cost.