The advantages and disadvantages of all kinds of product selection methods on Amazon
Amazon has been open to Chinese status sellers for more than four years. with the influx of the seller, the products and SKUs are extremely rich, resulting in more competition among sellers, competition will evolve into the business model of the differences, the most important is the selection of the difference model. Then we talk about how new sellers with a certain strength can find their way to their own.
1. massive SKUs
The mass SKUs described here are multi – category multi – SKUs, not just the mass of selections in one category, and because of new sellers, the number of SKUs has been significantly expanded until the stable maturity.
1. the account number natural flow is high, pulling sales. Although Amazon intentionally erases the concept of " store" in the platform design and concept, there is still a correlation between the same account number and the same brand, plus a wide contact with benmiller, which means that the seller of the mass SKU mode is very competitive with the frequency of the benmiller search or browsing relative to the other selected models under the same conditions, so that sales will be higher on the premise of the same conversion rate.
2. under the premise of different categories, different styles of SKU, compared with other models, it is more likely to be selected by the market hot sales or Moldbaby.
1. due to Amazon's two-week billing period and FBA or overseas warehouse, as well as the need for local stocking, the sellers of large SKU have large fund and stocking pressure. many sellers will encounter the situation that they are out of stock, which leads to the decline of the ranking and the competitors to catch up, but no money to get the goods or supply the supply chain.
2. the mass SKUs will inevitably have a fair share of SKUs and even Unsalable, in order to quickly return funds, frequent discount promotions, or substantial price reductions, resulting in price instability, affecting the buyer experience, attracting negative feedback or damaging the brand image.
3. the quality is not controllable, the resources of each company are limited, the high speed expansion period, facing the mass SKU, supply chain management or procurement management will be tired, the product quality problem can be said is inevitable
4. if it is a manufacturing enterprise, the mass SKUs will mean the continuous development of new products, if the product sales are not good, the final decision to cut off the shelf, removal of the fixed cost ( such as open mold fee ) is large, and a huge staff training cost. Similarly, if it is a trader, the procurement cost of the early unit will be high, thus affecting the pricing, leading to weak competitiveness, may terminate the product life or misjudgment of the product prospects in advance.
Second, multi – choice products, shallow inventory
For most sellers, the balance between the inventory risk and financial pressure arising from the sales scale and SKU explosion is difficult to handle, so include a lot of gross sellers, in the interest of security, between the sales opportunity and the risk created by the mass SKUs, select a moderate balance range that can withstand and control, which is what this paragraph refers to as Multiselect goods and shallow stocks.
The difference between the shallow inventory and the mass SKU is the choice of multi – items, the shallow inventory is mild, and the new product in the sub – batch, which greatly reduces the inventory and financial pressure. In general, sellers of this mode will formulate a product testing cycle according to the different product categories, to test the heat and prospect of the product, so as to decide to continue the sales or elimination of the shelf. Generally in the first half of the product's test cycle is a bit longer, because it is the off-season sales.
1. compared to the yuhailiang SKU, the inventory risk and financial pressure are significantly reduced. As a result of the decrease of capital pressure, sellers using this mode abandon the advanced pricing with high production cost and high price, and use strict calculation and analysis to simulate a stable large number of outputs, the marginal cost tends to be stable after the prospective pricing, so as to greatly increase the competitiveness of the initial product line, reduce the high price, the sales is bad, so as to misjudgment of the product prospects.
2. more centralized resources, promotion in the early stage of the product line, reduce the sales of insufficient promotion due to lack of sales, resulting in a misjudgment of the product prospects; At the same time, can also be found after the trend of hot sales promotion.
3. quality control. compared with the suddenly and violently SKU mode, this mode is more easy and easy to control, whether from product development or procurement, production, quality control, etc.
1. since the initial stage of product online is a shallow inventory, once the product is hot, it is facing the problem of shortage, if the supply chain management and coordination not to the position, resulting in long time out, the ranking dropped significantly or was overtaken by competitors, even after the replenishment may miss the window.
2. because the number of SKU is much less than the mass SKU, the number of hot selling or the so-called Moldbaby is lower, so it is necessary to increase the success rate of Moldbaby, which requires more effort in product r & d or selection, and the fault tolerant rate in this mode is lower.
3. winning of single product
The most successful in this model should be the Amazon echo series, several SKUs, and millions of units sold, which most sellers look at.
This model does not necessarily require the company to master the industry's top technology, unless it is to be the industry leader, such as echo. But it needs strong r & d ability, rich resources, and keen market insight, can improve the market blank or user demand points, interest points, pain points, and so on, and organic integration into the product development.
Say a little more, the profit model of the model probably has two kinds: one is to rely on the product itself profit, the seller thought; The other is to rely on products to drive the ecological circle, the internet big player thinking. Echo is the combination of these two profit models
1. a large number of production and sales of single product can greatly reduce the marginal cost of products ( purchase of raw materials, training of employees, cost of mold opening, etc. ), and then reduce the price, achieve high price / performance, and enter a virtuous circle.
2. for the manufacturer, the large number of production and sales of single product makes the employee operation proficiency increase, the production process is optimized, so that the production efficiency and product quality are improved, and also enter a virtuous cycle.
3. Moldbaby is very important for the brand image and communication, especially in e – commerce, especially in the e – commerce platform of the concept of Amazon's zhong store, good word of mouth makes sales more smooth and virtuous circle.
4. this article also explains why the Moldbaby life is longer in the e – commerce platform. One: Moldbaby helps the customer to make the choice, solves the customer's choice anxiety ( many benmiller purchase the best product directly ), and satisfies the buyer's cognitive closing demand ( the cognitive closing demand is also learned by Andy in another book, Baidu under Baidu );
Second: Moldbaby ranks high in the serps, should win more traffic, rely on the WIN listing conversion rate ( including picture description and review, etc. ) to win more orders, rely on outstanding product quality and high price ratio, accumulate more positive reviews, or a virtuous cycle.
1. as noted above, because of the very large number of resources required for product development, this road is difficult for small and medium-sized companies to follow.
2. the risk of development is high. The final formation of a Moldbaby, in addition to the product of the biggest factor, there are many other factors, such as promotion, operation, inventory management and so on, a link out of the problem can be lost, resulting in the waste of the development of resources.