The choice of products, fundamentally determines how much profit a seller will make , and their procurement, promotion ad operation strategy, the sellers often say, seven points by choice, three points by operation,it is a truth.
Think, take Anker as an examle,if Anker is not selling the mobile power, mobile phone charger, bluetooth speaker, car charger and other hot electronic products, but sell the ipad outside the keyboard, the phone selfie stick,can it develop well as today?
For the products selection, their understanding and strategy are different various from the trade type, factory type, and brand type, and sell – type sellers, and also, the strategy of start-ups and mature enterprises will be different, there is no unified standard, I today mainly talk about the traps in product selection.
The main elements of the product selection, at the beginning, you may choose as you like or random, but once you have done, it directly determines your future profitability and promotion strategy. They are:
the time of product life
Seasonal nature of products
Purchase frequency of products
Product life cycle
Anker has such a strong brand operation and promotion ability, and focus on the mobile phone related electronic products, why does it not devolope the handle chassis and the tempered film products? Can't it discover the huge profit for these two types of products?
The mobile phone and data line, mobile power,target at similar user groups, and they are FBT(frequently buy together)products, why does the mobile phone shell do not be a selling choice of Anker?
The logic behind the fact is that its life cycle is different.
Of all Amazon products,to be the best mobile phone shell seller is the most difficult, because the competive market test the comprehensive abilitis including design, produce and production.For example, the iphone 8, on the same day as apple's new product launch on Sept. 13, 2017, sellers on Amazon. com have its shell on sales and has some comments sporadically.
This means that before September 13, the product was produced and shipped to the Amazon's us FBA warehouse; Before that, the product has been designed and coordinated the entire supply chain ( raw material procurement, factory scheduling, sample production and mass production ).
In addition, since the mobile phone shell put into market, faced with the most strong competitors who has former brand accumulation, and old customers accumulation, such customers may become their stable flows, but more sellers are facing a new batch of customers, everyone is abreast at the starting line, how to compete?
Our Seller Spirit' keywords wizard system shows the phone shell keywords data of several keyword's customers, the keyword iphone 8 in the first 5 pages firstly, after a few days, quickly fell into 20 pages.
For mobile phone shell sellers, the life cycle of a product is only 1.5 years, which means you have to recover the cost and investment within nine months, which means you have to start making money in the first six months, but build a Moldbaby, generally the fastest to three months.How hard it is to get rich with your mobile phone shell.
When it comes to this, you should understand why Anker's mobile phone shell is less competive than TORRAS? Anker's brand promotion model is slow, suitable for product ( at least 3 – 5 years ), which is the product of anker's current sales, such as mobile power and data cables.
You can input "Anker" this keyword search in our wizard keyword search tool, look at the amount of search. In the Amazon, there are probably not many products, but by searching for brand words, you can reach a monthly search of 150, 000 about Anker.
Seasonal nature of products
Products like swimwear, tents, a year of sales season only 2 – 4 months, which means that if you buy a large number of goods in Amazon's FBA warehouse before the peak season, once you are not out of stock, you have to wait to give Amazon rent for nearly one year. Like clothing products, the season means that there will not be a chance to sell next year because the style is out of date then.
Swimwear, tent are much better than clothing are, because the product life cycle is longer ( the style is not easy to be out of date, the shelf life is longer ), but the profit is much worse than the clothing.
Many sellers enter this category, because the factory behind and supply chain resources are these.
I say the seasonality of products is not to say that such products do not sell, but to be deeply aware that the operation of such products strategies and other products are completely different, must be quick, In addition, you should find the benefits of running such products, such as:
For short life cycle products, it can compete with opponents on the same starting line;
compete in the off season, because at this time the opponent is not competive ( no big sales backing );
Can play the power of CPC, because the natural rank of keyword volatility is very large, core flow resources will not be monopoly ( the essence of monopoly is entry threshold );
Product holiday's nature and seasonal nature is similar, such as valentine's day gift, Christmas Christmas tree and lamp string, must be layout in advance 3 months.
Holiday products, the keywords are often very centralized, and the user purchase decisions are often based on appearance and impulse purchase, which means that the Amazon station has only the front of the 3 pages, or about 50 listings are valuable.
The old customer of the SellerSpirit should know that "Christmas tree", as a big word, was hard on the front page before December 25, but after that day, it suddenly hit the top 6 of the home page.
For the seasonal product, the seller knows when to select the product, but it may not be possible to use it as a decision-making element of the product.
How do you know the seasonal nature of a product? You can use the seller keyword monitoring software, which has a tool to view Google monthly search trends for a keyword in the last 12 months. in addition, the keyword spotting tool can also view the Amazon's true search volume and sales trends over the last few months.
We should not choose seasonal products? No, first of all， it's not you can decide ( for example, costume factory ), in addition, those non – seasonal products, because the old sellers accumulate a few years of sales and high praise, leading to their entry standard is very high, you may be very difficult to have the same competition opportunity.
Purchase frequency of products
For new users, traffic portals are generally based on recommendations ( such as Facebook and SD links, keyword search ), brands ( heard of), and word-of-mouth.
For older users, traffic portals are often favorites, such as Amazon's order history, or search for the brand.
For durable goods, such as lamps, or products that can be purchased only at a certain stage of life, such as pendant lamp lights for the decoration, these customers are often new customers, which means that you have to pay marketing promotion fees for each purchase order.But for a product that is repeatedly purchased, if the product is in good quality and the user is easy to find you again, you don't have to pay for more.
The truth is generally understood by the seller, but many sellers are not aware of it, because he may not yet enjoy the old customer's bonus.
A few years ago, I was in charge of Tmall's book store operations, and its annual sales was high, such as,its sales volumes increased from 240 to 430 million in 2013, but I had not done any great promotional activities actually.by analyzing the data, I found that a large proportion of orders are from the "user center – my order", this part of the flow will not exceed the total capacity of 10 %, but accounting for 40 % of the order volume, more than 70 % conversions.
As a seller, if sensitive to the frequency of purchase, must strengthen the quality of the products, especially such products like thermos cup, because has the open dissemination attribute, the user's colleagues ( put on the desk ), friends ( put in the bag ) may become its customers.
If the product is sold well in the first 1 – 2 years, it may be possible to enjoy the old customer bonus for a number of years later, and then the focus of the product operation will be on the backend: product design and production.
Also, because the listing lifetime is long, the backlog of reviews is large, and the difficulty of going beyond is even greater.
Everyone can try the Seller Spirit, a intimate big data selection tool, free of charge in 2017.