Products how to sell on Amazon---the logic behind Amazon's selection
Product selection decides a seller's future profitability and strategies of procurement, promotion, and operation at the root. Sellers often say ‘seven points by selection and three points by an operation.’ It is not an exaggeration.
We can imagine that if Anker sells the iPad's external keyboard and mobile phone selfie stick, rather than mobile power, cell phone chargers, Bluetooth speakers, car chargers and other hot electronic products, it may not have the current scale.
For product selection, trade type, factory type, as well as branded and follow-up sellers, their perceptions and strategies are not the same. Also, the strategies of start-up type and mature type of companies will be different as well. There are no unified Standards. I mainly talk about those pits that are easy to step on here.
You can combine any of the elements of product selection at the beginning, but you must be sure that there is no chance to regret. It directly determines your future profitability and promotion strategy. The elements are as follows:
Product seasonality and festival
Product purchase frequency
We can think about the fact. Anker has such a strong brand operation and promotion capabilities, and focus on mobile-related electronic products, why does it not develop mobile phone case and tempered glass screen protector? Doesn't it see the huge profit margins of these two types of products?
Mobile phone case and data cable, mobile power have a similar target user group and associated purchase attributes, why does mobile phone case not be developed well?
The logic behind the product is that its life cycle is different.
The mobile phone case is the most tested product (design, production, and promotion) of the seller's comprehensive capabilities on all Amazon products, and meanwhile, its entry barrier is also the highest.
For example, iPhone 8 was released on September 13, 2017. On the same day as Apple’s new product launch event, Amazon’s US station had sellers selling the iphone 8 case and began to have sporadic comments.
It means that the product was produced and shipped to Amazon's U.S. FBA warehouse before September 13; and before that, the product was designed and coordinated throughout the entire supply chain (raw material procurement, factory scheduling Period, sample production and mass production).
In addition, the mobile phone case faced with a strong competition once released. For some opponents, because of the accumulation of previous brands and old customers, these customers may become their seed customers. But faced with the newest group of customers, everyone is on the same starting line, how to break through of the trap?
Several customers who monitored the keywords in SellerSpirit, those keywords for iPhone 8 are in the first 5 pages at first, but there are no traces in a few days and fell into final 20 pages quickly.
For mobile phone case sellers, the life cycle of a product is only 1.5 years, which means that you have to recover the cost within 9 months. This also means that you must begin to make money within the first 6 months. But creating an explosion generally needs 3 months at least. Depend on such a group of data, you can see intuitively that how difficult to get rich by selling mobile phone case.
And here, everyone should understand why Anker lose out to TORRAS on mobile phone case? Anker's brand promotion model is a slow-moving product that is only suitable for products that have a long-life cycle (at least 3-5 years). These are products that Anker is currently selling, such as mobile power and data cable.
You can use the keyword ‘Anker’ to look upon SellerSpirit's ‘keyword search’ tool, and see it's search volume. In Amazon, it may probably not many products which monthly search volume can reach over 150,000 by searching for brand words.
Product seasonality and festival
Products like swimsuit and tent only have a peak sales season of 2-4 months a year. This means that you need to buy a large number of goods before the peak season, put it on Amazon's FBA warehouse and wait for the sales season. If products are not out of stock yet after peak season, you are faced with giving Amazon a year's worth of warehouse rent. For apparel category, off-season means that there will be no chance to sell them next year because the style is out of style.
Compared with clothing, swimsuits and tents are much better. Because the product life cycle is relatively long (the style is not easy to outdated, and the product shelf life is longer), but the profit is worse than clothing.
Many sellers entering into the category rely on the shortcut of the factories and supply chain resources behind them.
When I talk about the seasonality of products, I don't mean that we’d better not to sell these products, but we must be deeply aware that the strategy for operating such products is completely different from other categories and must be laid out several months ahead of schedule.
In addition, we need to see the advantages of operating such products.
For short life cycle products, you can compete with your opponent on the same starting line;
Working a hard time in the off-season, because the opponents are not strong at this time (there are no high sales as backup);
Making a full use of CPC, because keywords in natural rankings fluctuate ups and downs, and core flux resources cannot be monopolized (the essence of monopoly is entry barrier);
The festival of the product is similar to seasonality. For example, gifts on Valentine's Day, Christmas trees and string lights on Christmas must be laid out 3 months in advance.
For the festival, the keywords are often very concentrated, and the customer’s purchase decision is often based on appearance and impulsive purchases. This means that the valuable pits in the Amazon only show in front of 3 pages, that is about 50 pits only.
Old customers of SellerSpirit should know that the keyword “Christmas Tree” is difficult to reach the first page by December 25, but after that day, it suddenly reached the top 6 of the home page.
For seasonality, the seller generally knows it when choosing the product. But it may not be necessary to consider it as a deciding factor for the product selection.
How to know the seasonal properties of a product? You can use the ‘keyword research’ on SellerSpirit. It can view a keyword’s Amazon real search volume and sales trend.
Does that mean I suggest sellers do not choose seasonal products? Not yet. First, it is not what you can decide to succeed in the area (for example, you already have a garment factory). In addition, it has high entry barrier for off-seasonal products, because the old sellers have accumulated a few years of sales and praise. You may have no chance to compete with your opponent on the same starting line.
Product purchase frequency
For new users, flux entrance is generally based on recommendations (such as Facebook, SD links, and keyword search), brand (heard about), and word-of-mouth.
For older users, flux entrance often comes from favorites, such as order history in Amazon, or brand research.
The customers who pay for durable goods, such as table lamp; or products that will only be purchased at certain stages of life, such as the chandelier and downlights for decoration, are often the newest. It means that you have to pay marketing expenses for every order that you get. However, with regard to duplicate purchases products, if the product is of good quality and the user is easy to find you again, you do not need to pay promotion fees for the next N+1 purchases anymore.
Sellers generally understand it, but many of them do not realize it, because they may not have enjoyed the old customer's bonus.
A few years ago, I was responsible for the operation of Small Top 3's bookstores, and the sales were doubled annually. For example, the sales were increased from 240 million to 430 million in 2013. In fact, I did not do any great promotional activities.
When doing data analysis, I found that a large percentage of orders are from user center-my orders. Although the flux of this part will not exceed 10% of the total station’s, it will account for about 40% of the order volume. The conversion rate is more than 70%.
As a seller, if you care about the frequency of purchases, you must strengthen the quality of product’s investment, especially the product like insulation cup. Because it has publicly propagation attributes, and the user's colleagues (put on the desk), friends (put in the bag) may become your customers.
If the product is sold well for the first 1-2 years, it may be possible to enjoy the old customer’s bonus in the next few years. At that time, the focus of product operations should be on the back end: design and production.
Moreover, because of the long lifetime of the Listing, and the large accumulation of reviews, it is more difficult for your opponent to surpass.
In the next articles, I will discuss the impact of factors such as price, number of reviews, and keyword competition on product selection, and let the selection realizable: how to use tools to make the selection quantifiable.
Welcome to use the SellerSpirit, an intimate big data selection tool!