Thanks to the development of Amazon, it is now easier than before for sellers to enter the international market. This platform provides a lot of opportunities for sellers, who can sell a variety of products on the platform.
Given the uncertainty of whether a product can sell, many sellers choose to sell more common products, shoes being one of them. There are many reasons why sellers choose to sell shoes, including:
High return on investment. The average investment rate is over 200%. If the seller can overcome various difficulties in the early stage, the return on investment will be even higher later.
· High average selling price . The higher the average selling price, the higher the profit. The fee ratio charged by the Amazon platform is fixed, which means that the higher the selling price, the greater the profit. For example, if 10 products are sold for $5, the sales volume is $50, but the commission must be paid 10 times. If one product is sold for $50, the commission only needs to be paid once. Therefore, the higher the average selling price, the more revenue can be obtained.
Less competition. Competition on the Amazon platform is fierce, with hundreds of sellers often selling one product. The shoe category has sales restrictions, so competition is not that fierce. Many shoes have only one or two sellers selling them.
Inventory diversification . There are many types of shoes for sellers to choose from.
However, although the shoes are an excellent product, the seller did not conduct a specific analysis of the product and adopt the correct purchasing plan when selling the product. The shoes come in a variety of sizes, each with a different price, and different patterns and colors, which means there are many variations and changes.
And sales ranking is not the only factor consumers consider when buying shoes. They are picky about shoes and will return them if the color is wrong or the size is not suitable.
Whether you are a new or experienced seller, if you plan to sell shoes on Amazon, you must keep the following points in mind when purchasing shoes.
1. The procurement cost of shoes is higher than most categories
When purchasing products, most sellers hesitate to invest a large amount of money in a product, especially for sellers who are just starting out. Unlike toys, books and other categories, shoes require relatively high start-up capital, and it is not possible to quickly accumulate funds in a short period of time and then invest them.
Although the aforementioned average selling price and return on investment of shoes are high, the purchase cost is also high. So it is normal for sellers to be more cautious with their budgets, but considering the high rate of return, the high investment is worth it. Sellers can estimate the associated risks and then allocate a budget.
Note that only high-quality shoes can sell well on Amazon. If the manufacturer offers a low cost price, be sure to check out the samples first. Don’t be blinded by the low price. A low price may mean low quality. Selling such products may have a negative impact on your business.
2. Shoes require long-term investment
In addition to requiring a relatively large investment, purchasing shoes also requires sellers to be patient. Compared to other categories such as toys, the sales speed of shoes is not that fast. And shoes are not fast-consumable products.
So many sellers who sell shoes can easily lose confidence and become disappointed and frustrated because they don’t get the returns they expected. In most cases, sellers will sell all of their shoes, but it can take 6-8 months, or even longer.
Sellers need to spend several months constantly replenishing their product lines and then wait for these products to start to ferment. Selling shoes on Amazon is all about patience.
Since shoes have a long life cycle, it is recommended not to stick to one style or variant, but to invest in multiple styles and variants, with as many sizes as possible.
3. Shoes are ranked differently than other categories
There are many variations of each shoe due to size and color. When you look at rankings for shoes, chances are the rankings aren’t showing the ranking for the specific product you searched for, but rather the combined rankings for all variations. Amazon, on the other hand, shows the ranking of shoes in the Apparel, Jewelry & Shoes category. So if a pair of shoes is ranked 150th in this broad category, you can’t be sure what specific colors and sizes of shoes are selling better. This is why many tools don’t show the sales ranking of shoes.
Therefore, when there is no way to determine what type of shoes with high rankings sells best, sellers can take the following measures to reduce procurement risks:
Consider purchasing neutral colors. Most customers prefer neutral colors like brown, gray, white, and black. Try not to buy shoes with bright colors, various prints or trendy designs, no matter how lively and cute they look.
Choose shoes with a small number of variations. Try to buy shoes in regular sizes, with fewer color options, and not in sizes 15-20. More colors and sizes mean more variants, so the overall ranking has no reference for such products.
4. Focus on purchasing strategy
Each seller has his or her own purchasing strategy and principles. It is recommended that sellers find a purchasing method that suits them. Some sellers choose to source shoes in standard sizes and colors, while others prefer to go a little further and offer uncommon sizes and colors.
You need to source products based on consumer demand. The shoe market is extremely large, with many market segments, and you will find that consumers have different needs. Trying to cover all requirements would be a mistake. Focus on the needs of specific groups, such as sports shoes, dress shoes, etc. You can determine your target market based on type, size, purpose, and even color.
To determine whether a product is feasible, you can first purchase a small amount of inventory and see how the market reacts.
5. Check customer reviews for popular sizes and colors
When you are sourcing shoes, you need to have a deep understanding of what users think about the product. You can research reviews on Amazon to see which sizes and colors of shoes are being purchased and reviewed by more users.
In the review, click on the 'fit as expected' section to see if the shoe fits you well, whether it's a little too big, a little too small, or normal. Too big or too small can easily lead to a high return rate, which is a result that sellers do not want to see. Finally, check the average price of this product, because if the same shoes are priced more favorably, your product will have a better advantage.
The above is what sellers need to know when purchasing shoes. First of all, shoes are high-investment products, which require sellers to invest patiently to reap results. Sellers can do more trials and tests to understand the best procurement method that suits you.
