What to sell on Amazon? This problem troubles many sellers, but they have not tried it and don’t know whether it is easy to sell. So what product is suitable for them to sell? This is indeed the first problem that sellers need to solve. If you can grasp the idea well, then product selection will definitely be simpler and more convenient. Finding good products can also bring you more profits.
1. Identify your needs
A store operation station needs to have a sufficient understanding of its own store, from the store’s financial situation to the details of each listing. Only when the store is understood can the seller clearly understand his or her product selection needs.
If most of the products in the store are low-priced and low-profit, resulting in the store's profit margin being too low, then it is necessary to develop several high-priced and high-profit products to support the store's profitability.
If there is too little traffic in the store and the listings have no views, you might as well develop a few low-priced products to attract traffic. Such products may not be the source of profit for the store, but they can bring huge traffic to the store, thereby driving sales of other products.
In addition to clarifying the needs of the store, sellers must also carefully calculate their own financial status. From product development to a series of subsequent promotions, a large amount of financial support is required. The premise of product development is the normal turnover of funds.
Product selection is a strategic decision for a store, and it is necessary to consider multiple factors such as the store's development direction and future brand building. If it is a vertical store, you need to develop products within the same major category; if it is a non-vertical store, you need to develop products based on the company's next layout point.
Only by clarifying the needs of the store and the company can you have a preliminary understanding of what products to choose.
2. Identify the market
After roughly determining the product direction, it is necessary to carry out market segmentation within the general direction. Depending on the audience, each large market can be divided into many small markets. The user groups and consumption demands of each small market are different. Sellers need to determine the market they are going to enter among the segmented small markets. This process is also complicated.
Sellers can use Google Trends, Google Correlate, Google Shopping Insights, Ahrefs, etc. to analyze market demand and characteristics to determine the market. At this point, the product types and subcategories are basically determined.
3. Market Research
After determining the market, identify the 10-20 best listings based on keyword search rankings and BS rankings, and conduct a systematic investigation and summary of these listings’ selling points, prices, sales, shelf time, and reviews.
Inspect product quality. What are the selling points and pain points of this product? Are the negative reviews from customers subjective or are there objective problems? Can these problems be avoided by optimizing the product in the future? The answers to these questions can be found in the selling points and reviews.
Examine the market capacity. What is the monthly sales volume of the top few competitors with the highest sales volume? Do they occupy the entire market? Is there still room for entry? Generally speaking, if monthly sales on the US site exceed 1,000, it means that the market capacity of this product is large enough and there should be room for entry. Monthly sales in Europe and Japan can reach around 500.
Examine market competition. Check the top listings to see if there are any big sellers who have been on the shelves for a long time, have extremely high sales, and have thousands of reviews. Once such sellers enter a market, they aim to take the lion's share, and other small sellers can only take some of the remaining traffic from the big sellers. If such a strong competitor is discovered during market research, it is recommended to choose a new product, otherwise you will have no choice but to struggle under the pressure of big sales.
4. Product differentiation
After the above three steps, you can basically determine the product. The next step is to consider the issue of product differentiation.
From the above market research process, sellers should have sufficient understanding of the market status of this product. At this time, in order to make their products more advantageous, they need to make differentiated choices. Different products have different differentiated demands, perhaps product upgrades, perhaps accessory optimization, or perhaps just a simple extension of the power cord. In short, the ultimate goal of differentiation is to give your product an advantage that other products do not have, so as to attract more customers and increase conversion rates.
5. Use product selection tools scientifically
The most important thing in product selection is to have data support. Without data reference, product selection will become a difficult task. If you can better combine product selection tools, you will definitely be able to achieve twice the result with half the effort.
6. Summary
If you do the above 4 points well, you can basically select a product that meets the requirements, but it is unknown whether this product can be promoted and how long it will take to promote it. Amazon product selection is not as simple as selecting a product, but to conduct closed-loop monitoring of the product, summarize the market rules and prepare for the next product selection. This is the most important thing.
