In the newly opened store, the product has just arrived, and the sales volume has skyrocketed within 10 days. In order to avoid out of stock, the discount has to be cancelled and the advertising budget reduced. How is this done?
In fact, in the early stage of product selection, Amazon stores have conducted dozens of data analysis such as market size, customer unit price, profit margin, and seasonality. Before the product is put on the shelves, it is possible to determine the probability of a 65% explosion.
How to increase the burst rate? Let me introduce you to a few simple selection latitudes.
The first customer unit price. We require the price of the product to be 25-50 US dollars, and reject products below 20 US dollars. Why would you choose between 25-50 US dollars? Because the price is moderately cheap, products with a price of more than $50 will affect the number of orders; products with a price of less than $25, after deducting the costs of Amazon’s point-and-first-course, etc., will have very little profit left.
Our first batch of 3-5 products are all priced at around 35 U.S. dollars, and the net profit can be around 30%. Lowering the discount a bit can not only increase the conversion rate, but also protect profits.
The second point is that the product cannot have too obvious seasonality. For example, we have previously operated a surfboard shop. The project was signed in October, which happened to be the off-season at that time, so that until April of the following year, the monthly sales were only a few thousand dollars. The customer couldn't do it anymore, but in May, the peak season came, and the product suddenly exploded! From a few thousand U.S. dollars a month, it rose to more than 300,000 U.S. dollars.
However, the good times did not last long, and the sales of the products plummeted after the summer. Amazon sellers know how much they can earn is actually based on the last batch or how much they can sell. In other words, if the judgment in the off-season is not accurate, it is possible that all the money made in a year will be squeezed in the Amazon warehouse.
This kind of seasonal product requires Amazon's operations to have a very high sensitivity and accurately determine the off-peak season, otherwise it may be in vain.
![Amazon's 4 criteria for product selection, every step must not be chaotic]()
The third point is that there can be too many variations. Here is an example. Almost all Amazon agents do not touch shoes and apparel products, especially women's clothing. Not only are there many variants, but the return rate is surprisingly high.
The fourth point is that the volume cannot be too large. Due to its large volume, various costs such as headway, storage, and packaging will increase. As the cost increases, the selling price must increase; when the selling price increases, the sales volume naturally decreases.
We have encountered such a case. A certain product originally had a 25% profit margin. In the end, the designer made a mistake in the packaging design, which caused the product size to exceed the standard, and the cost of buying a product directly increased by a few dollars. If you sell at the established price, you will have to lose a few dollars for every set of products sold.
These 4 points are only the latitude of the Fengmao water chestnut of the selected product. When we are actually operating the project, we have inspected a lot of latitudes. Amazon product selection is a complicated project. New sellers who have just entered the industry must remember not to rush into the business, learn a little bit every day, and go down to the top of the market!
Selection:
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