Dimensions of Amazon Product Source
Market capacity is also the market demand, according to the demand to develop production.
Sellers do not think that the product Listing less found a new world, some products look only about 2,000 Listing, brush a few single products to the first page, but because of its own market capacity is minimal, the demand is limited, so how to do it again is not possible to create a pop.
Market capacity can be judged by the following methods:
Look at the ranking: goods in the large categories ranked first; in theory, large categories ranked within 6000 are considered relatively good sales of products.
Check the search volume: the top three keywords of the commodity with a monthly search volume of more than 100,000.
Inventory situation: usually FBA shows In Stock indicates that the number of products in stock is at least 20 or more, if the seller adds a large number of shopping cart inventory, for example, 400 pieces are still available, plus the unit price of goods is also relatively high, it reflects that the sales of the goods in a relatively stable state, the seller's confidence in this Listing is relatively large.
Comment management: the number of comments is significant, and more importantly, the level of comments (star rating).
Reference to other platforms: similar goods are also peddled on other platforms such as eBay, Aliexpress, etc.
Industry Category Analysis
Amazon product selection, if we can go ahead and find potential hot products first, you may be the next big seller. Let's analyze the popular categories in recent years.
3C products: In recent years, the volume of the 3C category in the Amazon US market has increased year by year, and consumer electronics products are sold very quickly. Products with guaranteed quality, attractive appearance, and low prices are very popular. . In addition to consumer electronic products and related accessories, the market demand for electronic toys and smart 3C products is increasing day by day. Many consumers not only use them themselves but also give these products as gifts.
Outdoor sports: Outdoor sports products are one of the four major categories of Amazon America because Americans are keener on activities, including mountaineering, fitness, golf, and indoor entertainment. In addition, sports fitness is one of the most popular categories under the sports category in Amazon North America, Europe, and Japan. There is no obvious seasonality in sports fitness. There will be a certain increase in the overall traffic of the Amazon platform in November and December each year.
Outdoor furniture: Amazon's outdoor furniture and barbecue utensils will also sell well during the peak season each year, and have high-profit margins. Among them, the best-selling products are those with a price of between $10 and $50, including foldable tables and chairs, Camping tents and camping chairs, barbecue washing appliances, outdoor cooking utensils, and accessories, such as aprons.
Kitchenware: Kitchenware is basically used in every family, and the market capacity is very large. In the United States, knives and forks are sold in sets and series, so it is particularly important for sellers to match details when selling this product. In addition, American consumers have two main needs for bowls and dishes: one is for daily-use solid-color bowls and the other is seasonal bowls, for example, in autumn, most consumers use The dishes are golden yellow, and the seller will update different styles of dishes according to different festivals. In addition to the above two products, it is also a good choice to organize storage and cleaning supplies in the kitchen.
Auto parts: According to relevant data, auto parts mobile e-commerce sales will grow at a rate of 25% or even higher each year, and will slow down to 20% until 2021. The auto parts category has a huge market capacity, and opportunities and challenges coexist. Such products have high entry barriers and need to have resource advantages and understand the core demands of consumers. And in the category of auto parts, there are three most important points. The first is product patents, the second is product quality, and the third is professional knowledge.
LED lighting: Christmas is the most important holiday in the second half of the peak season. Most families will buy Christmas trees and various lighting for decoration, but lighting products require certification. Amazon will strictly inspect and clean uplighting products on the eve of Christmas every year. For those lighting products that do not meet the requirements, the UL certification of the lamps required by the Amazon platform is different, and the certification of different models of the same product also requires additional fees.
If the lamps and lanterns products are sold well, the cost of this early investment is relatively high, and sellers with sufficient funds and resources can consider it.
Pet market: According to market research: in Europe, 75 million households have at least one pet; in the United States, about 69% of households have at least one pet; in Japan, the annual economic benefit brought by pet cats exceeds 2.3 trillion yuan JPY. If you make cat products, you can consider countries such as Japan and Germany; for dog products, you can consider the United States, France, Italy, and the United Kingdom.
Maternal and child markets The United States and Brazil are key national markets for maternal and child apparel and toys.
United States: They prefer high-quality baby products. American mothers also pay more attention to the safety of their children's food and clothing. Brazil: The annual growth rate of the online children's clothing market is as high as 40%. The fastest-growing user population is the middle class. 80% of Brazilian cities have a record of online shopping for children's clothing.
Health and beauty: With the improvement of the quality of life, health and beauty products have become the second most popular category for cross-border online shopping in the world. From the analysis of the best-selling products: mainly mascara, eyeliner, nail accessories, nail polish, tattoo and body art, epilators, razor blades, beauty equipment, and other supplies. From the perspective of logistics analysis: liquid and paste items are more likely to encounter trouble during customs clearance, but beauty tools such as nail accessories and beauty instruments are very convenient for hair straightening or overseas warehouses.
Office supplies: According to recent reports from foreign media, the global office supplies market is expected to exceed US$3 billion by 2021. It is expected that the demand for printers and computer supplies will continue to soar, with a compound growth rate of over 11% by 2021. As the mother and baby market, green environmental protection is highly respected in Europe and the United States.
Industry and scientific research: From a global perspective, the volume of commercial, industrial, and scientific research supplies has reached trillions of dollars, and MRO is an important part. MRO usually refers to non-productive materials required by factories or enterprises to maintain and repair their production and work facilities and equipment to ensure their operation. According to a third-party report, the global market for MRO in 2016 has exceeded US$400 billion, of which the US and European markets have reached US$130 billion and US$90 billion, respectively, accounting for more than half of the market.
Category time node selection
For example, LED candle lights during the Christmas period have only one best sale in a category. Sellers can use keywords to search for the top five sales and which categories of products achieve the best sales. If a product sells 10 orders per day, in your most accurate category, it belongs to a ranking outside of 1000 or ranks outside of 100 in the sub-category. The seller can analyze whether there is a nearby category that can make 10 orders. To achieve the best sales, you can strive for the best sales in that category. At the same time, sellers should not change their categories at will. One of your categories must be responsible for the accuracy, and the other category is to get the logo of the best sales. This is an operational skill.
The demand for the product can be seen through search popularity. Through keyword search, you can see the monthly search volume of buyers, and this monthly search volume represents the demand.
After understanding the buyer's market demand, choose a product that is in short supply on the market. What is a product that is in short supply? That is, the search volume of buyers is many times larger than the number of current competitors. This kind of product usually comes with its own traffic.
People change clothes and dresses as the seasons change, and products are created according to different needs.
Here is an example: A student said that he used all the operational skills mentioned by his instructor, but the product was not sold. Open his link and see, what product is that? In December last year, he sold an outdoor stainless steel kettle. The instructor said that you take your core keywords to look at Google, how many people need this thing in the current season, and then he went to see it and said that the current traffic has dropped to a trough. The reason why the student did not have order was that he violated the season. The most popular season for outdoor products is around August-October, and December is when it is freezing and snowy. Who would take a stainless steel kettle to use it outdoors?
Therefore, trend analysis is very important. On the one hand, it allows sellers to understand the hot period of the product, and how long should the seller prepare in advance to seize its traffic vents. On the other hand, it reminds sellers to filter out products that are not suitable for the current season and do not make mistakes. Make the wrong decision in the season.
Calculation of profit margin
Every Amazon seller knows that in order to achieve ideal results, there must be sufficient profit margins. Therefore, when choosing a product, the seller must comprehensively consider the cost of all aspects, calculate the profit margin of the product, and comprehensively decide whether to choose this product.
First of all, we must be clear about the various costs that may be faced after joining Amazon. Aside from the most basic costs of running a company (purchasing, labor, water, and electricity), but from the Amazon side, we will all face these costs: shop rent, Commissions, FBA fees, various settlement fees, etc.
Sellers can choose profitable products with high unit prices per customer, and the recommended profit margin should be at least 30%-50%.
After all, in the current fierce competition, Amazon's operation is no longer a single-dimensional advantage to succeed. If you want to achieve results in operations, you must make full use of various operating skills, and many skills and methods require capital investment. It is conceivable that a product with a high-profit margin and a low absolute value is not enough to support such as Site advertising is an active operation method.
As the saying goes, knowledge is power, and knowing what a product can bring us is the first step in calculating and maintaining sufficient profits.
For example, many underwear brands with more style want to make swimwear categories on Amazon. The seller believes that a good brand with good quality must be sold for at least $25 or more. The current market price of the swimwear category is between $10 and $20. So sellers have to give up because the price range of the platform represents the preferences of buyers. If the price range is exceeded, sales will be limited.
Because usually people buy swimwear in winter and summer, but they are used for vacation, throw them away once they are used up, and buy them again next time. This kind of shopping habit, if the seller wants to make a product with both brand quality and high price, it will not work. The price must be close to the market.
The price is not set by the seller but determined by the market. Sellers should set prices based on the prevailing price range in the market, rather than just set prices based on their own costs, otherwise, they will violate market laws.
So how do you price it? When you do not have a product on hand, and you do not know the sales price, product cost price, and logistics cost of the product, you can compare it through some channels. About the selling price of the product, you can make a comprehensive comparison through some shopping platforms; about the ex-factory price of the product, you can go to some B2B websites.
Hi, I am Rogers, the webmaster of Woospy, a blog writer and a normal E-commerce businessman. I have been running Amazon and Shopify stores for more than 3 years. During the period of running my own stores, I've been super aware of the exhaustion and helplessness of doing e-commerce business sometimes. This is the main reason why I created Woospy. There are over 300 tools and software I used or knew collected on this site. I believe these tools, software, and tutorials can provide other sellers with a lot of inspiration and improve their efficiency to some extent.
Bro, hope you can enjoy my collection here! Hang on there and the best time is coming!