Get the efficient product selection logic of Amazon!

1. Amazon product selection ideas

First of all, the purpose of doing business on Amazon is obviously to make money, but in the end, the profits are still few. This is because Amazon's operating costs are constantly increasing. Even if sellers try every means to reduce product procurement costs, it is still difficult to make a living. So we can only significantly reduce our operating costs. And the biggest operating cost comes from traffic generation. The high cost of paid traffic generation on Amazon has deterred many sellers, who can only calculate how much profit they have left to run ads and how much money they need to pay for ads.

In order to obtain the natural traffic from Amazon, we must improve the weight of our products in the Amazon A9 algorithm. The A9 weight algorithm is very complex, but the core - the conversion rate of the seller's listing will not change! The key to letting Amazon choose to share traffic with you, rather than traditional top products, is a sustained and stable high conversion rate.

However, the conversion rate here does not have a fixed value, but the conversion rate of your product is equal to or higher than the conversion rate of your competitors. The competitors here refer to the mid- and top-level products that have entered this market and have stable natural traffic.

2. Difficulties in Amazon Product Selection

difficulty

Through deduction, we know that to make money, our products need to be sufficiently different from those of our competitors. The difference is reflected in the brand awareness, price, and quality of the product. As long as there is an advantage in one aspect, we can maintain the conversion rate of the listing.

Easy Point

In terms of brand awareness, it is generally difficult for us to compete with brands that have very high credibility on Amazon, such as Apple, Adidas, Nike, Anker, etc.

In terms of price, if there is no price difference of 5/6 US dollars, it is difficult to get consumers to give up their trust in traditional brands and buy our products directly. Since we are all Chinese sellers, the cost price of the products we can get is basically the same, so it is difficult to make the price of our own products have an absolute advantage.

The only remaining aspect is the difference in the product itself. However, product difference is not just about the appearance and function of the product, but also needs to be something that consumers can truly accept and like, which requires sellers to have very strong supply chain support, but most sellers often do not have very strong supply chain support.

3. Amazon product selection strategy

1. Use Jungle Scout to do market research

It is recommended to use some product selection tools to conduct market research. There is no market data to support the selected products. For example, Jungle Scout has two products, web version and plug-in version, covering full solutions such as seller selection, competitor product tracking, market trend analysis, keyword search and reverse query, Listing optimization, off-site traffic, email marketing, store profit analysis, PPC advertising optimization, supplier search and management, etc.

2. Refer to Amazon's best-selling product rankings

Amazon's best-selling list, new product list, and rising list are must-see lists for sellers to select products. Learn about the current hot-selling products and find the products that suit you. And based on the sales information of the products, you can know which products are attractive to your target customers. Amazon's best-selling product rankings can give you a clearer understanding of the sales frequency of products and can also help you discover hot products.

3. Market capacity survey

How to judge whether a product is in demand? Market sales are the most direct feedback. For example, if you research a product and the best seller only sells three or five units a day, there is no point in making such a product. It will only increase your workload. In the end, we still want profit. Therefore, a certain market size is necessary. This is the guarantee of our sales and profits. We need to evaluate the degree of competition in the entire market and find the product that suits us after evaluation.

4. Infringement Research

Amazon's best-selling list, new product list, and rising list are must-see lists for sellers to select products. Learn about the current hot-selling products and find the products that suit you. And based on the sales information of the products, you can know which products are attractive to your target customers. Amazon's best-selling product rankings can give you a clearer understanding of the sales frequency of products and can also help you discover hot products.

5. Choose products with high profits

The profit of the product is also very important. Our ultimate goal is to maximize the benefits. There are some products with very low customer unit price, high profit margin, but very low absolute profit. Such products are difficult to support the promotion costs of CPC on the site. Finally, whether to sell this product should be considered comprehensively in combination with the product cost. The cost factors cover a series of factors from obtaining goods, transportation, to delivery and after-sales. Only by careful and comprehensive consideration can the product achieve large profits and returns.

6. Choose products that are not obviously seasonal

If you choose a product with obvious seasonality, such as Christmas products, if they are not sold out before the holiday, they will be unsalable. You can't keep them in Amazon warehouses until next year, and the increasing warehouse fees will make you drink a pot. Therefore, small sellers should choose products that are in demand all year round in the early stage.

7. Avoid the red ocean market and choose niche products with potential

Everyone who does e-commerce must be familiar with the basic principles of market supply and demand. When supply exceeds demand, competition is fierce, and profits will continue to be low. When supply is less than demand, competition is low, and profit margins will be relatively high. Therefore, in addition to having a certain market sales base, we need to try to find products with low competition and low market saturation.

8. Choose products with simple functions

For products with simple functions, it will be easier for sellers to write listing content and do quality inspection. Buyers can quickly get started after receiving the products, avoiding returns and bad reviews, and making it easier and more confident for sellers who are just starting out.

By selecting products on Amazon, and creating listings in a market where competition is not so fierce, we can ensure a sustained and stable high conversion rate, surpass our competitors, and enter the core natural traffic circle. This is why Sorftime sets up these analysis dimensions.