What is market capacity? Market capacity assessment

Market capacity is a key point in product selection, that is, the stage sales volume of products that solve a certain demand. In a narrower sense, it can be defined as: the total sales volume of products that solve a certain demand on the platform using the products I sell.

Classification

1.Population Based.

2.Household Based.

3. Others (there are other classification methods, such as starting from demand or supply).

How to judge market capacity

1. Keyword search results

Use the core keywords of the product to search on the Amazon homepage, check the number of search results for the product on the homepage, and then accurately determine how many sellers are doing FBA for the product.

2. Look at sales

The sales volume is relatively dispersed, and everyone can share the products, that is, the products with large capacity and large sellers are concentrated. It is not recommended to make products with very concentrated sales volume. Sales volume can be judged based on your own sales volume, or monitored using tools available on the market.

3. Logistics

If most of the products in the result list of the same keyword search are shown to be shipped by FBA, we can understand that the sales of this product are relatively mature, and to some extent it also indirectly reflects that it has a relatively stable demand.

4. Inventory status

If the seller adds a large number of items to the shopping cart, for example, 400 items are still available, and the average order value of the product is relatively high, it reflects that the sales volume of the product is in a relatively stable state, and the seller has great confidence in this listing.

5. Number of Reviews

Some listings have only been on the shelves for one or two years, and the number of reviews is only about a dozen. At this time, we need to carefully check the time of reviews in the past six months. We should pay special attention to the time of customers' reviews in the last month. If the time of reviews in the last month for this product is 3 months ago or even earlier, it means that the search popularity of this product is not enough, and customers do not have much demand, so you don't need to consider this product anymore.

6. Product profit margin

If the search volume and sales volume of a product are not bad, and the number of reviews is not too large, the next thing you need to do is to estimate the profit of the product to see if the profit is within your acceptable range. If the profit is too low, there is no need to compete with peers for the market. Amateur public announcement for calculating product profit: platform price * 85% (minus 15% commission) - last leg - first leg - cost = profit.

Myth

1. Use BSR as a reference to determine the market capacity of a product.

Different products need to be differentiated. The situations of red ocean products and blue ocean products are different.

2. The results obtained through keyword searches are not accurate, and the market capacity is difficult to accurately estimate.

Some products have many keywords, it is impossible to have only a few, so the judgment needs to be comprehensive.

The Importance of Market Capacity Assessment When Selecting Products

1. Low competitiveness does not mean that this product has market capacity

Some sellers think that they must choose a product with no competition on the platform, but they don’t know that if there are no other sellers selling the product, it basically means that the product has no market prospects. Therefore, "very few search results" does not mean that there is little competition, but it is more likely that "the market capacity of the product is very small."

2. A large market capacity does not mean you can make it

Some buyers choose products based on what sells well on the platform, but they just don’t sell. After putting the products on the shelves, they try several sales and use all kinds of techniques and methods, but still can’t make the products sell. At this time, they really have to give up decisively. It’s not the products with high popularity and large market capacity that are suitable for you.