What is Amazon Market Capacity? Amazon Market Capacity Evaluation

Basic Introduction

Market capacity refers to the number of units of a product or labor that the market can absorb within a certain period of time without considering the price of the product. Market capacity is composed of two factors: the total demand for use value and the total amount of disposable money. If there is enough market capacity, the sales of the store can naturally increase, and the store will have more room for development; but if there is no market capacity, the survival space of e-commerce sellers will be very small, and the degree of fierce competition can be imagined.

Classification

First, population based

Second, household based

The third is others (there are other classification methods, such as starting from demand or supply)

How to judge market capacity

1. Look at the search volume

The overall conversion rate of the Amazon market is around 6% (the search purchase rate is around 3%, and the rest are related recommendations, category navigation and other entrances), which means that 6 products will be sold for every 100 listing page exposures.

The search volume is an indicator of exposure. The number of keyword searches on Amazon / the number of searchers = 3.0, which means that a user will generally flip through 3 pages, or view about 50 product titles (calculated based on 16 natural slots per page). This is the first exposure, and the second exposure depends on the click-through rate.

2. Look at sales

Products with dispersed sales and everyone can share the pie, that is, products with large capacity and concentration of large sellers. Products with highly concentrated sales are not recommended.

Sales volume can be determined based on your own sales volume, or monitored using commercially available tools.

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.

Note

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

Some sellers think that they must choose products that have no competition on the platform, but they don’t realize that the fact that there are no other sellers selling the product basically means that the product has no market prospects at all.

Therefore, "very few search results" does not mean that there is little competition, but it is more likely that "the product market capacity 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.

References

• 1. How do Amazon sellers determine the market capacity of a product? : Sohu [cited on 2018-04-11T16:00:00.000Z]