Today we will think about the reasons why products do not sell
The other day,
I had the opportunity to ask someone who works as a MD in the apparel industry
how much to make when making their own products
When selling on Amazon export,
there are many
measures that can be taken to sell the product but the criteria for determining how much of the product to make
is connected to predicting how much it will sell.
In other words,
sales forecasting is essential in order to sell the appropriate number of products
When moving from sales forecasts to actual actions, you
must be aware of
the number of competitors if you place emphasis on selling out, you
may need to take measures optimizing prices and increasing sales channels
Additionally, some products
may not sell unless seasonality
This
is something that the apparel industry is particularly aware of, so
I would like to explain it in accordance with that.
Success story of "JAPAN-IMPORT" search in Amazon export
In a previous article,
I explained that the basic method of research for Amazon export
based on the keyword "JAPAN-IMPORT."
The search term "JAPAN-IMPORT" is basic, but
and there are
other indicators to look
at in order to judge which products will sell
from among the products extracted based on that
We will consider the case of Amazon FBA sales, but
since
the research process can be replaced by an Amazon export tool, we will use a certain price comparison tool.
First, decide on a category, but
to be honest, the reality is that products that sell will sell
, so this time
I will choose "Musical Instruments."
Next profit margin .
Items such as profit margins and price differences are
probably the most interesting.
When exporting from Amazon, in addition to the profit margin, the
overseas sales price
is an important deciding factor
when considering the deduction of selling, general and administrative expenses
we aim for a profit margin (gross profit margin) of 10% or more
By the way, I would like the selling price
Next the overseas ranking .
In the end, we
will make a sales forecast
using monorate or inventory tracking tools
it would take too much time physically
to check everything we will make a rough selection based on ranking.
I want to choose products that sell
around 5 pieces a month, I'll limit it to around 50,000.
(Varies depending on category)
The number of competitors is
limited to Amazon FBA sales, so
we will only focus on FBA sellers.
Also, and this is important,
it is not necessary to count all FBA sellers
Basically, shopping carts
will be won in order
if you maintain a certain price range centered on the cart price you will be judged as a competitor
within the range of the current cart price ⇔ "1.01 times ~ 1.03 times". Masu.
it is combined with
the monthly sales forecast by Monorate
Finally, the actual weight .
There is a weight limit
for Amazon FBA deliveries we will judge if the weight is within 22kg.
(Although there is generally no problem here)
we will introduce 10 examples
of products selected under these conditions
As expected, I will avoid listing the ASIN, but
I will post the product image, so
I will leave the rest to you.
What I would like you to refer to here
the product trends in the "Musical Instruments" category .
- Gross profit margin: 35.51%
- Brand Name: Novation
- Overseas ranking: 45572
- Number of FBA competitors: 0
- Monthly forecast quantity: 2 pieces
- Actual weight determination: OK
- Gross profit margin: 35.98%
- Brand Name: Orange
- Overseas ranking: 33556
- Number of FBA competitors: 1
- Monthly forecast quantity: 5 pieces
- Actual weight determination: OK
- Gross profit margin: 21.73%
- Brand Name: Korg
- Overseas ranking: 32052
- Number of FBA competitors: 3
- Monthly forecast quantity: 6 pieces
- Actual weight determination: OK
- Gross profit margin: 51.55%
- Brand Name: Korg
- Overseas ranking: 28849
- Number of FBA competitors: 1
- Monthly forecast quantity: 7 pieces
- Actual weight determination: OK
- Gross profit margin: 23.24%
- Brand Name: Roland
- Overseas ranking: 23915
- Number of FBA competitors: 0
- Monthly forecast quantity: 3 pieces
- Actual weight determination: OK
- Gross profit margin: 13.30%
- Brand Name: Pioneer
- Overseas ranking: 30069
- Number of FBA competitors: 2
- Monthly forecast quantity: 9 pieces
- Actual weight determination: OK
- Gross profit margin: 21.62%
- Brand Name: Korg
- Overseas ranking: 54870
- Number of FBA competitors: 1
- Monthly forecast quantity: 3 pieces
- Actual weight determination: OK
- Gross profit margin: 25.64%
- Brand Name: Korg
- Overseas ranking: 24555
- Number of FBA competitors: 1
- Monthly forecast quantity: 6 pieces
- Actual weight determination: OK
- Gross profit margin: 14.48%
- Brand Name: Native Instruments
- Overseas ranking: 15131
- Number of FBA competitors: 3
- Monthly forecast quantity: 4 pieces
- Actual weight determination: OK
- Gross profit margin: 22.14%
- Brand Name: Hammond
- Overseas ranking: 57538
- Number of FBA competitors: 0
- Monthly forecast quantity: 4 pieces
- Actual weight determination: OK
Importance of inventory management in Amazon export
Pricing is also important in inventory management
If the price is not appropriate, the product will not sell.
When considering an appropriate price for
exporting to Amazon
, you need to consider whether to consider the "lowest price" or the "cart price."
Of course, if you want to sell at a good price, you
will need to optimize based on the cart price, but
in order to obtain the cart price,
you must meet implied conditions
That is, the number of evaluations is 50 or more and the evaluation rate is 95% or more.
My
impression is that when we ask customers for evaluations,
only
one in 100
you need to buy and sell 5000 items to accumulate 50 items
If you aim to acquire a cart, you
prioritize
inventory turnover rate over profit increase the number of purchases and sales.
In addition, the
purchase and sale history can be used as
basis material when dealing with wholesalers later prioritize the number of evaluations and
sell with priority on turnover even if the profit is low.
Additionally, when trying to optimize prices,
it is best to automate them using price revision tools
You can set detailed prices, so
for example, if you want to match the cart price,
please revise it according to the idea of ``1.01 times ~ 1.03 times'' as described above
There are some sellers who offer
unusually low prices, it is essential to have safety (setting a lower limit) on the revised price
Also, this
is especially true
for non-stock sales when the supplier's inventory runs out,
there is no reason to list it, so
we have a function that allows you to link ``listing'' and ``supplier''. We recommend the price revision tool.
Amazon exports and seasonality
I think I mentioned
awareness of seasonality is essential in the apparel industry, but I'll take this opportunity to explain with a focus on apparel.
In the apparel industry,
sales are planned
based on two cycles a year : spring/summer (SS) and autumn/winter (AW)
it is necessary to take this into account when
of products for the next season
However, in reality, these two seasons alone
are not enough to make predictions.
Therefore
- plum spring
- spring
- early summer
- Midsummer
- late summer
- early autumn
- autumn
- winter
In this way,
further
subdivided into eight sub-seasons
This means that planning and sales will be based on this idea
you also need to look at how things are sold in online shops
For example, BUYMA currently
sells many products with the notation "2016/2017 AW."
The purchase itself may already be "17-SS".
For products that reflect seasonality,
it is extremely difficult to predict.
