Three words to solve the Amazon product selection problem: identify unique selling points, ensure profit margins, and grasp the market demand! For Taiwanese cross-border sellers, choosing the right products is half of success. This article will reveal the 8 golden indicators of Amazon product selection to help you stand out in the fierce cross-border e-commerce competition.
Indicator 1: Unique selling point of the product
On Amazon's massive platform, getting to the front page of the search results can be the difference between success and failure. Products with unique selling points are more likely to stand out from their competitors than ordinary products. Did you know? There are very few "crappy products" on Amazon, and consumers really want great products with unique selling points that "they care about".
For example, if you sell an innovative technology that makes your lids completely unbreakable, this feature will make you stand out from the crowd of ordinary lids. What's even more noteworthy is that when consumers realize that they can buy a "unbreakable" lid for the same price, their perceived value immediately increases and they are naturally more willing to choose your product!
Indicator 2: Balanced conversion rate achievable
This metric is the cornerstone of successful product selection! Amazon uses the PPC advertising model, and you must ensure that your product has enough profit margin to support the ad placement. For example, if your product has a profit of $10 and each ad click costs $1, then you need at least 1 purchase within 10 clicks to break even, i.e. a conversion rate of 10%.
Based on actual experience, different conversion rates are standardized for products in different price ranges:
- Products priced below $20 are expected to achieve a conversion rate of 151 TP3T
- Products priced in the $30-$50 range are expected to achieve a conversion rate of 10%
- Products priced over $50 are expected to achieve a conversion rate of 51 TP3T
This means that if you can't achieve a break-even conversion rate for your product, any amount of advertising is burning money, not creating profit.
Benchmark 3: Brand differentiation adds value to products
This is a great opportunity! When you realize that the competitors under a particular keyword lack a clear branding and the product's header image is similar, you have the opportunity to stand out through unique branding. It's like being in a group of uniformed students and then suddenly there's a guy in civilian clothes, who naturally catches everyone's attention.
You can also look at the price elasticity of the category to determine where there is room for brand premiumization. If the price of similar products in the market ranges from $50 to $150, and the high-priced brand is well regarded, this indicates that there is room for brand premiumization in the category. Of course, Amazon consumers are very savvy, and product pricing must be in line with perceived value.
Indicator 4: Low transportation costs or transportation cost advantages
This is crucial! Amazon calculates logistics costs based on product volume, and "standard" sized products have lower logistics costs. If you can be more sophisticated than your competitors in terms of packaging design, the savings in logistics costs will translate directly into a competitive advantage.
Imagine that while half of your competitor's profit is eaten up by logistics, you save a lot of money because of smart design, which not only increases your advertising budget, but also allows you to quickly capture the market through more competitive pricing! This inherent advantage is especially important on Amazon.
Indicator 5: Monthly search volume of the most important keywords over 10,000 times
No search volume, no demand, this is the iron law of cross-border e-commerce! If a partner who wants to do Amazon comes to us for consultation, the first thing we do is to look at the keyword search volume of the product. If the monthly search volume of the main keywords of the product is more than 10,000 times, it means that there are enough potential customers looking for this kind of products.
For example, "Chinese medicine" is a household name in Taiwan, but in the European and American markets before the epidemic, consumers knew very little about it, and the proportion of people who actively searched for and purchased it was extremely low, making it difficult to anticipate the revenue of this type of product.
Indicator 6: Homepage 25% has less than 100 reviews.
This could be your breakthrough! If there are products with less than 100 reviews on the first page of a keyword search, it means that the category is receptive to new brands, and you don't have to start competing with the big sellers with thousands or tens of thousands of reviews.
Another scenario is even more noteworthy: if a product on the first page has a general rating of less than four stars, it may indicate that consumers are dissatisfied with the current product. In this case, you can use Worker Intelligence or a third-party seller tool to analyze the bad reviews and launch a product that better meets the needs of consumers, so as to stand out from the fierce competition.
Benchmark 7: Products with $5,000 in revenue
This is an invaluable indicator! If you have a product with low reviews but high monthly revenue, it means that consumers in that category value the quality of the reviews more than the quantity. At this point, you need to make sure of three things:
- Outperform the competition in terms of product experience
- Products that actually solve consumer pain points
- Build good customer relations and increase positive reviews
On Amazon, a platform that emphasizes consumer reviews, high star ratings drive sales more than the number of reviews, creating a huge opportunity for new brands.
Indicator 8: Pricing of products at the same level as competitors, while maintaining 30% margins.
This last indicator points directly to the cost advantage! In Amazon's highly competitive pricing environment, the ability to maintain 30% margins at the same price as the competition usually requires a manufacturing cost advantage. This advantage often comes from the own factories or close cooperation with them.
With this cost advantage, you can invest more advertising resources or quickly capture the market through more competitive pricing, laying a solid foundation for brand development.
Running Amazon is like investing in stocks. Instead of spreading your resources over 100 products on the shelves (investing $1 each), you should focus your efforts on building one star product (investing all 100 bucks). As the rule of eighty-two says, 20% products will bring in 80% revenue. I hope these 8 guidelines can help you to take less detours on the road of Amazon cross-border e-commerce and pinpoint the explosive products!
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# Amazon Global Store # Cross-border E-commerce # Taiwan Cross-border Sellers # Selection Guide # Brand Operators # E-commerce Platforms # Cross-border Exporters # Amazon Mall
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