80% of people make the wrong first step in product selection! On the highly competitive platform of Amazon, product selection is the watershed between success and failure. For cross-border sellers in Taiwan, mastering these 8 indicators of product selection not only saves valuable time, but also significantly improves the chances of success. What are these golden rules? Let's reveal them one by one!
Indicator 1: Unique selling point of the product
At the heart of the Amazon game is the search results homepage. Products with unique selling points are more likely to stand out than ordinary products. The real challenge is not to avoid "crappy products", but to create good products with unique selling points that "consumers care about".
For example, if you develop a "unbreakable" glass lid that offers unmatched value at the same price point, consumers will naturally be more willing to choose your product. This is the magic of unique selling points!
Indicator 2: Balanced conversion rate achievable
This is one of the most overlooked but crucial indicators! Amazon uses a PPC advertising model where you have to place ads to get exposure. Therefore, you have to make sure that your product has enough profit margins to justify the advertising.
What is Break-even Conversion Rate? For example, if your product has a profit of $10 and each click on the ad costs $1, then at least 1 purchase is needed within 10 clicks to break even, i.e. a conversion rate of 10%.
According to the actual data, there are different conversion rate standards 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
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 competition under a particular keyword lacks a clear branding and the product's header image is similar, you have the opportunity to stand out with a unique branding design.
Just like when the whole class is in uniform, the only person in civilian clothes stands out the most. By creating a unique visual identity for your brand, you'll be able to catch the eye of consumers in a crowd of similar products.
More importantly, you can also look at the price elasticity of the category to see where the brand can add value. If the price of similar products in the market ranges from $50 to $150, and the high-priced brands are well regarded, this indicates that there is room for brand premiumization.
Indicator 4: Low transportation costs or transportation cost advantages
This is often underestimated, but it has a huge impact! Amazon calculates logistics costs based on product volume, and "standard" sized products have lower logistics costs. If you can be more sophisticated in your packaging design than your competitors, the savings in logistics costs will translate directly into a competitive advantage.
Imagine that while more than half of your competitor's profit is eaten up by logistics, you are saving 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!
Indicator 5: Monthly search volume of the most important keywords over 10,000 times
Behind every search is a demand! If a product has more than 10,000 searches per month for its main keywords, that means there are enough potential customers looking for this type of product. On the other hand, if no one is searching for a good product, it will be short-lived.
For example, "Chinese medicine" is a household name in Taiwan, but in the pre-epidemic European and American markets, consumers knew very little about it, and the percentage of those who actively searched for and purchased it was extremely low, making it difficult to anticipate revenue from such products.
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 # E-commerce Entrepreneurs # Taiwan Sellers # Selection Strategy # Branding # Cross-border Exporters # Amazon Sellers
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