What are the six major factors in product selection?

Six major factors for product selection: 1. Just need to win; 2. The product is light, small, and easy to ship; 3. Single function, easy to package; 4. Low-frequency use is the best; 5. Existing funds Operability; 6. Avoid infringement.

The operating environment of this tutorial: Windows 7 system, Dell G3 computer.

Before selecting products, we still have to set several basic standards for reference:

1. What is needed to win

If you want to The chance of successful product selection is greater, and sellers must consider "rigid needs" as the first indicator of product selection. What is a rigid need? Users' demand for product functions is greater than their pursuit of external factors such as style, appearance, color, size, etc.

A product with rigid demand means that the same product can meet the needs of all potential consumers. Correspondingly, if a product, such as clothing, has multiple colors and sizes, different consumers have different preferences and sizes. Actual needs require different choices, which will result in sellers having to reserve multiple SKUs to meet market demand. Such products are not conducive to the creation of popular products, and may also cause sellers to have a large amount of inventory backlog. Finally, The result may be a sad situation where all the money earned is tied up in inventory.

2. The product is light, small and easy to ship

On the surface, the competition for products with light weight and small size will be fierce and the profit margin will be relatively low, but there is one thing An important fact that cannot be ignored is that the speed of capital turnover will directly affect the final profit of the operation.

For large products and relatively heavy products, in addition to the product cost, greater costs may be reflected in the delivery. The freight may even exceed the value of the goods, because the freight is too high and the profit A big reversal occurred in an instant. The profit margin that originally seemed to be good could turn into a loss in an instant. Of course, some people will say that shipping by sea can save freight costs, but the transportation time is greatly lengthened. If you spend money to get the goods, the goods will float on the sea for a long time, and the warehouse may have already been Out of stock, this dilemma can only be known to sellers who have experienced it.

Therefore, when selecting products, you must take the product weight and transportation costs into consideration.

3. Single function and easy packaging

For products with a single function, the product quality is easy to grasp, even if the seller conducts re-inspection after the goods arrive from the factory. It is easy to achieve 100% full inspection without spending too much time and energy, but if the product has complex functions, for example, you are selling a mobile phone, its functions include call sound quality, touch screen function, camera, earphones, battery, etc., the How to test? Test one by one to see how big the project will be. If you ship directly without testing, what potential risks will you bear? And if the function of the product is single and what you see is what you get, there will be no such troubles.

At the same time, in addition to the single function, sellers should also consider whether the product is easy to package. Dishwashing sponges are sold in batches of 100 and the sales volume is very good, but let me ask, how should you package it? There are also some irregular products. Customized packaging would be bulky and costly. Without customized packaging, you simply cannot pack them in simple PE bags. What should you do?

4. Low-frequency use is the best

Some products are absolutely high-frequency use products, such as mobile phones. According to statistics, the average number of screen openings per person per day is as high as 256 times. Times, and some products are very low-frequency products, such as screwdrivers. In daily life, you probably won’t use them every day. Using them three or five times a year is considered a relatively high frequency. Another example is a TV stand. When you install it On the wall, once you hang the TV, you almost never touch it again.

Any product has a certain life cycle and number of uses. The more a product is used, the easier it is to be worn and damaged, and product problems can easily break out every month. However, for products that are used infrequently, other The probability of product problems will be greatly reduced. Therefore, when selecting products, sellers should try their best to choose products that are used less frequently by consumers, and their product problems will also be greatly reduced.

5. Operability of Existing Funds

After selecting a product, it will cost money to prepare and ship the goods. After the goods are put into the warehouse, they may not be able to be sold immediately, even if After a part is sold, the next batch needs to be prepared and shipped while there is still inventory. Amazon will also have a 14-day loan cycle for the sold products. Taking various factors into consideration, if you want to operate a product well, Generally, the amount of funds required is three times the cost of a batch of preparation freight. This is just one product. If you are promoting multiple products at the same time, the amount of funds required will need to be accumulated in multiples. If there is not enough fund reserves, even if If you choose a product, even if it sells, it will be out of stock, turning it from a potentially popular product to a slow-selling product.

Therefore, it is very important for sellers to measure the operability of the selected funds according to their own funds when selecting products.

6. Avoid infringement

Product infringement in e-commerce operations is always a time bomb. As long as you sell infringing products, you never know when this bomb will detonate. Seriously , it may explode and cost you your blood. The loss of funds is only one aspect. Once a seller becomes dependent on infringing products and becomes speculative, it will be difficult to return to normal operations. This mentality will restrict all aspects of its future operations.

Therefore, for sellers, during the product selection stage, they must make careful judgments and set high standards for themselves, and resolutely avoid contact with infringing products.

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