With the end of the Q1 quarter of this year, more and more sellers began to sum up experience, constantly reflect on the misunderstandings in operation and operation, and focus on the "tactics" of the next stage. However, in the realization stage, many sellers, especially small and medium-sized enterprises. Sellers often lack thinking about "strategy".

Looking back at Amazon's overall sales decline in the past two years, if you only focus on technological innovation without thinking about the overall direction, it is very likely that the harder you work, the more embarrassing the result will be.

Therefore, what dimensions of strategies must small and medium-sized sellers pay attention to in order to achieve stable profits?

Bear the brunt of the point is to pay attention to profits, do not blindly fight price wars

For Amazon at this stage, whether the store can survive, or whether the seller has a source of motivation to continue, is fundamentally profit. Some sellers want to maintain enough profit margins and make a brand premium around their products; some sellers want to increase their sales to a high enough level and rely on small profits but quick turnover to survive.

There is no absolute right or wrong between the two methods, and the categories of different products are destined to have differences in the way of play, but in terms of the current platform policy and the development of cross-border e-commerce, sellers should pay more attention to profit margins. After all, the low-price sales strategy has gradually derailed from some categories, and the focus of consumers has gradually come to the degree of product differentiation.

Therefore, if we want to achieve stable profitability, we must pay attention to the differentiated development of products, which is the core condition to support products to obtain high premiums; secondly, we must use more refined operation methods to reduce the cost of sales conversion, so as to achieve cost reduction Efficiency increase, which is also a disguised profit. In practice, we need to do the following:

1. Differentiate around market segments:

Many small and medium-sized sellers' understanding of product differentiation is limited to the high cost of mold opening and comprehensive functional upgrades, but this is not the case. We only need to differentiate within our own capabilities to be able to compete in market segments. Stand firm.

The all-round remodeling and upgrading of a product must be aimed at the majority of the audience, and the corresponding leading enterprises in the category must be able to make such differentiated products. As for our small and medium-sized sellers, we do not necessarily have to do this more explicit and universal differentiated remodeling. We can focus our limited funds and energy on smaller market segments to make targeted products. Differentiation improvements. Amazon

For example, adding a camera in the oven to meet the social needs of users in some markets for food sharing video production, or adding a personalized timing module to products such as thermos cups to meet the health needs of users. There are many more such differentiation cases for market segments.

2. The price should keep enough premium space:

After the product has created enough features, we must pay attention to ensuring sufficient profit margins in sales conversion. Don't be greedy for temporary high sales and sprint play, which will have many disadvantages. One is to greatly shorten the life cycle of the product. If the price is relatively low, then the purchase popularity of a product in the category is bound to be greatly improved, and potential users will be quickly consumed, which is not conducive to our later increase in price and profit; two It is the current Amazon. Compared with the price, many users care more and more about the quality and personality of the product. Too low price is not conducive to the user's trust in the product.

3. Pay attention to the control of promotion costs:

The mistake that many novice sellers often make is to fill up their advertising budget at the beginning, resulting in an infinitely high ACoS. Although there are orders and conversions, the profits are diluted by the high advertising costs, and the unfortunate ones don’t even have traffic keywords. After sorting it out, it will be thrown blindly, and there are many people who have lost everything. Amazon

Therefore, we must reasonably control the promotion budget, and work hard on the unit price of customers and accurate traffic words. We would rather make less orders and ensure profits. Leveraging the advantages of products is far better than relying on advertisements to quench thirst.

In addition to the above three points, our profitability is also related to stocking and logistics to a large extent, and we will not elaborate on this aspect. I believe that as long as the core strategies for profitability are clarified in these general directions, even in the current Amazon market, small and medium-sized sellers can still have their own place.

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