All things grow in a regular way, and the four seasons of spring, summer, autumn and winter alternate into a perfect year. As we all know, every product has a life cycle, and Amazon products have obvious regularities from initial launch to decline.
The life cycle of a product is the process of the market life cycle experienced during this period, starting from the product entering the market and ending with the exit from the market. A typical product life cycle is divided into four stages: new product stage, growth stage, maturity stage, and decline stage. The characteristics and operational points of each cycle are different.
1. New product period
Amazon's new products are said to have a support period of about 30 days. In order to smoothly launch the product into the market, the new product period can be set to 30-60 days.
Operational keywords at this stage: 1. Drainage; 2. Optimization; 3. Accumulation; 4. Positioning.
The key point of operation at this stage is to continuously drain traffic, maintain listings that can issue orders and be active, let the platform capture your product and judge it as potential, and give more traffic support. However, there are few reviews for new products, and to ensure conversion rates and sales, the price should be set at a promotional price.
2. Growth period
Products in the growth stage have increased in terms of orders and traffic. At this stage, there is sufficient inventory and a certain amount of reviews. The products are recognized by consumers and bring a large number of new customers to buy.
The growth period of the product is like a young person who has just entered the society. They have sufficient knowledge reserves and have a bright future. They sprint and achieve good results. After stable development, they adjust insufficiently and expand their ambitions after rest. In this way, they will grow into a big man! All in all, the main theme of this stage of operation is to continue to expand the conversion rate of listings and improve rankings.
The operational goal of the growth stage is to seize the opportunity to show the potential of listings and sprint for higher rankings. At this stage, the tasks can be refined and divided into 3 small stages. You can set 30 days as the sprint period, 60 days as the stable period, and 90 days as the expansion period to make the operation plan.
Operational keywords at this stage: 1. Improve ranking; 2. Heavy volume spike; 3. Speed up advertising; 4. Optimize CPC structure; 5. Expand multiple variants; 6. Brand.
The dazzling performance at this stage will attract competitors (co-selling), and a large number of similar products will enter the market. In order to be more competitive, on the premise of not losing money, continue to set promotional prices, you can participate in various spike activities. As the order volume continues to increase, the return situation will increase, and the return rate will be a hidden danger. It should be adjusted after the ranking is high and the order is stable.
With the arrival of the stable period, the product has a good ranking, but the pressure of competing products is not small, and we must continue to expand to maintain our advantage. At this time, we must continue to optimize the listing, and ask yourself every day, "Do I still have pictures, videos, and descriptions?" Room for further optimization?". Similarly, in order to continue to seize the entry of keyword traffic, iterative products should be developed and branded packaging, mainly video marketing, content marketing, try to fill all advertising channels, and do comprehensive delivery.
The price strategy at this stage should gradually transition from the promotional price to the normal price. When the traffic and conversion rate reach full marks, the return rate is lower than the industry level, and the branding has also produced effects, the product price can be higher than competing products. some, thereby increasing profit margins.
In the growth period, the sales growth rate is very fast. It is necessary to stock up on many channels, keep the hot sales and keep the goods, so that the sales volume will continue to rise and eventually reach a relatively stable level and enter the mature stage.
3. Mature period
Products in the mature stage have a high historical weight due to the implementation of the previous stages, and they are basically stable with a score of 4.5 stars or above. The goal of this stage is to extend the time of prosperity, and the main task is to expand the conversion rate of listings And maintain rankings to avoid production defects, bad product reviews, and competitor imitations.
At this stage, the exposure of listings has reached its peak, and advertising investment can be reduced. Many popular models on Amazon can be maintained for 3 years or more by natural traffic and brand effects. Obviously, because of the reduction in advertising costs, profits can also be improved.
Another important task in the mature period is to develop new products and promote them, so as to establish an exit mechanism for the subsequent recession period. New products can use the newer model to bind with mature products to share traffic, or shoot out-of-the-box videos and upload them to related videos of mature products for drainage, maximizing penetration into the associated location of each link.
4. Recession period
With the emergence of new products, the demand is replaced, the product market at this time is gradually compressed, sales and profits will also decline rapidly, and the recession period has officially arrived. The main task at this stage is to control inventory and deal with slow-moving inventory. If the sales volume declines rapidly, you can adjust the price to the jumping-off price in conjunction with discounts and spikes to minimize inventory.
There is also a wonderful use for products in the recession period. Since there are a large number of reviews, you can use the "old with new" merge variant to transition to a new iterative product, make the best use of everything, and end it perfectly.
Amazon's competition is getting tougher! There is a trend towards short life cycles in many product categories! For Amazon sellers, fully understanding the characteristics of the different stages of the product life cycle and the laws of natural iteration can have a positive impact on the product operation ideas. Amazon sellers want to increase traffic, increase conversion rate, and increase profits, and the pace of operation at each stage needs to be accelerated!
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