When you agree on the type of product to buy, do you still take time to know about its competition, sales, and market trends?
Leelinesourcing will take the dog collar as an example to educate you on how to analyze a product.
We will analyze the dog collar in broad ways and help you reduce risks associated with running business. (Related article: How To Choose the Best Dog Collar for your Beloved Buddy )
Based on the market
1. What is the market potential?
According to Google results (trends.google.com), in the past five years, the search volume of dog collar has been increasing year by year. This is the case especially in the month of March 2007, where there was an explosive increase in dog collar search.
Now come to its search volume on Amazon（www.amazon.com). The above picture shows that there nearly 4 million search volume per month. This tells you that a dog collar is an optimistic potential market and prospect.
2. Which areas have high market potential?
According to Google Search Trends with results based on area searching hot spot above, we can see that America, Britain, and Australia rank in top three. America obtains the highest searching popularity, which means a dog collar has the biggest market in the US. The US is then followed by Britain and Australia.
Area search over the past years in America shows the hot spot maintain over 75. It is obvious that a dog collar has a handsome potential market in America with New York leading with the biggest market.
In Britain, the searching hot spot of dog collar also remains over 50. However, it fluctuates more than what we see in America. Scotland obtains the highest searching hot spot in the whole of Britain. On the whole, Britain has an optimistic market and stable market environment.
3. What about the environment of market competition?
Using Adwords（adwords.google.com) and keyword（keywordtool.io）to search dog collar.
The results show America hitting a Google search volume of up to 74, 000 per month with Amazon almost getting up to 4 million each month. However, the dog collar CPC is only $1.7. This shows that the dog collar has a huge market and competitive environment which is not intense.
Based on products
Above is an example of a dog collar by random searching. We searched and found it in Alibaba with a purchase price of $1.5. However, the same collar sells at $8.99 in Amazon（Blueberry Pet). This gives you a price difference of 8.99-1.5=7.49 dollars. This shows dog collar has a handsome profit.
Using unicorn smasher to search, we found that the sales quantity of this shop is about 1207 units each month. This amounts to $10797 in sales per month. Work out the profit margins and you get awesome 7.49 x 1201 = 8995.49 dollars each month. The profit of this shop is about $9000 each month. It’s a handsome profit. But is that the whole truth? NO.
This is because we have ignored other costs such as packaging cost, transportation cost, tariff, and so on. Once we increase these costs, you will find your profit is reducing. So, before you purchase products, it is really important to figure out your cost and profit.
We enter into this shop again and use the keepa searching. Results show that over the past four years, this shop has little fluctuation range in prices. The lowest price is $7.99 and the highest price is $8.99. From 2005 January, the sales rank fluctuated steadily. In July, it reached at the top of the sales rank.
Suggested reading: How to Buy On Alibaba And Sell On Amazon?
Obviously, it is only when you get a lower purchase price that you can get a higher profit. Then how can you find a proper supplier? Welcome, and consult Leelinesourcing. This is a professional purchasing agency company in China. We have over ten years of experience of purchasing products in China. Our buyer will help every customer find the products with the best quality and the lowest price. We help you to save your time and the cost of purchasing.
Through the mail [email protected]leelinesourcing.com or an online chat, tell us the type of products you need. Our buyer will begin to purchase for you right away. This Includes finding a supplier, examining the supplier, crossing price examination and price negotiation. We can give you 3-5 good suppliers’ price list and free samples in the next 24 hours. Apart from this, we can also help you take pictures, mark labels, FBA transportation, make products brands and so on.
Choosing us will be your first step to success.
If you have any more questions about Amazon business, please do get in touch so we can assist you in getting the right information. Leeline sourcing company is involved in different sourcing business that will help your company’s grow, and make your international business better. No matter how big or small your orders are, we will help you source quality and affordable products, and we will ship them directly to you.
• Product Sourcing: With over 10 years experience in this field, our team will keep your mind at peace, and you will be sure that the products are supplied through a responsible supply chain.
• Amazon FBA sourcing service: We offer you Amazon seller services, from product procurement, to brand labeling, quality inspection, packaging services, product photographing and also shipping of products to FBA warehouses. Just tell us what you need, and we will help ship your products to your warehouse at lightning speed.
• Business and sourcing ideas: If you walk into our office, we will share business and sourcing ideas with you, even if you are importing yourself, our ideas will help you avoid mistakes that will be costly to your business. Our advice will surely help your business turn out better.
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