We cannot judge whether the product will sell well by only looking at its attributes, but also by analyzing its sales potential. This is done by researching on various external factors such as market demand, competitive environment, and price fluctuations. To give you a clear understanding of the rat repellent product, Leelinesourcing has created a complete analysis report on the market potential of the rat repellent in every aspect.
1. Product description
A rat repellent is a tool producing a certain frequency of ultrasonic wave to drive mice away. The design of the device is based on the professional electronic technology and years of research on mice by the scientific community. It is a unique device developed to create a good space without mice and pests. The ultrasound produced by the rat repellent stimulates and makes mice feel threatened and upset. In addition, the frequency of ultrasound is beyond the range of human hearing. Therefore, the device is absolutely harmless to humans.
(The chart of rat repellent’s popularity of searching of the United States in the past five years)
Google trends (trends.google.com) show that the search popularity of rat repellent in the United States has minimal fluctuations. The popularity is quite stable with most ranging from 25-50. Further, the search popularity has shown a gradual upward trend, especially in January 2018, when it soared to 95.
(The chart of rat repellent’s popularity of searching of the worldwide in the past five years)
The global trend of rat repellent search is also relatively stable and showing an upward trend.
In January 2018, the search popularity hit a peak of 100.
In addition to the search data provided by the Google trend, we also used the Keywords tool to query the search results of rat repellents on Amazon to better understand the market demand.
When we searched for the rat repellent using the Keywords tool, we found out that the average number of searches on Amazon in the past one year was about 108,000 per month. Over the past 12 months, the highest search recorded was 161,000, while the minimum numbers of searches on Amazon were 72,000.
Therefore, based on the above data, we can conclude that the market demand of the rat repellent is relatively stable and has a gradual growth trend.
Proper market distribution is important to achieve increased sales. The market potential of any product will greatly be affected if the product is not sold in the correct market.
(The chart of areal distribution of rat repellent’s popularity of searching of the UK)
From the search popularity results on regions displayed by Google trend above, the top search areas in the United States are Washington, California, Texas, Florida and New York.
(The chart of rat repellent’s popularity of searching of the UK in the past 12 months)
In the past year, the search popularity of rat repellent in the United States has shown minimal fluctuations usually ranging from 50 to 75. Recent data shows that the popularity has an upward trend.
We can conclude that:
The market for rat repellent is mainly distributed in Washington, California, Texas, Florida and New York. New York and Washington were once named America’s most rodent cities; therefore it makes sense that they are the popular cities searching for rat repellents.
The market competition environment of the product is another factor to consider before selling the rat repellents. In simple terms, less market competition means more product sales while intense market competition means it is more difficult to sell your product.
(The graph of search volume of rat repellent in the past 12 months in the UK from Google Adwords)
(The graph of the search volume of rat repellent in the past 12 months on Amazon)
We used Google Adwords (adwords.google.com) and keyword tool (keywordtool.io) to search for rat repellents. Google search results showed an average search of 5, 400 per month. However, the average search volume on Amazon was 108, 000 a month. The CPC is about 1.28 dollars per click with a competitive value of 1(According to the Keywords tool table, products with a competitive value of 0.69-1 are highly competitive). The small number of searches for rat repellent on Google shows that there is less market space for the rat repellent on independent sites.
From the results, we can conclude that rat repellents have a small market space on independent sales sites, with competition fierce on Amazon.
3. About the product
When it comes to selling products, cost is always a great concern. If the costs are high, then the profits will obviously be small. Therefore, the product cost is an important factor to consider when judging whether the product has great marketing potential.
We searched online for the rat repellents in website 1688, as shown in the picture above. The purchase prices of most products were ranging from ＄1-8. Even though the rat repellent is a technological product, its purchase price is generally low. It is also a small size product that will be easy to pack and transport. Therefore, even if transportation expenses are included, its procurement cost will not be high.
Overall, rat repellents have lower purchase costs.
The profit of the product is one of the biggest aspects of any business. We have just talked about the cost; now let’s analyze the profit margins of rat repellents.
To get a rough estimate of the product’s profit, we randomly picked a rat repellent from Alibaba going for $2.50 and a similar one from Amazon going for $16.99. We then calculated profit by simply subtracting ＄16.99-＄2.5=＄14.49.
This gives a gross profit of $14.49 per unit.
We then used the Unicorn smasherg tool to see the average monthly sales of this product which we found to be about 1484; so basically, this gives us monthly returns of 14.49*1484=21,503.16 dollars. When the cost of transportation and packaging of the product is deducted, the profit margins of the rat repellent are still large.
In conclusion, the rat repellent is a profitable product.
(3)Fluctuations in prices
Stable sales price means stable sales market environment and great market potential. Taking the above product as an example, we can find out whether the rat repellents have a stable marketing environment.
The figure above shows a one-year historical sales price of this product from the keepa tool. As the chart shows, the price of this rat repellent has fluctuated greatly in the past one year. There have been many sales periods when the price is $6. This is not far from the purchase price of Alibaba. As we all know, price fluctuations will affect the product profits.
As a result, the strong fluctuations in prices and profits make rat repellents a risk product to sell.
We can learn from the above information that:
The rat repellent has a stable market demand, low cost, and high profits. However, the fierce market competition and strong price and profit fluctuation increase its sales risk.
So what to do if you want to reduce sales risk and maintain a high sales profit?
Leelinesourcing recommends finding a reliable and long-term partner to supply you quality good at the best prices. Getting the best suppliers not only guarantees you good quality and prices but can also arrange the delivery for your goods while also handling other tedious affairs. These can then help you reduce the sales risk and costs.
If you’re looking for the best supplier from China, then go ahead and contact Leelinesourcing.
Leelinesourcing is a purchasing agent company with over ten years of experience in product sourcing. We can help you find the products you want and also negotiate with the supplier so that you get high-quality products at reasonable prices. Regarding logistics, we can also help you to deliver goods. Our services include finding suppliers, conducting credit verification, cross-price inspection, negotiating prices, product photography, labeling, FBA shipping and product branding and so on.
This brings us to an end of our product analysis report. We hope this is enough reference for product procurement and sales.
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