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How to Assess Market Demand for Products Before Selling?
Predicting the sales performance and assess market demand of a product before taking it live on international online marketplaces is not easily attainable. To be specific, it is almost impossible to predict the future of a product that is up and running. However, the overall market demand for a particular product can definitely be estimated for having a clear picture of the total market potential and profitability. Some of these may be listed as following:
Product size and weight:
The size and weight of a product generally have a direct impact on the volume of sales. Products that are large and heavy involve high shipping costs thereby affecting the final product prices. It is not easy to pass on the expenses incurred for shipping to the consumers, therefore, leading to cart abandonment. For being highly competitive in generating revenue on international online marketplaces, it is advisable to give proper volumetric dimensions to the logistics partner from beforehand so that no extra charges are imposed to be included in the final product prices of the customers.
Number of SKUs:
SKU or Stock Keeping Unit ideally pertains to size, color and other variants of one particular product. The higher the number of SKUs of a product, the more time and money consuming it becomes to track and maintain its inventory; this, however, doesn’t imply cutting down on the number of SKUs. Though there are ample of tools to assist proper inventory management of several SKUs for a product, it is prudent to be aware of the extra expenses to be incurred for the product-mixing process during fulfillment. Eunimart offers effective inventory management services in this regard.
Durable products cost considerably less to ship and can be moved with ease en-route to customers. Products that are fragile require special attention for ensuring they reach customers in perfect condition. Though fragility shouldn’t prohibit a seller from selling a particular product yet it is wise to keep in mind the extra expenses to be borne for proper packaging of fragile products (to retain all sorts of wear and tear), shipping and customer service.
From business point-of-view, disposable or consumable products with shorter lifespan offer better business prospects making way for repeat sales from customers. Offering products that will fetch repeat orders helps cut down marketing costs while increasing average value of customer lifetime.
Validating the exact geographical location of the marketplaces is crucial. This is required in order to figure out whether the targeted audience is present within the areas where the products are being put for sale. Eunimart helps in identifying the most suitable international online marketplaces for the desired products to be put for sale.
Selling items that are readily available can make competition on top international online marketplaces really tough. The more uncommon the products, the lesser the competition. Being in competition can be a real motivator but the market existence of the products to be sold should spread out to the targeted audience without fail.
Seasonality refers to the various levels of demand for a product throughout a year. Seasonality is a crucial aspect to be considered while evaluating the market demand for products before selling on international online marketplaces because it affects the revenue of an online business. Holiday seasons happen to be more profitable than off-seasons. Being aware of the off-seasons helps to determine the business downtimes and act accordingly.
Google trends allow to search a particular product idea (before launching it in the market) and view the total search volume for it over the past few years. This gives an idea of whether the market demand for the product will grow or remain stagnant.
So, there is a lot that an aspirant online seller can do than just passively sitting and hoping his or her products sell well on international online marketplaces. Using some of the forecasting strategies to evaluate the marketplace demand for products can increase the overall success rate for it. There are several aspects to be considered for determining the market demand for products to be sold on top international online marketplaces through Cross-border Ecommerce Solution.
Image Source: Stocks To Trade