
Many sellers stop striving for growth once they achieve initial success. However, to earn more, it's essential to explore new strategies. Beyond expanding your product assortment or entering new platforms, you can boost the margin on your existing products.
Below are nine methods to help uncover hidden reserves and increase profitability.
1. Conduct Competitor AnalysisUse marketplace analytics tools to gain insights into competitors. These tools provide data on how price changes or increased sales can impact your revenue, track competitors' price dynamics, and highlight areas where you can improve your product listings to stay ahead.
2. Accurately Calculate Your Current MarginUnderstanding the margin for each product batch and unit is crucial. This allows you to adjust pricing strategies and avoid unprofitable sales. Consider discontinuing low-margin products, as they can negatively impact your profitability during low-sales seasons.
3. Redistribute Unsold GoodsAnalyze sales data from the last six months to identify promising regions where your products perform well. Redistribute remaining inventory to warehouses in these regions to lower transportation costs and improve product visibility in marketplace search rankings.
4. Monitor Product TurnoverEvaluate the turnover rates for each product. If a product’s turnover rate is below average, things are in order. However, high turnover may indicate poor sales or stagnation. Investigate such cases, and consider inventory or disposal for long-unsold items to save on storage or transportation costs.
5. Optimize Product ListingsRegularly update your product information cards, at least once per season. Review competitor trends and incorporate new content or visuals to attract buyers. Check that product names, descriptions, photos, and other elements are accurate and up to date.
6. Inspect and Remove Defective GoodsOrder large batches of goods and inspect them carefully to remove defective items before shipping to the warehouse. This ensures that only quality products are listed, reducing return rates and improving customer satisfaction.
7. Sell Products in SetsIdentify products that can be sold together and create bundled sets. Group their listings on the marketplace to tie less popular products to better-performing ones. This reduces marketing costs, increases viewing time, and boosts the average order value.
8. Attract External TrafficExpand beyond the marketplace to attract more customers. Focus on platforms where your target audience is active. For example, if selling school uniforms, advertise in parent groups or forums for back-to-school preparation.
9. Reduce CostsAnalyze unit economics to identify unnecessary expenses. For example, importing goods in larger batches, maintaining long-term advertising strategies, and performing some tasks yourself can reduce costs. Minimizing these expenditures helps maximize your margin without compromising quality.
By implementing these methods, you can unlock hidden profit opportunities and significantly increase the margin on your existing products while maintaining a competitive edge on the marketplace.