However, Amazon has many models, but it is still relatively rare to use a low price model for selling goods, because under this model, it is easy to lose money. It is recommended that everyone consider the FBA boutique model. Many people are shopping for profit. They don't want each product to have a profit; they want every product to have a profit. If it has enough SKUs, then the order quantity can increase. Since then, it has already placed more than 2,000 orders, but these more than 2,000 orders are probably all at a loss. Of course, some of the orders may have been profitable, but in general, they lost money, and the price of their products was too low, because in the process of making these products, he discovered that one or two of them could be promoted, and they were better promoted. One of the more typical ones is that the head product may sell 1,000 orders a month. He can now sell 5,600 orders a month, which is also very nice.

However, in reality, there is no profit, because the normal purchase price should be around 9.99 US dollars, but now it's only about 7 US dollars. The gross margin seems to be around 10% on the left or right, but this hasn't been calculated yet. The ACOS advertisement is controlled at around 20%, which is actually not a very high level. After post-optimization, it's OK to lower the advertisement by 10%, or less, but if you do the math, there's still no profit. It's actually not recommended to do this for this type of product. That is to say, I asked him why he would do this at the time. He said he wanted the price to be a little lower, order as soon as possible, and then wait for the weight to rise before increasing the price. The key problem is that the cost of this product is here. If we raise the price a little more, there won't be much qualitative change in profit. Compared to this product, we adopted a low price strategy in the early stages and want to wait to increase the price later. In fact, it may not necessarily rise later. Even if it goes up, the unit volume will still drop, and the conversion will go down. So advertising costs will probably go up, and in the end, there will still be no profit.

In other words, if we make products in the early stages, it's normal for us to be willing to lose money, but for example, if you go to the market to open a new model, this is called investing in pictures of your new products, using money to make some videos and pictures, this is called investing in the conversion rate of your products, and then I offer prices, discounts, and preferential prices to make some profit. Relatively speaking, the price is discounted or lost a little bit. This is called a strategic loss. Well, early advertising investment is investing in your early base traffic, so there's no point in losing money on what product, losing money on quality products, not on a product sold, and on a product with a low profit margin and low customer order to make a loss. If you want to make 1,000 orders for this product, it's like if you take 9.9 US dollars, and you can't make much money even if you count on 1,000 orders, because the profit margin is already very thin. Before we start Amazon, we must think about why we are doing this and how we should do it. We must think about how to do it when pricing, and not fall into this dead cycle, because this seller is still restocking his product before talking to me. What is the point of restocking this product?Then it will fall into a dead cycle. Seeing that it's cool to issue 4,500 orders and 5,600 orders every day. I will also continue to restock my goods. I will probably lose money once I settle my accounts at the end of the year.