There is no monopoly company in the category to which the product belongs

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nusaiba125
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Joined: Sat Dec 21, 2024 3:34 am

There is no monopoly company in the category to which the product belongs

Post by nusaiba125 »

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The fact is that there are product categories in which one seller takes a large percentage of sales.

If you see such a picture in the category of interest, then keep in mind that it is possible to “take away” sales from a monopolist only through huge investments (efforts, time, budgets), and it is quite likely that these investments will be wasted.

Where to find this information: in the seller's Personal Account and external analytics services.

Useful material
Niche analysis using Wildberries as an example: what product is best to enter the marketplace with
Product marginality : when calculating it, it is necessary to take into account what logistics, commission, expenses will be included in the price of the product, so that it is within the calculated unit economics, and you can make money.

Marginality is the difference between the cost price of a product and the price at which it is sold. The cost price includes all costs of production, purchase, packaging, and logistics of the product. Marginality can be calculated both in absolute terms (money) and as a percentage.

Experience shows that serious sellers do not display the margin earned on sales as profit, but retain it for business development. Sales growth implies investments, for example, in regional distribution vietnam consumer email list of goods, increasing warehouse balances that service the increasing turnover.

Marginality affects:

the opportunity to profitably participate in promotions held by the marketplace;
% allocated for advertising promotion;
the possibility of price dumping at the start of sales to attract more attention to your product and a “quick start”.
To correctly calculate marginality, you need to calculate unit economics.

Useful material
Table for calculating unit economics on Wildberries
Let's say your product meets these criteria: it has a "market" price and is in demand among potential buyers.

Sales of a product are affected by traffic (the number of users who saw the card) and conversion (clicking on the card, moving the product to the cart, and placing an order).

The seller can directly influence these 2 indicators.
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