It is not enough to source products from China. You also have to sell them through reputed web portals to reach the target customers so that you can have a successful business turning in profit at the end of the day. To be able to create a successful business online, you will have to keep an account on how many products you sell everyday? If you cannot keep a count, you can still take an average based on which you will have to formulate your marketing strategy. If you are a beginner, it is actually one of the most important questions to be answered.
In a single sentence, the kind of product you are selling on a reputed online platform determines the decent number of products that will make you survive online and also garner profit later on. However, it may not be easy for you to understand the process. Here, we have an explanation to that.
In case, you are selling unique and expensive items through an online e-commerce website, you may not really bother about the number. You will make profit anyway. Selling a few high-priced products can make quick profit and you will not be required to sell a large number of products that you have acquired from suppliers from China. However, it is not easy to conceptualize on the differences between product categories. Keeping track of SKUs or stock keeping unit is not easy. However, you have to remember that one SKU means one product.
The smartest way to do business is by setting up one listing to sell multiple units of the same product. In this way, the effort the business person puts in setting up the account gets paid back multiple times with every sale. But there are ways to pitch your products properly and sell them. One such way is to start with low end pricing. You will have to set up an average price for the product to reach to a formidable gross income in the end. If the price of an item is $10, then the gross will be $100,000 by the year end. You will have to sell around 10,000 units of the product to earn the above mentioned amount. Now, these units could be from a single product or from multiple products and they need to be sold over and over again. This might sound like a lot of products, but when you break them down, it is only 27 units on an average.
If you are thinking that calculating in average in good, then think twice. Calculating in averages could be dangerous too. It is dangerous while planning in retail because half of those 10,000 units will possibly be sold over the last 3 months. The reason for this being, it was a holiday season. All the products during holiday season are sold at double the rate and pace. Shipping all these products could an issue in the end.
Is Selling Expensive Items Feasible?
When you keep a higher price for the products, the effort you put and the stats will be different. Obviously, the number of items you have to sell will be dramatically less if your average price is around $100. If you are still thinking about how many products to sell, then using the Long Tail method will be productive. All the products are not good producers, some are and you will have to sell more of those products to garner profit. Also another factor is population explosion coupled with exponential growth in use of electronic products. Catering to a bigger population means better Internet access and reaching out to a bigger customer base. Long tail is the perfect solution when it comes to bigger platforms like Amazon. The list will be long, items will be multiple and selling a couple of each of them will enable you to see profit.
Hence, selling products in this manner will make you attain your business goal. You have to follow the process of permutation and combination to find out how many products you should sell to garner profit.