Unpopular market with 50% gross margin

Today, the article will share an unpopular category with you. I hope to provide you with the analysis and reference basis through the presentation of SellerSprite objective data.

 

Note: All statistical data is the relevant data of TOP100 in the category. In general, top 100 data of a subdivided category reflects the market’s most concentrated consumption data, and represents the “epitome” of a subdivided market. The comparison of different market “epitome” will enable us to judge the differences of key dimensions in different markets efficiently, and is also the powerful tool for us to quickly find the most suitable category for operation.

 

 

In the data overview of SellerSprite, we select all subdivided categories of France, sort in descending order with “new products”, and quickly find this unpopular market: (Ceintures de massage)

The market's new products which were launched in the last six months accounted for 25.68%!

 

Open Amazon.fr and view this category on the best sellers rank page. Top 100 products are almost "Muscle Toner", and the main function is smart fitness, and shaping abdomen.

 

Analyze the competition of markets from four dimensions: market capacity, brand, seller, and reviews. 

Although the overall sales of this market is relatively small compared with that in Amazon.com, and the total monthly sales of TOP100 is 3919, the demand is stable. The sales of the whole market is distributed in 74 listings, and reduces gradually. The market is not monopolized by a few listings. Purple columns (new products which were launched within 6 months) are scattered among them.  6 of the Top10 products are new products with high activity.

Top100 listings come from 56 brands and 58 sellers. The sales trend of brand is flat, and the market is not monopolized by a few brands. Moreover, AMZ only accounts for 4%, and the market share is very low.

 

There are 54 products in the review interval of 0-50, which account for 55% of the market share; and there is no product with more than 200 reviews. It means that the cost of accumulating review for this category is very low. A new product with less than 50 reviews is enough to obtain basic credibility and compete with similar products.

 

From the above four dimensions, we can know that this market has no monopoly in Amazon.fr, new products are very active, and it is friendly to new sellers and new brands.

Then, the first problem is coming. Sellers who have opened Amazon.fr can go to the next step:  select the reference product, calculate the promotion cost, and estimate profit and loss.

 

Does such a market have a inspiration for sellers operating other marketplaces? Next, we will study the sales of this product in the Amazon.com.

 

Input the keyword "Muscle Toner" on Amazon.com to find the sub-category of this product, and open the best sellers rank page to analyze this subdivided market. We find that unlike the Amazon.fr, the muscle toner does not have an independent sub-category on Amazon.com, and its sub-category is Core & Abdominal Trainers.

 

We continue to analyze the market's competition through the following four dimensions.

The market capacity is 56,513 and the number of products is 100. Except the large sales gap between Top1 and the following products, the sales trend of the latter products is flat, which means that sales distribution is relatively even and not monopolized. Purple columns(new products which were launched within 6 months) are distributed among them. New products are also active on Amazon.com.

The number of brands is 72, and sales trend is flat. The market is not monopolized by a few brands.

The number of sellers is 71, and sales trend is flat. The market is not monopolized by a few sellers.

 

The number of new products which were launched within 6 months is 31, and new products’ sales account for 31%. The impact of new products is high. When clicking the column of 6 months, 3 months and 1 month, we can find that many products here are muscle toner, which means that the impact of new products in this market are mainly brought by muscle toner.

 

By convention, we finally calculate the cost and profit of the product.

Find similar products in alibaba.com, and the price is about $4.

Calculate the profitability of this product in SellerSprite's profit calculator. The purchasing cost is $4, the Item Price is $35.99, the “ship to Amazon” fee is $2.5, and the proportion of PPC cost is 10%. The result shows that even if new sellers do not have any other promotion resources or means, and completely rely on PPC promotion within Amazon, the gross profit rate in this category is still as high as 50%.