Starting up a Qoo10 account is simple. But successfully selling your products to a large number of customers? That’s another level.
I know how you feel. To increase your products’ exposure, you have tried everything you know. You promoted them on Facebook, in blogs, in forums, and some of you even took in paid promotion, biding front page advertising spots on Qoo10. You might have gotten the traffic you wanted, but only a few actual orders.
So what went wrong? Insufficient traffic? Unpopular products? Prices are too high? You just can’t figure it out.
Don’t worry, it is actually a common barrier many small Qoo10 sellers and novices face. A barrier many fail to overcome, but not you, because today, we will guide you through the 4 fundamental steps to sell well on Qoo10.
With the proper adjustment to your e-commerce business, it won’t take long till you are seeing increased sales volume every day.
so you want to successfully sell on Qoo10? Let me be your guide.
Step 1: Choosing the Right Product
It is important to take note that the customer base varies in different platforms. Look into the bestsellers displayed on Amazon and Qoo10 and you will definitely see a big difference. Thus, when you are choosing products to sell on Qoo10, try to meet the preferences specifically for the platform’s audience.
These are the 3 points to consider:
1) Select Product Categories with Large Sales Volume
There are a total of 6 main product categories on Qoo10 homepage, as shown below:
Do you want to know which category is popular? Let me show you it’s a statistic (dated May 2019):
Women’s Clothing: Average monthly transaction volume is $3 million
Beauty & Diet: Average monthly transaction volume is $4.6 million
Men & Sports: Average monthly transaction volume is $1.3 million
Digital & Mobile: Average monthly transaction volume is $5.4 million
Home & Living: Average monthly transaction volume is $2.8 million
Food & Baby: Average monthly transaction volume is $2.9 million
Knowing this information isn’t enough. You will also need to research into the sales volume for it’s second and third sub-categories.
So if your target market is women’s fashion, you will also need to look into its second sub-categories such as women’s clothing, underwear & socks, shoes and etc.
Look at the pie chart below comparing the sales of each category under women’s fashion for a certain month. You will notice that women’s clothing and bag & wallet are popular categories compared to the others.
Let’s assume you have decided to sell women’s clothing.
Now, you will need to discover the peak and off-season for your category, so that you can better organize your purchase and storage.
The chart below shows the sales volume of women’s clothing from January 2016 to June 2016.
2) Figure Out the Sales Statue of the Third Sub-Category
Let’s continue with the same example.
After choosing the category of ‘women clothing’, next, you will need to explore the sales statue of it’s third sub-categories.
The charts below show the sales volume and average price of the said sub-categories.
You will see from the charts that dresses and tops/shirts are two markets with the highest sales volume. These are the markets you should focus on. Their average selling price are respectively $14.30 and $9.50, an aspect you should take into consideration when setting the price for your product.
3) Competitors’ Regional Distribution
Sellers’ regional distributions are available on the Qoo10 website, an aspect often ignored by many sellers. Continuing on with the same example, let’s take a look at where the sellers of women’s clothing are selling from. The below charts show the sales volume and average price of each region for a certain month.
From the charts, you will see that sellers based in China are dominating the market. They obviously hold distinctive advantages compared to sellers based in other countries. It also seems that Qoo10 customers prioritize price to delivery efficiency.
From a personal point of view, if you are based in Singapore and are considering selling in the same market (women’s clothing) on Qoo10, I would recommend you to think twice unless your products hold a unique selling point (USP).
Step 2: Estimate Your Potential Sales Reasonably
At your initial stage selling on the Qoo10 platform, you will need to control your stock. Thus, it is important to make a rough estimate on your purchase volume and monthly profit.
Let’s look again at women’s clothing.
The chart shows the correlation between the items (in the category of women’s clothing) and the amount sold for a certain month. Here, You will see that 782 products have a monthly sale of 1~50 pieces while only 1 product reached the sale of 5000 pieces.
With your product, do the same research and position yourself reasonably into the chart. Where do you rank? The top? Middle? Or at the bottom? Be realistic so that you can calculate an estimate on your purchase volume and revenue.
Step 3: Set Your Price Reasonably
Price strategy is tricky. The ground rule is: you should always adjust the price of a product according to it’s market rather than your own feelings.
So how do you know what is it’s most suitable price?
Let’s look back at the same example.
The below chart shows the correlation between the products’ monthly sales volume and their price.
From the above data, you will notice that most of the sales are accumulated on products within the price range from $0 – $20. It also shows that Qoo10 is not a suitable platform to those selling middle or high end women’s clothing. It will be a difficult challenge if you try so.
Step 4: Adopt the Correct Promotion Method
Up until now, you have learnt how to determine the kind of products to sell, a procurement plan and price strategy to adopt. For your final step, you will need to consider how to expose your products.
Making use of the advertising auction on Qoo10 is a great way to start, and within it: Time Sale, Sale Price, Group Buy and Daily Deal are the most popular. Let’s check out their effects on women clothing from the below charts.
Your choice of promotion method depends on your goal. For example, if you are focusing on sales volume, then Time Sale will be the most suitable.
Though the initial start-up on the B2C platform may be hard, successful selling on Qoo10 can be more than just a dream. As you may have noticed, it is all about research.
To all new start-up or small sellers on Qoo10, following the 4 steps above will assure you an improvement on business performance. If you have already established a number of monthly sales on the e-commerce website but have reached a bottleneck, you will need to adopt another method instead. Stay tuned as I will soon get to that.
Follow us on Facebook to stay updated with all our latest posts and articles.