Due to economic and political instability, purchasing power is noticeably reduced, and the average check on online platforms is decreasing. However, competition is still growing, more and more sellers want to trade on marketplaces.
What to do in a difficult situation in order to earn money, and whether it is worth selling seasonal goods, says Askar Rakhimberdiev, CEO of MySklad. The cloud service is integrated with popular marketplaces. The company organizes discussions and webinars where trends and current market issues are discussed.
Seasonal products - what are they and what are their advantages
Seasonal goods are called goods, the demand for which directly depends on the time of year, holidays, weather conditions and other external factors. Such goods include swimwear, down jackets, school supplies and other goods that are in high demand during a certain period of time.
It is profitable to sell such products no more than 3-4 months a year at best. At worst, the demand period is only a few weeks. The rest of the time, interest in it can be generated by participating in seasonal sales, when prices are reduced by 50%.
The main advantages of seasonal products:
High profitability. It is much higher for seasonal goods. The profitability of products that are sold evenly all year round starts at 7%, and for seasonal products - from 25% to 70%. Conditional bows, which are used to tie the hair of first-graders, cost fabulous money in the last week of August, and on the morning of September 1, their cost drops.
Opportunity to earn fast. The margin for seasonal goods can reach up to 400%. If you buy or produce goods in advance at a low price and correctly predict demand, you can extract maximum profit with minimal investment.
The ability to make an upsell is to increase the average check. If you sell artificial fir trees, you can offer additional products for them - toys, garlands, New Year's tablecloths, napkins, etc. With a high probability, the buyer will buy something else.
Difficulties in dealing with seasonal goods
If the seller does not know the specifics of working with seasonal goods, he runs the risk of not having time to sell the goods and being left with Christmas trees in January.
Therefore, it is necessary to take into account the following nuances:
Analyze sales. See how the same products were sold last year by competitors, evaluate the strengths and weaknesses.
It is necessary to purchase products from a supplier 3-6 months before the start of sales. Later, the supplier or manufacturer may raise the price. If we want to sell winter hats, we need to buy them in the summer, long before the start of the season.
It is necessary to correctly predict demand and manage it during the season. If the product does not sell well, then you need to use all possible tools: advertising on the marketplace itself and in social networks, bloggers, SEO promotion. It is better to order more than to run out of stock. Some seasonal items are sold all year round, but their sales drop noticeably.
For example, summer clothes, swimwear or down jackets: they will have to be sold at a discount, but if the unit economy is calculated correctly, then the seller will not be left without profit. It is not uncommon for novice salespeople to make the mistake of miscalculating the number of units and subsequently find themselves unable to restock or difficult to sell.
Seasonality should be tracked based on the principle of segmentation:
Rigid. Goods that belong to this category are bought within 2-3 weeks. As an example - Easter sets or Christmas trees.
Bright. Demand for goods in this category is reduced by 40-60%. For example, swimwear is also bought in winter - for the pool or relaxing in warm countries, as well as in order to buy goods at a better price.
Moderate. Demand for these goods is always about the same level, except for holidays, when it rises by an average of 15%. This category includes bouquets, school supplies, beauty products and others.
I do not advise entering the market exclusively with seasonal goods, especially if the business is taking its first steps. Such products should not be more than 30-40% of the assortment portfolio. The rest is products with minimal risks (household chemicals, cosmetics, etc.).
To get the maximum income, follow the trends
If you want to get double the profits from selling seasonal items, follow the trends. The recommendation is most relevant for those who sell toys, clothes, jewelry, handicrafts. Fashion trends can be analyzed based on reviews of industry experts and information on social networks and large marketplaces - where it appears and spreads very quickly.