Product Speed Internet

            The fourth step in selling products on the internet is to understand the price of the products we sell and the number of products sold within a certain time. Relations between them are usually referred to as product velocity. More and more products we sell, the greater the velocity of his product. We can make the relationship between price and amount sold each week. Usually the greater the desire to sell in large quantities, then we should set a lower price, otherwise the higher the price that we set the less the number of products we can sell.


Average Sales Price can also be narrowed by stating in an item that contained the so-called Stock Keeping Unit (SKU) which is a term often used by retailers off-line to indicate a unique item in the inventory. For example, Seller A has three red shirt two sizes XL and L size of the blue with no one fruit, then SKUnya only two, namely SKU1 is a red shirt (number 2) and SKU2 is a blue shirt (number 1) . Key concepts to be understood without having to work on campaigns or do something special demand in the market or putting the various SKUs are fixed, will not alter the demand in a period of 30 days to 60 days. Other variables that work is a quote, then we must also control the supply, although this offer is also controlled by our competitors. This information is a weapon we can use to make important decisions based on our goal.For example, Seller A sells 10 units of SKUs per month at $ 150. Seller A has a target to increase profits each month. SKU cost on a volume of 40 units cost $ 100, but if it can increase sales of more than 100 units per month, costs SKU down to $ 85. Then this information can be made a variety of scenarios. The first scenario focuses on high margin, we sell for $ 150 which sold 40 units at a cost of $ 100, then the gross margin ($ 150 - $ 100) x 40 = $ 2000. The second scenario focuses on the margins are, we are selling at $ 120 sold 80 units at a cost of $ 100, then the gross margin ($ 120 - $ 100) x 80 = $ 1600. The third scenario focuses on low margin, we sell for $ 100 sold 160 units at a cost of $ 85, then the gross margin ($ 100 - $ 85) x 160 = $ 2400. By understanding the speed of product / pricing and testing enables us to get the estimated number of SKUs that we can sell and what we expect vulume. By estimating the price and volume of our products will help to prepare the product resources and be able to predict the margin we earn each month. If the product is not made by us, then we can negotiate on price with the source of our products at a price based on sales volume.