This article is part of Spotlight China's latest series focusing on Chinese brands going overseas. Click to go to the topic page to read more about it.

Amazon sellers need to pay attention to a lot of data in their daily work, such as the most basic product sales data, as well as the ratings and BSR rankings that will affect product weight, advertising data, inventory, etc. Most of these are pre-sales and sales. After the sale, Amazon will automatically process the buyer's return application due to FBA's boutique operation method, so it is easy for us to ignore the impact of the number of product returns and the return rate on profits.

But the return data and the analysis behind it are very important, and directly related to whether the seller can make a profit.

For example, how many of the 15 returned products can be sold? If none of the 15 products can be sold, does it mean a total loss? If there are still a few that can be sold, it is necessary to estimate their respective proportions. This is used to measure the profitability of different batches and styles, and provide decision-making basis for product testing, reduction of return rate, and supplier selection.

  • Pay attention to the necessity of returns data

1. Detailed gross profit analysis and accurate cost calculation

Amazon returns generally lead to a refund, and after the refund, the seller will lose shipping costs, return handling fees, etc. When the seller calculates the gross profit, it is easy to ignore these data, so the estimated gross profit is too high.

2. Can optimize product quality and improve product design

The return situation reflects the true quality and user experience of the product. Sellers can analyze the reasons and frequency of returns to find out the problems of the product in time, and then improve the design, production and quality control process of the product. Through continuous improvement, sellers are able to provide more competitive products, meet consumer needs, and increase sales and market share.

3. Can adjust the business strategy and optimize the replenishment plan

For non-first-hand sources, it is difficult for the seller to control the production and quality of the product. In this case, the business strategy can be adjusted in a timely manner by analyzing the return data, such as: reducing replenishment inventory, changing suppliers, and re-testing by putting alternative products on the shelves. payment. In addition, under Amazon's FBA and FBM operating modes, there are still quite a few sellers who are still doing distribution or precision distribution. If the value of the product is low and it is shipped from China, when the return occurs, the seller will negotiate with the customer for a partial refund or a full refund without returning the product in order to alleviate customer dissatisfaction and reduce product negative reviews. In this case, if only the number of returned goods is counted, incomplete statistics and miscalculations will easily occur. At this time, more dimensions are needed; it can be related to sales and profits, more comprehensively show the true situation of returns, and gain insight into the problems reflected behind the data.

  • The Importance of Refund Volume and Refund Rate

1. Quantity of refunds: count the number of products with refunds in product sales, and clearly count the returns of FBA and FBM only refunds but not returns;

2. Refund rate: Calculating the proportion of refunds in total sales over a period of time is more comprehensive than calculating the return rate alone.

4K Amazon Product Report

If sellers only look at the sales volume and inventory balance, but ignore the return situation, and make a replenishment plan, it is easy to step on the pit. By comparing the sales and return data of different products, sellers can intuitively feel the data fluctuation of different products, and combine the sales volume to more accurately find out the products that need to be eliminated; to avoid the loss caused by the sharp drop in sales of products due to negative reviews after a large number of replenishment .