GMV Max Stabil Performanya, Ternyata Ini Rahasianya !!!

Summary

In this video, Burhan addresses why GMV (Gross Merchandise Value) may suddenly drop after a consistent period of stable performance on Shopee. He reassures sellers that GMV doesn’t have an expiration date, but can fluctuate due to factors like traffic, conversion rates, AOV (average order value), and competition. Burhan emphasizes that maximizing the use of Shopee’s tools, such as campaigns, flash sales, and vouchers, is key to improving GMV. He stresses that sellers should prioritize profitability and focus on return on ad spend (ROAS) rather than solely scaling GMV, offering practical advice for maintaining stable performance.

Takeaways

• 😀 GMV fluctuations are normal and can drop for various reasons like advertising effectiveness, product performance, and market competition.
• 😀 GMV does not have an expiration date, but its value can decrease over time due to changes in traffic, conversion rates, or average order value (AOV).
• 😀 The main factors affecting GMV are traffic, conversion rates, and AOV (Average Order Value), which together determine a seller's GMV.
• 😀 Advertising (both manual and automated) can impact GMV, but it’s not the only factor; the platform’s traffic distribution and product performance also play key roles.
• 😀 The importance of focusing on Return on Ad Spend (ROAS) instead of just GMV growth. A high GMV is great, but maintaining profitability is crucial.
• 😀 Sellers should focus on optimizing their campaigns to secure consistent profit before trying to scale up their GMV further.
• 😀 GMV Max, Shopee’s tool, is scalable and more effective than manual methods when aiming to increase GMV efficiently.
• 😀 Sellers should utilize all available Shopee features (live streams, campaigns, flash sales, etc.) to enhance their GMV, rather than just focusing on advertising.
• 😀 Sellers must constantly evaluate their performance using tools like BCJ to track and optimize product listings, marketing, and promotions.
• 😀 A comprehensive strategy that combines advertising, product performance analysis, and platform features will lead to better GMV management and higher profits.

Q & A

Why did GMV suddenly decrease after 2 months of steady sales?

The sudden decrease in GMV could be due to several factors, including a drop in traffic, a decrease in conversion rates, or a reduction in average order value (AOV). It's not necessarily related to the expiration of GMV, as there is no fixed expiration for GMV itself.

Is there an expiration for GMV or a maximum limit?

No, GMV does not have an expiration or a maximum limit. The fluctuations in GMV are usually tied to factors such as traffic, conversion rates, and AOV rather than any time-based limitations.

What are the key factors that contribute to GMV?

GMV is determined by three main factors: traffic (the number of visitors to the store), conversion rate (the percentage of visitors who make a purchase), and average order value (AOV), which refers to the total amount spent per order.

Can fluctuations in GMV be caused by changes in advertising?

Yes, GMV can fluctuate due to changes in advertising, whether it's through manual or automatic ads. Ads can either increase or decrease traffic, and ultimately affect GMV.

Why do some stores with poor products and low reviews get a lot of orders?

This could be due to the store's 'bander' or Shopee's internal system distributing traffic. Some stores benefit from better traffic allocation from the platform, leading to more orders despite having average products or poor reviews.

How does GMV Max help in scaling sales?

GMV Max can be more scalable than manual efforts, as it allows sellers to optimize their campaigns and adjust based on data more effectively. It helps in achieving higher GMV by targeting the right metrics, such as return on ad spend (ROAS).

What should sellers prioritize to ensure profitability on Shopee?

Sellers should focus on maintaining a positive return on ad spend (ROAS) and optimizing their campaigns to increase profitability. Once a sustainable profit margin is achieved, they can consider scaling up their operations.

What role do Shopee features, like flash sales and vouchers, play in increasing GMV?

Shopee's features, such as flash sales, vouchers, and campaigns, are integral to boosting GMV. Sellers should not just focus on ads but also leverage these additional tools to maximize exposure and sales.

How can sellers evaluate which products to focus on for GMV improvement?

Sellers can use Shopee's 'PCG' (Performance and Campaign Graph) tool to evaluate product performance. This allows them to identify which products need more focus through advertisements, vouchers, or updates to increase their GMV.

What should sellers do if their GMV suddenly drops after being steady for a while?

Sellers should re-evaluate their advertising strategy, product performance, and whether they are participating in relevant Shopee campaigns. They may also want to check if their competitors are offering better deals or if there are any external market changes affecting traffic.