Category Archives: Pricing Tips

6 Things You Need to Know about the Amazon Buy Box

Perhaps the most important goal of any Amazon FBA seller is getting more sales, so today I want to cover a topic directly tied to the majority of sales on Amazon – the Amazon buy box.

If you look on an Amazon product page, the buy box is the little box in the top right corner of the page where you can buy that product. The buy box should say something like “Add to Cart” or “Buy Now,” depending on the settings for your Amazon account.

The buy box is one of the most important topics to learn when you’re selling on Amazon, but it can also be very confusing because Amazon doesn’t always make their guidelines on the buy box clear. Amazon does not reveal their algorithm for which seller receives the buy box, but we as sellers can still deduce certain information about how the buy box works and thus make informed, intelligent decisions on sourcing and pricing inventory to get the buy box.

For the rest of this post, I want to share with you 6 important points that you need to know about the Amazon buy box.

1. 70-80% of Amazon sales come from the buy box.

This is a staggering number. Let it sink in. When a customer lands on a product page and is deciding to buy an item, 70-80% of the time (possibly more, on certain items) the customer buys the product from the seller who has the buy box. Most buyers aren’t looking for the small line lower on the page that says “11 more new and used offers,” and rather than clicking to see more prices and more sellers, they click the yellow box that says “Add to Cart.” If upwards of 80% of sales come from the buy box, you as a seller want your item to get time in the buy box. Which leads me to my next point…

2. The buy box rotates.

Unless someone is the only seller of an item, one seller won’t keep the buy box 100% of the time. Amazon will rotate the buy box throughout the sellers who are eligible for the buy box. That rotation will depend on Amazon’s algorithm, but it generally rotates according to all the sellers who are priced competitively, typically within a percentage of the current buy box price. Which leads me to my next point…

3. Having the lowest price does not guarantee the buy box.

The buy box price is not always the lowest available price on Amazon. Most customers assume the buy box price is the lowest, and most new sellers assume they have to price their items to match the lowest price in order to get the buy box – but that just isn’t true. Sometimes the buy box price will be $1 or $2 higher than the lowest price, and on certain items it can even be up to $5 higher than the lowest price. Many new sellers use a pricing strategy where they price their items a penny or a nickel lower than the lowest price thinking this will guarantee the buy box, when they could be pricing higher than the buy box and achieve the same results because (remember point #2?) the buy box rotates and doesn’t depend on who has the lowest price. Which leads me to my next point…

4. The buy box is geographical.

Sometimes an Amazon buyer sees a certain seller in the buy box based not on the price of their item, but on the location of that seller’s inventory in the FBA warehouse. If the customer is on the west coast and is a Prime member, Amazon will likely show them an offer in the buy box based on the fact that it’s located in a west coast warehouse and should be easier for them to deliver within the 2-day Prime window than an item that’s priced $1 cheaper but is located on the east coast. I could be sitting here in my office in Texas looking at the exact same product page at the exact same time, and I could see a different seller in the buy box than that west coast customer because Amazon wants to ship my purchases from a Texas warehouse.

5. The buy box is for items in new condition only.

If you are selling an item in used or collectible condition, you aren’t going to be eligible to get the Amazon buy box for that item. The exception to this rule is on certain media items, where you can see both a new buy box and a used buy box.

6. Sometimes Amazon as a seller shares the buy box with third party sellers, but usually not.

Most of the time, if Amazon is one of the sellers of an item, they will hog the buy box and not share it with other sellers who are priced competitively. Sometimes they will give the buy box to a seller who is priced significantly lower, but even then it’s no guarantee. In these instances, third party sellers generally have to wait for Amazon to go out of stock before they are able to gain the buy box and get sales of that item.

Amazon hogging the buy box is just one of many reasons why I love to use Keepa to do sourcing research. Keepa is a free program that will show you if Amazon is in stock on an item or if they’ve ever been in stock in the past. When I’m sourcing for inventory, I typically avoid buying items where Amazon is in stock because I know they probably won’t share the buy box with me. I use the Scoutify app to do my retail arbitrage sourcing, and there’s a button on the app that I can click to see the Keepa data on the item I’m researching. Looking at the Keepa data makes my decision making process so much easier because it clearly shows me whether Amazon is likely to be my competition if I sell an item.

If you want more information about how to interpret Keepa data, check out my blog post on How to Read and Understand Keepa Graphs. The post includes a video tutorial about reading Keepa graphs and is a great introduction to the program.

Now, you might be wondering at this point, “So how do I actually win the buy box?” That question is big enough that I’m going to cover it in its own blog post, so stay tuned for the next post later this week.

If you’re looking to learn more about how to make smart sourcing decisions while doing retail arbitrage, be sure to watch my free tutorials on how to understand Keepa, and how to understand CamelCamelCamel or check out my book/video course, The Reseller’s Guide to How to Keepa Camel: Using Amazon Sales History to Make Smart Sourcing Decisions.

Have you made any other observations about how the buy box works that we didn’t cover in this post? We would love to hear from you in the comments!

How to Capitalize on Amazon’s Super Saver Shipping Price Change

Amazon just quietly changed the price for non-Prime members to qualify for Free Super Saver Shipping, a decrease from purchases of $35 down to $25. In other words, non-Prime members now have to buy only a minimum of $25 worth of Prime-eligible items in their shopping cart in order to qualify for free shipping. This can be an order containing a combination of items from every category.

This is not the first time Amazon has changed the price to qualify for free super saver shipping. In October of 2013, the price for free super saver shipping increased from $25 to $35 and remained $35 for almost 2 years. In early 2016, the minimum price increased from $35 to $49. In the middle of 2016, Amazon started to feel the impact of Walmart.com’s $25 free shipping threshold and responded by lowering super saver shipping from $49 back to $35. This week, Amazon has again lowered the minimum price back down to $25.

If you react correctly, then this change by Amazon will actually help your business. Here are some reasons to celebrate this change:

Amazon-Prime-Streaming-Video-Service-Bundles1. With this change, more people will be buying items that are Prime-eligible (this means items stored at FBA warehouses). With more people buying Prime-eligible items, there will be more people to buy your FBA products.

2. The more people who decide to use Prime shipping as a non-Prime member means that more people will be testing out Prime shipping benefits. More customers will fall in love with the free Prime 2-day shipping, and that will cause more people to sign up for Amazon Prime. The more Prime buyers, the more customers to buy your inventory.

It will take a little work, but those that react the fastest will win. I recommend doing some price changes quickly. Here is what I plan on doing with my inventory:

Price-Increase1. Price many items at $25. Search and see which inventory items I have priced between $22 and $25 to see if I should raise the price to $25. Based on my competition, this might be a great idea. This strategy will cause non-Prime shoppers to get free shipping on your items and they will choose your $25 item instead of a competitor’s item priced at $22 + $5 shipping.

2. Another “magic” price point will be $12.50. If the item you have could possibly be bought in multiple quantities, then this is a great price point for people who want to buy two. Two items at $12.50 total $25 and will qualify for Free Super Saver Shipping!

Of course there will be some exceptions to the above rules. Exceptions come into play when you look at other current FBA prices, how many items are being sold of that item, how the particular product category works, and more… but most of my prices will be updated with this thought process in mind! For more from Amazon on the Super Saver price change, click here.

So what do you think about the new $25 price point? How do you plan to react to these changes? I’d love to hear your thoughts in the comments below.

Want more info on how to make a full-time living doing FBA? Scroll up, look at the right side of your screen, and subscribe.

Calculating Amazon FBA Fees – Know Your Numbers and Make Better Buying Decisions

Know Your Numbers - FeesA while back I saw a super scary video. It was truly horrifying. I still have nightmares when I think about it for too long.

I showed a short clip of this video to my wife. She actually screamed at the TV: “Nooooooo!!!!!!!!” She was just as terrified as I was.

In this video people were walking the aisles of a big box retail store, scanning toys with the Amazon app. Not the Amazon Seller app. The Amazon app. The one you use to buy merchandise from Amazon. These people were looking up toys on Amazon, comparing the price on the retail store shelf, and loading up a shopping cart if the price was even the slightest bit higher on Amazon. They intended to buy this shopping cart full of toys and sell them on Amazon.

As if this scenario weren’t gruesome enough, these people were actually encouraging their viewers to go out and do the same thing. They exuberantly proclaimed that anyone can sell on Amazon, see, look, there’s merchandise everywhere that sells higher on Amazon than in stores. You, too, should go out and buy toys by the shopping cart load, and just send them in to Amazon and wait for your paycheck.

At this point you might be ready to ask me a few questions. “How is this scene any different than what you do in your Amazon FBA business every day? Don’t you use retail arbitrage as one of your strategies for finding FBA inventory? Isn’t that what these folks are doing – and showing others how to do?”

The key difference boils down to one simple factor: I never buy an item for resale without knowing the Amazon FBA fees for that item first. If someone were to actually follow the methods these people were using in this Amazon FBA horror movie, they would be hit with fees they hadn’t calculated beforehand and suffer financial loss.

2631823For anyone who wants to make a profit running an FBA business, you have to know your numbers. You have to know all of your expenses, including inbound shipping, taxes where applicable, prep fees, materials, and the cost of any subscriptions or services you buy. You also have to have a good handle on the FBA fees that apply to any items you intend to have Amazon fulfill for you.

If you aren’t aware, the name of this blog is Full-Time FBA. About 99% of our Amazon business is through the FBA (Fulfillment By Amazon) program. We do choose to Merchant Fulfill items on occasion (check out our YouTube video where we discuss those occasions), but overall we prefer to stick with having Amazon fulfill our inventory when a customer buys it (see also our blog post “Overcoming Your Fear of Selling via FBA versus Merchant Fulfilled or eBay”).

There are 4 easy ways you can calculate the potential Amazon FBA fees before you buy an inventory item. We’ve listed below two options for calculating fees on your smart phone and two for calculating fees on a web browser:

  1. AZ Seller app screen shotAmazon Seller app – FREE

The Amazon Seller app is free and allows you to scan items either by barcode or using Amazon Flow (the camera of your phone recognizes an item’s image and matches it with the product in the Amazon catalog). The Amazon Seller app allows you to see the fees for an item if you sell it Merchant Fulfilled or through FBA. It allows you to adjust your selling price, your inbound shipping cost, and the cost of purchase. It then subtracts the fees and your cost of purchases, giving you your estimated net proceeds. (See this blog post for more pros and cons on the Amazon Seller app.)

  1. Photo Apr 15, 10 23 15 PMThird party scanning app, like Scoutify, Profit Bandit, or ScanPower – PAID

Similar to the Amazon Seller app, third party scanning apps allow you to scan items by barcode or enter a text search for the item. Third party apps also allow you to adjust selling price, inbound shipping, and cost of purchase before you subtract out the FBA fees and see your estimated net proceeds. We personally use Scoutify most often when sourcing, with Profit Bandit being our back-up on occasion. (For more info on third party scanning apps, check out our blog post about why we use Scoutify.)

  1. FBA CalculatorThe FBA Calculator website – FREE

If you are doing product research on a web browser, Amazon Seller Central has an FBA revenue calculator where you can enter the ASIN, UPC, or product name of an item and do the same calculations as above to find out your potential fees and potential profit. We highly recommend creating a bookmark for the revenue calculator so you can easily reference it when making online purchases, determining prices for your inventory during the listing process, or repricing your inventory after it’s at the warehouse. We’ve also created a quick link for the calculator: www.fulltimefba.com/calculator

To see the FBA revenue calculator in action, I’ve created a screen capture video explaining how it works.

  1. Scanalyze 1Google Chrome extensions, like Scanalyze  – PAID

Another easy way to see FBA fees when doing online arbitrage or product research is by using Google Chrome extensions that show the fees right on the Amazon product page. We use Scanalyze (available through the Cyber Monkey Deals website) and love it. You simply click the “Scanalyze” button and the fee calculator pops up at the bottom of your screen.

Scanalyze 2

Hopefully you’re equipped now to calculate your fees and know up front what your profit potential is before you buy inventory to send to Amazon. Please don’t become another victim in a scary movie! You can make good choices. You can build a profitable Amazon FBA business because you know your numbers.

Why I’m Not Worried About the Post-Christmas Amazon Price Drops

price-drop-alert-resizedA quick question: Did you sell out of your entire inventory before Christmas? Neither did I. During Q4, many Amazon sellers get used to the abundance of  sales that come with the Christmas season. Actually, we get spoiled with so many sales per day that when January arrives, we get scared. All of a sudden the sales seem to stop, and for some sellers panic sets in. Some sellers think that the answer is to lower their prices ASAP in hopes of getting more sales, but is that really the answer?

One of the things I always try to remind people is patience brings profit. It’s true that sales in January are usually not as good as December, but they still can be outstanding. The question I want to ask you is this: What is your business model when it comes to selling on Amazon? If you have a model that is focused on fast turns (items that sell very quickly once they arrive at a FBA warehouse) then you will price items much differently than if you have a business model based on patience.

I sometimes hear about Amazon sellers stating they lost money on an item they purchased in the fall and were hoping to sell during the Christmas selling season. The items didn’t sell out and now the price has tanked. Sometimes the price has fallen so far that the current price on Amazon is lower than the price they paid for it back in the fall. This can be frustrating for any seller. So what is the answer?

If your business model is based on fast turns, then you might want to lower your price (even if you lose most of your money) so that you can get some of that capital back to reinvest in items that you think will bring a better and faster return. On the other hand, if you are patient, you might just see the price you want return to equilibrium and wind up making a profit. Since monthly FBA storage fees are usually around a few pennies per month per item, it would seem to me that patience could possibly pay off in the end.

CCC Q4I’ve seen it happen often: An item is selling for a great price in December, but then falls drastically in January. A few months later, the price begins to rise again, and in December the price is back up where the profit margins are the best. Does this happen 100% of the time? No, but it happens enough that the few cents per month to pay for the item to sit in an Amazon FBA warehouse might be worth the gamble. Look at the image above. Almost all year long, the prices are low, but when Q4 approaches, the prices shoot up.

ROISometimes, it’s better to have $50 five months from now than $5 today. Why? Because I adhere to the balanced business model. I try to stock my inventory with slow dimes, fast nickels, and super slow quarters. What does this mean? It means that my inventory is loaded with items that will sell fast, sell slow, and sell super slow. I’m ok with making a 30-50% ROI (Return On Investment) on the items that sell fast. On items that sell slower, I want to get at least 100% ROI, and for the items that sell super slowly (think long tail items), I want the ROI to be well above 200%. The waiting game isn’t always fun, but in this balanced business model, patience brings profit. 

I don’t want to wait 11 months if the ROI isn’t high enough. It all comes down to opportunity costs. The longer I have to wait to sell an item at a higher price, the higher the potential ROI needs to be.

20465.picIf I hold my higher price, I could sell it later and get more for my item… but if I lower the price and sell sooner, I could reinvest that capital into items that will sell much faster. Each item is different and will require a different pricing strategy. Sometimes it’s good to hold at your higher price, because you’ve seen on CamelCamelCamel that in a few months, that item will probably be selling at the higher price you have it listed at. On the other hand, if you’ve seen the CamelCamelCamel data and it looks like the price will not recover soon enough, then it’s a better idea to lower your price so you can get that capital back to invest in better inventory.

Bonus Tip: If you have multiple quantities of a particular product that hasn’t been selling and suddenly begins to sell, check to see if you need to raise the price. You don’t want to raise it so high that it won’t sell again, but raise it up enough to match everyone else’s price. If the items stop selling, you can always lower the price back to where it was.

So what about you? What works best for your business? Would you rather get your capital back to reinvest, or do you wait for the prices to return to what you’d like them to be?

*This article was originally written in 2014 but has been updated for January 2016

Overcoming Your Fear of “Tanking” Prices

It seems to happen far too frequently. You buy an item (or multiples of an item), price it just right, send it to Amazon… and your competition starts to lower their prices. What once was selling for $29.99 is now selling for $15.99 only a week or so later. What happened? Why would someone want to sell it for $15.99 when it was selling just as fast at $29.99? It can be maddening if you let it consume you. With experiences like this, it’s easy to see why so many people have the fear of their competition tanking the prices of their inventory. 

Just like other articles on our series on Overcoming Your Amazon FBA Fears, this one will be aimed at replacing your fears with truth so you can not only move past your fears, but move forward in your Amazon FBA business. In our previous blog posts about overcoming fears, we replaced each individual fear with a specific truth, but in today’s post, one simple truth will replace all of your fears concerning your competitors tanking the prices.  

falling-pricesFEAR #1 – I’m afraid if I buy an expensive item to sell, the price will tank. 

FEAR #2 – I’m afraid if I go too deep with inventory, prices will tank and I’ll be stuck with a lot of “dead” inventory. 

FEAR #3 – I’m afraid to buy almost anything now. The price of every item seems to tank one it’s finally at Amazon. 

THE TRUTHPrices are always going to be fluid, but making better sourcing decisions will lower the chance that your competition will lower their prices, and could increase your chances that the prices will go up. 

Supply-demand-equilibrium.svgYes, it’s true that some of your competitors will change their prices on the same items you are selling. Sometime the prices will go up, and sometimes they will go down. It’s a natural process of supply and demand. When demand for an item outweighs the supply, then prices usually go up. The opposite of this is true as well. Think about how this applies to your sourcing strategies. 

It really surprises me how often I hear other online sellers say something like, “I bought this item for $10, and at the time it was selling for $30… now, it’s selling for only $15. Looks like I need to lower my price to try and break even.” Here are a few of my thoughts about this mindset:

  1. If prices have gone down, then it’s most likely that the supply is now outweighing the demand.
  2. It’s very likely that if you exercise some patience, prices will recover. 
  3. If you lower your price to get the sale today, then you’re just adding to the problem.

BlogGraphic_ArrowsI’m not suggesting that you should never lower your price in order to sell your inventory. There are times when this is necessary (when the cost of long term storage fees are too much, or when CamelCamelCamel shows that the price history of the item is usually lower than when you first sourced it, etc.), but many online sellers might be surprised just how fast the price of an item can recover, and maybe even be higher than when they first sourced it. 

Chris Green says in Online Arbitrage, “More competition? Prices never ‘tank.’ Prices normalize as supply moves to meet demand. I have never seen an item tank and never recover. The market bears what it will bear. Sales rank can never tank unless demand is non-existent, and in that case, items won’t sell at any price (high or low).” I completely agree. 

toy-clearance1So, as long as sales rank remains consistent, it’s feasible to conclude that the prices will recover. Think about it this way. You go to Target and notice that there is a huge clearance sale on toys. You fill up a cart full of toys at 30%, 50%, and even 75% off. You’re elated because you know that you’ll at least double, triple, or maybe even quadruple your investment.

The only problem with this situation is that hundreds of other online sellers across the nation are also sourcing at the big Target clearance event. After the Target sale is over, you begin to realize that most of what you sent in from Target to Amazon is no longer selling. Why is that? Because Amazon was flooded with an increase of supply while the demand has remained the same. With more supply than demand, other online sellers begin to panic and assume they need to be the lowest price in order to get the sale (read The Buy Box Bible sometime and learn why the lowest price doesn’t automatically give you the Buy Box). With dozens and dozens of sellers seeking the next sale by lowering their prices by a penny or, worse, a few dollars, it’s easy to see how the prices fall quickly.

everything-will-be-ok-in-the-end-if-it-s-not-ok-it-s-not-the-end-368781-475-559_largeBUT, this is not the end of the story. As other Amazon sellers sell out, those who are patient eventually get the sale at the price they want. It’s only the end of the story if you decide to lower the price and break even or take a loss. Show some patience and the prices, most likely, will recover. 

As with all situations, there are exceptions to what I suggest. Sometimes your business is in a place where you need the capital back as soon as possible in order to take advantage of better selling inventory, and therefore lowering your price to get the next sale might be what you need to do, but complaining about others lowering their prices is not a profitable use of time. 

How to avoid buying items with tanking prices:

While it’s impossible to only source items that are “tank proof,” you can make better decisions to insure that you won’t be faced with an onslaught of tanking prices. The short answer to how to avoid buying items with tanking prices is this: Make smarter sourcing decisions. Here’s how: 

  1. Tank and RecoverWhen you are out sourcing for inventory, don’t just look at the current price, but look at the price history. You can do this by using CamelCamelCamel on your desktop or smartphone. If you see that in the past the item has had a constantly good price, then it’s likely that the price, if temporarily lowered, will recover sometime soon. 
  2. When you are sourcing for inventory at a big sale at a major retail store, understand that probably hundreds of other online sellers are doing the same thing. The best plan is to source quickly and send your items in as soon as possible. That way you’ll get some sales before the prices begin to fall. Then, just be aware that prices will fall, most likely temporarily, but will return to market value once the supply falls. The return of the price will happen even faster the closer you are to Q4.
  3. Unless you are willing to wait it out, don’t go too deep on an item at one of the major retail store clearance sales. You might sell one or two before the prices fall, but you don’t want to be stuck with too many while you’re waiting for prices to recover. The prices might recover in time for you to sell out and avoid any long term storage fees, but you don’t want to risk it by buying too deep.
  4. Create your own bundles. When you create a quality bundle, you can usually avoid competition all together. It’s harder, but not impossible, for other Amazon sellers to find each of the items in your bundle, so you’ll have much less competition and better control over the selling price. 

patience-god-give-meOverall, the key is smarter sourcing, and being a patient seller. Don’t be a self-fulfilling prophesy by complaining about prices tanking, and then responding by lowering your own prices by a large amount. Again, there are exceptions to everything I suggest, but overall this balanced approach to selling both fast nickels and slow dimes provides you with a well-balanced inventory that should consistently give you sales throughout the year. If you’re interested in learning how to source smarter, then check out my coaching page for information about personalized one-on-one coaching. 

How do you best handle prices when they begin to fall? What do you do to avoid sourcing items where the price seems to fall soon after? I’d love to hear your ideas and strategies.

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If you’re looking to learn more about how to know exactly how long it might take for an item to sell on Amazon, be sure to watch my free tutorials on how to understand Keepa and how to understand CamelCamelCamel or check out my book/video course, The Reseller’s Guide to How to Keepa Camel: Using Amazon Sales History to Make Smart Sourcing Decisions.

How to Find Out Exactly Which Items Will Be Charged Long Term Storage Fees

LTSFUPDATE: Amazon has recently updated their Inventory Age report, and this post is now outdated. What I teach below still works, but there is now a much easier way to find what you’re looking for. 

Click here see my latest training report on how to find out exactly which items will be charged a Long Term Storage Fee

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If you’ve been selling on Amazon at least 6 months, then it’s possible you have recently received a FBA Aged Inventory Notification email from Amazon. This notification from Amazon is to warn you about upcoming Long Term Storage Fees (LTSF). To read more about what the LTSF are, why Amazon charges them twice a year, and some timely tips on how to avoid these fees, then click here

Most Amazon sellers would be wise to find out which items in their inventory will be charged the LTSF and how much they’ll be charged. Unfortunately, Amazon does not give you this information directly, but there is a way to find out using one of Amazon’s reports found in Seller Central. 

Here is exactly how you can find out which items in your inventory are going to be charged a LTSF on August 15th (and how much you’ll be charged per item):

1. Log in to Seller Central.

2. Hover over Reports and click on Fulfillment.

3. On the left side of the screen, under the Inventory heading, click on Show More.

4. Click on Inventory Health.

Screen Shot 2015-07-06 at 1.56.16 PM5. Click on the Download tab.

6. Click on the Request Download button. 

7. After about 60 seconds (or possibly longer) the report will be generated, and you’ll be able to download it.

Screen Shot 2015-07-06 at 12.22.10 PM

This is the text file version of the report. I copy this data and paste it into a spreadsheet so it’s much easier to understand.

8. After the report downloads, open up the file in a spreadsheet. My download automatically opens up a Text file, so I just copy and paste it into Excel. Based on your computer’s available programs, you should be able to open up the file (or at least copy/paste the text) in your computer’s spreadsheet program. 

9. The text in the file contains many columns of information that you really don’t need in order to assess your long term storage fees. You can keep the ones you want, but I delete all of the columns in the file except the following:

sku
asin
product-name
qty-to-be-charged-ltsf-12-mo
projected-ltsf-12-mo
qty-to-be-charged-ltsf-6-mo
projected-ltsf-6-mo

10. To make the chart easier to read, I change the names of the last 4 columns to:

12mo
12mo$
6mo
6mo$

11. To make the data easier to read, I also do the following (this is just a personal preference, so you may want to skip this step):

Change the document page setup to landscape.
Center align the last 4 columns.
Change the size of the last 4 columns to be smaller.
Change the size of the product name column to be bigger.

12. Select all of the text (CTL-A for PCs or Command-A for Macs)

Now, its’ time to sort. In Excel, you can sort by clicking on Data from the top menu bar, and then select Sort

13. Sort the 12 mo column and choose descending

14. Sort the 6 mo column and choose descending

15. When I’m done, my spreadsheet looks more like this:

The image is blurry on purpose. It’s so you have an idea what the spreadsheet looks like after the changes above.

Now, your spreadsheet will show you on the first pages which items will be charged a LTSF, how many will be charged, and how much the charge will be. My next step is to print out the document, but I only print out the pages that contain the information about LTSF. If I printed the whole document, then I’d waste a lot of paper as most of my inventory is not affected by the LTSF. 

Now, it’s important to know how to read and understand the data in the spreadsheet. Under the 12mo and 6mo columns, you’ll see how many items will be charged in the upcoming LTSF on August 15th. In the 12mo$ and 6mo$ columns, you’ll see the total amount that will be charged if that item is not sold or removed from your inventory. 

For example, your chart might read something like this for an item:

Screen Shot 2015-07-06 at 1.39.18 PMThe above example shows that the My First Pad item will not be charged a 12 month LTSF, but will be charged a 6 month LTSF of $8.32. Since you have 7 of these items that will be charged a LTSF, you can do the math and see that it will be a charge of about $1.19 per My First Pad. (Remember: one unit of each SKU is exempt from LTSF, so you actually have 8 of this item in stock, not 7.)

The next step is to decide what you want to do with the inventory that is affected by LTSF. In a previous blog post, I’ve discussed all the ways you can avoid Long Term Storage Fees, but for the rest of this post, I’ll only discuss the most popular method of avoiding the fee: lowering your price to get the next sale. 

LC_OFF_Body_NLPLowering the price might indeed get you the next sale, but there are more important aspects to consider. Remember, in our example above, you’ll be charged $1.19 for each item for the LTSF, so if you lower the price by over $1.19, just be sure you don’t think you’ll ever sell the item for the price you want over the next 6 months. If you do some CamelCamelCamel (CCC) research and see that you’ll probably get your original price come Q4, then maybe pay the fee, and then wait for the sale to come during Q4. On the other hand, if you don’t think you can sell this item for the price you want, then it might be a good idea to lower the price and avoid this fee. 

Again, with our example, say you have the item priced at $19.95, but the current low FBA price is $11.95. If you  lower your price by $8.00 to $11.95 to share the Buy Box, you might indeed get the next sale… but lowering 7 items by $8 each, you’ll be losing out on $56.00 in order to avoid a $8.32 fee. Is this worth it? Well, we’ll need to check CamelCamelCamel to see if we think the price will go back up during Q4. If CCC shows that the price will probably go back up in Q4, then maybe it’s a good idea to pay the $8.32 fee in order to make the profits come Q4. On the other hand, if CCC shows that the price will probably never again go up, then maybe it’ll be a good idea to lower your price in order to sell out before August 15th. As always, different items will require different actions, so do your research and make the best decision for your inventory.

amazon-warehouse-5

Note: Amazon does not want to be your long term storage solution.

You might be thinking that this requires a lot of work and thought, but the LTSF is something to take seriously, as it’s currently $11.25 per cubit foot for items stored over 6 months, and $22.50 per cubic foot for items stored over 12 months. Currently, my LTSF would be over $100, but I’ve been keeping track of my potential LTSF for over a month now. If I didn’t use these tactics to avoid long term store fees, then the fee would be even higher.

So how about you? What are some of your strategies for dealing with these Long Term Store Fees? I’d love to read them in the comments below. 

My Top 8 Holiday Season Pricing & Sourcing Strategies for FBA Sellers

Q4. It’s one of the best letter/number combinations for an FBA seller. Q4 stands for the Fourth Quarter of sales for the year. In the business world, Q4 indicates the months of October, November, and December, but for the Amazon world, our biggest sales come in November, December, and January.

Traditionally, when it comes to sales, Q4 brings a huge increase. It’s not a stretch to say that a person selling on Amazon could potentially triple or quadruple their payouts in Q4.  As of 2017, I’ve experienced Q4 seven times as an Amazon seller, and I can testify to this. In fact in 2012, I was awarded by Amazon as a Top Holiday Seller. This meant that my sales ranked in the top 25% of all Amazon sellers and my customer satisfaction ratings were excellent (A+) during that period. (Note: 2012 was the last time Amazon handed out this distinction). Every year since 2011, my Q4 sales have grown exponentially in comparison to the first 3/4 of the year.

Here are some thoughts I have as we are currently in Q4. These are suggestions that helped me get awarded Top Holiday Seller back in 2012 and have caused me to increase my profits in every following Q4 since then. As always, there are exceptions to every suggestion, but overall these are the strategies I put in place as we get closer and closer to Christmastime.

1. Don’t lower all your prices to match the lowest price.

e-commerce-402822_1280Like many resellers, I reprice from time to time. With the number of sales on Amazon dramatically increasing in Q4, I know that the lower priced competition will eventually sell out and my higher priced item will be there for the willing buyer. During Q4 of 2015, Fulfillment by Amazon shipped over 1 billion items (yes, that’s billion with a B). That equates to 126 items sold per second, 7548 items sold per minute, 452,899 items sold an hour, and almost 11 million items sold per day via FBA. This is the absolutely best time to wait and get the price you want. The only exception to this guideline is if your inventory happens to have a higher sales rank (say, above 300,000 for Toys & Games) AND you have a lot of competition that is priced much lower than you. In this case, I might price match the lowest priced competitor, especially if they have a lot in stock (I use this tool to easily see how much my competition has in stock).

2. Raise prices on some items.

Price-IncreaseUsing the same thought process from above, I’ll raise my prices on some items that have really good and sustainable sales ranks. Also, when I’m first listing a product during Q4, I’ll price some of my items much higher than usual since I know the lower priced competition will sell out soon. It sometimes surprises me, but when I take some time to raise the prices of some of my inventory, many of those items end up selling later that day. Click here for my blog post on how to reprice your inventory.

3. Keep an eye on your most recent shipment of inventory.

Profit-graph-260x259When I’m looking at my pending sales, I’m not just looking to see all of the awesome items I’ll be getting paid for, but I’m also looking for new sales of items that I just sent in to FBA. If something sells the day it hits the warehouse, then I might need to look at my price and make sure I’m priced competitively. Many times during Q4, you might price an item on Monday when you ship it to Amazon, but when it gets checked in on Friday, there have been so many sales that the prices are now higher. If you get immediate sales, then check your prices… If you see that you are priced too low, raise your prices!

4. Keep an eye on multiple sales of the same item.

Again, when looking at your pending orders, if you notice that all of a sudden you have many sales of the same item, you might need to check the prices on those items too. It’s the same thought process from the tip above… If you are getting multiple sales of the same item, then you might be priced too low. Check your competition and then reprice if necessary.

5. BUY! BUY! BUY!

keep-calm-and-buy-more-inventoryIt’s simple math: You will only sell a lot of items if you have a lot of items to sell. During Q4, I’m out buying a lot more often than I usually do. It’s a fun cycle: I send more items to FBA, more items sell, and I get paid more… I take that money and send even more items to FBA, more items sell, and I get paid more. It’s a Q4 snowball effect that causes massive increases to my Amazon payment disbursements.

6. Expand your sales rank limits. 

Amazon Sales Rank ChartWhen sourcing, it’s always a good idea to look at sales rank history when you’re making your buying decisions. When Q4 comes, I always buy items with a higher sales rank than I usually do. If my sales rank limit for the Toys & Games category was 150,000, then I may raise that limit to 250,000 in preparation for Q4. Many items completely sell out on Amazon during Q4, so buyers start looking for other items that might not be as popular. Each category will be treated differently, but I always raise my sales rank limits for Q4. Be sure to click here to download your free sales rank chart.

7. Send inventory to Amazon ASAP!

brownbox2If you have product sitting around your house that you haven’t sent to Amazon yet, send it in now! What are you waiting for? Check everywhere for products that you might have forgotten about. Look in your closets, your garage, in boxes, under your work table, etc. Products sitting around your house are not ever going to sell via FBA. Some people worry about Q4 storage fees, but honestly if you expect an item to sell during November or December, send it in today! This tip ties into the bonus tip at the end of this post, so keep reading.

8. Don’t be intimidated by Black Friday sales.

Too many people think of Black Friday shopping as fighting the crowds and dealing with crazy discount deal shoppers, but it’s not like that at all. Did you know that the best deals of the year are are not always on Black Friday? In fact, there are some amazing deals you can find both before AND after Black Friday – minus the crowds and crazy people! In my course, The Reseller’s Guide to Black Friday: The Fool-proof Strategy to Rock Black Friday Sales Every Year, I share all of my secrets on how to find amazing deals for items you can buy before, during, and after Black Friday for amazing profits. Plus, if you want to brave the crowds the day after Thanksgiving, we cover how to master that strategy as well. I’ll help you conquer Black Friday in a way you never thought possible.

amazon_gift_cardBONUS TIP – January is one of the best times to sell on Amazon. People are returning the Christmas gifts they don’t want and will use that money to spend on what they really wanted. People also have Amazon gift cards that are burning a hole in their pockets. Because of these factors, sales in January can be amazing. I’ve heard some sellers say that their January sales are almost as good as their December sales. Just because Christmas is on December 25th, doesn’t mean customers on Amazon stop shopping for the rest of the year or in January, so continue to send inventory in to Amazon!

How about you? What Q4 tips would you like to offer the group here? I’d love to hear your thoughts on this very exciting time of the year.

Case Study – Electronics Sales Ranks and Competing Against Amazon

In a blog post a few weeks ago, I asked you, according to your own sourcing strategies, if you would buy a particular Electronic item or not. Here’s the item we looked at:

Product: Adonit Jot Pro Fine Point Stylus – Silver
ASIN: B00931DHKM
Clearance price at Target: $3.94
Total available for sale: 20

 Screen Shot 2014-07-28 at 4.50.23 PM

 

I asked you to do the research yourself, check out CamelCamelCamel, the product reviews, and anything else you might think would help, and see if this is an item you would like to purchase for resale. Many of you tried this little exercise and 17 of you even commented with what you would do. It was so interesting to read everyone’s opinions of what they would do. Some said they would pass completely, while others said they would buy them all. Each of you had your own fascinating reasons why you decided to pass, buy all, or buy some.

I’ll let you in on what my step-by-step thought process was on this item, and then I’ll tell you what I’d do if I found 20 of these little stylus pens on clearance at Target for $3.94.

profit-bandit1. Scouting App – Scan the item with your preferred scouting app (I use Profit Bandit). Look at the FBA competition and the current rank.

2. Check Amazon – Since most scouting apps return incomplete information, click through to the Amazon sales page to check out the possible competition you may be facing (Profit Bandit provides a quick link to the item’s product page). On Amazon, you can see the full picture.

camelcamelcamel_amazon_price_tracker3. CamelCamelCamel – Research the item’s CamelCamelCamel page. For those of you who don’t know about CCC, it’s a very useful website that attempts to track both prices and sales ranks for millions of items on Amazon. CCC is not perfect, but they usually do a great job of giving us a good picture of how often an item sells and what the lowest sales prices are at any given moment in the past.

4. Look at the Rank – A rank under 1000 is usually amazing, except that many times, when scouting apps return a Consumer Electronic sales rank, it is actually returning a sub-sales rank (click here for more on that). Be sure you know if the rank you are seeing is the rank for the full category or the sub-category.

Screen Shot 2014-08-21 at 1.51.56 PM5. Check Customer Reviews – To get a better idea about how often an Electronics item sells on Amazon you can always look at the customer reviews. Customers rarely leave a review of an item they bought on Amazon, so when an Electronics item has many reviews, then it means that it’s sold rather often.

6. Check Recent Customer Reviews – Be sure to check how recent the reviews are. Just because a DVD player has 1000 reviews, doesn’t mean that it’s a good idea to buy that DVD player for the purposed of resale. 99% of the reviews could have come before 2007, with only a few reviews here and there since then. You want to find frequent, recent reviews.

7. But What About Bad Reviews? – I never look at how many one star reviews an item gets when making a buying decision. Am I just asking for a refund? Maybe… but from my experience, people are more prone to leave negative reviews than positive ones. Even if I see a lot of negative reviews, I’m not scared.

Screen Shot 2014-08-21 at 1.59.07 PM8. Compete with Amazon? – This is often a difficult decision. If Amazon is a seller of an item I’m sourcing, then I need to ask myself, “Do I match Amazon’s sales price or price the item lower? If I price to match Amazon’s price, then I’ll have to wait for them to sell out before I get the sales (or maybe they’ll share the buy box with me from time to time). Amazon could have only 5 in stock… or they could have thousands. If I price lower than Amazon, then I’d be getting a lower ROI.

9. Possible Future Competition – When doing retail arbitrage, it’s a good thing to consider that other resellers may be finding the exact same thing you are. Retail chains often clearance out the same items, so it’s possible that if you find 5 of an item, 100 other people also might be finding 5 at their local store, too.

To some, this may seem like an overwhelming process that might not be worth the time. For me, the fact that there are 20 of these stylus pens on clearance at Target make it worth the time. And honestly, once you do this process enough times, it becomes second nature and really only takes a minute or two.

Analysis-Paralysis3Getting as much information as you can on a possible product to resell is a good thing, but don’t let all the information paralyze you. There will rarely be an item you find that will pass 100% of your buying criteria. This process takes time, but the more you do this, the more you will understand what works best for you, and what aspects to give less weight to when it comes to your buying decisions.

Ok, back to the stylus. For some, this is a no-brainer… buy them all! For others, this is a no-brainer… pass! How can that be possible? Well, we all have different criteria for what works best with our business model. Some of us are at a stage in our business where we can handle the risk a little better better than others, while others might not be ready to risk $80.00 on buying all of these styluses. This is why I’m never worried about scouting in the same store as another reseller. What he would pass on might be what I’d buy.

Ok, so I’ll finally get to sharing with you what I’d do with this possible retail flip.

photo1. Scouting App – I scanned the item with Profit Bandit. The item is ranked 31, and the lowest FBA seller is Amazon selling it at $29.96. The app does the math for me, and states that if I match the lowest FBA price, then I’d make a profit of over $18 per item.

2. Check Amazon – I clicked through to the Amazon sales page to check out the possible competition. The lowest FBA price is indeed Amazon at $29.96. I also confirm that there is only one other current FBA seller, selling it at $29.99.

3. CamelCamelCamel – CCC does not have any current sales rank history, and they showed that both Amazon and other 3rd party sellers have priced this item as new somewhere between $20-30 on a consistent basis.Screen Shot 2014-08-21 at 12.42.52 PM

4. Look at the Rank – To find out exactly what this “31 sales rank” meant, I went to Amazon.com on my smartphone’s internet browser. From there, I learn that the 31 sales rank is in the subcategory of Electronics -> Accessories & Supplies -> Computer Accessories -> Input Devices -> Graphic Tablet Styluses. That means there are 30 other graphic tablet styluses with a better sales rank. Something to consider.

5. Check Customer Reviews – Currently, this Stylus Pen has 799 reviews. If almost 800 people left a review for this item, then it’s safe to say that it’s at least sold 800 times, and most likely more.

photo-26. Check Recent Customer Reviews – It looks like there were 12 reviews in the last week alone. As I continue to search, I find 11 reviews the week before, and 9 reviews the week before that. This is a HUGE sign that this item sells, and sells very often.

7. But What About Bad Reviews? – There are occasional bad reviews, but plenty of positive reviews. If I sell all 20 of this item, then maybe (maaaaaaaaaybe) one will be returned. I’m ok with that one return while possibly making almost $18 per stylus.

8. Compete with Amazon? – I did a little digging and found out that Amazon has over 999 of these stylus pens on stock. How did I find that out? Click here for a quick tutorial on how to find out how many of an item a seller (even Amazon) has currently in stock.

9. Possible Future Competition – There are 20 of these stylus pens on clearance at Target. The good news is that it might be possible that you could go to more Targets and find even more. The bad news is that if this item is clearanced at every Target, then many other resellers will also find these and join you in selling. More competition and the possibility of that competition lowering prices are something to consider.

So what would I decide to do? Personally, I would take the risk and buy them all.

keep-calm-and-buy-it-now1) The ROI is incredible.
2) There are plenty of very recent reviews to suggest that this item sells often.
3) With the Target Red Card, I can get an additional 5% off and an extended return period of 120 days.
4) With the amount of reviews this item gets, I would not be too concerned with additional competition coming into the picture. If they lower the price where it’s not profitable for me, then I’m ok with waiting to get my price. Often, patience brings profits.
5) Amazon is really my only main concern, but I could still price below Amazon to get sales and hope that Amazon doesn’t lower their price.

So there you have it. Remember, there is no right or wrong answer. I’m not telling all of you who wanted to pass on this item that you are wrong. We all have different business models and risk tolerance for sourcing. Continue to do what works best for you, and occasionally try something different.

 So what would you do? Buy? Pass? Would you match Amazon’s price, or price the stylus lower? How much lower would you price it at? I’d love to hear your thoughts. Share below.

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Sales rank is easily the most misunderstood aspect of selling on Amazon. What is a good sales rank? What does a sales rank of zero mean? What do I do with sales rank for sub-categories?

Why does sales rank have to be so confusing so much of the time?

I’m here to tell you it doesn’t have to be that way! You can finally get the clarity you need on the issue of understanding Amazon sales rank numbers. We at Full-Time FBA have launched a mini-course called The Reseller’s Guide to Sales Rank: Understanding Amazon Best Sellers Rank for Maximum Profits. The mini-course is a combination ebook (30+ pages) and video course (almost 2 hours). 

Check out The Reseller’s Guide to Sales Rank mini-course to see how you can master the concept of best sellers rank and be on your way toward smarter sourcing decisions for your Amazon FBA business!

FBA Aged Inventory Notification (or How to Avoid Long-Term Storage Fees)

amazon-warehouse-5If you’ve been selling on Amazon at least 6 months, then it’s possible you will receive a FBA Aged Inventory Notification email from Amazon. Twice a year, (February 15th and August 15th), Amazon charges a long-term storage fee for all items that have been stored in a FBA warehouse for 6 months or longer.

This fee is something to take seriously, as it’s currently $11.25 per cubic foot for items stored at Amazon over 6 months and $22.50 per cubic foot for items stored over 12 months. As an example, I currently have many aged units of inventory which (if none of them sell or are removed) will cost me $520.82 in long-term storage fees. That’s a charge of over $3.51 per item. These are just my numbers and yours will vary. You may be paying less per item, but you could also be paying more.

ifOUVAvNfA60Amazon charges this fee to make sure of two things: 1) to encourage sellers to keep our inventory priced competitively, and 2) to ensure their FBA warehouses aren’t used as a dumping ground for products that might never sell.

Before long-term storage fees, you could send in 100 of a $50 book ranked at 5 million, and only pay pennies a month for storage per book. Maybe you sell one book a year, but what do you care? You’re making a profit and FBA stores all the books for you. Meanwhile, Amazon is seeing thousands of other sellers doing the same thing. FBA warehouses don’t want to be a long-term storage solution for you. They want to be a short-term storage facility that holds your item for a short time until it sells. To make sure that Amazon sellers are motivated to get all of these multiples sold, they have instituted the long-term storage fee.

How do we find out what items are going to possibly be charged this fee? In the email Amazon sent you, there was a link to their recommended removal page. This page will tell you what Amazon thinks you should remove in order to avoid this fee.

But what if it’s actually worth the long-term storage fee to keep the items at FBA longer than 6 months or a year? By running a simple report, you can find out exactly which items will be charged the fee and how much the fee will be for each individual item.

So what are our options to avoid this fee?

LC_OFF_Body_NLP1. Reprice – Update the price for the items affected by this fee. Depending on the rank, you’ll want to either match the current low price or beat it. If the rank tells you this item sells often, just price-match the lowest price, but if it looks like this item only sells once a month, then you’ll probably want to be the lowest price of all your competition.

2. Amazon Promotions – Offer your potential buyers an incentive to buy your item. Maybe a discount if they buy more than one.

3. Amazon Sponsored Products – Advertise your item. This will cost you, but may cost less than the long term storage fee if done correctly. My friend, Cynthia Stine, has a great post about advertising on Amazon you should check out.

4. Multi-channel fulfillment – See if you can sell these items on eBay (or other sites) and then use Amazon to ship the item to your buyer. You can use JoeLister to sell your Amazon items directly on eBay. We use JoeLister and love how it helps more customers find our items. JoeLister is set up that if an item sells on eBay, not only does it automatically set up a shipping order for Amazon to ship your eBay customer their item, but it also automatically updates your inventory on Amazon so your inventory levels will be correct.

5. Improve Product Keywords, Titles, and/or Images – Maybe your not selling some of your items because customers are not finding them in the search results. Check on the product pages of your items and see if they need better pictures, a stronger title, or more descriptive keywords. I’ve found this strategy to be helpful for all of my inventory items, but especially the ones that are going to be charged a long-term storage fee. To get some excellent help on improving a product listing, I recommend the ebook, Amazon Advantage.

6. Reprice Again – Don’t just reprice your item once. Go back often and make sure the item is still priced competitively. Remember, you might not be the only seller of that item who may be hit with long-term storage fees. Other seller are going to be lowering their prices too.

7. Remove Items From Inventory – When all else fails and your item is still not sold before February 15th or August 15th, then you could set up a removal order to have your inventory returned to you. Removal orders are super cheap as they are only $0.50 for standard sized items and $0.60 for oversized. You can even arrange with Amazon to automatically remove all items that are affected by this fee.

After those items are returned, you could try to sell them on Amazon via Merchant Fulfilled, on eBay, on Craigslist, or perhaps sell them in a future garage sale. If that doesn’t work, donate them to a worthy cause.

NOTE: Amazon usually sends out an email about 6 weeks before LTSF are calculated letting all sellers know that any ASINS removed before the LTSF is charged cannot be sent back to Amazon until after a certain date. For the August 2017 LTSF, Amazon said if you set up a removal order before August 15, 2017, to have this inventory returned to you, you will be unable to send in additional units of these ASINs until January 1, 2018.

8. Destroy Items – If you don’t think that returning the items to you is worth the hassle of selling them on another platform or at a garage sale, or even donating them, then you could set up a removal order and have Amazon dispose it.

Screen Shot 2014-07-14 at 11.53.12 AMRemember, many things I tell you have exceptions. If the item you are selling is a rare, high-priced item, perhaps you are fine with being charged a long term storage fee. Perhaps you have a rare toy that is ranked 1 million, but you are certain that you’ll get $250 for it… then maybe paying around $3 for long-term storage fees don’t matter to you. Also, you might have a situation where you’d prefer to pay a $3 long term storage fee rather than lowering your price by $10. Each product will require you to decide what is best and what will maximize your profits.

But for 95% to 98% of items in our inventory, you’ll probably want to choose some of the options above in order to avoid these fees.

If you did not get this FBA Aged Inventory Notification from Amazon, then congratulations! You don’t have any items subject to this upcoming fee. But just to be sure, you can go to Amazon and see your recommended removal report (sign-in required).

And again, here is the link where I’ll show you how to see which items are going to be charged a long-term storage fee.

So what are your plans to avoid long-term storage fees? I’d love to hear how you handle Amazon’s FBA Aged Inventory Notification and make the most of this situation.

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Imagine knowing exactly what to expect in your Amazon FBA business every month of the year.

Imagine what it would feel like knowing you were not missing out on any of the opportunities that will come your way this year. 

Imagine working on your Amazon business knowing exactly what your priorities are, what you need to avoid, and what you need to accomplish during each month to make progress toward making this year your best sales year ever.

Find out more about The Reseller’s Guide to a Year in FBA: A Month by Month Guide to a Profitable Amazon Business today. The package includes a 200-page ebook, monthly live webinars, and 4 special bonuses.

Why I Bought a Toy Ranked 1.2 Million for Resale

When it comes to sales rank, every Amazon seller has their own idea of what a “good” sales rank is. For me, I’ll almost always buy a toy that is consistently ranked under 150,000. I’ll even buy a toy that is ranked much higher, as long as the number of competing sellers is low and the ROI of the toy is high. But a toy ranked over 1 million? What reseller in their right mind would buy a toy ranked over 1 million? Well… me.

Screen Shot 2014-06-21 at 4.38.21 PMDo I buy up all toys ranked over 1 million? No, I don’t. Sales rank is just one part of the decision process I go through to when I’m making my buying decisions. I’ll blog soon about my own personal checklist when it comes to buying decisions. As you spend more time selling on Amazon, you begin to realize that sales rank is just a number that signifies how recently a particular item has sold. A toy with a really low sales rank (1-1000) sells possibly many times per day, whereas a toy with a higher sales rank could possibly only sell once a week, once a month, or even once a year. A low sales rank does not ever guarantee that a particular item will sell. It only states how recently and often an item has sold.

About a month ago, I was walking through a local Goodwill store when I came across an electronic “Are You Smarter Than a 5th Grader?” handheld game. It was still brand new in its original packaging. Goodwill was asking $2.00, so I picked it up and scanned it. The information that was returned to me told me that this toy was ranked over 1.2 million, and had no current sellers. I checked camelcamelcamel.com and it did not have any pricing or sales rank history. Many times, I would have put this toy back on the shelves and kept on sourcing, but I just couldn’t let it go.

Screen Shot 2014-06-21 at 4.35.01 PMI knew that “Are You Smarter Than a 5th Grader?” was a popular game. I had sold a few of the board game versions in the past with great success. I didn’t know that they made an electronic handheld version. I had also had some success with selling electronic handheld games, but that didn’t mean that this game would be guaranteed to sell fast.

I started to think… Since this game had no current sellers, it’s possible that the rank was so high because it had been so long since it was even available to be sold on Amazon. The longer an item has no sellers, the faster its sales rank will rise, until, at one point, the sales rank might disappear all together.

AppIcon_eBay_Dec_2013I decided to investigate how well this toy was doing on other selling platforms. I opened up the eBay app on my phone and decided to check out the most recent completed auctions. There is a search feature on the eBay app that lets you look at the most recent completed auctions. I was happy to see that the “Are You Smarter Than a 5th Grader?” handheld electronic game was selling a few times a month on eBay.

When I saw the success that some eBay sellers were having selling this game, I decided it was worth buying. The completed eBay sales also told me that buyers were spending around $10.00 to $15.00 (shipping included) for this toy. I decided to buy the toy and list it on Amazon for $19.99. This was more than eBay sellers were selling it for, but I had a plan. If it didn’t sell within a few months, I’d start to lower the price a little.

I bought this item from Goodwill for $2.00 on May 25th. Two days later, it was on it’s way to an Amazon FBA warehouse. I’m happy to inform you that yesterday, this toy sold at my $19.99 sales price. Now, I’m wondering if I should have priced it even higher. In any case, I turned a $2.00 investment into a $20 sale. I’ll take that any day, and all it took was one minute researching the eBay app to see how it was selling on that platform.

Screen Shot 2014-06-21 at 4.34.18 PMUpdate: As of yesterday, the sales rank for the “Are You Smarter Than a 5th Grader” electronic handheld game jumped from 1,267,961 all the way to 96,151.

Note: If you want a FREE PDF download of the latest Amazon Category Sales Rank, all you gotta do is click here.

So what about you? What other things do you think about when you making your buying decisions? Have you ever taken a gamble with an item ranked super high? How did it turn out for you?

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Sales rank is easily the most misunderstood aspect of selling on Amazon. What is a good sales rank? What does a sales rank of zero mean? What do I do with sales rank for sub-categories?

Why does sales rank have to be so confusing so much of the time?

I’m here to tell you it doesn’t have to be that way! You can finally get the clarity you need on the issue of understanding Amazon sales rank numbers. We at Full-Time FBA have launched a mini-course called The Reseller’s Guide to Sales Rank: Understanding Amazon Best Sellers Rank for Maximum Profits. The mini-course is a combination ebook (30+ pages) and video course (almost 2 hours). 

Check out The Reseller’s Guide to Sales Rank mini-course to see how you can master the concept of best sellers rank and be on your way toward smarter sourcing decisions for your Amazon FBA business!