Category Archives: Retail Arbitrage

How to Find Profitable Inventory for Amazon FBA Sourcing

In the course of just one week (or even a day!), it is possible to come across thousands of items you could potentially resell on Amazon. Obviously, not all of those items are going to make the cut and end up in your shopping cart. Some items are a no-brainer purchase. Some are definitely NOT something you should buy for resale. And some items are kind of iffy – should you buy it or not?

How do you know whether to buy an item or just pass and move on to the next item?

For the rest of this article, I want to talk with you about how to find profitable inventory to sell on Amazon – more specifically, I want to show you my thought process when I’m deciding whether or not to buy an item.

First things first: I want to make sure you are using the right tools when you are sourcing. When I am doing retail arbitrage (RA), I always use the Scoutify app on my smart phone to scan inventory and see all the necessary numbers to make a smart sourcing decision:

  • Sales rank
  • Price
  • Fees
  • Profit
  • Number of competitors
  • Historical sales rank and pricing

Some sellers choose to use only the Amazon Seller app for doing RA, but I have found the info it returns to be incomplete. I prefer to have more information at my fingertips when I make a sourcing decision, so I use the Scoutify app that comes bundled with the listing software Inventory Lab.

OK, now that we have that covered, let’s look at my thought process when I’m making a sourcing decision. This process works whether you are doing RA, OA, wholesale purchasing, or any other type of sourcing for Amazon FBA.

I typically ask myself 4 main questions when I’m making a sourcing decision:

  1. What is the ROI? We’re all in this business to make money, so we want to make sure the items we’re sourcing have a good ROI, or return on investment. When you are first starting out at Amazon FBA, I recommend finding items that have a 100% ROI. If you have a higher percentage ROI, you have a lot more wiggle room to make some mistakes and adjust your price if necessary. As you gain more experience and confidence, you can begin sourcing items that have a lower ROI. Some sellers stick with 75% and above, while others stick with 50% or above. If you find an item that will sell very quickly, you can even go as low as 30% ROI. The main point here is to find items that have a good ROI, whatever the parameter is that you’ve set. If you can’t make money on your investment, you want to move on and look for different inventory items.
  1. Am I approved to sell the item? Some categories are gated for certain sellers, and some brands are restricted to sellers. The second thing I look at when I’m making a sourcing decision is whether or not I am approved to sell an item. If I can’t sell it, there’s no point in continuing to consider it. You can see whether or not you are approved to sell an item from within the Amazon Seller app, but Scoutify also has a link to show you whether or not you are restricted for the item.
  1. What is the sales rank? The sales rank of an item is how I can tell whether or not the item will sell quickly on Amazon. Amazon tells us the current sales rank of every item in their catalog, and we can see that information when we scan an item with a sourcing app. You want to make sure, though, that you are considering the average sales rank when you make a sourcing decision, not just the current sales rank. Amazon updates sales rank frequently throughout the day, so you need to know how much that sales rank varies over time. You can look at graphs on CamelCamelCamel and Keepa to figure out the average sales rank in a glance; both Camel and Keepa have quick links through the Scoutify sourcing app. I recommend checking out an Amazon sales rank chart to make sure you know what is a low or high sales rank for the category of the item you are looking at. Our blog offers a monthly updated sales rank chart for subscribers. You can use the chart to see if an item’s average sales rank falls in the top 1%, 3%, 5%, 10%, or higher for its category.If you’re interested in learning more about sales rank, we offer an affordable mini-course called The Reseller’s Guide to Sales Rank: Understanding Amazon Best Sellers Rank for Maximum Profits. I’ve included in the mini-course everything I know about sales rank to help you get started with making smarter sourcing decisions.I make my sourcing decision based on how high or low the sales rank of the item is. If an item has a low average sales rank, it is a faster selling item. If the average sales rank is high, the item will sell more slowly.
  1. What is the competition?Unless no one else is selling a particular item, you are going to have competition if you sell that item. There are two main competitors you need to consider: Amazon and other third-party sellers. When it comes to competing with Amazon, I generally choose not to buy items that Amazon sells. I always look to see if Amazon is in stock on an item or has been in stock recently. If so, I typically pass on that item unless I can price it significantly lower than Amazon. As a general rule, Amazon does not tend to share the buy box, and since the buy box is where over 70% of Amazon sales come from, I don’t want to risk buying inventory where I will never have a chance to get that buy box. To see the history of Amazon being in stock or out of stock on an item, I check the Keepa graph for the item through the Scoutify app. I also like to look at the other third-party sellers who are priced competitively on the item. I’m only interested in those sellers who are priced within 1% or 2% of the buy box price. Anyone priced higher than that isn’t truly going to be my competition.I want to make sure there’s a relatively low number of sellers priced competitively, so that I can be assured of getting time in the buy box. The higher the sales rank, the fewer competitors I want on the item. If the sales rank is lower, I am more willing to tolerate a relatively higher number of competitors – with a low sales rank, the item will be selling fast enough that I can still get time in the buy box and make my sales.

Those are my four main deciding factors when I am making a buying decision for my Amazon FBA business. As with anything, there are some exceptions that come up when I’m looking at this criteria. The more comfortable you are with your experience at making these decisions, the more you will be able to see when there are exceptions to the buying parameters you set up for yourself.

There are other less important factors I sometimes consider, as well, such as number of reviews and whether or not they are positive. I tend to use other factors in my decisions when I’m on the fence about a buy.

Do you use similar buying criteria as the ones I’ve covered above? Is there anything else you absolutely must look at before making a buy for your FBA business? We would love to hear your ideas in the comments!

Easy Way to Track your Mileage for Retail Arbitrage Trips

Am I the only reseller out there who has ever done a great day of retail arbitrage and forgotten to write down my mileage?

I am? Really? Hmmm. I thought surely I wasn’t the only one who’s done this before.

OK, thanks for finally admitting it. You’re just like me…you don’t always remember to track the tiny details of your Amazon FBA business without a little assistance.

Tracking your business mileage may seem like an inconsequential part of your Amazon business, but in reality those miles can really add up over the course of a year. You don’t want to miss out on a single mile if at all possible! Your CPA or tax preparer is going to want to see those miles at the end of the year, and you need a way to smoothly record all of your business trips.

What qualifies as a business trip for an Amazon FBA seller? Any trip in your vehicle where you are adding miles for a 100% business purpose, including but not limited to:

  • Driving from store to store for retail arbitrage
  • Driving to the UPS store, FedEx, post office, or wherever you need to drop off packages for shipment
  • Driving to Staples or wherever to pick up office supplies
  • Driving to The Home Depot, Lowe’s, or wherever to pick up shipping boxes
  • Driving anywhere to do errands or tasks related to your Amazon business

Over time you can save a lot of money in your business by writing off the mileage on your tax return that comes from these business trips. Always speak with a CPA or tax professional to make sure that the types of trips you are recording qualify to be written off.

In the past I’ve used a number of different solutions for recording my mileage, some of which worked better than others. I started off by carrying a little notebook and pen in my car to write my details down for start mileage, end mileage, destination, and purpose of the trip – but who knows how many times I forgot to write it down over the course of the year! I even left a sticky note on my dashboard for years with the word “MILEAGE” in all caps, in an attempt to remind myself to record my trips. If I didn’t manage to remember, I would have to go to Google Maps and try to recreate my trip and estimate my mileage.

Then I progressed to using a couple of different smart phone apps to help me record mileage, and they were just OK. They were more convenient than trying to jot things down in a notebook, but they still didn’t help me solve my main problem: remembering to record my miles!

Finally I found the MileIQ app, and I landed on an automatic solution that saves me time in recording my mileage and (more importantly!) saves me from having to remember to record it.

The way the MileIQ app works is by running in the background as you drive to different destinations throughout the course of your everyday life. The app tracks each trip you make in a vehicle, logs it, and learns how to categorize it.

The app knows when you start and stop a trip, and all you have to do is review your trips at the end of the day and tell the app whether it was a business or personal trip – all with one swipe classification. Swipe one direction for personal, the other direction for business. After a while, the app will start to learn which destinations you usually classify as business, and it will automatically classify those trips for you.

Now, I’m sure you’re wondering, just like I did at first, what happens if you’re riding in someone else’s car? Does MileIQ know the difference? No, it doesn’t know the difference and will still track the mileage even if you’re not in your own vehicle, but you can easily cancel those trips during your review of your mileage. You can also choose to turn off tracking if you want to… just remember to turn it back on when you’re back in your own vehicle.

Another handy feature of MileIQ is that at the end of each month you receive an email from them with your stats for the month. At the end of the year you can quickly download a report with your mileage numbers for the year, and all you need to do is pass this report along to your CPA and presto – you’ve efficiently tracked your business mileage without having to remind yourself to log any numbers!

I’ve been using the app for almost a year now, and the app hasn’t been a battery hog for my iPhone. It’s always running in the background, but it doesn’t affect my phone’s usage in any way.

If you go through this link, MileIQ offers a free trial of 40 drives per month and a 20% discount off an annual subscription if you decide to upgrade. The subscription comes out to a few dollars a month, but it could add up to hundreds of dollars saved by logging miles you would otherwise forget.

The MileIQ app has been extremely helpful for my business, and I hope you find it helpful too!

Any other MileIQ users out there? Share with us in the comments if you love the app as much as we do.

The 2 Best Retail Arbitrage Sourcing Strategies

RA Sourcing StrategiesRetail arbitrage can be very profitable. The feeling of anticipation when you walk into a retail store is extremely motivating. I always advise other resellers to grab a shopping cart when they first enter a store because they need to be mentally ready for a big haul. Now, the big haul doesn’t always happen, but it’s still good to be prepared in case you do find tons of potentially profitable inventory.

Retail arbitrage is a method of sourcing inventory from retail stores in order to sell it through Amazon. When you’re doing retail arbitrage (or RA, as it’s often abbreviated), you are looking for items you can buy at a low price in retail stores and sell high on Amazon. “Buy low, sell high” is the definition of arbitrage in a nutshell, and retail sources for arbitrage are a staple for many Amazon FBA sellers.

I got my start on Amazon FBA by sourcing at mostly garage sales and thrift stores, and I was able to build up my Amazon disbursements by buying inventory at a ridiculously low price (e.g. books for 25 cents or a dime) and selling it for 1000% return on investment (ROI). After a while, my disbursements were sufficiently large that I didn’t have enough time to spend the entire amount of the disbursement at garage sales and thrift stores – I was starting to have more money than time.

targetstoreThe next step for me was to scale my Amazon FBA business by transitioning to retail arbitrage. Garage sales and thrift stores can provide amazing ROI, but you typically can only buy one-off products at these sources. You can have a great day of sourcing and find 50 items, but you have to enter 50 MSKUs into your inventory as a result.

Retail arbitrage provides the ability to scale the business by buying multiples. It’s possible to find 50 items at one RA stop, and it’s possible to have a much smaller number of MSKUs because of multiples. Fewer MSKUs means less hassle down the road in maintaining your inventory in Seller Central – fewer times to reprice, fewer chances for listing issues, etc.

And the even better thing about finding multiples at a retail source? The potential for replenishing. If you can find a replenishable item through RA sourcing, you automatically know how you can spend part of your capital the next time you have it available. The more replens you can find, the less time it takes you to source each disbursement cycle. Buy a replen, send it in, sell it, get a disbursement, buy that replen again. Lather, rinse, repeat.

walmart-superEvery seller likes to do RA a little differently, and it’s really a matter of trying out different things to see what you prefer. Everyone also has a different schedule, different family commitments, different number of stores available within driving distance. Some sellers like to go out to do RA for a couple of hours every day while their kids are in school. Others can only go on the weekends or evenings when they’re off work from their 9-to-5 job.

For me, I typically spend one full day doing RA every 1 to 2 weeks. I would rather spend all day driving to different stores and get all my sourcing done in one day, instead of breaking it up and doing a little here and there each day.

When I spend a day doing RA, I have two main strategies for how I spend my time:

Store Signs1. Source all the stores in one area

One strategy I use is to choose an area of town where I will focus for the day. The benefit of using this method is that I can hit a large amount of stores in a small amount of time with minimal driving. I use this strategy when I don’t have very much time to spend driving, and I don’t have any good leads on items that I already know I want to buy.

After I decide on the neighborhood, I plan out a route on Google Maps where I go to that neighborhood’s WalMart, Target, Kohl’s, TJMaxx, Marshalls, Walgreens, etc, one after the other. The next time I’m doing RA, I’ll pick a different neighborhood and plan a similar route.

Target Route2. Source multiple locations of one store

The second strategy I use for RA is when I have a good lead on some items to source at one particular retail store. Maybe there’s a big sale going on at a chain of stores, or maybe I have some replens that I need to restock.

In these instances I plan my driving route for the day to cover a larger radius from my home, but I only put one or two stores in the route. For example, I might go to every Target in a 30 mile radius in one day. Depending on where you live, a 30 mile radius might be too many Targets for one day – in that case, using this RA strategy could give you several days worth of work.

I also use this method when I know a chain is doing a big seasonal clearance. I’ll even call ahead to the store branches to make sure that each one in the chain is already doing the clearance before I drive all the way out there.

Walmart ManagerBuilding relationships with managers is a helpful way to plan for sourcing days in this second strategy. I have the names and phone numbers of managers at certain stores in my area, and I give them a call from time to time to see if they know anything about the timing for upcoming sales. If I can be one of the first to know about a clearance event, I can plan my sourcing schedule so that I’m one of the first shoppers to see the clearanced products. I even have managers in some stores who know that I buy a lot of items at a time, and they text me to come clear out their inventory for them!

Using these two strategies doesn’t have to mean that you choose one over the other on any given day. More than once I’ve set out for the day with the goal of using the first strategy, but I found a couple of really awesome deals early on in the day at one store. At that point I rerouted my day to only go to that one chain for the rest of the day. Sometimes you gotta ride the wave and go where the deals take you!

Do you have any retail arbitrage strategies you use that are different from these two? Do you prefer to go to many stores in one area of town for RA or to go to one store in multiple parts of town? Please share your experiences with us in the comments!

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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

Overcoming Your Fear of Buying High Ranked Items

Fear of High Ranked ItemsI’m like any other Amazon FBA seller out there – if I could source and sell only low ranking, fast turning items at 100% ROI (return on investment) or higher, I would choose to do that every day, all day. That’s what we all want to do, right? Maximize our ROI and maximize the speed with which we get that return back in our bank account.

Today I want to share with you 5 times that I don’t shy away from buying high ranked items to resell on Amazon. Through careful research and critical thinking, it is possible to turn high ranked items into big profits on Amazon FBA. In some instances, you don’t have to fear that a high ranked item lacks potential value for resale.

First, let’s talk through a few points related to sales rank so that we can get on the same page for the rest of the conversation:

  • Product DetailsThe sales rank (also known as BSR for “best seller rank”) of a product on Amazon is number that represents a snapshot in time of how recently and how many units an item is selling compared to other products within the same Amazon category.
  • A low sales rank means more sales. A #1 best seller is selling really well.
  • A high sales rank means fewer sales.
  • Low ranking items are more likely to sell faster than high ranking items.
  • Screen Shot 2014-12-11 at 11.20.05 AMSales rank is relative to the number of items in a category. A rank of 1 million in books is in the top 2%, which is very different from 1 million in toys, the top 15 or 20%. (Be sure to subscribe for our free sales rank chart in your email inbox every month, so you can keep track of the sales ranks for each Amazon category.)
  • High sales rank might mean fewer sales, but don’t skip over one crucial piece of information in that statement: An item with a high sales rank has had sales. If something sells once, it could potentially sell again.

So back to our topic for today…here are the 5 times you don’t need to be afraid of buying high ranked items to resell on Amazon:

1. When an item’s sales price is artificially high

Many times when an item on Amazon is priced artificially high,the sales rank also becomes very high. By artificially high, I mean those items that you pick them up, you scan them, and your jaw drops at how incredibly high the sales price is. I know, that’s not a very specific definition.

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You can get a clearer definition of an artificially high sales price by looking at the CamelCamelCamel or Keepa data for an item. If the historical data for an item shows that the sales rank is much lower when the item is priced much lower, then you know that the current high price is artificially high. Customers aren’t willing to buy it at the higher price, and it may or may not ever sell again at that high price. If I can source the item at a low buy cost and still make a good ROI by lowering the sales price back into a reasonable range, I am not afraid to buy this type of high ranked item.

2. When an item is out of stock on Amazon

Screen Shot 2015-09-14 at 5.43.57 PMAgain, the longer time passes from an item’s last sale on Amazon, the higher the sales rank of that item will go. If an item is out of stock or “currently unavailable” on Amazon, the sales rank will continue to creep upwards until it might eventually go back to N/A or zero sales rank. If I can source an item with a high rank that is currently unavailable on Amazon and the data on CamelCamelCamel shows that it was once selling at a good rank and price, I will buy that item in a heartbeat!

3. When Q4 is approaching

CCC Q4The closer it gets to Q4, the more I’m willing to expand my sales rank parameters when sourcing for Amazon FBA. Sales velocity during Q4 increases to such an extent that higher ranking items will sell at a faster rate than they will during other times of the year. A toy that sells once a month throughout the rest of the year could sell once a day during Q4. Once again you will want to look at CamelCamelCamel for the historical data in Q4 of previous years to see if you can expect the sales rank to pick up at that time of year.

4. When the product page needs improvement and it’s worth my time to improve it

116_1409831933There are some really crummy product pages in the Amazon catalog. Sometimes the reason an item has a high sales rank is because the picture stinks, the title is awful, the product description is nonexistent, or the keywords are pathetic. One or two little improvements can make a huge difference in how quickly a product will sell on Amazon. For an outstanding resource on creating and improving Amazon product pages, check out Amazon Advantage by Karon Thackston.

The key in making a smart sourcing decision in this situation is to decide if it’s worth your time to attempt to make those improvements. Sometimes a product page can be easy to change, and other times it can take a lot of back and forth with Seller Central to make the change. Sometimes you need to submit multiple photos and screen shots in order to get approval for a change. If you find a high ranked item with an outstanding ROI or you find multiples of an item that will bring you a hefty profit, go for it with making those product page improvements! (If it’s a one-off item with low ROI, I would pass.)

5. When I can source the item for free

If I don’t invest any money in an item and I only have one that item to sell, I will only need to pay pennies per month for storage at the Amazon warehouse. I’m willing to wait it out for these type of items to sell if their rank is high.

Note: I do not send in multiples of high ranked items because I want to avoid long term storage fees.

Hopefully these 5 scenarios have given you some ideas of high ranked items you should not be afraid of finding while you’re out sourcing. I want to emphasize that in general I prefer to source low ranking items; the scenarios above are exceptions to my usual sales rank parameters.

Also, many people ask what I consider to be a “good” sales rank for FBA sourcing and, conversely, what would constitute a “high” sales rank. This is a question that each seller needs to decide for themselves based on their experience, their available capital, how quickly they need to make their money back, and several other factors. Some sellers like to stay in the top 1% of sales rank for a category. Others prefer 3% or 5%.

Do you have any other scenarios you would add to our list above? Are there other times that you would buy a high ranked item to resell? Let us know in the comments!

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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!

Using the CamelCamelCamel and Keepa Google Chrome Extensions

hqdefaultToday’s blog post will be short on written text so that we can point you directly to a screen capture video. I’ve put together a video walking through the process of researching 5 products from the Amazon catalog, using the Camelizer and Keepa Google Chrome Extensions to help make a smarter sourcing decision.

In the video I will show you how both of these handy extensions work for researching the sales rank and price history of items you might be considering for Amazon FBA. I’ll also discuss my thought process on whether or not I think each of these items would be a good buy.

If you’re looking for more info on how to use CamelCamelCamel and Keepa, check out our recent blog posts:

The Most Harmful Amazon FBA Sourcing Decision You Could Ever Make
How to Read & Understand CamelCamelCamel Graphs
How to Read & Understand Keepa Graphs

I want to encourage you today if you’re making sourcing decisions without using historical sales rank and pricing data from CamelCamelCamel and Keepa — there is a better way to buy Amazon FBA inventory! You can make smarter sourcing decisions. Your business will hugely benefit if you take the time to learn how to use these powerful free resources.

Book & DesktopTo find out how to use both CamelCamelCamel and Keepa to make smart sourcing decisions, be sure to check out our brand new course, The Reseller’s Guide to How to Keepa Camel: Using Amazon Sales History to Make Smart Sourcing Decisions. This course is a combo ebook and video course where I walk you through everything you need to know to make sense of both Camel and Keepa in ways you’ve never thought of.

How about you? Do you use the CamelCamelCamel or Keepa Extension while sourcing? Do you have a favorite? I’d love to hear from you in the comments below.

How to Read & Understand Keepa Graphs

Keepa TutorialHopefully you enjoyed our earlier blog post (with screen capture video) introducing the Amazon price tracker CamelCamelCamel. We use CCC throughout each day as we work on our Amazon FBA business, whether it’s out sourcing retail arbitrage, at home doing online arbitrage or wholesale research, or in repricing our inventory.

Keepa is another great tool that, when used by itself or in harmony with CamelCamelCamel, can provide you with the information you need to make smart sourcing decisions. Toward the end of this blog post I’ll show you a video walking through how to understand these graphs directly on the Keepa website.

Take a look at a Keepa graph for a product on Amazon.

Screen Shot 2016-05-05 at 12.36.58 PM

At first this graph can look like nonsense – just a lot of blue and green squigglies with some orange and white shading, and then a few black lines and dots thrown in for good measure. But all of these colors and lines will make sense to us shortly.

If you look to the right of the graph, you’ll see a box with a key to the colors on the graph:

  • Amazon = orange
  • Marketplace New = blue
  • Marketplace Used = black
  • Sales Rank = green

Screen Shot 2016-05-05 at 12.39.53 PMBelow this key, there’s a list of date ranges where you can select the period of time you wish to look at: day, week, month, 3 months, or all the data Keepa has ever tracked on this item.

Along the left side of the graph are dollar amounts, with the lowest amount at the bottom and the highest at the top. Along the bottom of the graph are the dates you have selected for the graph, with the most recent date on the right and the oldest date to the left. Along the right side of the graph are the sales rank numbers, with the lowest at the bottom and the highest at the top.

You can click to remove each of the sets of data in the color-coded key to the right of the graph. If you click Amazon, Marketplace New, Marketplace Used, and Sales Rank, you’re left with a plain white graph with no lines or shading.

Screen Shot 2016-05-05 at 12.43.55 PMIf you click to add back the Amazon data, now you will see orange shading that indicates when Amazon has had the item in stock. If the area is orange, Amazon is in stock. Wherever you see white gaps on the graph, Amazon is out of stock. Watch what happens to the graph when you click on the different date ranges to show the bigger picture of how often Amazon is in or out of stock on the item.

If you move your cursor over the orange shading, the graph will have a small box that pops up at the top of the graph to tell you Amazon’s price and a box that pops up at the bottom to tell you the date. As you slide your cursor across the graph, you can see where the price goes down or up over time.

Screen Shot 2016-05-05 at 12.41.58 PMIf you click to take all of the pricing data off the graph, you’ll see a green line come up on the graph to show the changes in sales rank over time. This data is presented the opposite of CamelCamelCamel – notice that the higher sales rank number is at the top of the graph, lower number at the bottom. Instead of an uptick in the graph to indicate a sale (like on CCC), the Keepa graph has a dip in the graph to indicate that the sales rank has lowered when a sale occurs. Be sure you make the mental shift on the sales rank graph when you go back and forth between CamelCamelCamel and Keepa.

Be sure to check out this screen capture video we made to show a basic walk-through of how Keepa works. Also, don’t forget to subscribe to the Full-Time FBA YouTube channel for notifications when we add new videos (1-2 times a week).

I want to encourage you today if you’re making sourcing decisions without using historical sales rank and pricing data from Keepa or CamelCamelCamel — there is a better way to buy Amazon FBA inventory! You can make smarter sourcing decisions. Your business will hugely benefit if you take the time to learn how to use both Keepa and CamelCamelCamel.

Book & DesktopThis blog post is just scratching the surface on what I can teach you about Keepa. To find out everything there is to know about using Keepa to make smart sourcing decisions, be sure to check out our course, The Reseller’s Guide to How to Keepa Camel: Using Amazon Sales History to Make Smart Sourcing Decisions. This course is a combo ebook and video course where I walk you through everything you need to know to make sense of both CamelCamelCamel and Keepa in ways you’ve never thought of.

How about you? Do you use Keepa? What is your favorite thing about Keepa? I’d love to hear from you in the comments below.

How to Read & Understand CamelCamelCamel Graphs

CCC TutorialHave you ever looked at a CamelCamelCamel graph and thought, “Are you sure those are prices and sales ranks? It looks more like the results of a lie detector test.”

If so, this blog post should help you get a basic understanding of what is involved in reading a CamelCamelCamel price or sales rank history graph while you’re sourcing for your Amazon FBA business. Toward the end of this blog post I’ll show you a video walking through how to understand these graphs directly on the CamelCamelCamel website.

You know we talk about CCC all the time on this blog, but that’s because we just don’t source without using this valuable website. We believe you shouldn’t make buying decisions for your Amazon FBA inventory based solely on today’s sales rank and pricing alone; you really need to make decisions based on the historical data.

Let’s start with the price history graph because that’s what comes up first when you search for a product on CamelCamelCamel.

Screen Shot 2016-05-02 at 3.47.11 PM

On the left of the graph you’ll see the range of prices for which this item has been offered on Amazon. Along the bottom of the graph is a range of dates.

On the right side of the graph is a sliding bar where you can adjust the date range visible on the graph to 1 month, 3 months, 6 months, 1 year, or all data available.

You can also adjust the type of pricing information shown in the graph by selecting the price for Amazon (green), 3rd Party New (blue), or 3rd Party Used (red).

Next let’s look at a sales rank graph. You can toggle back and forth between sales rank and pricing history on the tabs above the graph.

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With sales rank, you will find the dates are still located along the bottom of the graph. Now, however, you will find a range of sales ranks along the left side of the graph, with the higher sales rank at the bottom and lower sales rank at the top. Again, you can adjust the sliding bar on the right to show you different date ranges on the sales rank graph.

One handy use of the CamelCamelCamel sales rank graph is to count the sales for a product during a certain period of time. You can tell if a sale has occurred by finding a sharp rise on the sales rank graph, which indicates a sharp drop in the sales rank. When the sales rank drops, it means a sale has occurred; a lower sales rank means more sales.

You can practice counting sales on a sales rank graph that we’ve included here. As you read across the graph from left to right, any time the line has a sharp uptick, that means at least one sale has occurred. If the line rises even more sharply, there were possibly two or more sales.

Go ahead and look at the graph and count how many sales you see.

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How many sales did you get?

We count 36 or 37 sales. There’s no way to know exactly how many sales occurred, but this is our educated guess based on this particular sales rank graph.

If you would like to see a video with a short walk-through of the above information in action on the CamelCamelCamel website (including why we think there were around 36 or 37 sales from the above graph), be sure to check out this CamelCamelCamel Tutorial on our YouTube channel. Also be sure to subscribe to the YouTube channel to get notifications when we post new videos (usually 1 or 2 times a week).

I want to encourage you today if you’re making sourcing decisions without using historical sales rank and pricing data from CamelCamelCamel — there is a better way to buy Amazon FBA inventory! You can make smarter sourcing decisions. Your business will hugely benefit if you take the time to learn how to use CamelCamelCamel.

Book & DesktopThis blog post is just scratching the surface on what I can teach you about CamelCamelCamel. To find out everything there is to know about using  CamelCamelCamel to make smart sourcing decisions, be sure to check out our course, The Reseller’s Guide to How to Keepa Camel: Using Amazon Sales History to Make Smart Sourcing Decisions. This course is a combo ebook and video course where I walk you through everything you need to know to make sense of both CamelCamelCamel and Keepa in ways you’ve never thought of.

How about you? Do you use CamelCamelCamel? What is your favorite thing about Camel? I’d love to hear from you in the comments below.

The Most Harmful Amazon FBA Sourcing Decision You Could Ever Make

Harmful Sourcing Decision
Did you know that a book on Amazon ranked 10 million yesterday could be ranked 500,000 today?
All it takes is one sale. Just one. One sale of that book on Amazon could change the sales rank drastically overnight.

Would you buy a book ranked 10 million on Amazon to resell? Would you buy a book ranked 500,000 to resell?

I know there are lots of other factors at play in how you might answer that question, but my point in asking it is to get you to look at the sales rank. You view a book ranked 10 million much differently than one ranked 500,000, right?

Yet every day many, many Amazon FBA sellers are making their sourcing decisions based on today’s sales ranks and low prices. They find a book ranked 500,000 and snatch it up, without checking to see that it was ranked 10 million yesterday. Or maybe it’s a toy ranked 100,000 that was ranked 1.5 million yesterday.

There are two main reasons why you shouldn’t base your sourcing decisions on today’s sales rank and pricing data:

  1. Amazon changes their prices often.

LC_OFF_Body_NLPAmazon is known to change their prices across their website 2.5 million times per day. That’s just Amazon’s prices – that doesn’t include 3rd Party seller prices, which are also being changed constantly throughout the day with repricers. Now, Amazon has hundreds of millions of products, and they’re changing those prices 2.5 million times per day, which is mind blowing if you try to think about what that means. The low price on items also change throughout the day when a seller sells out of an item and the low price bumps up to the next seller. If prices are changing constantly on Amazon, why would you make a sourcing decision based solely on this one snapshot in time of the current low price?

  1. Amazon updates sales rank often.

Seinfeld Scene It RankAmazon recalculates their sales ranks every hour. That’s 24 times a day that sales ranks change on Amazon! If I’m looking at an item to resell, it’s too much of a gamble to base my buying decision on what the sales rank looks like on this one hour of this one day. The current sales rank is just a snapshot in time of how this item has recently sold. I need to make my decisions based on broader information than this one snapshot.

Whether you are in a store doing retail arbitrage or you are at your desk doing online arbitrage or looking at a wholesale catalog, you need more information than this one snapshot in time. You need more than just the current low price and the current sales rank in order to decide if you want to buy 1 of an item, 10 of an item, or 100 of an item. Your hard-earned inventory money is at stake here! You want to make your decision based on the best information available.

Making this type of decision on how to spend your sourcing money without using historical data from CamelCamelCamel or Keepa is the most harmful sourcing decision many Amazon FBA sellers are making.

I would be willing to go so far as to say that making sourcing decisions without CCC or Keepa is one of the top reasons Amazon FBA sellers quit their business. They spend all their sourcing money on inventory without looking at the historical data, the prices tank, the inventory never sells, and they throw their hands up in despair and say, “I quit! I tried Amazon, and it just didn’t work for me.” Now, there may be other factors at play, but for many resellers using CCC and Keepa could be a huge game changer in their business. They could find profitable inventory that will sell in a reasonable amount of time and won’t lower quickly in price.

I’m especially disheartened when I hear resellers saying they want to quit Amazon FBA over these types of inventory problems because this problem is so easily fixable. You can learn to read and interpret CamelCamelCamel and Keepa. The graphs can make sense, and you can use them to make smarter sourcing decisions.

CamelCamelCamel & KeepaBoth Camel and Keepa are free, easy-to-access programs that you can use on your computer or your mobile device, either in a web browser or from your 3rd party scouting app like Scoutify, ScanPower, or Profit Bandit (Amazon Seller app does not have links to CCC and Keepa, however). It only takes an extra 20 to 30 seconds (if even that!) to look at the sales rank and sales price history of an item when you’re sourcing. You can take a quick look at how often this item has sold and how it’s been priced in the past, and you can make an educated prediction about how it will behave in the future.

I want to encourage you today if you’re making sourcing decisions without using historical sales rank and pricing data from CamelCamelCamel and Keepa — there is a better way to buy Amazon FBA inventory! You can make smarter sourcing decisions. Your business will hugely benefit if you take the time to learn how to use these powerful free resources.

Book & DesktopTo find out how to use both CamelCamelCamel and Keepa to make smart sourcing decisions, be sure to check out our brand new course, The Reseller’s Guide to How to Keepa Camel: Using Amazon Sales History to Make Smart Sourcing Decisions. This course is a combo ebook and video course where I walk you through everything you need to know to make sense of both Camel and Keepa in ways you’ve never thought of.

How about you? Do you use CamelCamelCamel or Keepa? Do you have a favorite? What are you favorite things about Camel or Keepa? I’d love to hear from you in the comments below.

Find Better, Faster Selling Amazon FBA Inventory

keepacamel-ipad800Has this ever happened to you? You go sourcing for inventory to sell on Amazon and find some good stuff… I mean, the prices are good, the sales rank is good, but once you finally get these items to Amazon, the prices for many have either tanked, or they just never sell. You check in with these items later and see that the sales rank is now horrible, and if you decide to match the lowest price you might actually lose money. What’s going on here?

Today, I’m excited to share with you how I’m able to find inventory that not only sells quickly, but sells at the high prices I expect it to sell for. No matter if it’s retail arbitrage, online arbitrage, or even wholesale, when I’m sourcing for inventory, I’m confident that the prices will hold strong and sell soon.

How do I do it? Here’s a hint… I use the data from two free services: CamelCamelCamel and Keepa. If you’ve heard of these services then you know just how important they can be to making smart sourcing decisions. Most people only know the basics of Keepa and/or Camel, but I think it’s time that everyone knows just how powerful these two free tools can be. If used correctly, they can revolutionize your Amazon business.

Book & DesktopWith this in mind, I’m excited to announce that my brand new course, The Reseller’s Guide to How to Keepa Camel: Using Amazon Sales History to Make Smart Sourcing Decisions is now available!

The course is a 130+ page ebook and 30+ module video course that walks you through both the basics and advanced strategies to use both CamelCamelCamel and Keepa. To find out more about the book and to read the testimonials of those who have already read/watched the course, then click here.