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.
Do 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.
I 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.
I 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.
Update: 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.
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?