Training Your Eyes to Spot the Best Deal
by Colleen Quattlebaum, on March 31, 2015
The best sellers on Amazon can spot a good deal in an instant. They know their strategy and they don’t have to question whether or not to make an investment in some new inventory.
When you input your digital catalog into MarketScout, the online version will display something like this:
Did you see it? Within seconds you probably should have been able to make out the best deal. Each seller has his/her own preference for the kind of fishing hole they like to work, so let’s look at this list from a few different angles.
Items with lower ranks on Amazon are more likely to have higher sales velocity, but ‘What is a good rank?’ is relative to the category. An electronic item ranking 200,000 might sell extremely fast, but the same rank in Bedding and Bath might be a little slow. The more products sold every day, the more likely you are to make a sale. High ranking items are usually one of those types of fishing holes where everyone is pulling out some fish. The margins might be less, but they are more guaranteed. When an item doesn’t have a sales rank it might mean that the rank is so high that it’s not worth reporting.
In this list, it’s clear the best ranking items are the Asics shoes, and they have a decent margin to boot.
Choosing to look at the number of FBA sellers is like picking a secluded fishing hole that no one else knows about. If there are no other FBA sellers, you have a better chance of locking up the Buy Box, which ensures more sales.
In this list, you might be drawn to something like the Microscope which has a decent rank and good margin, but no other FBA sellers. On the other hand, the Adventure Planet Paint Set at the bottom has seven FBA sellers, so it may be hard to break into the Buy Box.
The last (but probably most appealing) area that your eyes should be drawn to are the margins. The more profit you make from each sale the better, so high margins are great things to focus on. This is like deep sea fishing where each tuna you bring in will ‘net’ you a huge profit.
Looking back at our list, a 29% margin on Asics shoes stands out because the item also has a good seller rank. Some of the other margins listed (like the train sets) look very appealing, but you have to first compare the cost of one unit to the sales price of case packs.
Finally, some sellers operate only in a specific niche. No matter how good of a deal the shoes are, they know that they specialize in kitchen supplies and therefore ignore the other areas. This is like the fisherman who only goes for bass, regardless of how much the salmon are biting.
Everyone has their own strategy when it comes to selling on Amazon, and your eyes will be drawn to a different place, but MarketScout can help you execute that strategy lightning fast. The online version is completely sortable and customizable and you can download the csv for an even deeper analysis. Give it a try for free today.
Now it’s your turn: If you only had $500 to spend, what kind of fishing hole would you choose?