Have you ever decided to take a gamble when sourcing products and ended up with aging inventory?
It’s happened to the best of us. Finding products with sustainable margins that sell well can be a time-consuming and exhausting process.
After all, the Amazon marketplace is constantly changing. Prices shift, sales ranks move up or down and new items are introduced. Predicting future sales trends requires a lot of legwork.
In this post, we’ll take a look at more efficient ways to find products that keep your inventory turning profitably.
Understand the Fees
Amazon.com, Inc. (“Amazon”) provides clearly outlined fees for sellers, but those fees are complex. A simple miscalculation could put a major dent in your profit margin. As a seller, it is important to understand all fees and margins before sourcing new inventory. For example, the FBA program offers many benefits to merchants, but it also includes a number of fees:
Order handling fees
Pick & Pack fees per item ordered
Weight handling calculated by pound per unit ordered
Fees associated with not providing box content information in a shipment
Warehouse storage fees
With so many variables to track, a small error could lead to unforeseen expenses. For example, beginning on November 1, 2016, FBA sellers will be required to provide box content information for each box shipped to an FBA warehouse. If this information is not included in your shipment, Amazon will charge $0.10 per unit to determine the box contents. If you forget to include box content information and your shipment includes 200 hairbrushes, you'll be subtracting $20 from your total profit for that shipment.
Find Your Inventory
Ideally, you want to source quality products that you can sell at a high margin. Maybe you’re just getting started with your eCommerce business. Or perhaps you’re an experienced seller who has built a thriving private-label brand from the ground up.
No matter what type of products you’re selling or how much experience you have as an eCommerce merchant, the bottom line is that you need to understand the market in your niche as a whole in order to run a successful business. What categories make sense to sell or focus on? What can vendors offer you?
Get Insight Into the Competition
Sellers are always telling us that they need an Amazon research tool to simplify the sourcing process. MarketScout, a product-intelligence software from eComEngine, is designed to provide you with the sourcing information you need - fast. Prior to making a sourcing decision, you’ll want to check out the number of FBA sellers and their prices for the items you’re evaluating. Can you offer a competitive price and still make a healthy profit? What is the product sales rank?
MarketScout provides detailed information about each ASIN/UPC/EAN you upload, including forecasted commission and fees. When you enter price information, MarketScout automatically calculates the margins for you. Instead of manually entering each ASIN into the FBA calculator, put MarketScout to work so you can get the information you need to make smart sourcing decisions for your business.
Start Scouting Today
Developed by people who truly understand eCommerce, MarketScout is a powerful research tool that can provide key information to help you quickly make informed decisions.