Amazon FBA – What to Buy to Resell


Amazon FBA – Buying Criteria – Just Got Better!

If you have watched my video overview on have a resell business, you will recognize this chart. The four main criteria for deciding what to buy:resell sweet spot - Gradient

    1. Listed on Amazon – is the product you are thinking of purchasing currently listed on Amazon? (There are advanced strategies where you might want to create your own listing but that option is for another time. If you are new to Amazon FBA, stick with the basics.)
    2. Good Sales Rank – does the product have an acceptable BSR (Best Selling Rank)?   What is best for you depends on your business strategy.  (Get a free chart here which will show you the various ranks for the different categories.)
    3. Few Sellers – how many sellers are on this listing.  The more sellers the more volatile the pricing will probably be.  This is not always the case but if there are 100 sellers on a listing there is no predicting what will happen with the pricing.
    4. Good ROI – If you sell this product at it’s current price, how much money will you make?  I calculate the ROI (Return on Investment) on every product that I sell – pre and post sale.

 

A few thoughts on sales rank: many people just look at a number and not the history.  That is very dangerous because the sales rank is very volatile for many products.  However understanding the history will show you with more accuracy what the product has done and is doing now and allows you to more intelligently predict what the product will probably do short term.

There is a free chart called

Classic Decision-Making Charts
Last Updated: August 5, 2016

Here is a partial screen shot:

amazon fba best selling rank decision chart

Along the left column are the various categories of products on Amazon. Next are the total number of items being sold in that category.  The next series of columns show you the top 1%, 3%, 5%, 10% and 50% numbers.

Here is an example; if I only want to sell products that are the top 5% of the Baby category, I need to buy items to resell which are currently under 85,000 in rank.

What you chose is based on your business model.  Some like fast turns and therefore look for items that are less than 1% of the category.

Next time I will talk about sales velocity… :o)

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