In this week’s blog we take you through the process of finding and analysing Amazon FBA deals. Save time and grow your profits! Amazon FBA is a brilliant opportunity to create a new stream of income.
Finding winning Amazon FBA deals.
We have broken down the key components which you can use when finding Amazon FBA deals.
Price comparing – It is important to find an item which you can buy for cheaper than it is selling on Amazon. Usually this happens when a retailer has a discount, clearance, or multi-buy offer on an item. Looking at the sale section is always a great place to start.
Look at customer reviews – Customer reviews hugely boost the sales a product can generate. A customer’s product review also gives you an insight into the product’s potential future sales. Don’t forget to check the date the review was written to ensure it is still relevant to the item.
Does the item have a suppressed Buybox? – We explain the Buybox in more detail here. If an item has a suppressed Buybox this can have a knock on effect on your sales. But why?
If the BuyBox is not present on the listing buyers can assume the item is not available. With items where the BuyBox has been suppressed we advise checking on the item in the future. You can check the item to see if the price has stabilised and that the Buybox has been reinstated.
Look at the stock levels for the product. – You may be able to compete with sellers depending on their stock levels. You can check another seller’s stock levels first by going onto the item listing. Next, if you add 999 items into your basket. Doing this you will then receive an error message notifying you the quantity the seller has. If the seller only has a few items there is a chance you could become the main seller!
If you have Profitl you will be able to see the stock levels other sellers have in seconds. Just press on the ‘view stock data’ button on the Profitl scanner.
Analysing potential FBA deals.
You have an item you believe has potential to be profitable but how can you be certain? Below we provide some handy suggestions on the key aspects to look out for when analysing a potential deal.
Check for gated categories or restrictions – ensure you are ungated in the brand or category the item belongs in. Once you have done this you will then be able to sell the item. You can learn more about ungating here.
Look at monthly sales – Using the Profitl scanner you can see the estimated sales for a product. (You can see this in the examples below). This is one of the most important things to look at when sourcing products. As it indicates whether you’ll be able to sell an item quickly and not generate a high FBA storage fee. We would suggest an item which is selling 30+ each month is a good frequency. The higher the frequency the better!
Price graphs – The Profitl price graph is a great resource to check the sales history of an item. The important part of a price graph is the Buybox line and the Sales Rank line.
Look at the competition – It is likely someone else will be selling the item you are hoping to sell. It is therefore a good idea to check out your competition. Here are some key points to take into consideration:
- Do they have a good seller rank on Amazon?
- Are they shipping via Prime?
- Is the item being sold for more or less than what you’d sell it for?
- Is the item being sold by Amazon themselves?
If you think you can beat the seller on each of these attributes this is a great sign!
Examples of analysing your Amazon FBA deals
Below are two products which could be potential deals. We will analyse each deal and explain which of the deals could be a potentially profitable deal.
Want to test out your skills? Look at the two images below for the products and try and decide which product you think is the better deal. Once you have done that you can look at our analysis and see if you were correct.
The first item initially is exciting with an estimated potential profit of £11.02! However, it is always best to look at the product price graph when analysing a deal. From the price graph we can see that not only has the item been considerably cheaper in the past; Amazon are also sell on the listing.
Don’t forget: If Amazon is the seller, they will be using an advanced algorithm to adjust their price. As a result of this they may be able to go cheaper. Be hesitant with these listings.
When analysing a product it is important to check if Amazon have been on the listing in the past also. This is because Amazon could list on the listing in the future, affecting your sales.
We can check the item’s price by looking at the pink Buy Box line which shows the items selling price over time. The orange line on the graph also shows the time in which Amazon have sold on the listing.
Looking at the price graph we can see the BuyBox has dropped as low as £15 in the past. This means there is a risk of being undercut. We know this by looking at the pink Buy Box line on the graph which is currently close to being at the highest price it has been within the last 90 days.
Undercut = This refers to when an item’s price drops and can lead to a loss in profits.
This item although exciting at first glance is unlikely to be a profitable buy.
Looking at this item’s pink Buy Box line we can see that the item’s price has remained relatively stable. As the price has remained stable there is a lower chance of being undercut. The price may instead rise, this equals extra profit for you!
The item is selling well with estimated monthly sales between 30-60 which is consistent. We can see this when looking at the green sales rank line which moves up and down based on the frequency of sales. The ROI (Return on Investment) is also notable at 92% which is an indication that it is a good investment. This item also has low competition currently with no other FBA sellers currently on the listing.
This item is a stable buy and with a high ROI is a potentially profitable deal.
It is important when analysing deals to take multiple aspects into consideration before you invest in a deal. What individuals believe is a good deal can differ. It is therefore worth thinking about what you would like to prioritise when it comes to analysing profitable deals.
Each Amazon FBA seller will create a strategy when finding and analysing Amazon FBA deals. So do not feel that this is the only way analyse and find deals however we hope you have found this blog useful.
If you would like to learn more about Amazon FBA you can check out our YouTube channel here. If you would like to learn more about Profitl you can check ou our website here.