Just after my new course “Magic $25” (no longer available)was released… I had a great question land in my email box:
I purchased “Magic 25” and I’m really enjoying it.
You said in the phone call ” I can sell it for $25.00, because I know it will sell fast. How do you know it will sell fast? Are you basing it on previous knowledge, a test of the product, or are you using rank as your guide?
If it is rank how do you figure what is a good rank. What I would like to know is how do you figure out the rank for other categories, or do you even use rank as a gauge?
That is a great question… and one I can’t “really” answer with any logic. Here is what I shared… and it might make sense when you read the entire email response here:
Some things I just know will sell fast, because I have sold similar products – and they sold fast.
When I say “know” – of course I don’t really “KNOW” until it sells. So much on Amazon is out of my control. (It’s not just Amazon…but any selling channel really). I do “test” products that I am hoping to sell regularly. I usually only send in 2 or 3 as a test… that way I’m not putting all my eggs into one basket.
Also… FAST is relative. For some it’s within a few days or a week… others it’s within a month… others – if it sells in less than 3-6 months it’s a fast sale.
Personally… I don’t like my retail arbitrage or wholesale goods to sit for longer than a month... but it does happen.
Also… it depends (for some products) on a variety of other outside forces. Was a product shown in a magazine recently? Did something I have that no one else has get talked about somewhere and sales have increased for no reason? Etc.
Did the competition sell out of similar products and mine is the only thing available of that “type”?
I do look at sales rank… as a part or the equation if I can. If a similar product I want to carry has a fairly good sales rank… and that product IS for sale on Amazon FBA… I can use that information. But, I can tell you that sales rank fluctuates – for some of my products it fluctuates in huge leaps and bounds.
I have a product that the sales rank looks abysmal most of the time… why? Because I keep running out of stock! I don’t seem to be able to keep consistent stock sent into Amazon. So… for a few days it looks great and then it goes down hill rather quickly until I can restock.
Inventory restocking – and turn rate are new things I’m having to learn to control. It’s been a long time since I had my own retail store (where I had to reorder consistently and know the turn rate of products). Plus… Amazon is very different than a local retail store and so many other factors go into maintaining and controlling inventory.
Others have talked about selling products in the top 10% or the top 5% rank… but these products are usually products that Amazon is selling as well… or have lot’s of competing sellers.
Looking at those top tier products… is a good tool. They give you hints at what is popular and sells well on Amazon… but those are NOT the products I am sourcing.
I know this was a convoluted answer… because there is NOT a real precise answer. If we knew the secret to sourcing every product that would sell fast… and avoiding every product that would not sell fast… Well… We would be in the best possible place. IF everyone of those fast selling products was selling for a nice fat profit.
Most sellers that talk about selling out of all their products – FAST – are not making as much profit as you might think. They are working on volume of low profit products.
The idea is to find (testing first) products that will sell regularly… steadily… and for a nice fat profit…
Over and over… until they stop… but by then you have tested and found lot’s of other products to take their place.
All I can say is that it is possible… but it does take patience… and lot’s and lot’s of research.
I hope this helps a bit… keep at it… and let me know if I can help in any way,