Super Tracking: Find Amazon Top Sellers, Products to Sell, and Wholesale Suppliers

07 - Super Tracking Find Amazon Top Sellers, Products to Sell, and Wholesale Suppliers

One of the biggest challenges in starting an Amazon business is building relationships with wholesale suppliers and searching for high-profit products to sell online. Super tracking can be the ultimate superpower to expediting this process and unlocking your profitability quickly and efficiently. Super tracking involves looking for other sellers that have the same product range as you and scouting out their inventories. Other competitors provide quality leads to finding profitable products that you can use to broaden your catalogue. As you become more successful at tracking competition and scouting products, wholesale manufacturers will see your potential and be willing to supply more products for you to sell. By establishing your business and reputation, you will see higher acceptance rates from brand owners and suppliers as they come flocking to your doorstep hoping to partner up.

Super tracking consists of three major steps: identifying Amazon third-party sellers, optimizing product research to track popular products to sell online, and using Amazon product lists to find new wholesale suppliers.

Amazon Seller Search: How to Find Best Sellers On Amazon

The first step is finding the right competition to super track. There are millions of merchants across Amazon’s global marketplace. As an individual user, super tracking is not about finding the best sellers, but focusing on the right size sellers. Look for other Amazon third-party competitors that are not too small or not too big.

Small sellers are often “arbitrage” resellers with low inventories. As a result, tracking small sellers will not be beneficial to finding new products to increase your own catalogue.

On the other end, large merchants may sell mass-market products or private labels and which may not be the most profitable and can have a short lifespan on Amazon. Larger sellers often have the resources run on thinner margins, which is not affordable for medium-size or small-size Amazon sellers.

You’re searching for the “middle man”, the successful Amazon sellers that don’t sell too much or too little products and have a catalog within your reach. These proven merchants are the best sellers for your size and are worth super tracking. For more information on the different types of sellers and which category may be right for you, check out our “Beginner’s Guide to Selling Wholesale Products on Amazon.”

Amazon Seller Feedback: Using Seller Feedback and Reviews to Scout Competition

After you limit your scope to the right size sellers, you are left with hundreds of thousands of sellers you can start tracking. But how do you differentiate among the middle-sized sellers? A useful metric to finding the right FBA sellers is seller feedback. Seller feedback includes reviews from various buyers in the past 30 days, 90 days, and so on. For a quick analysis, utilizing reviews from the last 30 days is more than enough to see a competitor’s tracking potential. A seller who has between 200 to 800 different feedbacks is most likely another genuine third party seller using the wholesale model and is the ideal seller to track.

Next, you want to investigate each of these seller’s Amazon listings. Pay close attention to their product descriptions, images and most importantly, keywords. Take a look at the product reviews to determine what customers like and don’t like about the product. You could even go as far as to order a product if it is in your price range and ask the seller questions regarding the product.

Product Tracker: Best Selling Products on Amazon

Before you can start super tracking products to sell, you have to look through the thousands of products on Amazon to find the most profitable products to sell online. Some sellers may have as little as a dozen products while other sellers may have hundreds to thousands. To find the best products from each seller’s catalogue, you have to manually calculate important key performance indicators (KPIs) such as the profit margin and return on investment (ROI) of each product and see which ones are the most profitable. As we always say, not every product is a winning product. Even some of the “best selling products” may have low-profit margins or potentially negative profit, so sellers need to do product research before they invest in any product. If you need tips on how to manually calculate a product’s KPIs, please read our last blog on “Profit Calculator: How to Estimate Amazon Product Margin.”

An alternative to manual calculations is utilizing convenient seller tools:

Amazon’s Revenue Calculator

The first tool is Amazon’s Revenue Calculator. Located in Amazon’s Seller Central, the revenue calculator allows sellers to input a product and calculate the product costs along with any variable cost such as shipping and seller’s fees. Please note that prices and KPIs change constantly, so this tool provides rough estimates, not exact figures. As a result, you should use this tool for big picture analysis.

Sellgo’s Product Tracker and Profit Finder

Some other valuable tools are Sellgo’s Product Tracker and Profit Finder tools.

The Product Tracker uses product scouting to find individual winning products that sellers can use to widen their catalogues. In addition, sellers can analyze trending products, Buybox Rate Estimation, revenue estimation, daily sales tracker, inventory insight and more.

Alongside the Product, Tracker is the Amazon Profit Finder tool. The Profit Finder works hand-in-hand with the Product Tracker provides Amazon filtering of all the products and instantly provides KPIs such as variation analysis of selling prices, profit margins, and return on investments to identify winning products.

Both of these tools provide instant super tracking powers for you to accelerate the product research process. As you continue to super track more products, you may see your sales results and acceptance rates from wholesale suppliers skyrocket.

Wholesale Manufacturers: Tracking the Best Wholesale Suppliers

The final step in super tracking is tracking the best wholesale suppliers to stock up your inventory. This relationship with suppliers is the most vital relationship because it is how to source your products that will ultimately determine if your business is profitable or not. Suppliers are very picky with their partners, so be sure to convey your unique value proposition when trying to agree on a sourcing deal.

If you can get product sourcing from a wholesale manufacturer, you may get access to all of their product lines that you can potentially add to your catalogue. But remember, not all products are winning products. To determine the best products from the product lists to sell, you must perform manual calculations or utilize FBA tools to calculate the appropriate KPIs. One option is to data export the product list to Sellgo’s Search Management tool.

The Search Management tool makes wholesale sourcing convenient and transparent through supplier analytics. This tool will categorize all of the products from a supplier and then sort them based on KPIs, similarly to the Product Tracker but for individual suppliers. By organizing this data, seller’s gain a profit funnel of products that they can super track and add to their catalogues. Wholesalers can use this software to find products to sell on Amazon, identify brand name wholesale suppliers, and organize Amazon product lists.

Optimize with the Best FBA Tools:

Finding the right products to sell may seem like a difficult process but it doesn’t have to be. A lot of the challenges of starting your Amazon business can be minimized by using super tracking and resourceful FBA tools. Unlock your super tracking powers by using Sellgo and be a seller on Amazon today.

Profit Calculator: How to Estimate Amazon Product Margin

06 - Profit Calculator How to Estimate Amazon Product Margin

How can you tell if a product is going to be profitable before you start sourcing it? Use a profit calculator to determine the profit margins on a product before you sell it!

One of the biggest questions sellers ask themselves before starting their Amazon FBA business is, “is it profitable to sell on Amazon?” The best answer will always be, it depends. Before you can estimate profit margins, extensive product analysis must take place for sellers to account for product costs, selling fees, and potential product margins.

The first step will be to identify profitable, “winning products” that will enable your Amazon wholesale or reseller business to thrive. A common method of identifying winning products is through product research tools such as Sellgo’s Product Tracker. FBA tools like the product tracker will scan the millions of products sold on Amazon and organize the data to identify products with the best profit potential. Sellers can then pick the products they want to sell, contact manufacturers for product sourcing, and obtain estimates for the product cost. For more information on how to use the Product Tracker tool and source winning products, check out our past blog post, A Beginner’s Guide to Selling Wholesale Products on Amazon: How to find “Winning Products”?

By conducting product research and utilizing various FBA tools, sellers can gain insight on various key performance indicators (KPIs) that will forecast the success of your Amazon business.

How to calculate profit margin?

Once the initial product research is complete, sellers should have an underlying idea of the cost of the product and can use that data to measure the first KPI, profit margin. The profit margin is the amount in which revenue of sales exceeds the cost of business. This may be simplified as the ratio of your profit divided by your sales which will be calculated as a percentage.

How to Calculate Gross Profit Margin?

There are two types of profit margins. The first is Gross Profit Margin which can be calculated using the gross margin formula:

Gross Profit Margin (%) = (net sales – cost of good sold) / net sales x 100%

The gross profit margin equation gives you a rough idea of how profitable an item is, which you can use to determine how profitable your business can be and your businesses’ overall health.

How to Calculate Net Profit Margin?

The second type of profit margin is Net Profit Margins. The net profit margin formula is:

Net Profit Margin (%) = (net sales – cost of good sold – all other costs) / net sales x 100%

By including other costs, the net profit margin equation will provide you a big picture estimate of how sustainable your business can be.

Gross Profit Margin vs. Net Profit Margin

While both gross profit margin and net profit margin are similar, the net profit margin is a bit more in-depth by taking into account all other costs that are not included in the gross profit margin. In Amazon FBA, the net profit margin will provide insight on the cost of inbound/outbound shipping, purchasing, and product costs, Amazon seller fees, and more. As a result, the net profit margin will be more helpful long-term because sellers can obtain a more accurate estimate of their total business costs that would be overlooked in the gross profit margin. Ideally, sellers should be using both the gross profit margin and net profit margin to optimize their profit forecasts.

How to calculate return on investment (ROI)?

Another KPI you should familiarize yourself with is Return on Investment (ROI). ROI is a profitability ratio that compares the return/profit to the cost of the investment you are making. The ROI formula:

ROI (%) = (net sales – direct cost) / direct cost x 100%

You can determine this by taking sales minus direct costs (which is your profit) divided by direct costs. Your direct costs would be things like the cost of goods, shipping costs (to you and Amazon), and processing costs. Return on investment analysis is a great indicator when it comes to determining what products you want to purchase to resell and how will the short-term costs impact profitability.

Putting it All Together: Key Performance Indicator Examples

Now that we have a general understanding of the KPIs, let’s try an example using real figures. For this example, we can assume keystone pricing, in which a product is sold for double (2x) the cost of the product.

Let’s say we have a product that we sell for $65 on Amazon. The total cost of goods sold would be $32.50, which is 50% of the Amazon selling price. Other costs include shipping and processing costs ($5) and your Amazon fee (we’ll say 15% of the Amazon selling price so that is $9.75).

First, we find the potential profit:

Profit ($) = (MSRP – COGS – $5 – $9.75) = $17.75

MSRP = manufacturer suggested retail price

COGS = cost of goods sold

Profit ($) = ($65 – $32.5 – $5 – $9.75) = $17.75

If you were to sell 50 units, you would make $887.50 in profit. Now, we can calculate the KPIs,

Gross Profit Margin (%) = ($65 – $32.50) / $65 * 100% = 50%

Net Profit Margin (%) = ($65 – $32.50 – $5 – $9.75) / $65 * 100% = 27.3%

As you can see, the gross profit margin has a higher yield (50%) than the net profit margin (27.3%) because it does not include all other costs. Therefore, the net profit margin will be more reliable when estimating total business expenses.

How to calculate ROI?

Our investment is the direct cost ($32.50) plus shipping and processing ($5), $37.50. Remember, Amazon fees are not part of your investment. They are incurred after the sale. Our ROI would be $17.75 divided by $37.50. The estimated ROI is 47% for this product.

ROI (%) = ($65 – $32.50 – $5) / 37.5 * 100% = 47%

Notes to Remember

1. Whether it be product sourcing or selling, Amazon selling is based on building relationships. As you build relationships with brand owners, manufacturers, and suppliers, you might be able to negotiate lower product costs, exclusive shipping costs, or various deals as you purchase more products.

2. Cost of goods and other costs can change constantly, so all sellers should take advantage of FBA tools to conduct product research consistently to stay knowledgeable on trends that may impact their business.

3. Amazon Reseller guidelines state your ideal product has a minimum of 30% ROI with a 15% profit margin. But sometimes you have to start with products that don’t perform that well. Make short-term and long-term goals for your Amazon business and keep track of the KPIs to ensure your business will thrive long-term.

Amazon Profit Calculator

Amazon has a handy Fulfillment by Amazon Revenue calculator located in Seller Central. You can search for your product by product name, UPC, EAN, ISBN, or ASIN. Once you locate your product, you can enter your item price and compare it to the shipping, storage, and other variable costs to calculate your KPIs (net profit margin, ROI, etc.). While this is mainly for estimate purposes, it can be extremely helpful in gaining a big picture analysis of potentially profitable products.

If you are not sure how to calculate your KPIs or not sure where to start looking for profitable products to sell, we recommend Sellgo’s Profit Finder and Chrome Extension. The profit finder sorts through all the products and tests Sales Equity Estimations to discover the products with the best average price, profit, margin, and even ROI. The Chrome Extension will provide an easy-to-use tool that can reduce the time used for extensive product research that you can then use to grow your business. Most importantly, not every product is a winning product. These tools will provide super filtering to prevent negative profit by tracking the most profitable online products to sell and disregarding underperforming products that may hurt your business.

Is online selling profitable?

Online selling can be profitable but requires a ton of work. Successful Amazon businesses rely on finding the right products, measuring the KPIs, and using that information to make knowledgeable data-driven decisions. The largest barrier is taking advantage of available resources and putting in the time and work. Various tools can help you calculate your profit before you purchase, avoid complicated manual calculations, and tons of spreadsheets. Instead of doing the manual calculation, try Sellgo’s Profit Finder for bulk automated calculation, and unlock your profits.

Bonus – FREE FBA Profitability calculator

Let me introduce you to our FREE FBA Opportunity Calculator.  It’s probably the most elegant way for you to calculate product profitability with ease – and it’s totally free!

A Beginner’s Guide to Selling Wholesale Products on Amazon: Find “Winning Products”?

05 - A Beginners Guide to Selling Wholesale Products on Amazon Find Winning Products

Want to sell on Amazon but not sure where to start? Check out this guide on everything you need to know before you start selling!

While many industries have suffered the impacts of COVID-19, one industry that has not slowed down is e-commerce and its industry champion, Amazon. Amazon has continued to grow and dominate the e-commerce industry despite the economic impacts of the pandemic. In 2020 alone, Amazon registered over 32,436 new sellers joining Amazon marketplaces, along with their 2.3 million active sellers and 9.4 million total sellers worldwide. On Primeday 2020, Amazon third-party sellers had over $3.5 billion in sales, a 60% increase from 2019. Many are turning to sell on Amazon as an alternative income and opportunity to enter the e-commerce space. This guide will provide you with tips for finding products to sell on Amazon and starting your own Amazon wholesale business.

Before getting into Amazon wholesale, it’s important to understand the four types of sellers on Amazon:

Dropshipping

Dropshipping is the first type of Amazon seller and is typically straightforward. Dropship sellers serve as a “middle-man” between consumers and suppliers. A customer will put in an order for a product on Amazon and will pay the dropship seller, who will then take the funds, put in an order, and provide the customer’s information to the supplier or manufacturer who will then ship and complete the transaction. The most fundamental part of this process is that Amazon dropshipping does not require the seller to handle or store inventory.

Arbitrage

Arbitrage is the second seller type and entails the process of buying individual items from one business at a discounted price and then reselling the item on Amazon for a profit. Amazon arbitrage can take place in traditional brick-and-mortar stores (retail arbitrage) or on the internet (online arbitrage). This process is extremely fast, taking as little as a week to turn over a product.

While Arbitrage may seem simple, it requires extensive manual product research for sellers to find the right discounted items to stock and sell. After research, arbitrage sellers have to source from retail stores and websites. Consequently, arbitrage selling is extremely manual, requiring sellers to constantly look for new items to resell.

Private Label

Private label selling is the high-risk, high-reward method of selling on Amazon, which requires sellers to buy large quantities of a product from a manufacturer, rebrand the stock as their own private label products, and resell it for a profit on Amazon. This is often done by building relationships with manufacturers, signing production contracts, and shipping the items to the seller who will then hold the inventory and mark up the price to be sold.

Similar to arbitrage, private label selling requires extensive manual product research to find the right product and manufacturer. Most private label sellers buy large quantities from international manufacturers and marketplaces like Alibaba. Unfortunately, this often leads to longer shipping periods and can take up to 3 to 4 months to launch a single product. If not enough research is done, private label sellers risk losing 100% of their investments if they choose the wrong product.

Logistically, private label selling can also be the most challenging and intensive to pursue. Private label selling requires sellers to abide by international and domestic regulations when purchasing merchandise overseas. This includes shipping costs, risk management, and cross-border transactions. Global Trade Management (GTM) provides sellers with tools to oversee the legal, regulatory, and business logistics that come with private label selling.

Wholesale

The last type of seller is through Amazon wholesale. Similarly to private label sellers, selling wholesale requires sellers to contact and establish relationships with manufacturers, purchase large quantities of a product, hold inventory, and resell it for a higher price on Amazon. Compared to the other forms of sellers, wholesale provides logistical and marketing advantages.

For starters, wholesale gives sellers more autonomy to control and manage their inventories compared to dropshipping. Wholesale sellers are no longer middle-men but the businesses fulfilling the orders themselves.

While arbitrage gives sellers a lot of autonomy, they are often limited or capped at their sales. This is due to the fact that they have to purchase individuals items from retailers instead of buying bulk supplies from a manufacturer. As a result, arbitrage sellers tend to have less inventory and cap out once that inventory is sold.

Although wholesale and private label sellers are similar, wholesale sellers have one huge advantage. Unlike private labels, Amazon wholesale businesses take advantage of purchasing established-name brand items instead of rebranding to a private label. As a result, wholesalers do not have to market their own brand and can utilize an established brands’ reputation to market to consumers. Wholesalers can source from U.S. based brands and distributors with proven products. This can shorten the launch period from 3 to 4 months from private labels to 2 to 3 weeks for wholesale.

Product Research: Using Data to Find “Winning Products

Now that you have a better understanding of the types of sellers, the next question is, how do sellers know what items to sell? Amazon is one of the world’s largest online marketplace. According to Big Commerce, Amazon sells more than 12 million products and more than 350 million products across all marketplace and sellers. How do individual sellers find products to sell on Amazon? Should sellers target the “best selling products on Amazon” or should they try to find “niche products” for unmet demands? This is where product research becomes essential for Amazon sellers.

Amazon product research and product research tools allow sellers to delegate product research to a virtual assistant. By using these tools, they will sort through the millions of items sold on Amazon and determine what are “winning products.” Winning products are not always the “top-selling products” or the most “niche products.” Winning products are the items that are the most profitable products to sell online or that carry a ton of potential. Profitable products can include categories that you might not even think of, so it’s vital to utilize product finder apps and product databases that can help optimize profit.

If you are unsure of where to start and which tools to use, you can use check out Sellgo’s Profit Finder and Chrome Extension. The Profit Finder will scan, sort, and categorize all the items sold by a multitude of manufacturers and rank the profit, margin, and return on investment (ROI) potential. In doing so, sellers can immediately determine winning products to invest in. On top of identifying profitable products, sellers can then track the potential of other products, historical sales data, and inventory trends.

Product Sourcing: How and Where to Find Wholesale Products

The next challenge after identifying winning products is where to buy products and where to source products. To buy wholesale merchandise, sellers must contact manufacturers and begin building relationships and rapport. The Product Tracker is a great tool to identify manufacturers. Next to every product categorized, manufacturers will be listed under Source. Once you find a winning product and identify the manufacturer, all you need to do is find their contact information and try to work out a contract.

Manufacturers do not sell to anyone. Manufacturers want sellers who know the product, know how to sell, and can produce results! Remember that wholesale sellers are not just selling but building a business and relationships. By providing your own value proposition, manufacturers and suppliers are more likely to trust and value your relationship. Sellers also have the autonomy to choose which manufacturers they would like to work with. Whether it be international or domestic suppliers, wholesale sellers can pick the manufacturer that best aligns with their best interests.

Bulk Products: What is the product cost?

Here are some key terms to note when contacting manufacturers:

What is the Minimum Advertised Price (MAP) Policy?

MAP policies are a price minimum that is set by suppliers that wholesalers must abide by. These price points are usually agreed upon by both parties and will have huge implications on profit margins and return on investments.

Is there a Minimum Order Quantity (MOQ)?

MOQs refers to the minimum number of units the seller must buy for the manufacturer to agree to supply. Manufacturers very rarely sell items individually and more often than not require sellers to buy items in bulk. Higher quantities may lead to lower product cost per unit. The MOQ can also greatly impact inventory numbers, selling prices, profit margins, and more.

Start Your Own Amazon Wholesale Business!

Amazon wholesale provides new and experienced sellers with the opportunity to build and develop a business in the e-commerce space. While there are various methods of selling, wholesale provides the perfect mix of autonomy, marketability, and profitability.

If you would like to start earning with Amazon wholesale, check out Sellgo’s tools to find products to sell and start your Amazon wholesale business.