Amazon Seller Search: 3 Ways to Find Any Seller

In 2020, Amazon was estimated to have over 9.7 million sellers across the globe with 1.9 million active sellers every month. With so many sellers in the marketplace, you would expect Amazon to have a really easy and thorough method to find or locate any seller on its platform. Well, you’d be wrong.

If you have shopped or sold anything on Amazon and have tried to find a specific seller, you probably had a really hard time finding the seller. For whatever reason, Amazon has made it incredibly difficult to find a seller, even if you know their exact store name. Well, don’t you worry. Here are three proven and easy-to-use ways to find any seller.

Searching by Storename

The easiest and fastest method to finding an Amazon seller is through their store name. If you know the store name of the merchant, simply use this URL (https://www.amazon.com/shops/) and add the store name to the end. You should end up with a URL similar to:

https://www.amazon.com/shops/storenamehere

You should be directed to the seller’s product list, which includes all of the products they are currently selling. If you want to find go to their seller page, simply click on one of their product listings. Then, click on their store name at the bottom of the Buy Box next to “Ships From” and “Sold by.”

You will be directed to the seller page that display their ratings, reviews, and business information. The only issue with this method is that Amazon businesses can freely change their business or store names. This means if the seller changes their name, you won’t be able to use this method! Amazon hasn’t resolved this issue yet, so if you’re in this situation, you should look to the next method!

Using Sellgo’s Seller Database

If you don’t happen to know the seller’s store name or if the seller has changed their store name, then the first method won’t work for you. Instead, we suggest checking out Sellgo’s new Seller Database tool we just released for beta. The Seller Database allows any user to find any Amazon using their Seller IDs, product brands, ASINs, marketplace, location, and even reviews and ratings. The Seller Database is one of the most powerful seller finder tools on the market. Simply head over to Sellgo.com and input some information about the seller you’re looking for. If you know the seller’s unique Amazon Merchant ID, you can easily copy and paste it into the Seller Database. The tool will populate the seller for you,

The biggest benefit of searching by Seller ID is that it never changes. Even if a seller changes their business or store name, the Seller ID stays the same.

In the case you don’t have the seller’s ID, you can also find the seller using the products they sell. The Seller Database can find all the sellers that sell a product. If you know one of the seller’s products, just input that information into the Seller Database and the tool will display all the sellers selling that product in your marketplace.

One of the coolest features of the Seller Database is locating sellers based on the location of their business. If you’re curious about the sellers in your state, click on the “Location” tab on the Seller Database. Choose a state or U.S. territory (including Guam, Marshall Islands, and more) and a list of sellers within that area will appear. The Seller Database will then show you the hundreds or even thousands of sellers in your state or selected region.

The Seller Database is also an amazing tool for businesses, agencies, and enterprises who work directly with Amazon businesses. If you or your business would like to connect with a network of Amazon sellers in your area, the Seller Database is a great tool! And the best part: you can try the Seller Database for only $1!

Using Sellgo’s Seller Map

The third and final method to find an Amazon seller is through another new tool by Sellgo, the Seller Map. The Seller Map is an awesome new tool that we recently released on Sellgo.com that pinpoints the exact location of every seller in the U.S. Instead of generating a list of sellers, the Seller Map is simply that, a map.

The map is covered in pins, each representing an Amazon seller or business. This is a revolutionary Amazon seller tool that allows anyone to connect with the sellers in their own neighborhoods. Unlike the Seller Database, the Seller Map allows you to zone in on any Country, State, and even U.S. zip code.

When looking at the Seller Map, you’ll see some pins and circles marked with a numerical figure. Each circle and numerical figures represent all the sellers with that specific region. Like any other map, you can zoom in and get specific details on each business’ information including their business name, state, country, brands, and even inventory.

Want to see what Amazon sellers are in your neighborhood? Well, the Seller Map gives you all that power and data a couple of clicks away.

Pinpointing Your Amazon Seller Search

Whether you’re a shopper looking for a seller, or a business trying to connect with Amazon businesses, these 3 proven methods are great tools to find what you’re looking for.

Right now, the Sellgo Seller Database and Seller Map are released for beta! You can use and try out our new powerful tools for $1.99! Head over to Sellgo.com and start locating any seller on Amazon now!

2021 Guide to Super Targeting: Source Profitable High-Demand Products

Product scouting is one of the most meticulous tasks every successful Amazon seller must complete. Product scouting is the process of exploring and discovering new products to sell on Amazon that are replenishable. profitable, and in high demand.

Most products nowadays are scouted through two methods: leaf sourcing and reverse sourcing. Leaf sourcing is the process of sourcing a single profitable product and sourcing related or similar products with identical profit margins. We covered this strategy and breakdown the steps in our How to Leaf Source article.

The other common method of scouting products is Reverse Sourcing. Like leaf sourcing, reverse sourcing starts with finding a single profitable product. Instead of finding similar products, you find the product’s supplier and then analyze the supplier’s catalog for any other profitable products. We also wrote about this strategy in more detail in our blog How to Reverse Source. If you haven’t read these articles, we highly suggest you go back and read them before you read this article. All three of these strategies are most effective when used together.

While leaf sourcing and reverse sourcing are effective scouting methods, they are driven by luck. Sellers can spend hours or even days trying to scout a single winning product. Without that single product, leaf sourcing and reverse sourcing are essentially useless. That is why we’ll be showing you the third type of product scouting called Super Targeting, which is more effective, efficient, and successful than both leaf sourcing and reverse sourcing.

What is Super Targeting?

While leaf sourcing and reverse sourcing start by finding a single product, super targeting starts by finding a single seller. Instead of struggling to find a profitable product, super targeting uses your competitor’s inventory for your benefit.

You might be wondering, why would I want to copy my competitor’s products?

Think about it. If another Amazon seller is selling a product, shouldn’t the product be profitable? No third-party seller would intentionally sell a product for negative profit. You can assume your competitor’s catalogs are filled with replenishable, profitable, and high-quality products you can start selling now.

We like to think of super targeting as a competitive resource. If your competitors have done all the research to find profitable products, why not sell the same products for your business? Your competitors have done all the hard work, now you can reap the benefits of their labor. By using super targeting to find your competitor’s products, you’ll find profitable products faster and more efficiently.

Picking a Competitor

Before you pick a competitor and start sourcing their products, you should perform due diligence and review the seller’s sales history and product lists. You don’t want to copy any seller’s catalog of products, you want to find reputable and proven sellers.

When looking for a seller to start super targeting, we recommend looking at the seller’s Seller Ratings (over the last 30 days minimum and Seller Reviews (over the last 30 days, 90 days, 12 months, and lifetime).

In particular, you want to note any negative reviews the seller has received. Sellers with tons of negative reviews may be selling fake or defective products or be practicing bad business tactics. Regardless, you want to make sure you don’t super target poor-performing sellers who may hurt your business and reputation. We recommend only super targeting sellers with a minimum of 100 reviews over the past 90 days with an 80% or more positive rating in the last 12 months. This due diligence will pay off when you begin sourcing the same products as a reputable and trusted seller.

Along with ratings and reviews, take a glance at the seller’s products. Ensure all the products have good reviews and ratings, and that the products are realistic for your inventory.

Even if a seller has great ratings and reviews, if their products have poor reviews or you do not have the resources to source and sell their products, they are not ideal super targeting candidates. The perfect super targeting candidates will have great reviews and ratings, reliable products, and realistic products you can source.

Looking at Current Competition

Where is the best place to start when super targeting? The best place to start super targeting is looking at similar sellers to you.

If you currently sell on Amazon, look at your product listings and see who else is selling your products. Your current competitors are most likely to sell other products and are similar in business size, product catalogs, and resources. Review their products and see if you can spot any profitable products that you can start selling now.

If you don’t have any competitors or just started selling, you’ll have to start super targeting from scratch. Start by identifying a seller with sufficient ratings and positive reviews. We target sellers with at least 100 reviews over the past 90 days and an 80% or higher seller rating. From there, you can scout a seller’s inventory quickly to see if there are any leads.

Choosing the Right Products

Once you find your first super targeting candidate, it’s time to analyze their products and find any leads. Product analysis begins with calculating the profit margins. You want to compare the selling price and subtract the cost of the product, fulfillment fees, and other associated costs. You can use Amazon’s Revenue Calculator to expedite the calculations and estimate the profitability.

Along with profit potential, you calculate the sales estimation of the product to see how many units you would source and sell within 30 days. If you have access to Sellgo’s Profit Finder, simply search the ASIN of the potential product and look under the “Average Daily Sales.” From there, you can estimate how many units you would need to source for 90 days.

The next step is to determine the number of competing sellers there are currently selling the product. For each product, count the number of sellers using Fulfillment by Amazon (FBA) and who are within 2% of the lowest price point. Use these two filters to figure out the number of competitive sellers who are fighting for the Buy Box. Divide the sales estimation by the amount of competitors + 1 (accounting for yourself) to determine the number of sales you will collect off this single item in 30 days. We cover the Buy Box and how to develop a winning strategy in our blog on 6 Strategies to Win the Amazon Buy Box.

Repeat this process for every single item your candidate sells. We know this process might take a moment to complete. Take your time to analyze every product, and you’ll quickly find a collection of profitable, high-demand products.

Super Targeting with Sellgo

Although super targeting is already very effective, Sellgo developed the Seller Finder tool to bring super targeting to the next level.

Every seller on Amazon has a “Seller ID” or “Merchant ID,” found on the storefront page and URL. Similar to ASINs, seller IDs are used to identify every single third-party seller on Amazon. With the Seller Finder, you can find any seller’s inventory by simply having a seller’s ID number.

The Seller ID is the 14 digit code found at the end of the URL on a storefront’s Amazon page. For example, the Seller ID here is A2WLBKW9QQMEB1.

To optimize your super targeting, find your competitor’s seller ID and input the code into the Seller Finder. The Seller Finder will find your competitor and provide you with an entire breakdown of their account including ratings and reviews, all their brands, and all of the ASINs they currently sell.

You can then easily copy all of their products onto your clipboard and analyze each ASIN one by one to find any leads.

Not only can you review their ASINs in a few seconds, but you can also check their inventory levels to see how much stock they have left. Competitors with low stock are prime candidates you can source and take sales from!

The Seller Finder empowers your super targeting skills to a whole new level. Instead of struggling to find a single seller and their products, you can quickly find tons of sellers and take their most profitable products. The best part about Sellgo’s Seller Finder? You can try out the Seller Finder for only $1 right now at Sellgo.com.

Power Up Your Product Scouting

Super targeting gives your entire Amazon business a power-up. Along with leaf sourcing and reverse sourcing, super targeting is another method of product scouting that can you can implement today and accelerate your inventory and sales. If you want to even go further and maximize your productivity and efficiency, use Sellgo’s Seller Finder for only $1. The Seller Finder will give you even more tools to scout thousands of products and sellers faster than you can imagine.

What are you waiting for? Head over to Sellgo.com and start scouting and sourcing new products today!

4 Reasons Why You Should Use Amazon Seller Tools

Over the past 5 years, Amazon’s third-party seller landscape has changed drastically. From just a couple thousand sellers to now almost 10 million sellers worldwide. All of these sellers are hungry for profitable, replenishable, and high-demand products to stock their inventories and meet the needs of Amazon’s 300 million-plus consumer market. With such a competitive market becoming increasingly more popular by each day how do sellers differentiate themselves from one another and find strategies to beat out the competition?

One of the drivers behind successful Amazon sellers is is the utilization of seller tools to streamline and optimize their business practices. From Fulfillment by Amazon (FBA) to Fulfillment by Merchant (FBM), arbitrage to dropshipping, private label to wholesale, seller tools are the answer to unlocking your business’ potential and maximizing sales.

While seller tools provide an endless well of benefits, we’ll be covering the 4 key advantages of using seller tools and why you should start using them today!

Profitability Calculations

Calculating a product’s profitability is one of the most tedious tasks for Amazon sellers. Before you can start sourcing or selling any product, sellers have to conduct proper calculations on any potential product to determine its profit potential. While some products can be extremely profitable, you never truly know how much money you earn unless you account for the cost of the product, shipping costs, and other service fees. Once you calculate the cost of selling the product, you compare this figure to the potential selling price and see if you send up with a positive profit margin. In some cases, a once-profitable product could be costing you money to sell. Then, you have to reiterate this process for every product you want to sell.

The most common tool used for profitability calculations and profit margins are profit calculators, like Amazon Revenue Calculators. Amazon provides a calculator where sellers can input their products by the identifier (UPC, ASIN, etc) along with the packaging dimensions to determine the fees and output the profit margin. With the revenue calculator and other similar seller tools, sellers can calculate profits for tons of products in a fraction of the time. One by one, you can input a different product, calculate its profitability, then move on to the next product.

While a couple of calculations aren’t too meticulous, can you imagine doing hundreds or thousands of calculations at once? This is a common problem for Amazon wholesalers, who work with suppliers with large catalogs with thousands of products. Wholesalers have to manually calculate every single product to find enough profitable products to sell on Amazon.

If you have a large catalog to break down, we highly suggest using a tool like Sellgo’s Search Management tool. The Search Management tool is like the Revenue Calculator, but instead of analyzing one product at a time, the Search Management tool allows you to upload and break down entire catalogs at once. This means you can calculate the profit margins of thousands of products instantaneously.

After the Search Management tool analyzes a catalog, you’ll get a summary of each product’s profitability and even be able to compare suppliers to one another!. You never have to calculate profit margins again!

Forecast Sales and Inventory

A difficult obstacle that many sellers face is forecasting sales and building up enough inventory to maximize revenue. To sell anything on Amazon, you need to have stock, products, things to sell. But how do you know how much to order? If you order too little, you’ll run out of inventory and miss out on tons of potential sales. If you order too much, you’ll have excess inventory sitting in Amazon’s warehouses that just end up collecting dust and costing you storage fees.

This is where forecasting seller tools come in handy. Forecasting is all about finding the perfect amount of products to meet demand but also optimize storage costs. In the past, sellers would have to forecast sales through trial and error. They’ll order ‘x’ of the number of products, see how well it sells, and then reorder more inventory based on the past sales performance. A disadvantage of this outdated method is that you don’t account for changes that may impact sales performances and forecasting. Things like seasonality and time-sensitive products can drastically impact forecasting.

Many modern seller tools have incorporated sales estimations as a way to conduct proper forecasting. Sales estimations provide sellers with a daily sales tracker that captures the average sales of a product per day. With sales estimations, sellers can estimate how many products they will sell over a 30 period, then reorder enough stock to meet those estimations. A great sales estimation tool you can use is Sellgo’s Product Tracker. The Product Tracker not only captures the average daily units sold, but also incorporates daily revenue, profit margin, and stock forecasting. This empowers sellers with real data that they can use to optimize their inventories.

Competitive Analysis

Finding profitable products can be a very long process. From finding suppliers, calculating profit margins, and sourcing products, sellers may take hours or even days to find a single profitable product. A new tactic that has emerged from Amazon sellers called “super targeting,” helps cut down the product research time significantly. Super targeting takes advantage of the competition to streamline product research. Instead of starting research from scratch, many sellers are analyzing each other’s inventory.

Imagine you need to find a profitable product but aren’t sure where to start. Instead of calculating hundreds of products, you find another seller on Amazon. You view their profiles and see all the products they are currently selling. Since they are selling the product, you can imply that this product is profitable, replenishable, and in high demand. Rather than find a new product, you decide to sell the same product. You find your competitor’s supplier, source the same product, and then start taking their sales. This is called super targeting. It takes advantage of the millions of sellers on Amazon to cut down product research time significantly.

The only problem with super targeting is the sheer brute force it takes to analyze your competitors. Not only do you have to find a seller to take their products, but you also need to calculate their profit margins, find suppliers, and source the same products.

Sellgo identified this problem and came up with the Seller Finder tool to maximize the competitive strategy. The Seller Finder allows any user to look up a competitor’s entire inventory in seconds. Not only does it reveal a seller’s products, but shows their product’s brands, ASINs, marketplaces, inventory, and more. With the Seller Finder, you can take super targeting to the next level. Save time, and quickly identify profitable and high-demand products you can source now.

Task Delegation and Reinvesting Into Your Business

Some Amazon businesses grow enough that sellers begin expanding their teams. They may incorporate new employees like virtual assistances and warehouse workers. With so many tasks at hand, seller tools provide a great way for Amazon sellers to delegate tasks and responsibilities to other employees. With tools, sellers can quickly train up new employees, show them how to operate tools, and jumpstart their onboarding time.

For business owners, the ability to delegate tasks is invaluable. No really, it is. As a business owner, your time should be dedicated to developing long-term strategies and lead your team. Any time spends elsewhere, especially on tasks that can be done by anyone else, wastes a ton of your company’s resources and in many cases is detrimental to your cause.

Think of smaller tasks such as product research, calculating profit margins, or even super targeting your competitors. These tasks, especially with seller tools, can be done quickly and effectively when delegated to another employee. Seller tools empower sellers to recapture their valuable time that you can now reinvest into growing and accelerating your business.

Optimizing Your Amazon Business

The 4 reasons why you should use seller tools come down to maximizing your business’ efficiency, productivity, and most importantly, potential. There’s nothing wrong with selling on Amazon using old methods and tricks, they work and they are proven. But, if you had the chance to make your business better, your sales better, your employees better, why wouldn’t you?

Using seller tools is not just about making your business better, but optimizing your true potential and success. Whenever you’re ready, head over to Sellgo.com and let’s get to work. We’ll be waiting.

3 Hacks to Beat Amazon Top Sellers and Join the Best Sellers Rank

10 - 3 Hacks to Beat Amazon Top Sellers and Join the Best Sellers Rank

Beat Amazon’s top sellers with these 3 hacks and become the next bestseller. Develop your business strategy, win the buy box, and boost your sales on Amazon.

Beat Amazon's top sellers with these 3 hacks and become the next best seller. Develop your business strategy, win the buy box, and boost your sales on Amazon.

As with anything in business, it is guaranteed to have competition for product sales, suppliers, products, and of course, customers. Amazon business and Fulfillment by Amazon (FBA) businesses are no different. Amazon sellers continuously struggle amongst one another to boost sales, find the best Amazon suppliers, acquire profitable products, and increase daily shoppers. Amazon is a highly competitive space, but with the right hacks and tricks, you can stay ahead of the Amazon seller competition and bring in exceptional profits.

Hack #1: Hit the Books! Conducting Amazon Product Research

The first thing you need to do is to study your desired Amazon products. There are two types of products sold on Amazon that you should be familiar with: products sold by Amazon and private label products. These products are what we call no man’s land territory. These are the products you can’t touch and should actively stay away from.

These restrictions are based on various issues ranging from the brand registry, pricing issues, competitiveness, etc. When you’re scouting for products, you’ll first need to identify who is selling the product.

How to Find Products Sold By Amazon

Products sold by Amazon are described in the name. These products are products sold and shipped by Amazon and can range from ordinary retail goods to Amazon business services. It is essential for new and experienced sellers to know how to filter products sold and shipped by Amazon. Products sold by Amazon can easily be identified and should be labeled on the product page under Seller Information.” Some products will have specific sellers while other products will be marked with,” Ships from and sold by Amazon.com”

Why are these products considered off-limits to Amazon FBA Sellers? That answer is simple: Amazon is impossible to complete with. It is almost like trying to sell an iPhone against Apple. Not only will it be difficult to sell, but it is nearly impossible to gain marketing, price, or buy box advantage over Amazon. Instead, sellers should find the products that are not sold by Amazon and use those products to sell.

What is a Private Label Product?

Private label products are when the company buys non-branded products from the manufacturer and slaps their own brand on it to sell on Amazon. Like products sold by Amazon, private label products can range drastically from small, inexpensive goods to large, premium goods. Some of the most popular private label product examples are natural hair products and cosmetics to pet products and goods. Products sold under a private label are a little trickier to identify. The best indicator for private label products is how many sellers are currently selling that product. Ideally, if there are two or fewer sellers for the product, it is most likely a private label product.

The most obvious reason that sellers should beware of this product category is that private label products aren’t kind to resellers. Companies that use non-branded products and slap on their private label do not want more competitors in their space. Private sellers also face a multitude of challenges such as marketing their “new” products, finding a solid customer base, and competition amongst other private label sellers who sell the same products from the same manufacturer. For new and inexperienced sellers, private label selling and products should remain in the untouchable category.

If you have more questions regarding private label selling and the other categories of sellers on Amazon, check out our article on A Beginner’s Guide to Selling Wholesale Products on Amazon!

Optimize with Product Research Tools

The best hack that sellers can use to find products to sell is through using FBA tools and product research tools. Finding profitable products can be extremely challenging, especially if you are a new seller.

Sellgo offers very simple and easy-to-use tools called Product Tracker and Profit Finder. These tools help users track winning products that have good stories and are profitable. Sellers can super track historical data on popular products to sell online and pick which product best fits their catalog and resources. It also helps identify which products Amazon offers and which products are sold by private labels. As a result, sellers filter out poor products and get a profit treadmill of winning products that will give them an advantage over Amazon, private label sellers, and other top sellers.

If you need product ideas to sell, check out our previous blog post on Super Tracking: Find Amazon Top Sellers, Products to Sell, and Wholesale Suppliers.

Hack #2: Using the Amazon Buy Box for An Amazon Competitive Advantage

The first question to answer is: what is buy box? You see this all the time as an online shopper on Amazon. Every time you visit a product page, the buy box is the right box that shows the product price, shipping estimates, add to cart, and buy now. Over 80% of Amazon purchases are made through the buy box. To any Amazon customer, you often overlook this feature, but to Amazon sellers, this is the holy grail. The real magic of Amazon selling comes from the little line that states where the product Ships From and who the product is Sold By.

The buy box is an Amazon sellers playground for the VIPs, the top competitive sellers of any product. The buy box is full of competitive sellers that sell the most products and collect the biggest checks. They get a lot more time in the buy box than non-competitive sellers. But, there are factors that can help you pinpoint and beat competitive sellers.

The first is about the Fulfillment Method, or the way products are processed and sent to the consumer. There are several different fulfillment methods offered by Amazon:

  • Fulfilled by Amazon (FBA)
  • Fulfilled By Merchant (FBM),
  • Merchant-Fulfilled Prime Offer

Remember how Amazon product descriptions will say “Ships from and Sold By Amazon,” well an FBA offer will say “Sold by Company X and fulfilled by Amazon.” Now, a Merchant-Fulfilled Prime Offer would say “Ships from and sold by Company X.”

Why is this important? If you want to be profitable, it is vital to understand the fulfillment methods, develop an Amazon buy box strategy, and start collecting buy box wins.

Hack #3: Amazon Pricing Strategy: How to Price a Product

Your selling price for the products you sell can be extremely helpful in beating Amazon top sellers but needs to be done very carefully and intentionally. Selling your product at the lowest price imaginable will not yield a massive profit and could be potentially harmful to your business. A product price too high may be a deterrent from potential buyers who value lower prices and want the best price. The goal is to find the perfect price that will boost Amazon sales and welcome new customers.

To pick the best price, it’s important to note that the price is based on more than just the cost of the product. You want to familiarize yourself with the total landed price. Rather than just the product price, sellers should account for all additional costs that come with selling a product. This may include fees like shipping prices, seller fees, and additional service fees. We discuss a bit more about fees in our last article on the 7 Steps To Activate Your Amazon Seller Central Account in 2021.

We have learned that to compete against the top FBA sellers, the ones who dominate the buy box, your price needs to be within 2% of the lowest FBA price to be eligible for the buy box. When sellers account for the total landed price (cost of goods plus additional costs), they need to compare that total landed price with the lowest FBA price. If the lowest FBA price is larger than the total landed price, it ensures that the selling price will offset the total landed price so that the sale will be PROFITABLE.

If you’re outside that range, you can kiss the product, buy box, and profit good-bye! If the price is within the 2% of the lowest FBA price and is still profitable, this is a great indicator that you could rank in the buy box and that this could be a winning product.

Building Your Amazon Business Strategy vs. Amazon Seller Competition

Now, you should have a good idea of what to look for. First, research, research, research. Whether you are using tools or performing manual research, product research will always be the first step if you want to build a successful, profitable online business. Next, identify competitive sellers that utilize Amazon FBA and set them as an example to chase. Lastly, check selling prices within 2% of other Prime offers and compare them to the total cost of a potential product.

Tomorrow’s industry leaders started yesterday. If you want to become one of Amazon’s bestsellers, you need to start developing your business strategy NOW! These hacks will help you get there, but it’s up to you to take the next step and start building your business. Check out more of our guides, tips, and tricks at Sellgo.com and make your name known. Let’s get to work!

A Guide to Product Analysis: The Secret to Amazon Wholesale and Product Sourcing

08 - A Guide to Product Analysis The Secret to Amazon Wholesale and Product Sourcing
A Guide to Product Analysis: The Secret to Amazon Wholesale and Product Sourcing

Your Amazon Seller Central account is set up. You’ve established a separate bank account for your Amazon Business. You have decided the wholesale route is the business route for you. You’ve completed the mandatory and legal business tasks including acquiring your resellers permit. In this article, you will learn about product research 101, reverse sourcing wholesale, the fundamentals of the Amazon Buy Box, and how to scope out your competition.

First, you need to learn the fundamental methods of product analysis. When identifying potential products to add to your catalog, you need to ask yourself a series of questions. What makes a product have good sales performance? How can you know when a product is going to be profitable? Amazon selling should not be a guessing game. You certainly don’t want to blindly pick products and “hope” you get a return on investment (ROI). Fortunately, there are some seller tools and tactics that you can deploy to find the best, proven products out there and unlock profits.

Become the Ultimate Amazon FBA Seller with Reverse Sourcing Wholesale

First things first, you need to figure out which products have the most successful stories on Amazon. What does that mean? Well, you want to find branded products that are in high demand, are selling quickly, and have excellent product ratings. The key here is “branded products.” Brand name products provide their own marketing. Strong brands have established core values, customer bases, and name recognition. By utilizing brand name products, sellers have a higher chance of selling more products and increasing sales. Once you determine what products are doing well, move onto the next step which is to contact the brand owner of that product directly to set up a wholesale account so you can buy bulk products, build your inventory, and resell on Amazon.

A product with a good story is one that:

  • Sells hundreds or thousands of times each month
  • Has high product reviews (4 stars or more)

This is called reverse sourcing wholesale. Instead of creating a product, bringing it to market (or finding a distributor), and hoping it will sell, you’re finding an already successful existing product. Then you take that product, stock up on the same product, and resell the products individually (with the brand owner/manufacturer’s blessing). Reverse sourcing can be extremely helpful to small-time Amazon sellers to build their business and reputation over time. Small sellers can start with a small inventory and continue to build their catalog until they become a titan of Amazon selling.

As an Amazon wholesale seller, you’re volunteering to be a distributor for the product. That saves the brand owner time (and money). The more you can establish a strong buy/sell relationship with reputable brand owners, the more likely they will sell their products to you in bulk for your Amazon reseller business. And, if you continue to have a proven track record of good sales, the brand owner may even make you their exclusive or limited exclusive reseller! If you would like to learn more about wholesale sourcing and tracking stock from wholesale suppliers, check out our last article on “Super Tracking: Develop Your Own Superpower to Find Amazon Top Sellers, Products to Sell, and Wholesale Suppliers.”

Remember, business is all about relationships, so it’s vital to show your value proposition and build these relationships.

The Amazon Buy Box Unleashed

What is buy box and why does everyone want to win it? When consumers are browsing for products on Amazon, there is a section, add to cart, on the right side of their page that allows customers to place products directly into their shopping cart. If there is more than one seller in the product listing, who will take the market share and win the sales?

Amazon created a merit-based rotation system known as Buy Box. To “win” the Buy Box means the product you are reselling shows you like the default seller in the “add to cart” section, thus prominently placing it for consumers to see it right away and most likely purchase due to convenience.

This is what we call the Buy Box. To “win” the Buy Box means the product you are reselling appears in the Buy Box, thus prominently placing it for consumers to see right away and most likely purchase due to convenience. This is why all Amazon sellers should create an Amazon buy box strategy to try to climb the rankings. It is kind of like when you create a webpage and have all the right performance metrics and keywords for your page. Google’s algorithm bots pick up on your high performing website and when people search for things relevant to you, your page comes up in the top three search results or ranks on the search engine results page (SERP). The higher you rank, the more traffic and traction you are to get in sales.

The Buy Box is a great product research tool and a great place to start for product analysis. There you can see who the competition is for specific products. You can get a sense of seller feedback and buy box rate estimations for in-demand products. Sellers can in turn use this information as a growth estimation and to determine what products you may want to pursue to resell.

Scoping Out Amazon Top Sellers with Rank Tracking Tools

It is okay if there are 5,000 sellers for the same product. But, if there are about 50 competitive Buy Box sellers for that same product, it is an entirely different story. Determining which existing sellers are competitive will change the way you analyze products on Amazon. Once you’ve identified your competition, it is time to return to your personal business goals.

You can also use intelligent software solutions that allow you to track your products and your competitors to gain a profitable edge in the e-commerce marketplace. This should include Amazon market research software, product sourcing tools, and an inventory management system. One tool sellers can use for product analysis is Sellgo’s Profit Finder. The Profit Finder tool will enable new and experienced Amazon wholesalers to super filter winning products with key performance indicators (KPIs) including profit margins, ROIs, and more. After finding proven products with high sales potential, go back to the Buy Box and see how competitive the sellers are. Sellgo also offers the Product Tracker tool provides inventory insight so you know what items to resupply or drop products that are not selling. By using effective FBA tools and strategies to conduct product analysis, sellers can obtain valuable advantages that will help win buy boxes and create profit funnels.

Building Your Amazon Inventory and the Cost of Production

How much money are you willing to spend on your Amazon Business? Your limit will help you determine which kinds of products you should purchase and the quantity of inventory to purchase from the supplier. One aspect to note is that all wholesale manufacturers will be different and offer different price points depending on the quantity of your purchase. This is known as the product cost or the cost of production.

Be sure to factor in the cost of processing each unit so you can include that in your product pricing to ensure a return on investment. Some suppliers will factor in a Minimum Advertised Price Policy (MAP) or a Minimum Order Quantity (MOQ). If you don’t have the capacity or resources to buy the minimum amount from the supplier, this will greatly impact which manufacturers will be willing to source their product and the price per unit.

If you’re wondering how much inventory you should purchase when first starting out, we recommend at least 24-26 days worth of inventory. With that guideline, you’ll need to determine how much money you want to spend on your products from the brand owners. Note that it is perfectly fine and secure to start off with a smaller Amazon inventory and grow it over time. The best part about owning your own Amazon wholesale business is that you’re the boss! Take your time to make well-informed, conscious decisions. We discuss inventory management in more detail in our article on “A Beginner’s Guide to Selling Wholesale Products on Amazon: How to find “Winning Products”?”

Assemble Your Tools and Become an Amazon Business Seller

Remember, every reseller journey is going to be different for everyone. There are some electrifying practices you can emulate in your business strategy for the best results, but at the end of the day, it is up to you to choose the products that best fit your financial goals. The best Amazon third-party sellers take advantage of every tool in their arsenal and use them effectively. You can too. Check out Sellgo to start building your toolkit.

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!