In this training video, FBA Wizard team member Gary explains how to use Keepa to gauge supply and demand on Amazon FBA.
Remember what I said in the beginning about the supply and demand? And I’m going to share with you that in a second. If for example, Amazon is on the listing and you never had a chance of selling it, that is millions and millions of products that people who are living there trying to sell FBA that they never actually gonna sell. So, that can’t actually be true, 100%. So, to give you an example of that, let’s look at the bottom piece, where we can see in the blue here, how many people are actually selling it, and we can go to here and we can see. You’ve got over a hundred selling, a very very busy listing. So, what can we see first? Well, Amazon none on the buy box. So the first thing that I will look is Amazon is on the listing but not on the buy box. There is an FBA seller in it. So that would tell me now that if I could buy this let’s just say for example, a pound. And I want to sell it for 8 or 9 pound, I wouldn’t be bothered if there was 300 people on that listing if I can sell it for less price than the buy box price I’m really not bothered about the people that selling it above that. So when we actually look at the graph, let’s go back to old time and now to show you this. This is when this started here. So we can go right to the beginning and look at both the graph, there was only one seller on it and it was Amazon. The price was $19.99. If we come over here and look at the list price, and click that, and select it— the list price is telling us $19.99
All these sellers have got involved, we can see here, these rates in October and November where Amazon have been going out of stock and a lot more sellers have gotten more involved and selling it for more money. And obviously, throughout the Christmas period you can see it goes ballistic and Amazon, it cannot hold stock of it and people have been selling quite a lot at higher price as of 2.30 pound.
But when we actually come off after Christmas, we can the prices started to drop to a more consistent. So if we go down here and look at the 90 day, we can see in the last 90 days that the average price Amazon is selling that is 13.99
Now the marketplace isn’t always, they’re just showing 9 pound, that could include postage. Don’t take that any given at this point. Here the thing that I wanted to explain to you as well is we can also see here the more sellers have actually gone on it has impacted the price of the item.
Amazon being part of the listing is only part of it. That would be down to your due diligence when you’re actually doing and buying new products to make sure on certain ones there is not enough margin for you to make the money that you need to make. I would say that anything you sell through Amazon will sell. It’s all down to price. So, if the buy box price is 9 pound you put in there 5 pound. Forget whether you make money or not. That item will sell. So that part of it must be taken into consideration and using the list price, using the graph to help you— but again the graphs are only giving you guides. You know, some people have been on about the drops, each drops represents a sale, not entirely true. Sometimes one drop could be two or three sales. Sometimes it’s a little behind on the data. And the guide on how many sales per month. Again, it’s something I would be using if it’s for a month, I want you to send tenning.
I won’t be expecting them to sell because that 4 can actually be 2, it could be 5. It’s changing on the algorithm on how it’s actually working. So it’s just a guide, a little tip on how to use a Keepa graph, that’s the basics. If you found that helpful I will do some more in-depth ones. But it is one of the situations the deeper you go, regarding things to make decision. You still got to remember that when you send the item in, you’re only working on the date that you got here and once it goes live to Amazon, that can change within a blink of an eye to you favor or against you. Hope that helps and I’ll speak to you soon!