The sales rank is the information shared by Amazon to give us a good idea of how the product is performing in terms of sells on Amazon. If the rank reads 65 for the item that you just scanned, then that is not bad at all.
While we shall not discuss the rank in more detail, it is critical to know that the lower the number, the better your rank is. It is recommended to consider the sales that are below 250k. You can, of course, play around with this figure as but initially, ranks falling below this figure are good to start with.
If the App reveals that you are eligible to sell the product yet the ranks is falling below your threshold, check and see if the item promises to give you some return on investment. For you to confirm this, click on the “gross proceeds “section, somewhere at the far right part of the App.
You will then punch in
• Your selling price
• Your shipping cost to Amazon
• The much you can buy the item for
At this point, you will want to go through two quick checks,
1. To see if the net profit number is higher than the minimum profit threshold. If for example, you set the amount at $ 3, it means that you will not purchase any items that will give you a profit less than that figure. Making a net profit below $3 on every unit can expose you to the risk of losing all your profit in case the price drops even a little bit.
2. In case this item is at your minimum profit threshold, then go ahead and calculate the ROI. This can be done by dividing your net profit by the item cost.
Sellers who may be just starting on Amazon are advised to go for items with an ROI percentage that is above 50%.
If you find an item that fulfills all the purchasing requirements you can go ahead and buy even six of them.
You can then repeat this process on all other items in the clearance section. While getting started, scan as many items as is possible but as you do this more, you will instinctively find yourself beginning to avoid scanning those items that do not look viable for resale.
It’s highly recommended that you undertake the whole process of qualifying an item for resale as advised above to enable you to quickly push aside the items that don’t meet your criteria and asses the next item.
After completing this stage, perhaps it would be wise to look forward and refresh your understanding of these two important questions
• How do I set the price for the items that I am selling on Amazon?
• How do I list these items for sale and get them shipped to the Fulfillment by Amazon warehouses?
So far we’ve covered some good ground concerning the aspect of deciding the items to sell. Perhaps it will now be wise to throw down some tips that may get inspire you to get started.