- Hi and welcome back to another Amazon selling video.
If you're new to my channel, my name is Nikki Kirk
and I recently moved back into my renovated RV.
So I'm here enjoying this couch
that I've been dreaming about since July or June of 2020.
And I finally have it and I'm super excited.
So I just thought,
why not film a video from (chuckles) here.
In this video,
I'm gonna walk you through sales rank
and what I look for when other FBA sellers really matter,
and all of that.
A few of these questions came up
in some of the ungating groups.
And then, I just pulled a couple more as examples.
So let's just jump in.
So Jasper asked, "If an item has 25,000 rank,
20 FBA sellers, would you purchase it?"
And then we discovered what category it was
in the questions because that is really a key.
Because 25,000 rank in grocery,
great, which is what you're stalking about,
but 25,000 in baby or pet, ugh, that's kinda high.
So my easy answer to that 25,000 in grocery
is absolutely yes, I would buy it.
I don't even actually care how many sellers are on it.
And let me tell you why.
After almost four years of selling on Amazon,
I already know that that rank is really great in groceries
so I can just tell you off the top of my head that
"Yes, I would buy that."
There are some categories that even today,
I don't know if it's a great ranking.
So what I always suggest
if you're a new seller or you just don't know
if that category is good,
utilize Jungle Scout.
It is free.
If you just go to junglescout.com/estimator.
I'll link it below,
but honestly you can remember that, right?
junglescout.com/estimator.
In fact, I use it so much,
it's on My Favorites on my phone because I use it in store.
So all you have to do is you put in the rank of the item,
the category, and the marketplace you're selling in
because that does matter.
I recently discovered how Canada
has way different ranks than we do,
and it really matters so put in the marketplace.
And it will tell you how many sell at that rank
which tells you if that's a good rank or not.
If the rank is on the lower side, meaning it is a good rank.
One is the best selling rank, right?
So 700 and anything is really good also.
When we get up to 150,000,
it's getting a little higher.
So if it's got a good rank, I don't even care.
I don't actually look how many FBA sellers there are
because I know the item is gonna sell.
When it starts to creep up for the category in higher ranks,
that's when I take into consideration
how many other sellers are there,
and I'm only looking for FBA sellers
because FBA will almost always win the Buy Box against FBM.
So since I sell predominantly FBA
that would be what I was looking at.
If you're selling on that listing for FBM
and you want to consider the FBM and FBA listings
because that's who you're competing against.
But for this, I'm just talking about FBA.
So if we were saying this item was 150,000 in grocery
and it had 20 FBA sellers,
now I absolutely care
because that's kind of a lot of FBA sellers,
but there's other things I look at.
I don't just mark it off unless I'm in a hurry
then I say, "Yeah."
But if it looks like it has a good profit
and you wanna take a little bit deeper dive,
here's what you do.
Not all of the FBA sellers count.
So just because it says it has 20,
you only care about sellers that are eligible
for the Buy Box and to be eligible,
it's anywhere from two to 5% of the Buy Box price.
So in that example, if we had 20 FBA sellers,
I really only care about the competitive FBA sellers.
And the competitive FBA sellers are anyone
that's Buy Box-eligible,
meaning they will be in rotation to go in the Buy Box
and I would be competing with them
if I listed on that product.
Okay, so let's look at an example.
So I think we all know by now, right,
that CoComelon dolls are hot products.
So this is 715 rank in toys
which is an amazing rank in toy
that thing is going to sell.
So it has 126 FBA sellers.
Do I really care?
No, I'll still buy it and sell it if it makes a profit,
but let's say we do care.
Let's dig into the FBA sellers
and see who we consider competitive.
The first thing you gotta do
is break out your calculator
and say $39 is the Buy Box price.
So what is the competitive price?
I do anywhere from two to 5%.
It's really...
It's like the lower end is probably easier,
but you five's a little bit easier to calculate sometimes,
but either way break out your calculator.
So we're gonna do 39 times 1.02
to give us 2% of the Buy Box
if that's the calculation you wanna do.
And that will give us a price of 39.78
or we can do 5%
so we'll say 39 times 1.05
and we'll get 40.95 as the price.
So if we're saying it's 5%
that is anyone who is $39 to $40.95.
Any seller that is FBA in that price range
is considered competitive.
So now we're gonna pull up the listing
and see who is competitive.
So you click in from the Amazon app
or go to the sellers and you can see.
So we've got one, two,
that one is not considered competitive because it's FBM,
three, four, five, six, seven, eight, nine.
Nine sellers overall who are FBA priced below 40.95
which makes them competitive.
They could rotate into the Buy Box.
Okay, so now if I buy this listing
and I'm gonna be competitive to the price,
now we've got 10.
So nine sellers plus one,
for me coming on the listing 10 overall.
Now, let's head over to Jungle Scout
and see how many actually sell
at this rank in the U.S. for the Toy Category.
715 is the rank, we're in the U.S. Marketplace,
and then it is a toy and games and you hit estimate.
And now, we see it's got 3,960 that it sells a month.
So again, hot selling toy.
So if we take that divided by 10,
we would know that we could expect
to see 396 sales a month at that price.
Now, obviously everything changes,
there could be more sellers coming on,
the price could drop, all that.
But this just gives you an example
that if you can sell 400 of those,
finding them at retail arbitrage is gonna be hard,
but if you can find them and sell them
that's how many you could expect to sell a month.
So that's a hot item.
So if you're looking at it thinking, "Oh my gosh,
"there's 126 people. Why would I even want to list on that?"
There's not, there's only nine.
You have to dig in and see who's actually competitive
because I guarantee if I went through more,
I bet you some of those are up in the eighties and nineties
because some sellers just leave it high
and then hope that it'll get there eventually.
And some sellers like me
would just wanna flip it as fast as possible.
So I would buy it only if it made a really decent profit.
So that's just all things to consider on
when an FBA sellers matter
and when they don't really.
Again, in that one, I wouldn't think it matters
because if I found that it made a profit, 700 rank,
I'm buying it.
All right.
Really quickly here is another example from the group.
This is something that someone shared at the Toy Group
and was just asking, "Should I buy it or should I skip?"
And so I just wanted to break it down
'cause I think it's a really good example
of things that happen and sometimes I still do it.
If you see here, the rank is 613,622
which is a really high rank in toys.
And if I go over to Jungle Scout,
it's gonna tell me that actually sells zero a month.
So that's too high of a rank in toy.
And what happens is,
you see, I could get it for $8 and it makes $36 profit.
Wow! Right?
Like that's crazy profit.
I wanna spend $8 and make 36 all day.
But if the product is so high a rank that it doesn't sell,
you are never gonna make that profit.
You're just gonna lose $8 plus the Amazon fees
and all of that.
So that is why you really need to look at the sales rank
on all this stuff.
That's like a newbie mistake I see all the time
and you guys, I still (chuckles) do it today.
There's times when I get at home
and I go, "Why did I buy this?"
Because sometimes it happens,
you just see the profit and you get blinded.
But you can always take it back to the store
and just, if you've already sent it into Amazon,
just take it as a learning experience
and a reminder to always check the rank.
In fact, when I'm in store scanning,
rank is the first thing I look at.
It's really the thing that matters most to me.
If you want my free rank guide for the U.S. and for Canada,
so it's amazon.com and amazon.ca, it's available for free.
You just sign up for my email list
which is linked below and you can get it.
It is delivered right to your email.
If you happen to purchase the ungating guides,
it's actually broken down literally exactly
how I said it in this video.
In the back of the guide,
it breaks down all the different items
of what to look for on ranking.
So those are also available for you.
If you need help ungating,
the guides are available as always.
Thank you guys so much for watching
and have a great week.
About two years ago, I started sharing...
You have to excuse my cat.
(Nikki laughs)
(comical music)
So we have a special guest.
That's probably my Amazon stuff I ordered.
I guess maybe the couch was a bad idea.
(comical music)