If you’ve been selling on Amazon for awhile you probably know what sales ranks are and that they matter. But did you know you can use the rank to calculate how many of an item you should purchase for your FBA business?
Today I am going to walk you through the Amazon Best Seller rankings and show you how you can use those to decide if you should purchase an item and if so, how many should you buy?
Check out my video below or keep reading to find out how!
Amazon has quite a few items for sale, over 600 million in fact. They are all categorized and then ranked by their level of popularity. So the number 1 item in each category is the most popular, and thus, the best seller. No matter the category, that item is going to be a hot seller.
When you get into the 10,000 or even 50,000 level ranking however, now category becomes a huge factor. What sells well in beauty at 45,000, might not sell at all at 45,000 in baby. To figure out if an items ranking means good sales, I use the Jungle Scout free estimator tool.
Finding The Amazon Sales Rank
Using Rank to Estimate Sales
A competitive seller is any FBA seller who is within 5% of the buy box or lowest selling price. We only use FBA sellers because they are the sellers who we, as an FBA seller, would be competing with for the buy box.
5% of the buy box can be calculated by taking the lowest selling buy box price x 1.05. For example, 5% of an item selling for $19.99 would be $20.98 so any seller who is listed at that price or below would be considered competitive.
To see all this in action, check out my video Here.
Once you have counted up the competitive sellers and added one more, to account for yourself on the listing, you can divide the estimated monthly sales for the item by the competitive sellers and end up with how many you yourself could be selling a month.
For Example: Our above item has 4 competitive sellers, adding one for yourself when you come on the listing. We have 5 as our number. Now we divide 180 (the number of units it sales a month at that ranking) by 5 and get 36. We could expect to sale 36 of the Olay beauty stick a month.
You can now use this to help you shop for your Retail Arbitrage Amazon business and help you figure out how many of an item you should buy based on it’s rank and competition.