🕵️‍♂️ Red Flags to Look for When Doing Product Research for Your Amazon Wholesale Business
Are you looking for profitable products for your Amazon wholesale business? It's important to be careful and know what to look for, as some products may seem like great opportunities but could end up being costly mistakes. In this article, we'll go over four red flags to watch out for when doing product research to avoid buying dud products that lose you money or products that sit in inventory for months.
đźš© Red Flag #1: You're the Only FBA Seller on the Listing
You might think that being the only FBA seller on a listing is a fantastic opportunity to make a lot of money, but it's important to dig deeper before making a purchase. If there are no other FBA sellers on the listing, you need to find out why. It could be that everyone is out of stock, and you've found some stock from a supplier that nobody else has. That's a great scenario because there have been FBA sellers on the listing in the past, but currently, everyone is out of stock, and you have the ability to buy some inventory and take all of the sales. However, if the brand is on the listing and has managed to take everyone other than themselves off of that listing, you may be looking at some problems with IP complaints or complaints of any kind where the brand is going to try to control that listing and take you off of it if you jump on there. It may also be a private label product that your supplier has inventory for, and they're trying to sell it to you, but if you jump on that listing, they're going to kick you off, and you're going to be stuck with all that inventory. Although these listings could potentially be great opportunities, it just requires a little bit more research on your end to make sure that it's a good opportunity and not a risky situation that you're going to be walking into.
đźš© Red Flag #2: A Large Amount of Sellers Have Disappeared from a Listing in a Short Time Frame
If you see that a large number of sellers have disappeared from a listing in a short time frame, you might want to slow down on purchasing that product. It could be the brand filing IP complaints or complaints of any kind on those sellers to try to control that listing. Always look at the keeper graph, which gives you all of the offers or all of the sellers on the listing currently. If a large amount of sellers have dropped off overnight or in a very short time period, reconsider that product to see if there are going to be any additional problems that you're going to deal with if you do get on that listing.
đźš© Red Flag #3: Inflated Price
Inflated price in new sellers is one of the biggest reasons why new sellers come into here and lose money. They see a big flashy selling price and think they're going to make a lot of money, but if they were to look back for the last six months or the last year, they would see that the listing is actually selling for a lower price. Always look at the history and data before making a purchase.
đźš© Red Flag #4: One Seller Is Getting Too Much of the Buy Box
If one seller is getting too much of the buy box, it's not a great thing because that means all the other sellers are splitting the remaining sales. Always look at the buy box statistics to see that the buy box is rotating evenly so that you don't get stuck ordering too much and not having anything sell.
In conclusion, it's important to be careful and do your research when looking for profitable products for your Amazon wholesale business. Watch out for these red flags to avoid buying dud products that lose you money or products that sit in inventory for months.
Pros
- Helps you avoid costly mistakes
- Provides valuable information for product research
- Helps you make informed decisions
Cons
- Requires more research and time
- May limit your options for products to sell
🌟 Highlights
- Be careful and do your research when looking for profitable products for your Amazon wholesale business.
- Watch out for red flags such as being the only FBA seller on a listing, a large amount of sellers disappearing from a listing in a short time frame, inflated price, and one seller getting too much of the buy box.
- Always look at the history and data before making a purchase.
- Use the keeper graph to get all of the offers or all of the sellers on the listing currently.
- Test orders would be your best friend in this scenario to make sure that you looked at all the data correctly.
🙋‍♂️ FAQ
Q: What is Amazon wholesale?
A: Amazon wholesale is a business model where you buy products in bulk from manufacturers or distributors and sell them on Amazon.
Q: How do I avoid buying dud products?
A: Watch out for red flags such as being the only FBA seller on a listing, a large amount of sellers disappearing from a listing in a short time frame, inflated price, and one seller getting too much of the buy box. Always look at the history and data before making a purchase.
Q: What is the keeper graph?
A: The keeper graph is a powerful tool for doing product research on Amazon. It gives you a sales rank to tell you how fast or slow a particular product is moving, buy box statistics to let you know at what price the buy box is selling at for an extended period of time, and historical data.
Resources:
- [Scan Unlimited](https://www.scanunlimited.com/)
- [Keeper Graph](https://www.keeper.io/)
