Wednesday, September 4, 2013

What's A Good Rank?

Everyone (including me) wants to know, "What is a good rank when scanning products to sell on Amazon?" Rather than go into a lengthy discussion about what rank is and how to effectively decipher good from bad, I am simply going to give you what I consider to be a good rank for fast turns on Amazon.

Toys: 150,000
Health and Personal Care: 100,000
Health and Beauty: 20,000
Home and Kitchen: 10,000
Grocery: 50,000
Baby: 5,000

In general I would say any category with a rank of 10,000 or less is a good rank (Except Baby, it fluctuates way too much!).

Here are some screen shots from some extremely fast sellers:




There are other factors to consider when deciding whether or not to buy, such as, Brand Name, Margin, Cost of Goods, Number of Sellers, Is Amazon Selling It, etc. If you have any specific questions please post them below I will do my best to answer them.

~Duane

15 comments:

  1. Duane, Thank you so much for sharing. This is very helpful for knowing what are fast turns. It really helps seeing real examples on profit bandit. What are some of your parameters? For example when it comes to number of sellers? Are you concerned about how many MF sellers? How many FBA sellers turns you away? Do you pass up items if Amazon is selling?

    In the first example I believe you are buying for $9.34 and selling for $19.72 with a profit of $5.11. Which is not the 3X profit we are taught. Do you not worry about the smaller profit because they are fast turners? In the second example what is awesome is there are no FBA sellers. You are getting the 3x profit this time but would you go higher in your price since it is FBA? Thanks in advance for your answers.

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    1. Hi Sydney,
      Thanks for the all the great questions! My concern about the number of sellers increases only slightly as the rank increases. So if an item is near the "ceiling" of my rank limits, then I may not buy the item. That's when some of the other questions come into play, Margin (what's my return), Cost of Goods (how much of my budget will be tied up), Is it a Seasonal Item, and the list goes on.

      If Amazon is selling an item I tend to leave it. There is easier money out there.

      I don't buy into 2 common practices among FBA sellers.
      1. 3x is a rule that I disregard on any purchase above $5. I look more at ROI (Return On Investment). I want to make at least 50% profit on what I spend. If I spend $10 I want to profit at least $5. Keep in mind that only works if you are turning inventory quickly. You need to get your money back to reinvest.
      2. The "Magic $25". I sell FBA, I cater to the Prime shoppers, not the Super Saver Shoppers.

      When there are no other FBA sellers I try to price only slightly higher than the MF seller so I make sure I get a share of the Buy Box. When you are dealing with fast turning items with low margins you can't afford to fight for an extra dollar or two. You need to move inventory, take your profits, and reinvest. That's how I have grown my business and will continue to until I have more money than opportunity. So far that has not been an issues. I usually spend $1,000 per week on items like what I have showed you here. That's $4,000 per month, which leads to gross sales of almost $10,000/mo. and profits of nearly $3,000/mo.

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    2. Thank you for answering my questions. You must have read my mind. I was wondering today how much you spend on a monthly basis. I knew you were close to the $10,000 so if you do the 3x rule I figured you spend about what you posted. Always appreciate the great information.

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    3. Sorry thought of another question. We have been talking about bundles. How do you know what to put together since you usually do new bundles? Rank for the individual items? Only use brands that you know are popular?

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    4. Another excellent question, Sydney! I don't do a lot of true Bundles, I create a ton of Multi-Packs. I am terrible about using the term bundle for both of those.

      The bundles I have created have been very simple. I use two things commonly purchased together, i.e. Peanut Butter & Jelly. To choose a successful bundles I take existing singles with decent ranks and strong brand recognition and put them together.

      Multi-Packs you don't have to be creative to make. Those are nothing more than math strategies. If a single sells for $5, why not put 2 of them together at a price of $10 and attract Prime buyers while avoiding competition at the same time. Or if a $10 single has a rank of 5,000 with 20 sellers, why not put 2 or 3 together, multiply the price accordingly (with a slight discount of maybe 2 dollars), create your own listing and be the only seller?

      I could go on, but I think you get the idea.

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    5. Excellent! That is perfect. I never thought about giving a discount on the multi-pack which would number one entice people to buy and two making it a QEM (fast seller). As always thank you.

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  2. Thanks for this article, Duane! I am trying to take my business to the next level and that means focusing more on fast turn items. Your explanation was specific and clear. Blessings...

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    1. Thank you, Sidra! It brings a smile to my face to know my content is helpful! :D I will have another one soon that will tie-in with this one.

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  3. What would you say is a good sales rank in the sporting goods category?

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    1. Brandon, I wish I knew enough about Sporting Goods to have an opinion, but I don't. I have sold very few Sporting Goods items.

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  4. Thanks Duane, but i found some item didn't have sale rank [art & craft]. Do you have any trick to check it.

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    1. If you checked CamelCamelCamel and there wasn't any data I would probably pass on it. FBA Toolkit is another site you can check.

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  5. Hi Duane, I heard you speak about the 2pack toothpaste. I am new, just wonder how you pack it? and where do you get it from. Thanks.

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  6. There is not a category called Health and Beauty.

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  7. yes, i am the complete truly contemplating this text, and that i simply reason say that this article is the entire beneficial and enlightening. I in conjunction with have some panicky fragment of concerned info !!!!!!thank you. Is FBA the right model for you ?

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