Summary
Highlights
The video outlines a comprehensive three-step process for online arbitrage on Amazon: qualifying a lead, storing a lead, and buying the lead. The primary tool for qualifying leads is Keepa, though Seller Amp and Profit Seeker Pro are also mentioned as useful softwares. The strategy covered is 'storefront stocking' or 'reverse sourcing'.
To begin sourcing, the video demonstrates using a 'seed listing' to find other FBA sellers. These sellers' IDs are then input into Keepa's product finder. Specific filters are applied, such as a minimum of 50 units bought in the past month and at least three live FBA offers to avoid private label products.
The speaker sets a minimum FBA price of $9.50 across various timeframes (30, 90, 180, 365 days), explaining this is a personal sweet spot for net profit. A crucial step involves excluding certain categories that the seller is either restricted from or prefers not to sell in, such as toys, video games, clothing, and certain beauty products.
The first requirement for qualifying a lead is to determine if it will sell. This involves checking if the product has '50+ bought in the past month' on its Amazon listing and then delving into Keepa's 'Offers' tab. Here, the seller looks for evidence of other FBA sellers making sales, indicated by sales in the past 30 days and a 'stair-step' pattern in stock levels, which helps differentiate actual sales from FC transfers.
The second requirement is to assess if the product is safe to sell and if the seller is approved for the brand and category. This involves checking the Keepa chart for sudden drops in seller count, which could indicate an IP complaint. Critically, the brand field on the listing must accurately match the product's actual brand to avoid issues like suspected IP complaints or account health risks.
The final step in qualifying a lead is price. The speaker advocates for a minimum profit of one dollar per unit, emphasizing that consistent sales of lower-profit items accumulate quickly. It's more realistic to focus on $2-$3 profit items than to chase elusive $15+ profit items often seen on social media.
Qualified leads are stored, with the speaker initially using a simple Google Sheet before transitioning to paid software like 3P Mercury. The sheet includes details such as Amazon listing name, supplier link, cost, sell price, potential profit, and notes. The final step is buying leads, which involves regularly checking supplier links for consistent pricing and making test purchases of 3-5 units. If prices change or leads run out, the qualification process is repeated.