While cliche, time is truly money. The faster you can scale and automate, the faster your business will expand.
Without a doubt one of the most time-consuming aspects of your day-to-day life as an Amazon seller is sorting through pages and pages of product lists, struggling to weed out what’s profitable and what’s not. However, like most things in life, there’s an app for that.
AMZ Analyzer quickly determines which products and, ultimately, which suppliers, aren’t worth your valuable time.
Like most advanced software systems, you’ll need to enter a few essential pieces of information related to your Amazon account:
Firstly, head over to Settings and click Connect To AMZ Account. You’ll need the following:
- Seller ID
- AWS Access Key
- Product Advertiser API Credentials
- AWS Secret
If you’re a new seller, you’re probably unfamiliar with the above. Check out this link for information about where to find the necessary credentials.
Next, head to Processing Options and check off the following:
- Number of Reviews and Ratings: Sometimes the sales rank for certain categories is incorrect and you’ll need to lean on reviews to determine a more accurate ranking. While it does slow down the process, Todd believes leaving this checked is worth it given how useful reviews are when it comes to analyzing a product’s profitability.
- Detailed Information for Listings: This grabs extra information such as the number of sellers, the manufacturer, and other FBA sellers.
- Is Amazon Selling: This option is especially important because the last thing you want is to be competing with Amazon. Amazon is Amazon so they don’t play fair.
Finally, head to the License tab. When you buy the software, AMZ Analyzer will send you an email with your licensing code. Enter the code and hit Activate.
Now you’re ready to find products. Head to the Run By File tab and click Select Product Input File to upload the product spreadsheet.
Suppliers will send you spreadsheets listing their products. To run these through AMZ Analyzer, these spreadsheets must have a column with a UPC and wholesale price. You may need to ask suppliers for this information.
Quick tip – Make sure the first row has column titles and nothing exists above that first row. When you input the file and nothing is showing up in the drop-down menu under Product ID Type and Product ID Column, something is off with your first row.
Once you’ve run the spreadsheet, AMZ Analyzer grabs the Product ID Type and Product ID Column. If for some reason it didn’t grab the correct type, there’s a drop-down menu where you can manually select the right label. You can search by UCP, ASIN, or ISBN.
Next, hit Run and AMZ Analyzer automatically pulls info from the listings on the spreadsheet.
What’s What on A Product List
Head to the Results tab for every piece of information AMZ Analyzer has pulled.
But let’s back up a bit. On the product list, here’s what’s what:
- ASIN: Amazon Standard Identification Number
- Title: Product’s Amazon title
- Amazon Link: Link to the Amazon product
- Sold by Amazon/Not: Whether it’s sold by Amazon or not
- Category or Product Group: Beauty, Art, etc.
- Sales Rank: Self-explanatory
- Number of Reviews: Self-explanatory
- Rating: Average rating
- Purchase Price: The wholesale price
- Buy Box Landed: What the current buy box price is
- Cost Estimate Fees: Price they use to estimate the fees
- Referral Fee: Amazon’s advertising fee for selling products on their platform
- Fulfillment Subtotal: The fee Amazon charges to ship out your items
- Margin Impact: The product’s sales price minus fees
- Inbound Shipping Estimate: An estimate of how much it costs to send this product to Amazon
Much of the above is calculated by the Tax % on Sourcing, Prep Fee Per Item, and Inbound Shipping (per lb). This all exists on the top toolbar and can be entered manually. Let’s break down what each means.
- Tax % on Sourcing: If you have a registered business you should be getting Amazon products tax-free.
- Prep Fee Per Item: The cost of you bringing in all of these products and sending them out. If you pay someone to do this you can estimate that price per item.
- Inbound Shipping (per lb): How much it costs you to send each pound to Amazon. This cost obviously differs depending on how much you’re sending in.
And finally, let’s look at arguably the most important columns:
- Profit (in dollars)
- Profit (in percentage), otherwise known as ROI
*You’re aiming for at least $4 in profit and a 40% return on investment. If you’ve got a large volume you can sneak down to a $2-$3 profit or 20-30% ROI.*
Getting The Full Picture
Todd recommends exporting the spreadsheet into an excel document by hitting the EXPORT button at the top right. The document is a bit easier to maneuver in excel. If you’re fulfilling by merchant versus Amazon, there’s a button at the top to specify that. Also select different consolidated views so you’re only looking at specific results. Just select different options from Grid Views on the upper-left corner.
It’s important to find a view that helps you digest the most important information quickly. You can select all of the columns, right-click, and shrink the column widths for a better bird’s eye view of what’s really important.
Head to the Sold By Amazon column, right-click, and unclick “1” or whatever your spreadsheet denotes as sold by Amazon. Next, in the drop-down menu under the Profit column, Todd recommends setting the profit for greater than $2 and the ROI for greater than 20%. While Todd recommends a $4 profit, you should include those with lesser profits in case the price fluctuates.
Speaking of which, you can also sort by Sales Rank to see which products are fast-selling and Reviews/Ratings to ensure the sales rank number is accurate. If a product has no reviews or less than 10, you can almost guarantee it isn’t selling.
Let’s say you finally find a product with great sales. Head to Amazon and double-check that everything looks good.
How? Here’s how to verify that a product’s a smart investment:
Firstly, use Jungle Scout to estimate how many sales the product generates per month. This in turn helps you determine how much product to purchase. Todd recommends keeping 30 days of product in stock.
To determine this magic number, take the monthly sales on Jungle Scout and divide that by the number of other FBA sellers in contention for the buy box plus yourself. Now you have an estimate of your monthly sales. Click on more sellers underneath the product to find how many other FBA sellers are actually in or close to the buy box. Anyone within 1% of the buy box price should be considered competition.
Next, use Keepa to determine the average price of a product plus the product’s price history. Price history is an invaluable insight. You want to be betting on products with steady prices and products that Amazon has not previously sold.
Finally, Camel is great for peeking at a product’s historical sales rank. While Jungle Scout has great sales data, you’re only seeing an estimated average. If that sales rank peaked for a few days and then went back to a lower ranking for the remainder of the month, that average isn’t a fair estimate of its true sales. Camel gives you that holistic understanding of a sales rank and helps you determine the monthly breakdown. In short, that day-by-day view is the difference between a solid product and a sad product with a few great days.
Sorting through 500 products manually is a testament to your work ethic and that diligence will set you apart from other entrepreneurs. But sometimes working harder means working smarter, and AMZ Analyzer helps you do just that. With AMZ Analyzer (plus a few bonus tools), save valuable time so you can focus on big picture strategy.
Happy selling everybody!
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