In this article, we will know the methods to know if a product is selling well
Like any other Amazon seller, we all want the same thing and that’s to make money. Remember, that’s the golden rule of selling on Amazon. In this article, we will talk about 4 different methods to check sales on Amazon which can help you determine how well a product is selling!
As always, if you prefer the video format of this article. You can watch it here.
Topic Rundown:
- Introduction
- How to determine sales velocity?
- 4 Methods to check sales on Amazon
- Top Tips
Introduction
As an Amazon seller, it is essential to build a strategy considering that the Amazon marketplace has become more and more competitive. With that said, you have to look for ways to ensure that the product you will sell on Amazon is selling.
You might be asking why we created this article. If you know to determine if the product is selling well, you can make wiser decisions on which product to resell on Amazon because you have an idea of the demand for the product based on the sales.
With that said, this will lessen your chances of losing money since you buy fast-selling products, hence making more money!
How to determine sales velocity?
There are things you should look at to help you determine the sales velocity and that is through sales rank and sales estimation.
1. To give you a further explanation of what these are, we’ll begin with Sales rank. Sales rank is a rank number that describes how well a product is selling on Amazon relative to all the other products in the same category.
The lower the number means the better a product is selling. So let’s say, for example, you see a sales rank that is closer to 1 or maybe 1. That means that the product is the best-selling product in its category since it is ranked 1. The further away from 1, it is not the best-selling product in the category.
Interested to learn more about sales rank? We have a video about it called Amazon sales rank explained.
2. Next, we have Sales estimation.
Sales estimation is a rough estimate of the number of products that can be sold in a day, a week, or even a month. Now, for sales estimation, the higher the number of sales the fast-selling the product is.
Although if you check the sales estimation on different tools, expect that you won’t arrive at the same answer mainly because each tool has different data. That’s why it is important to use different methods and tools in order to determine the sales velocity of the product, which we will talk about in the next chapters.
4 Methods to check Sales on Amazon
1. The first method is Jungle scout’s free Amazon sales estimator.
Using Jungle scout’s Amazon sales estimator will help you check the average monthly sales numbers for specific listings on Amazon. Once you input the sales rank, marketplace, and category, you will know if the product sells well by the value provided by Jungle Scout’s sales estimator.
What we will talk about now are the pros of using Jungle scout’s Amazon sales estimator. It is FREE. If you don’t have the money to spend on tools to check sales estimation, then this is the tool and method you could use to determine how selling the item is.
Next are the cons. Simply, it is not unlimited – meaning to say there is a limited number of times when using the tool. And if you want to get more sale estimates you have to pay around $69 a month.
2. The second method is using a calculator tool.
As we might all know, calculator tools help Amazon sellers to make wiser decisions when sourcing and reviewing products to buy and resell on Amazon.
For me, this is an important tool considering that it is super useful in regards to estimating sales and also profit. What you simply do is type in the price that you are reviewing on the Amazon listing, and in one click you will not only get the sales estimation but also ROI, profit margin, competition, and other useful information to help you make decisions.
You might be asking what are the pros of calculator tools. Simply, it is very convenient to use since almost all the information is there. As said, it will show you sales estimation, sales rank, profit, ROI, hazmat check, competition, and many more.
On the other hand, the disadvantage of the calculator tool is that it is paid.
In addition, if you want to get access to the data of each product on Amazon, you will have to invest money to pay for tools like the calculator tool.
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3. The third method is using a Keepa chart.
As you might all know, Keepa is a very useful tool for looking for online arbitrage deals on Amazon, which collects data across all product listings in the Amazon marketplace.
This tool provides you with a graph that displays the historical data of a product IE sales rank, buy box history, price history, etc. To put it simply, it helps you understand what happened in the past, which in return helps you create good predictions about what’s going to happen in the future.
What I like about Keepa is that it gives you a visual representation of the sales drop – meaning to say, it helps you see the demand for the product at a certain season based on the number of drops shown in the graph.
Again, just like the calculator tool, you will have to pay for a subscription.
4. The fourth and final method is sales data by child ASIN from seller central.
Let’s say that you want to know why your product wasn’t selling and you don’t have the tools to help you understand that. Using Amazon seller central’s sales data by child ASIN can help you determine if the product is selling well based on the data it shows IE units ordered, unit session percentage, etc.
The pros of checking the sales data by child ASIN are that it will help you understand the performance of the product you sold in the past based on the data.
Cons. You need data.
Top Tips
Do test purchasing
There are times when a listing has more sales than what the tools show you IE keepa says that it has 10 drops but when you sell it, it is a lot more, so what you can do is test purchases IE buying 10 or 20 units and see how fast the actual product is selling.
Check other factors that affect sales.
Aside from checking the sales rank and sales estimation, make sure that you should also consider other factors that affect sales velocity, like your competition.
Why? There are instances wherein Amazon is on the listing and they are not sharing the buy box. That being said, you now understand that the product you have sold is not selling because Amazon wasn’t sharing the buy box. So, make sure that you also check other factors that affect your sales like competition, sale price, if Amazon is sharing the buy box, etc.
These different methods on how to check sales on Amazon should have given you a basic understanding of how to know if a product is selling well. Hope you learned a lot! And if you liked this article you may want to consider watching the video we created called 8 Ways to deal with slow sales on Amazon.