In this post, I am going to show you how to use the Keepa charts to buy products that are out of season ( February) and being dumped at a loss buy other FBA sellers that you can make a big profit on as the season comes back in,
I learned to do this by taking Stephen Snotherman’s Keepa Camel course and this is a product I noticed was on clearance a Walmart at the end of the summer (probably when all these FBA sellers bought it)
The product can be found here https://www.amazon.com/dp/B01M1FQWPE.
I saw it on clearance for $3 at Walmart but as you will see, it doesn’t matter what the sellers bought it at ( “You never know other sellers COG”) but I can prove they are selling at a loss because I will show the Amazon fees.
And here is the fulfillment cost
So no matter what the sellers cost of goods were, they are selling for a minimum of a $.03 lost ( if they got it for free and not including inbound shipping)
In other words, this seller is clueless to what I am about to show you!
So as I write this, it is February and in most parts of the country there isn’t much demand for pool filters, so we need to look at the Keepa chart to see what these sell for in season.
Zooming into the summer months, we can see that the Buy Box price was $17 and the sales rank was 589, which is a crazy good sales rank.
Also notice that Amazon is not a seller of this product, which is even better!
So now we just need to run the fulfillment cost numbers
So at the $17 selling price we get a return of $11.41. So we would take out the $4.01 which gives us a $7.40 profit from a $4.01 item that sells sub 600 sales rank!
(At this writing, that seller has 162 units of these)
So based on the charts, there is a very high certainty that this will repeat itself ( everyone still need filters each year, it isn’t a fad).
So you can simply just buy out this seller and the others around the price ( thank you Mr. Seller for finding all of these at WM for us….)
But I would take it a step farther.
I would pick through this sellers store (and all the sellers that are around this price) to see what else he is dumping. I can almost guarantee that he is worried about long term storage fees and doesn’t know that even with paying them, he can make a killing if he just holds until this summer.
We also know that they “probably” sources at WM, so you could find leads there too.
In summary, if you understand that some products are seasonal and understand how simple it is to read the Keepa charts ( again I would recommmend check out the Keepa Camel course) , you can easily source from “not as smart ” FBA sellers.