I found an item that requires 100 units to get ungated. I am willing to buy 100 units at the current price I can get it at. If it’s 5.13 profit per an item and 104% ROI.
It has a BSR of 21k and sells 100+ a month. There are about 29 FBA sellers as well.
Is this good to still buy the 100 items?
100+ could be 100, 200 or more but let’s say it’s 100 a month. With 30 sellers selling it and if everything else is equal, you’d be selling 3/month.
This means it will take you 3 years to sell the initial 100.
But not knowing how Amazon’s buy box sharing algorithm works, things may not be equal so you may sell more than 3/month or less.
In the end it’s your decision.
$5.13 profit per unit and 104% ROI are very healthy margins, and if the item sells over 100 units per month with a BSR of 21k, that confirms strong demand. The fact that you’re using this purchase to get ungated also adds long-term value beyond just this product.
While 29 FBA sellers is competitive, it’s not extreme, and if the Buy Box is rotating and your offer is competitive (especially if you’re using FBA), you should be able to move your 100 units within a reasonable time frame.
Just make sure the listing isn’t dominated by one or two sellers holding the Buy Box most of the time, and double-check the Keepa chart to confirm that sales are consistent and the price has held steady over time.
If all looks good, this sounds like a calculated and worthwhile first ungating investment.
Yes, it’s a solid buy if you’re confident the price and demand will stay stable. 104% ROI, $5.13 profit, and 100+ monthly sales with 21k BSR is promising, even with 29 FBA sellers.
Just ensure you’re not jumping into a price war.
I would look at the Keepa chart to judge price stability. Assuming it has been reasonably stable over time I would pull the trigger. Also, seems popular. Think if it’s something you could multi pack or bundle. May be some options to stand out from the crowd if you can get product consistently.
Why don’t you go for PL?
In my opinion, wholesale is all about offering lower prices and trying to win the Buy Box, that’s it. Your whole life revolves around figuring out how to win the Buy Box and get sales.
I would recommend launching your own PL brand. I know it sounds a bit hard, but believe me, once you step into the process, you’re going to learn and earn at the same time.
I hope you get my point.
Thanks.
Just trying to get started and see if this is for me. Right now just arbitrage.
Examine the Keepa chart for price trends. If stable, move forward. Bundling or creating sets might give you an edge.
It says 100+ orders for one version and 200+ for another. That’s at most 8 sales a month, assuming the orders are close to you.
Check the sales for the year and make sure the price is stable. 8 units isn’t bad, it’s good for the BSR.
Thanks everyone!
It sounds like a good product but with 29 other FBA sellers, you will need to undercut them in order for you to be able to make any profit.