-What Are Amazon Flips?
-How To Get Started
1. What Are Amazon Flips?
If you’ve ever seen someone discussing their sourcing strategy, or selling a list, they may have discussed “Amazon Flips”. Flips don’t get much spotlight, so they’re less competitive. It’s a nice way to mix up your strategy.
The concept is simple. Purchase an item on Amazon at a much lower than normal, (because of sales or clearance) then resell it when the price normalizes or goes back up. Buy low, sell high. There are all kinds of programs & software out there to help, I recommend Keepa. It’s the lowest cost of the options; not to mention you likely have it if you’re selling on Amazon anyway.
Keepa is a tremendous data tool that collects information on Amazon prices, sales rank & sellers on a listing.
You’re basically buying items Amazon is clearing out, or matching the price of a competitor. You can source this method daily, Amazon is constantly active in this regard.
2. How To Get Started
You can start right away, no need to pick up any fancy software. You’ll have to schedule some time and be consistent. Like anything, it requires practice but over time you’ll pick up on trends and it’ll become second nature.
Start by heading over to https://keepa.com/ then navigate to the “deals section”
(as per screenshot)
Next, we have to filter the information. Keepa is showing us all the products that it’s discovered major discounts on. It’s our job to discover the ones worth buying. On the left side, there’s a series of filters we can use. I’m constantly adjusting mine, but I’ll share what I have there now. Your filters highly depend on what you’re sourcing.
Deal type > Amazon
Drop Interval > Day
Range > 50% off or more
Sales Rank > Max 250k (high selling items)
I’m selling on Amazon Canada, the sales ranks are not nearly as rich. There are not nearly as many products on the Canadian market as the American. So, I typically try to keep my sales ranks lower than most in the states.
Click Apply Filter.
Now, Keepa will show you all the items that have dropped by at least 50% in the last day. I check daily, therefore I use “day”. It’s also checking to make sure the item falls within the sales rank of 250k or better.
98% of the items won’t be worth buying. Because many of them have huge drop prices for various reasons. Many, were at a ridiculously high price point and now are back to normal. This isn’t a good flip. Others perhaps go on discount too often which will make it hard to sell.
This chart looks pretty good from a flips point of view, in terms of the pricing. You can see it’s regularly at $65 and occasionally is heavily discounted. It’s currently sitting at $18.63 but we can be confident it’ll hop back to $65.
Next, you’ll want to evaluate the “new offer count”
That shows us how many sellers are on the listing if that number stays the same or increases that is a red flag. We want to see that number go down as it indicates sellers are running out of stock. However, use your own judgment.
The sales rank is another important stat to look at. This item doesn’t appear to sell nearly as well at regular price but sells when on sale. I prefer items that are more consistent at the full price.
- Do not use prime benefits to purchase these products. Ideally, you use a separate account.
- Make sure you give yourself a very good profit margin to be competitive with Amazon when the price goes back up
- Don’t go deep on these – find many, but limit your risk.
I hope this guide has given you some insight into what Amazon flips are and how to execute it. Until next time, be well.