Welcome to Our First Case Study for AmatragePro!
Ok, we’ve been asked for more examples of how to use AmatragePro (AP) to make money online, so we thought we’d produce some detailed case studies.
In this first study, we’re going to use AP to find products on Amazon.com to resell on eBay.com.
We’ve included some key tips and tricks to minimise the money you need to spend initially on stock and also how to use eBay PowerSellers to identify further goods with which to make a profit!
Let’s get started.
Step 1 – Find Search Keywords
The first thing we need is an item that will sell well since we’ll use this to find the right keywords to use in AP.
We sometimes use the best seller lists in Amazon.com to find good keywords. Best seller lists can be found here:
Since we are coming up to the best possible holiday to sell Toys and Games, we’ll take a look at the best sellers in that category, which can be seen here:
It’s now just a matter of searching through the items to find suitable keywords. We tend to look for items that are rising in popularity (the little arrow at top right on the item image is colored green and pointing upwards. We don’t mind what price an item is since the important thing is the profit margin we can make and AP will show us this…….we’ll see how a little later in this case study.
We’ve just been looking at the best seller list and it looks like this (we can see the top 6 items in the screenshot but there are actually 100 items in the list)
We tend to search through all the 100 items and write down as many useful keywords as we can. Also don’t forget that the best seller lists are updated approximately every hour. At that time items will move up or down in the list dependent on sales. The more sales take place then the higher the item will appear in the best seller list. Other new well selling items can also come into the list as well.
Looking down the list it’s obvious that items connected with the film “Frozen” are selling well, and it’s become a global brand, taking well over $1.2 billion at the box office…….and this will keep going since more merchandise and events are planned in the future.
Step 2 Using Keyword in Amatrage Pro
So, we’ll use the word “frozen” as our first keyword in the search screen of AP. Here’s the settings we used:
You can see that we are searching in the United States (i.e Amazon.com and eBay.com) in the category of “Toys” for the search term “Frozen”. All the other parameters have been left untouched as default values. We then click on the Search button and AP extracts 10 pages of results.
Here is an extract of what it found:
Step 3 Selecting Items of Interest
Let’s take a look in more detail.
One item that looks of interest is the Elsa Tiara. The Amazon price is $2.37 and the price on eBay is $6.16. Dividing 6.16 by 2.37 gives the AP “fixed price profit multiplier” of 2.6. You can that AP has calculated this for you (it’s the number at the end of the eBay fixed price link). AP has also listed the results in order of size of multiplier.
To check further we click on the “Amazon price” link. This is what we see:
The price shown is just $2.00 and I can disregard the shipping and import fees since these are for shipping the item to the UK, which is where I live. We can click on the listings link, which looks like this:
Now we see the listings for sale and at the top is the Amazon offer:
Now we can minimise our buying costs since the item is “eligible for FREE Shipping”……and there is a link to the details, which shows that we can get free shipping on orders of $35 or more. We can do this easily by purchasing 18 or more of this item at $2 per item. Let’s assume we therefore buy 50 items at this price for a total price of $100 with free shipping.
Step 4 Performing Due Diligence on Items to be Purchased
Let’s take a look at the eBay listing in more detail by clicking on the eBay price link. Here’s what we see:
Now we can get further information by clicking on the “View full description” button. We see this:
Just above the price you can see a very useful piece of information, which is the “trending at” price which is $6.39.
To see more click on the very small question mark just after the trending at price in red. This will reveal that:
“This is the median price based on sales of this product, taking into consideration item condition, from all sellers on ebay.com in the past 14 days, or if there are an insufficient number of listings for a meaningful calculation, the past 90 days”
This is very useful because it shows that the price is real and sustained, based on actual sales over a meaningful period of time. It also shows that the seller knows what he is doing, since his item is priced to sell being just under the median.
Check Items are Identical
Another check is to ensure that both the Amazon and eBay item are exactly the same. In this case this is easy since AP reports something called the EAN Number, which is a unique identifier. The full eBay description often includes the EAN number and a quick check reveals that the EAN number reported by AP in the Amazon listing is exactly the same as the eBay EAN number. We can be sure therefore that these items are the same.
Check Seller Credentials
We can also click on the sellers name, since it’s a link. This reveals that he has total sales of 17,772 items with 99.3% positive feedback. These are signs that the seller is likely to be a Power Seller. These people know exactly what they are doing and have been invited to become “PowerSellers” because they meet at least the qualifying criteria listed by eBay:
- Be registered with eBay for at least 90 days.
- Have an account in good standing.
- Maintain a positive Feedback of 98% or higher over the past 12 months.
- Follow all eBay policies.
- Have a minimum of 100 transactions and $3,000 in sales with US buyers over the past 12 months.
- Receive at least a 4.60 average from US buyers across all 4 detailed seller ratings (DSRs).
- For all transactions with US buyers, have no more than 1.00% of transactions with low DSRs (1s or 2s) on item as described, and a maximum of 2.00% of low DSRs on communication, shipping time, and shipping and handling cost.
- For all transactions with US buyers, have no more than 0.30% of transactions result in the eBay Money Back Guarantee and PayPal Purchase Protection cases closed without seller resolution.
We can use this information to find more items which are profitable. Simply look at the other items the seller has for sale and they are highly likely to be profitable since a Power Seller wouldn’t waste their time with anything else.
Read more Here: How to become an eBay Powerseller
Another tip is to try a test listing on eBay with just one item. You don’t even have to buy this item yet. Its available at Amazon to buy with delivery in 3 days maximum. So, if it sells on eBay, just go to Amazon and buy it. Then send it to the eBay buyer. The downside of this is that for one item you will have to pay shipping to Amazon but this technique is just to test the item will sell. Once you know that it will then you can bulk buy with confidence.
To summarise, we have bought 50 items for $2 each with free shipping. We can sell them for around $6.00 with free shipping, or a small charge for shipping.
The math is easy: buying costs = $100, selling price (revenue) = 50 x $6.16 = $308, less your time to pack and send the items and less the eBay selling fees.
In this case we’ve used the calculator to work out that the costs for selling 1 item is $0.62.
Total profit for a few minutes work is therefore $308 – $100 – (50 x 0.62) = $171
With this kind of profit you can easily pay someone else to pick and pack the items for you and still make a handsome profit!
Ok, that’s the case study for this time. We plan to make many more available over the coming weeks!