Finally Real Proof and Quick Data to zero in on the Best Amazon Product!
Chances are, if you’re reading this, you’re familiar with the Opportunity Score. If you’ve tracked products in your SellerApp account, you’ve seen ‘em.
We often get asked about how we calculate the Opportunity Score for the millions of products on the Amazon marketplace.
That’s when we thought why not work on something similar to make finding products a breeze. We decided to call it ‘SellMetric’
SellMetric is SellerApp’s in-house product validation algorithm that helps millions of Amazon sellers make quicker and better product decisions.
SellMetric makes finding opportunities easier!
The Opportunity score combined with the data by SellMetric aims to answer at least 45% of your product validation questions instantly.
In other words, when you are looking to shortlist a product to sell, the only thing running through your mind ‘Is this my golden goose?’
We thought why not automate this process? What if you could take a look at the product and say if it would sell or not. Wouldn’t that be cool?
We broke it down into 5 parts…
Is there enough demand for the product? How does the competition stand?
How much will you have to invest in? Will you be able to make profits?
What is the current quality of the products in the market? Will you be able to make a difference by bringing in a better quality product?
What makes SellMetric awesome?
Tons and tons of data
At SellerApp, we’re a business that creates millions of data points every day, while we help hundreds of people all over the world to data-driven successful Amazon business.
Our data is not just limited to the data found on Amazon. We gather data on every part of our analysis, creating tons of data points, metrics, attributes and events that feed SellMetric.
Let’s think simple…
Amazon has got quite a number of data points it associates with each product. Take your Amazon product for an example, its got the sales rank; different sales rank for different categories, Amazon seller badges, product positioning for different search terms, review trends, and the list goes on.
Think of the same for 100 products. That’s a spreadsheet of data.
What about the millions of products? That’s a monstrous amount of data enough to fill in massive data servers with months and months of research to do!
Customized Big Data Algorithms
It wasn’t as simple as we thought it could be.
With this humungous dataset comes complicated Big Data and Machine Learning algorithms. Making sense of this huge set of data to derive actionable decision points can be quite a daunting task.
SellMetric is built by customized big data and machine learning algorithms that run through millions of products on the Amazon platform within minutes.
SellMetric data algorithm employs data learning combining multiple data numbers powering it, with accurate and dependable you could rely upon.
A kick-ass agile team
Simplicity isn’t simple. We knew it would n’t be any easy this time around too!!! It meant the time to ring up our team of data specialists.
They despise Starbucks, make their own coffee on a scale! They glossed over their post-graduation programs worth of knowledge in making SellMetric as accurate as possible.
What does the most accurate product validation algorithm help you do?
Now that you know how SellMetric was born, let’s understand what does it power you up with.
#1 The Demand
The first question is how many people are actually interested in the product? A sustained business is possible only from a product with a viable market demand – a validation check 54% of sellers fail to do!
Sell Metrics verifies the demand of any Amazon product by three major factors.
The Product Trend. Is the market for the product trending upwards, how big the trend is and when exactly it began- the seasonality of the product. i.e. The Span of Demand.
Both these are analyzed based on the shopper trends and the search queries of Amazon shoppers. How many searches does the product get in a month? Is there a continued search trend for the product? If so how long?
The Sales Velocity. The biggest hint Amazon gave us for the sales velocity was the BSR. One of the key factors that powers Sell Metrics. It wasn’t easy though! It took us months to work on this data, for millions of products, for each category and subcategories.
#2 Verifying the competition
To get a better idea of what you would be competing against.
Whether you want to admit it or not, they’re out there and they’re circling on your customers.
What type of sellers are ranking up in the competitive scape – how big are they?
To further analyze the competitive scape, the market share of each seller was a good validation point. Is the niche ruled by a big popular brand that had the most sales, with the most number of reviews?
#3. The Expenses – How long would it take to move units from the inventory?
Amazon’s world-class FBA fulfillment method – the packaging, shipment, and delivery of the product to the consumer is a big relief, especially to new sellers. While you are relieved from these tasks, it comes with a price, Amazon charges FBA fees for each product unit stored in its warehouse.
This could deeply affect your profit margins. Yet is one of the most disregarded factors during product research.
The FBA fees are calculated on the basis of two factors, the dimensions and the period of storage. The heavier your product is the more you pay as fees. The longer it takes to sell off your product, the longer you pay Amazon to store your product in its warehouse.
It does not necessarily mean that you avoid products that fall in either of this category. A heavy product with a high sales volume is a safer bet than choosing a low weighing product with poor sales velocity. Sell Metrics projects the expenses based on these 3 factors – the Sales Velocity, the product dimensions, and the FBA fees.
#4 The Profits – How much does Amazon charge you?
At the end of the day, all that matter is …. How much will you be taking home as profits?
While it might seem extremely unfair that everything else works well sometimes, except that the expenses were too much while the profits are very low.
Get your profit details using this free FBA Revenue Calculator.
The product would either have a very slow sales movement or that the Amazon’s FBA fees were too high. Both these would mean you’ll have to shell in big money to manage the inventory.
A good opportunity product must ideally have close to 50% profits with less than 10% fees having a good sales velocity.
#5 The Quality
To further validate the popularity, appeal, and usefulness of the product, SellMetric analyzes the sentiment of the reviews.
How satisfied are shoppers with the current quality of the product? If a majority of the buyers are not happy with product quality, it opens up an opportunity for you to make a selling opportunity with a better quality.
Where all can you find the Opportunity Score?
All the features you could do Product Research with. Product Research, Product Ideas.
What all are new in this update?
We’ve squashed a few bugs, so now it’s easier to,
✅ Get all the data without having to open another tab
✅ Not to make guesses to shortlist products
✅ Shortlist products with perfection and ease
✅ Get a bigger picture right from the first level.
We’ve also learned a whole lot from this amazing community of Amazon sellers! To never give up unless you get it rolling smooth!
What’s Next in Line?
There’s plenty more to do.
We’ve been working on automation, and powering up features to make selling on Amazon a smooth sail – how to be more and more sophisticated with the features, to use data more and more predictively to drive outcomes rather than numbers!
To allow you to go through tons of Amazon data points without even knowing you did! Definitely, exciting times lined up ahead!
If you need any help with increasing your Amazon sales or want to know more about the SellerApp Platform, shoot us a quick email at firstname.lastname@example.org. Or check out the SellerApp website for more details.
Customer Success At SellerApp
Enthusiastic Computer Science Graduate. Currently helping to solve problems faced by E-Commerce sellers around the world.