Buying something for cheap and selling it for profit is a great way to make money with just a laptop and some internet.
Online arbitrage is a high-risk, high-reward business model and tools like Keepa are all about making your decisions safer and clearer. Keepa is one of the most powerful price tracker apps and arbitrageurs are using it to demystify pricing data and make better investments.
Keepa is both easy to use and extremely powerful, which is why it’s easy to get lost in all the data and graphs. In this article, we’re going to highlight all of Keepa’s key data points for online arbitrageurs and help you understand what they mean.
What Is Online Arbitrage?
Online arbitrage is the act of buying products online at a lower price and then reselling them for a profit. In simple terms, it’s like flipping items you find at a garage sale, but done entirely online!
Arbitrageurs sell products on ecommerce websites like Amazon, Etsy, eBay, and so on. Some even sell on Instagram or TikTok through ads or social media pages. As an arbitrageur, finding a marketplace to sell on is just as important as finding good deals to buy.
Why Is Keepa The Best Price Tracker Software For Online Arbitrage?
Keepa is unmatched at showing extensive data graphs through a very intuitive interface. The software even has arbitrage-specific features that help arbitrageurs find cheap deals and highlight clear insights on a product’s pricing history.
We also have a whole article about the best price tracker softwares for ecommerce. If you’ve used Keepa and don’t like it, maybe you can try another price tracker program from that list.
How to Use Keepa for Online Arbitrage
Arbitrageurs use Keepa in two ways, as a browser extension and as a website. Both work differently, but if you’re still in the initial researching phase of online arbitrage, you need to start with the website.
The website's features and filters allow you to explore various product categories, analyze historical price trends, compare multiple products, and identify hidden gems. You can directly scan Amazon Standard Identification Numbers (ASIN codes) on Keepa and it will bring up that product’s dedicated Keepa page that’s full of historical and real-time data.
Here’s how to use the Keepa website to find great deals on products online. First off, choose how you want to find products:
- Browse categories: Explore Keepa's extensive product categories to discover potential gems.
- Keyword search: Use the search bar to target specific niches or brands.
- ASIN hunt: Enter specific ASINs to deep-dive into individual products.
When you find a potential product, click on it and you’ll be directed to the product page. This is where the extension and the website share the same steps.
The product page will show you a price history graph with extensive data options, like Buy Box prices, New product prices, all the way to Warehouse Deals. Let’s start by learning how to navigate the graph and what all the metrics mean.
- Zoom Controls: Click and drag your mouse to highlight a section on the graph you want to zoom into. To zoom out, simply double-click anywhere on the graph.
- Price Type: Click on any of the price types at the right-side of your screen to toggle the visibility on the graph.
If you’re unfamiliar with all the different kinds of price types, you can (1) easily hover over any of the data metrics and (2) see what those metrics mean in the pop-up below.
Some data points are only available for Keepa premium users. We’ll talk more about whether or not you should be a premium Keepa member later on.
For now, if you found a product but it isn’t as cheap as you’d like, you can open the Track Product tab and track the price. Set your ideal price and get an alert if the price drops to that point. We recommend studying the pricing history of that product and only setting a price that’s close to the lowest point, but not farther. The chances that the product will go lower than its biggest sales or discounts are very slim.
Happy with the product and just need some more details? Go over to the Data tab and you’ll see all of the product’s details, statistics, buy box statistics, and so on. Users do have the option to export this data and save it offline.
Lastly, if you want to see other products that are similar, go to the Variations tab and have a look. This is an easy way of finding other products with more potential for better profit margins.
Tips For Finding Products For Online Arbitrage Using Keepa
Online arbitrage isn’t easy, but there are several ways you can streamline your workflow and get results faster. Here are some tips for finding the best products that we and other industry experts use.
Explore the Categories
Forget the usual suspects! Keepa's vast categories offer hidden niches brimming with potential. Think beyond toys, electronics, and home goods. Dive into lesser-explored areas like pet accessories, gardening tools, or board games for adults. Research trends, identify rising stars within these niches with potentially less competition and higher margins.
Target with Keywords
Hone your search using specific keywords to find products within your chosen niche or brand. "Waterproof phone cases" or "camping gear backpacks" can lead to untapped potential. Remember, long-tail keywords often lead to products with less competition.
Size Matters
Consider product size and weight. Smaller items often have lower shipping costs, increasing your profit margin. But bulky items can still be profitable if the demand and margins are high. Analyze the demand and profit margins for larger items like furniture or outdoor equipment. High margins can offset shipping costs, making them surprisingly lucrative.
Remember, consider storage space and fulfillment options when dealing with larger products.
Price Point Perfection
Sweet spots exist. Aim for products priced neither too high (competition might be fierce) nor too low (margins might be thin). The $15-$50 range is a good starting point, but be flexible.
Sales Margin Mania
This is your holy grail. Analyze the profit potential and aim for margins of at least 20-30% to account for fees and potential price fluctuations. But don't be solely fixated on high margins. Consider the ease of selling and competition. Sometimes, a slightly lower margin with faster turnover is more profitable if you can sell most of your inventory.
Demand Drives Profits
Don't just focus on price. Check the sales rank and historical trends to gauge demand. Consistent sales and upward trends indicate a product with potential.
Seasonal Savvy
Look for products with predictable seasonal demand, like Halloween costumes or Christmas decorations. Buy low during off-seasons and sell high when the buying frenzy hits. Just keep in mind that good storage and inventory management are crucial for seasonal arbitrage success.
Should You Use Keepa Premium For Online Arbitrage?
Keepa premium users have access to:
- Sales rank history graphs
- Buy Box statistics and offer details
- Ebay price history graphs
- Offer Count and Review/Rating history graphs
- Basic access to the API
- And price increase tracking
How useful this is for you depends on your use case and what kind of data you need. But, we generally recommend online arbitrageurs to invest in Keepa premium, since this is a key tool that helps in the success of your business.
Keepa And Online Arbitrage: Do You Need More?
Online arbitrage is a lucrative business model and getting it right is easier with tools like Keepa. But besides price tracking, do you need more?
Think of Keepa as a tool. It improves your workflow and helps you become a better arbitrageur. But, it isn’t a complete solution. You still need to put in the hours to find those products, and if you’re inexperienced, you’re going to make costly mistakes along the way.
Finding profitable deals online and selling them for profit isn’t new and software companies have seen this market need and have filled it. Software like SmartScout lets you find profitable products in seconds. Think Keepa but more robust and built specifically for online arbitrage. See information that other tools can’t show you, like brand volume, sellers who control 60% or more of a brand’s sales, private labeling, brands without FBA sellers, and more.
Charge up and explode your arbitrage business with SmartScout and check it out for free!
