ProfitGo In Practice

ProfitGo offers an enormous range of information, visualizations, and tools. In general, we have invested a great deal of time and effort into usability and are always striving to make the software as intuitive as possible. Therefore, we assume that experienced sellers will be able to navigate most functions with ease.

At the same time, we understand that beginners in particular may struggle to establish a suitable standard workflow for product analysis with ProfitGo. For this reason, we would like to suggest a process below that is easy to apply in most cases and generally leads to reliable results.

The goal here is not to define the ultimate sourcing approach, but rather to provide beginners with a solid foundation that they can later adapt to their own needs as they gain experience. During the analysis, we assume that there are many potential knockout criteria. Only if a product successfully passes all steps you should consider purchasing it.

At first, this may seem incredibly time-consuming - especially since we describe the process in great detail. However, the more experience you gain, the easier it becomes to evaluate all aspects within just a few seconds and make an immediate decision.

In the following examples, we assume that you only sell on your home marketplace. If you sell on multiple marketplaces, you can simply repeat all steps individually for each marketplace.

Preparation

All settings in ProfitGo should already be adjusted to fit your business. This step is extremely important in order to avoid calculation errors.

If you are unsure which settings apply to you, we recommend taking another look at our guide for the ProfitGo settings [ProfitGo Settings Guide]. If you still have questions afterward, feel free to contact us via ticket on our Discord server or through the chat within the ProfitPath web dashboard.

In addition to configuring the settings, you should also think about a concrete strategy for discovering profitable products. In principle, there are no limits to creativity here.

In the following, we assume that you have found a product that you consider potentially interesting and have opened it in ProfitGo (for example via the barcode scanner or automatically through the corresponding product page). We will now take a closer look at the next steps.

By default, ProfitGo should automatically select the current lowest new price on Amazon as the selling price. This value is therefore pre-filled in the “Quick Info” section. At this point, all parameters (ROI, margin, profit, etc.) are highlighted in green and everything looks promising.

The first step is now to enter your potential purchase price. As soon as you do so, you should see the metrics automatically adjust. You will immediately notice if any metric falls below your target values — the background will turn red.

At this point, the analysis may already be over. Your settings and how restrictive they are play a major role here. In some cases, however, it is still worth taking a closer look at the numbers. A product may only narrowly miss your requirements. The question then becomes: would you really reject a product just because it has a 19.67% ROI instead of 20%?

This is where some judgment and intuition are required. If you are unsure, we would recommend taking a closer look at the product and forming a more comprehensive opinion.

The next critical metric is the expected sales volume. ProfitGo also provides an estimate for this within the “Quick Info” section. However, there are several important factors to keep in mind.

The displayed number refers to monthly sales and includes all sales from all sellers on the listing (including used products, etc.). Due to competition from other sellers, it is extremely unlikely that all of these sales would go to a single seller.

As a rule of thumb, depending on the product, you should assume that you might capture at most one-third of the displayed sales volume yourself within a month. A practical example: if ProfitGo shows 50 monthly sales, you should realistically expect it to take at least 3 months to sell 50 units at the current price. Naturally, some products may sell faster, while others may take significantly longer. This estimate should therefore only be considered a rough guideline.

There are also several factors that strongly affect the accuracy of the estimate. For some products, Amazon itself provides (or has provided in the past) confirmed monthly sales data. If such confirmation exists, ProfitGo displays a “+” next to the number and highlights the field in blue. Under these circumstances, the value is generally highly trustworthy. But the lowest number of monthly sales that Amazon provides is 50+ sales/mo, the next stage would be 100+, then 200+,300+ and so on. So you will usually not find confirmed sales by Amazon below 50+.

If you do not see this “+”, it means that no confirmed sales data from Amazon exists and the number is based on our own estimate. In this case, it becomes extremely important to check whether the listing contains multiple variations. Variations are different versions of essentially the same product — for example different colors, different gaming platforms, different hard drive sizes, etc.

In many cases, all variations share the same BSR (Best Seller Rank), which ProfitGo uses to estimate monthly sales. Unfortunately, sales are usually not distributed evenly across all variations. For example, neutral product colors (black, white, gray) may sell significantly better than more extreme colors (pink, neon, etc.).

Using the “Variations” section in ProfitGo, you can view an overview of all variations. If each variation has its own BSR and the rankings differ significantly (more than 1–2 positions), then the estimated sales are usually relatively accurate. However, if multiple variations share the same BSR, you should pay closer attention.

You can then scroll through the variations to check whether any of them have confirmed sales data. If another variation shows very high confirmed sales, it is likely that your displayed variation is simply benefiting from the popularity of that other variation while having very few sales of its own.

For example, if another variation has 200+ confirmed monthly sales while your variation only has an estimated 47 monthly sales, then it is likely that a large portion of those estimated sales are indirectly influenced by the stronger variation. In reality, your variation’s sales potential is probably significantly lower.

In general, there is no universal “minimum” number of monthly sales that you should avoid falling below. What matters is accurately estimating the sales potential so that you do not end up purchasing 50 units of a product that only sells 6 times per month.

In the previous steps, we examined the current price and monthly sales. However, there is one important thing to remember: both are merely snapshots of the current moment in time.

Such a snapshot is useful, but it does not necessarily reflect what the market situation will look like in 2–3 weeks - after you have ordered the product, received it, prepped it, shipped it to Amazon, and had it successfully checked into Amazon’s warehouses.

To better estimate future developments before purchasing, it is helpful to analyze historical data from the recent past. The best place for this is the “Charts” section in ProfitGo.

We recommend reviewing multiple time periods and carefully observing the development of both the product price and the monthly sales or BSR.

Has the product remained stable at its current selling price over long periods of time? Then there is a good chance that this stability will continue. On the other hand, has the price only risen significantly within the last week after remaining much lower for the entire previous year? Then the risk of the price falling back to its “normal” level is substantially higher.

Monthly sales are also closely connected to pricing. If the current price is significantly higher than usual, monthly sales almost always decrease — and vice versa.

There is no universal rule here. You need to individually assess whether the data suggests that the selling price and monthly sales are likely to remain stable or not. Again, this requires some judgment and intuition that can ultimately only be developed through trial and error.

For example, you should never assume that you will eventually be able to sell the product again at a previous all-time high price. Such values are usually not representative and should never form the basis of a purchasing decision.

Instead, ask yourself:

“Would I have been able to sell this product profitably at least 50–60% of the time over the past 3–6 months?”

If the product has passed all previous checks, there is one important question left to answer — the private label (PL) risk.

If this is your first time hearing the term, we strongly recommend reading our dedicated [Private Label Guide]. In practice, being able to recognize PL products is extremely important, as an IP claim can lead to severe financial damage — ranging from unsellable inventory to account suspension. Products with a high PL risk should therefore be avoided at all costs.

We maintain a small database of brands that carry a known PL risk. However, there are millions of brands on Amazon, all of which handle third-party sellers on their listings differently. Smaller brands in particular often react very aggressively when other sellers attempt to use their listings for resale.

Additionally, a brand’s behavior can change within just a few months — sometimes even multiple times. This makes it impossible to catalog the behavior of every single brand individually. Instead, we need to evaluate the situation through deeper analysis.

The best way to do this is by examining the historical number of sellers that have sold on the listing over time. This information can also be found in the “Charts” section of ProfitGo.

A PL product typically has a very consistently low number of sellers (<5) over extended periods of time. The graph appears very static, with only occasional short-term changes when a seller joins or leaves the listing.

In some cases, this can also happen simply because the product sells very infrequently (well below 10 sales per month). However, if you see this type of seller history on a product with 100+, 200+, or even more monthly sales, alarm bells should start ringing.

In many of these cases, you can even find the manufacturer itself listed in the “Offers” section. In any case, for your own protection, you should avoid such products whenever possible.

A healthy seller history, by contrast, usually resembles a “mountain range.” The number of sellers may regularly exceed 20–30 and rises and falls unpredictably. The graph moves constantly in small zigzag patterns and rarely remains static even for a single week. Such products are generally much safer from a PL perspective.

The final essential parameter is the return risk. Especially on Amazon, return risk plays a crucial role because Amazon is extremely customer-friendly - far beyond the legal minimum requirements for withdrawal rights and warranty obligations.

Before purchasing a product, you should therefore always ask yourself how likely it is that the item will be returned and in what condition.

One possible indicator is the product’s review rating. Generally speaking, a highly rated product is likely to have a significantly lower return rate than a poorly rated one. In some cases, it can even make sense to read individual customer reviews in order to better understand the criticism and what it may imply about the condition of future returns.

However, ratings alone are not a perfect indicator of return risk. Depending on the type of product, return rates can vary enormously. Fashion products are a particularly good example, as different sizes naturally lead to far more returns than categories such as toys or perfumes.

Again, good judgment plays an important role. One helpful consideration is the residual value of a returned used item. A used deodorant roller, for example (absolutely possible on Amazon), is effectively worthless for hygiene reasons and can only be disposed of. A used tablet, on the other hand, may still retain 50–60% of its original value despite normal signs of wear.

Outside of the fashion category, most sellers experience return rates somewhere between 5–15%. Even in the case of a return, you will still be charged shipping costs and part of the sales commission as processing fees. Ideally, these costs should already be factored into your calculations by leaving sufficient margin for error.

If your product has successfully passed all previous tests, there is an extremely high probability that it is suitable for selling on Amazon. In principle, nothing stands in the way of purchasing it.

However, there are still a few additional aspects that may become relevant, especially for the operational side of the business.

A particularly important topic is product approvals (ungating). Here, we have one very clear recommendation: in most cases, you should not pass on a great deal simply because you are not yet approved for the product.

Whether you already have approval can quickly be checked in the “Quick Info” section. However, it is important to note that Amazon occasionally provides us with inaccurate information. Therefore, if you are seriously considering a purchase, you should always verify directly in Seller Central whether approval is required to sell the product.

Especially when approval only requires the purchase of 10 units, the purchase itself is often already sufficient. Alternatively, you can research whether the brand offers cheap accessories or low-cost items that can be used for approval purposes.

One important thing to keep in mind is that Amazon invoices only allow brand approval starting at 100 units - something that is almost never realistic due to Amazon order limits.

For invoices from external shops, it is best to use large and reputable B2C stores while avoiding wholesalers and marketplaces whenever possible. In general, multiple invoices can be combined to reach the required quantity.

If approval requires 100 units, extensive research is usually necessary in order to make the approval possible. In these cases, difficulties can indeed arise, which is why the required quantity should ideally be checked before purchasing the product.

Some products are classified as “hazardous goods” due to their properties. This effectively means that they possess characteristics that make storage or shipping more difficult for various reasons. Examples include flammable paints or perfumes.

If you want to send such products to Amazon, certain requirements must be fulfilled (especially enrollment in the hazardous goods program). You can find a complete overview of this topic in our dedicated guide [Hazardous Goods Guide].

Whether a product is classified as hazardous goods can be seen in the “Quick Info” section under Alerts. More detailed information is available within the “Alerts” section itself.

However, not all types of hazardous goods are treated equally. For example, many electronic products with built-in batteries are also classified as hazardous goods but do not require enrollment in the hazardous goods program and can be shipped together with normal inventory.

Flammable substances such as perfumes, on the other hand, require special preparation and can only be shipped together with other hazardous goods.

It is therefore important to examine exactly what type of hazardous goods classification applies so that you understand the necessary operational requirements in advance.

One aspect of product analysis that is often overrated is competitor analysis. Using the “Offers” section in ProfitGo, you can examine the current inventory levels and fulfillment methods of other sellers on the listing.

However, this also reveals the main limitation: it is merely a snapshot in time. It does not show whether an FBM seller may actually have dozens of additional units in reserve without listing them on Amazon. It also cannot predict future competition from other arbitrage sellers who may discover and purchase the same deal.

That said, competitor analysis can still be useful in some situations. In particular, if the cheapest sellers are all using FBM, it is entirely possible that you could win the Buy Box via FBA (with Prime shipping) even if your price is several percent higher than the cheapest competitor. Whether this will still be true after your inventory arrives at Amazon is speculative - but it often creates additional opportunities worth considering.

For ProfitPath users, ProfitGo also offers a useful shortcut for deeper competitor research. By clicking the detective icon inside ProfitGo, the seller and their products can be automatically added to SpySearch.

This allows you to monitor what else the seller is selling and identify additional products, brands, or sourcing patterns that may be relevant for your own sourcing strategy.

Within the Product Overview section, there is a package icon. Hovering over this icon displays the product dimensions and weight. Anyone who preps or ships products themselves should pay close attention to a product’s dimensions and weight. Sometimes products appear much smaller in pictures than they actually are, leading to unexpectedly large and difficult shipments.

Whenever available, these measurements are generally very accurate and allow for a realistic assessment of the product’s logistics requirements.

You can use the ProfitGo search bar to analyze products in several different ways. Simply enter an ASIN, EAN, Amazon product URL, product title, or storefront URL into the search field.

When searching by ASIN, EAN, or Amazon product URL, ProfitGo will search directly for that specific product.

When searching by product title, ProfitGo will show the most relevant search results, allowing you to select the product that most likely matches what you are looking for.

When searching by storefront URL, ProfitGo will display an overview of all products from that storefront, so you can review and analyze them directly.

At the top of ProfitGo, you'll find a clock icon that gives you quick access to your search history.

By clicking on it, you can view all products that you have recently analyzed using ProfitGo. This makes it easy to revisit previously researched products without having to search for them again.

The search history is especially useful when comparing products, continuing your research at a later time, or reviewing opportunities you have analyzed in the past.

If you use ProfitDesk together with ProfitGo, you also get access to a dedicated dashboard where you can track your purchases, monitor your spending, and review your performance over custom time periods.

You can also track your purchases directly through ProfitGo. This allows your buying activity to be recorded in ProfitDesk automatically, so you can keep a clear overview of your sourced products, spending, and overall performance.

This dashboard helps you understand how your sourcing is developing over time and how much capital you are investing into products.

You can access it then here:

https://dash.profitpath.com/dashboard

In the top-right corner of the dashboard, you can set or update your Spending Goal by clicking the target icon. This allows you to define how much you want to spend within a selected period and compare your actual purchases against your goal.

Inside the dashboard, you can:

This is very useful if you want to manage your sourcing more systematically and keep track of how much capital you are investing into products.

If you have any questions, if something is unclear, or if you would generally like some support with your setup, you can always book a free call with one of our team members.

During the call, we can answer your questions, go through your setup together, and help you get the most out of ProfitGo, ProfitDesk, and ProfitPath.

You can book your free call here:

https://cal.com/profitpath/onboarding-and-q-a

If you have further questions, please do not hesitate to contact our support team via Discord or send us an email at support@profitpath.com.