In the wide world of online retail arbitrage, there are many tools designed to help business people like you to succeed and maximize their profits. However, these tools are not all created equal. There is no one-size-fits-all software product that will magically make your business successful. But there are a few that are powerful enough to make a big difference for you. Scoutify 2 is just such a tool.
This tool is a mobile app that comes free with your $40.00 monthly subscription to Inventory Lab. While Inventory Lab functions as your listing management tool, scoutify is the tool you use for efficient sourcing of your products. It is very effective for centralizing all your research activities into a single platform. The app can be installed and used on multiple devices, which is a huge convenience, as well.
What can you do with Scoutify 2? Well, the list is long, but the most important functions are the ability to determine a given item’s potential profitability, to see whether or not you are restricted from selling specific items, to discover how many other offers have been made on Amazon for that item, and to see and analyze your personal sales and purchase history of an item. Another great benefit of Scoutify 2 is the ability to create a buy list. That buy list can then be imported into Inventory Lab to create a shipment that has your cost of goods and all the other details you’ll need to list items on Amazon. So, your buy list is a huge benefit in terms of time saved, increased efficiency, and the ability to track your cost of goods for bookkeeping.
Of course, once you’ve installed Scoutify 2, there is a learning curve. You’re going to have to take some time to figure out the optimal settings to support your business. But we can help you out a little. Here are some pointers for setting up your app that will get you moving in the right direction.
Once you’ve opened the settings tab inside the app, you’ll see four boxes. In the first section, there’s only one item that’s important for functionality.
You need to enable the one marked “Match Buy Box for List Price.” It does what it says it does – it keeps you from being off-target from the optimized price that your customers will see in the buy box. Remember, the buy box is where the majority of sales happen on Amazon. So, you’ll want to set your price accordingly.
This section is also important for you. You will need to log into Seller Central to give the app access to your data. And you will need to toggle “Check for Restrictions.” This will save you from wasting time and effort researching products that you can’t sell anyway.
This section allows you to define important parameters so your app can know what you’re looking for.
You need to define your desired return on investment. This is expressed as a percentage in the app. You can set it anywhere you like, but obviously the higher the better. You can experiment with this, but I recommend never going below 30%.
Next, you’ll have to define your rank thresholds. “Great” should be somewhere in the top 1% of the category, while “Poor” should be set somewhere down around the bottom 97% range.
Be sure to turn on “Ideal Buy.”
SHIPPING, TAXES & DISCOUNTS
This is the last box you need to take into account when setting up your app – at least for the basics.
When you’re first getting started, it can be pretty hard to estimate your shipping expenses. That’s because shipping can vary greatly from product to product, and depending on all kinds of factors. I recommend setting your shipping cost at $.60 per pound to start with. Operate your business for 3 months this way, then analyze your actual shipping costs. You can adjust this setting at that time. In fact, you should probably analyze your shipping costs every quarter and adjust accordingly.
Finally, it’s time to take taxes into account. The first two questions to consider is whether or not you have a sales tax exemption certificate, and whether or not your supplier will accept it. If the answer to both of these is yes, then you can set your tax rate at zero and leave it alone. If you don’t have one, or your supplier won’t accept it, you’ll have to ask someone working at the store what the local rate is.
If you’ve followed these steps, you’ve now set up an effective sourcing app that can help you to succeed in your online arbitrage business.
Get a free 30-day trial now! Click here to sign up for an Inventory Lab account and get your Scoutify 2 app.