How to Read a Keepa Chart to Make Smarter Amazon Purchases when Sourcing for Arbitrage & Wholesale
Today we’re going to go over how to read a Keepa graph. The importance of understand a Keepa graph is vital to all amazon sellers. It’s going to show you price history & best seller rank history over the lifespan of that listing.
Why is that important? If you can better understand those two things, you can make more informed decisions on purchases because you’ll be able to better anticipate what the sales velocity will be when your inventory actually goes live (not at the time of the purchase) & what you can expect to sell your product for.
If you’re serious about selling more & making more on Amazon, understanding Keepa graphs will help you immensely. And the great part about keepa is you don’t need to pay for it. There is a paid plan, but you don’t need it. The free version works great.
The only reason, in my opinion you would want to upgrade, is if you either want to look at historical data on the buybox price or historical data on the sales rank.
When you initially look at a keepa chart, it can seem daunting. There are lines going everywhere & many different colors & it can be confusing…almost like looking at another language.
But you can select & deselect different things on the chart if you only want to look at specific data.
The first thing to understand about keepa charts is the color schemes. Amazon is in orange. The lowest new price (not counting shipping) is in blue. And the lowest used price (not counting shipping) is in black.
Depending on what you’re sourcing for, some of this information might not be relevant & then you can deselect it so you can focus on the information that is important. You can also adjust the date range on the graph to look at more recent data or more long term data.
If you’re seeing any white spaces in the chart that’s because this is a period when amazon is out of stock & no longer a seller on this listing.
So, the shaded orange indicates when amazon is in stock vs. out of stock. The line at the top of that is going to indicate their price. This is important because you can look at the price trend of an item.
For example…if you can source something at $4 & the current buybox price is $30, then there could be a good opportunity.
You’ll want to look at the price history of the keepa chart to make sure. If the price has been pretty steady at around $30….maybe it drops to $28, but then goes back up to $32…& stays roughly around $30 for a long period of time, then that’s obviously a pretty good buy & a safe bet to make money on.
On the other hand, if the price is super up & down, & it happens to be 30 currently, but for the majority of time is was only $8, then you might want to look more in depth into it & move forward with caution.
Understanding keepa graphs can help save you from making poor buying decision too. For example, let’s say you’re sourcing a product that costs $15. You look at the amazon listing & it sells for $100. Immediately, you get excited & you think you just scored big!
Now, a beginner purchases that product without thinking twice. I mean, they did the research right? You buy for $15, the listing sells at $100. It’s a no brainer.
But the experienced seller knows to look further into that. They want to see the price trend on the keepa chart to make sure that price isn’t just an outlier. Because potentially, what the beginner might not know is the price has been $20 for about 95% of that items lifecycle, & is only $100 right now because Amazon is out of stock & the only other seller on the listing raised the price drastically.
If that were the case, you could potentially buy the product at $15 expecting it to make you a lot of money, but then by the time it gets into FBA the price might have dropped back down to $20 & you could end up losing money after fees.
So this is a perfect example of why understanding keepa graphs can help you judge quality buys vs. risky buys.
You can do the same exact thing with the lowest new price & the lowest used price if you want to look at that data too. Keep in mind you can select & deselect the information you want to see so your chart isn’t confusing & is only displaying relevant information to your purchase.
That’s how you read a keepa chart to better judge product purchases.
If you'd like to watch the video breakdown of this article, you can check it out directly below.