Many times there's no easily recognizable reason for price drops on Az. Sometimes it might just literally be to make room for more inventory. Other times, it might be due to having excess stock, the item is out of season, etc. I've made TONS of money on AZ to AZ flips. Make sure you check Keepa, Camel Camel Camel and The Tracktor sites for price drops - all three are updated throughout the day. Price Zombie is another good one - it actually shows price drops for dozens of online stores.
- The greatest pitfall is not doing sufficient research.
- For instance - a rank might be inflated making it look like it's an item that sells well so make sure you check the data on Keepa and CCC to see how long ago the price dropped. If it's in the last day or two, I'll buy. But if it's been low for awhile I'll pass (most likely the rank was previously poor).
- Also, pay attention to the number in stock, where other variations are priced in comparison and where other sellers are pricing.
- I also tread lightly if the chart shows a steady, step-like decline.
- Finally check keepa to see if they are raising the price to a ridiculous level only to drop it back down to trigger sales (and to appear on the drop lists and make it look like a good deal).
I look for Keepa charts that look like this. If the rank is good, I'd buy this (as long as my above statements are also true - checking where other variations and sellers are priced in comparison) An entire "wall of orange" - stable high price and a sharp, recent (within the last day or two) price drop.
And an example of when NOT to buy is below:
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