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Chapter 19: The ArbiSource Lead Check

What you'll learn: how to check any lead in four questions, how to rate each answer green, amber or red, and how those ratings turn into one of four decisions: Buy, Test-buy, Watch or Pass.

The Lead Check at a glance​

QuestionWhat you're asking
MatchIs the product I'd buy exactly the product on the Amazon listing?
MoneyIs it profitable after every fee and cost, at the price it usually sells for?
MomentumDoes it sell steadily, will I get a fair share of the sales, and has the price held up?
SafetyAm I allowed to sell it, and can I sell it comfortably?

Rate each question green (no concerns), amber (a concern you can live with or test) or red (a reason not to buy). Then:

RatingsDecisionWhat you do
All four greenBuyBuy a sensible quantity, based on your share of the sales
One amber, the rest greenTest-buyBuy a small quantity to learn how it sells
Two or more ambersWatchAdd it to your Sourcing List, set an alert and check again later
Any redPassMove on to the next lead

A red always wins: even three greens can't outweigh one red.

Video coming soon

Lead Check walkthrough on a UK lead in ArbiSource, recorded on the UK version.

Before you start: a quick sort​

You don't need to run the full Lead Check on every result. First, narrow the list:

  1. Run Check Restrictions and hide what you can't sell.
  2. Sort by deal score. Each result's score out of 10 reflects the profit, ROI, BSR, match confidence and number of sellers, weighted the way you set it up (Chapter 4.3). Start with the highest.
  3. Skip the obvious no's. A clearly different product in the photos, or a price that only works today, can be passed in seconds.

The deal score helps you decide what to check first. It doesn't replace the Lead Check.

1. Match: is it the same product?​

Profit figures are only right if the retailer's product and the Amazon listing are identical. Mismatches are the most common beginner mistake, and the easiest to avoid.

Check: pack size and quantity (single vs multipack), size, colour and variation, edition or model year, the contents of a set, and the barcode where shown. Compare the titles and photos side by side. ArbiSource's match confidence, alternative matches and the option to report a mismatch all help here.

GreenAmberRed
Title, photos, pack size and barcode (or model number) all agreeVery likely the same, but one detail can't be confirmed, such as no barcode on the retailer's pageA different pack size, variation, edition or set

2. Money: is it really profitable?​

Check the profit and ROI after all of Amazon's fees, the VAT that applies to you (Chapter 6), and your own costs such as prep and shipping to Amazon (Chapter 7). Most importantly, check them at the product's average selling price over the last 90 days or so, not just today's price. ArbiSource shows profit at the current price and at the average price for several periods.

Your minimums. Before you start, write down the minimum profit and ROI you're happy with (Chapter 7). The examples in this Part use £3 profit and 30% ROI, but choose figures that suit your costs and budget. A one-row-per-lead sheet is in Downloads (lead-check-sheet.xlsx).

GreenAmberRed
Meets both your minimums at the average priceProfitable at the average price, but below one of your minimums; or meets them only at today's priceA loss at the average price, or no realistic way to reach your minimums

3. Momentum: will it sell, at that price?​

Check the things you learned in Part 3:

  • Sales: regular rank drops over the last 90 to 180 days, and estimated or confirmed sales that agree (Chapter 8).
  • Your share: divide the monthly sales by the number of competitive FBA sellers, then be a little cautious. Would your quantity sell within a month or two?
  • Price history: a steady Buy Box price, not a recent spike (Chapter 9).
  • Competition: a steady number of offers, and how often Amazon holds the Buy Box (Chapter 10).
  • Season: where the product is in its yearly pattern.
GreenAmberRed
Steady sales and price over several months; your share would sell within a month or twoOne concern: a short history, a seasonal pattern, rising competition, or Amazon in the Buy Box some of the timeVery slow sales, a falling price, or Amazon holding the Buy Box nearly all the time at a price you can't match

4. Safety: can you sell it comfortably?​

Check that your account can sell it (Check Restrictions, Chapter 3.3) and whether the result shows warnings for hazmat, oversize or potential IP issues. Think about expiry dates, fragile items and anything that needs special prep. Part 6 covers restrictions, brand choice and product safety in depth.

GreenAmberRed
You can sell it, with no warnings and no special handlingSellable, but needs extra care, such as an expiry date, fragile packaging or a heavier boxRestricted on your account, a hazmat product you can't send in, or a potential IP warning you can't resolve
A UK ArbiSource result panel annotated to show where each Lead Check question’s information is: match confidence and photos (Match), profit and average-price figures (Money), sales, BSR % and the price graph (Momentum), and restriction, hazmat and IP warnings (Safety)

Making the decision​

  • Buy. Choose a quantity you'd expect to sell within a month or two, based on your share of the sales. Start modestly, even on an all-green lead: you can always buy again.
  • Test-buy. Buy just a few units. The aim is to learn: how quickly it sells, whether the price holds, whether the amber concern was real. If it goes well, it can become a Buy next time.
  • Watch. Add it to your Sourcing List and set an alert for the price you'd need (Chapter 11). If you like, you can also follow watched leads in an optional paper-trading log alongside your real buying (Chapter 21).
  • Pass. Note the reason; it helps you spot patterns.

The decision is the most you should do, not something you have to do. If a lead comes out as a Test-buy and you're still not comfortable, you can always choose to watch it instead.

Common slips​

  • Rating Money on today's price: always look at the average too.
  • Trusting a high match confidence without looking: check pack sizes yourself.
  • Forgetting your share of the sales: 300 sales a month split between 20 sellers is 15 each.
  • Skipping Safety because the numbers are exciting: a great profit on a product you can't sell is no profit at all.

Checklist​

  • I've written down my minimum profit and ROI
  • I sort by deal score and run Check Restrictions before checking leads
  • I can rate Match, Money, Momentum and Safety green, amber or red
  • I know: all green, Buy; one amber, Test-buy; two or more ambers, Watch; any red, Pass