Keepa Quiz Answer Key

November 17

First, thanks for taking the Keepa Academy quiz! Here are the final numbers ....

  • Total # of submissions: 1,266
  • Average Score: 17.9/30 (59%)
  • Total Perfect Scores: 2 

There were 3 questions that I have decided were not worded well enough or were too subjective to count against anyone. 

Ok, now, the moment you've all been waiting for. The answers! You'll notice that I've explained each answer as well in more detail. Definitely read those because there will be some great opportunities for you to learn something new!

Question #1 If an item has no sales rank, that means it isn't selling.

  • A. True 
  • B. False

There are many items that sell but have no sales rank. This is a fantastic opportunity for us because most of our competitors don't know this!

Question #2 An item selling exactly ten items per day for ten days straight will always have the same sales rank the entire time, with no fluctuation up or down.

  • A. True
  • B. False

Sales rank fluctuations do not always mean a change in sales for the product. The number is relative to all other items in that category. The item selling 10 may be stable, but the rank could go up (ie: 1,000 to 1,202) if other items in the category are selling differently (which they always are).

The only time we see consistently stable sales ranks over long periods of time will be for items ranking towards the absolute top of a category. For instance, many products hold the #1 rank in their category for long periods of time.

Question #3 Sales rank is a global measurement and factors all sales across all marketplaces.

  • A. True
  • B. False

Sales rank is unique to each marketplace. The sales in one marketplace do not affect sales rank in another marketplace. Any sales on Amazon.com, for instance, do not affect the sales rank of the same item on Amazon.co.uk.

Question #4 A steady rise in the number of reviews can suggest to us that...

  • A. An item is likely selling at a consistent rate.
  • B. An item is not selling any longer.
  • C. Nothing, reviews serve no purpose in estimating sales.

Reviews can be indicators of potential sales. If reviews are steadily increasing, we can assume safely that sales are also stable and consistent.

Question #5 What is the estimated percentage of sales that go to the Buy Box owner?

  • A. 24% of sales
  • B. 67% of sales
  • C. 72% of sales
  • D. 85% of sales

The exact number is not known, but data suggests it is in the 85%+ range. The purpose of this question was to highlight the importance of owning the buy box. 

Question #6 Which of the following is a best practice for Amazon to Amazon flips?

A. Purchase from an Amazon business account.
B. Never use your prime benefits
C. Never buy from 3rd party sellers (Amazon only)

D. All of the above
E. None of the above

Amazon to Amazon flips should always be done from an Amazon business account WITHOUT Prime benefits and not purchased from a 3rd party seller, just Amazon.

Question #7 What values would we put in the 90-day drop filter of the product finder if we wanted to see only items that have a price decrease of between 50% to 70%?

90 day drop Keepa
  • A. From = 50 To = 70
  • B. From = 70 To = 50
  • C. From = -50 To = -70
  • D. From = -70 To = -50

Drop percentages can really mess with you. I actually had to double check my work several times when I tripped myself up over thinking it! Remember, we start with the lower number and move up to the higher number. If we go the other way (like 70-50) we would see 0 results. Negative values in terms of 90 drop% will actually be price increases (think of it as a double negative making a positive). This was by far one of the most difficult questions on the test for most people and the best way to answer it would be to actually open up Keepa and experiment with the numbers yourself. 

Question #8 Every customer sees the same buy box.

  • A. False
  • B. False

More often than not, we will all see the same buy box, but it is not a rule. Things like regionality (proximity to certain fulfillment centers) can cause Amazon to show different buy box offers to different customers who are looking at the product at the same time from different regions. 

Everyone gets credit Question #9 Keepa updates sales rank on tracked items at least every... [Question is differently worded than originally shown in quiz]

A. Minute
B. Hour <-What we listed as correct answer
C. 2 Hours
D. 24 Hours

NOTE: Everyone except me gets this question correct! It was worded incorrectly. Keepa does not update items every hour for every item. Just tracked ones AND sometimes it's multiple times per hour. This question should have read as "Keepa updates sales rank on tracked items at least every..." which we have since updated.

Question #10 Sales rank allows us to estimate _*exactly*_ what future sales velocity will be.

  • A. True
  • B. False

The keyword here is "exactly." There is no way to estimate future sales exactly, we are just working with the best (but always incomplete) data that we have to make more educated buying decisions. 

Question #11 What does this truck icon tell us?

  • A. That shipping is included in the price
  • B. That shipping is NOT included in the price
  • C. It just means "FBM"
  • D. None of the above

One slip up that sellers come across is not understanding whether 3rd party shipping fees are included. If they are not included, the price shown can be wildly misleading. This cute little truck lets us know that shipping has been added into the price already. 

Everyone gets credit  Question #12 "Reviews" and "Ratings" refer to the same thing...

  • A. True
  • B. False <-- Intended to be the correct answer

This one became more confusing than I had intended. Reviews refer to items that have product reviews and ratings refer to the actual 1-5 star rating left on the item. Ratings can tell us whether a product is at risk of being refunded (3 star and below, for example, will have higher refund risks). 

However, Keepa uses both reviews and ratings mildly inconsistently and how they count them changes (variations count ratings differently). 

So, I've made this answer another freebie for everyone. 🙂 

Question # 13 An ASIN variation receives 3% of all ratings. If the product (including all variations) is selling 600 units per month, how many sales per month can we estimate are made for this child ASIN?

A. 3
B. 9
C. 30
D. There is not enough information to make a reasonable estimation.

E. None of the above

The correct answer is 18. Again, this is an estimate, not an exact number. If an item is receiving 3% of all ratings, it is logical to assume it is accounting for 3% of all sales. 3% of 600 is 18. (.03*600)

Question #14 There are two items (product A and product B) and we need to choose just one. They both have profit margins of 35% and net profits of $8. Product A sells 3x as many units per month as product B. This information is...

  • A. It doesn't matter, both deals are equally valuable since they have the same profitability.
  • B. Enough to let us know for certain that product B is the better purchase.
  • C. Enough to let us know for certain that product A is the better purchase.
  • D. Not enough to let us know for certain which is the better purchase.

There are several other pieces that we'd like to know to say for certain, but we definitely need to know what the buy box competition is like. It doesn't matter how many units are being sold if we can't get the buy box. For example, an item selling 10x per month that we have 100% buy box ownership on can be a better purchase than an item selling 100x per month that we have a 5% buy box ownership of.

Queston #15 Sales rank calculates only orders and not units per order. For example, buying 10 units in one order has the same impact on sales rank as buying 1 unit in 1 order.

  • A. True
  • B. False

Sales rank is based on units sold and not on raw number of orders.  

Question #16 Which of the following can cause a sudden and massive decrease in the number of reviews on a product?

A. Amazon removing fake reviews in bulk
B. An item stops selling as often as it used to
C. An ASIN was orphaned temporarily
D. All of the above.

E. Both A and C

The biggest reasons for review count to plummet is because amazon has removed what they consider being fake or low-quality reviews or an ASIN being orphaned. An item's sales velocity will not cause the number to number of reviews to drop, it will just decrease the rate of new reviews coming in. 

Question #17 The only way to get perfectly accurate sales information is by using a paid 3rd party program like Seller Amp, RevSeller or Jungle Scout.

  • A. True
  • B. False
  • Emphasis here is on the word "perfectly." Although we are big fans of tools that offer estimated units sold per month, none of them are "perfectly" accurate. They are based on their own algorithms. They will tell you this if you ask 🙂 

    Question #18 Keepa's "drops per month" is calculated using what timeframe.

    A. The last 30 days
    B. The last 60 days

    C. The last 90 days
    D. The 30 day average from the same time the previous year
    E. None of the above

    Keepa estimates drops per month based on the last 90 days. This timeline is ideal because it reduces the impact of randomness for a shorter time scale and doesn't get skewed as much by seasonality as a year long average might. 

    Question #19 What would we put in the 90-day drop filter if we wanted to see items that had between a 50% and 70% improvement in sales rank?

    • A. From = 50 To= 70
    • B. From = 70 To = 50
    • C. From = -50 To = -70
    • D. From = -70 To = -50

    Another question that can trip you up if you overthink it. Remember that "improvement" in sales rank means the number is getting closer to 1. We use these positive percentages for sales rank drops with the smaller number first and the larger number second. 

    Question #20 Amazon will list above an item's MSRP at times.

    • A. True
    • B. False

    It's a myth that Amazon won't price above MSRP. Although they usually do not, it isn't a guarantee. However, it seems unintentional when they do list over MSRP and these types of listings typically end up with suppressed buy boxes. 

    Question #21 Filtering items by average rating (example: Show only items with 3 stars or higher) can be helpful if...

    • A. We want to find items that are selling more quickly.
    • B. We want to avoid items with potentially high refund rates.
    • C.We want to avoid items with fewer reviews (because they probably aren't selling quickly).
    • D. None of the above.

    If an item has a statistically significant number of ratings and a low average score (>3 is a decent cut off) can signal a higher risk of refunds. 

    Question #22 "Drop percentage" is always based on...

    • A. The change in buy box price
    • B. The change in prices of all offer types (even if they aren't the buy box)
    • C. It depends on what filters you have set
    • D. None of the above

    Drop percentage is not connected to any one metric. It can refer to a number of them. 

    Question #23 Sorting the deal page with this will arrange items by...

    • A. Total number of drops, Highest to Lowest
    • B. Total number of drops, Lowest to Highest
    • C. Total Price Change (in Currency), Highest to Lowest
    • D. Total Price Change (in Currency), Lowest to Highest
    • E. Total Price Change (as a percentage), Highest to Lowest
    • F. Total Price Change (as a percentage), Lowest to Highest

    I resisted putting "price change in dollars" as to not isolate our friends who are using other currencies. This filter shows total price change as a monetary total such as $100 etc. 

    Question #24 Adding this filter to the Keepa deals page will...

    A. Show items that have the lowest sales rank first, regardless of category
    B. Show items that have the highest sales rank first, regardless of category.
    C. Show items with the largest percentage change in sales rank relative to their category
    D. None of the above.

    This filter causes a lot of confusion because it doesn't consider categories. It just compares sales ranks by numerical value and filters them accordingly. An item could be a 1 in musical instruments and it will show up ahead of an item that is 2 in grocery, even though the grocery item will sell much more.

    Question #25 How many items does Keepa allow pro members to track?

    A. 100
    B. 1,000
    C. 4,000
    D. 10,000
    E. Unlimited

    F. None of the above

    Keepa lets users track up to 5,000 items at a time. You cannot open a second account to track more than that unfortunately. 

    Everyone gets credit **Question #26** Lightning deals are a good opportunity for Amazon to Amazon flips.

    • A. True
    • B. False <-- Intended correct answer

    Lightning deals require Prime benefits and we can get in trouble if we use those for Amazon flips. However, this is "subjective" I suppose, so I've given everyone credit and written this off as a poor question.  

    Question #27 Which of the following is NOT a benefit of using Keepa?

    • Better understanding how to price our products
    • Deciding how many of an item we should purchase
    • Identifying 3rd party suppliers we can source products from 
    • All of the above are benefits of using Keepa

    Keepa does not tell us where to purchase items from.  Tools like Tactical Arbitrage can do that. 

    Question #28 What can we infer was going on at the point in the graph below?

    • A. Amazon was out of stock.
    • B. The buy box price went down
    • C. Amazon removed fake reviews 
    • D. None of the above

    When the shaded area disappears, we know Amazon has left the building. 

    Question #29 This is an example of..

    • A. A suppressed buy box
    • B. A glitch in Keepa reporting
    • C. Amazon sharing the buy box 
    • D.None of the above

    A rare but beautiful case of Amazon being on a listing and giving the buy box to a 3rd party seller anyway. 

    Question #30 What do the shaded areas in the graph below tell us?

    • A. When Amazon was in stock
    • B. When anyone was in stock
    • C. When someone other than Amazon owned the buy box 
    • D. None of the above

    Amazon being out of stock is the only thing (from the choices) that we can infer from this graph. 



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