Customer : Discount Gadgets & More
Challenge : Starting an eCommerce Business from Scratch
Solution : Using Algopix’s Reliable Sales Data to Choose Inventory
Added Value :
- 2 to 3 hours saved on every buying decision
- Ability to research opportunities with complex inventories
- Quick analysis leads to rapid scalability
Discount Gadgets & More Sees Continuous 40% Weekly Sales Growth Since Launch
About Discount Gadgets & More
Based in St. Louis, Missouri, Discount Gadgets & More was launched in February 2019 and sells a variety of consumer electronics including PlayStation 1 classics, computer monitors, printers and cables. Currently, the company has two employees. It primarily sells on eBay and is in the process of beginning sales on Amazon US.
The Challenge: Starting an eCommerce Business from Scratch
After working as a consultant for Microsoft’s retail team for six years, Rich Weymer was ready for a change. His experience had included the launching of over 30 well-known products including Office 365, Xbox games, Surface computers and operating systems. But his high-pressure corporate job demanded a lot of traveling, and after his child was born, he was ready to find a career that would allow him to stay closer to home.
“I decided that I was going to pivot and do something different,” he said. “I didn’t want to be on the road four days a week every single week. I decided to take some time to figure it out and find something to do.”
Part of Weymer’s experience involved selling online. Since he knew that retail was headed in that direction, he thought he might be able to use his background in consumer electronics to sell products on eCommerce marketplaces.
“I’ve always been a good gadget person,” he said, “and as my wife will attest, I have too many toys too much of the time. I started doing research and kind of stumbled into eCommerce.”
Weymer found a partner, and the two discovered Algopix when looking for a solution to speed up the procurement process. Although they looked at other solutions, they were impressed by Algopix’s ability to provide insights across many channels, rather than just being limited to Amazon.
The Solution: Using Algopix’s Reliable Sales Data to Choose Inventory
Weymer’s business focuses primarily on liquidation and closeouts, so he and his partner used Algopix’s bulk analysis to quickly analyze manifests and determine sales potential. They began by purchasing a few products and selling them. Very quickly, however, their storage unit filled up and they started renting a warehouse office space.
“The great thing about Algopix is that it does about 90 percent of the heavy lifting,” Weymer said. “Its recommendations have been spot on.”
With Algopix’s help, their inventory kept growing. Although they started out by selling on eBay, the business just placed its first orders on Amazon using FBA. They are now investigating the possibility of buying quantities that exceed their current storage capacity that would be handled through FBA. They do this by using Algopix to determine the sales volume, and then using Amazon’s FBA calculator to decide if FBA is worthwhile.
“There’s no question that Algopix speeds up our process significantly,” Weymer said. “It probably saves about two to three hours on every buying decision that we make.”
He noted that by using Algopix, the business can consider selling unique items that other sellers typically do not. For example, Discount Gadgets & More offers approximately 400 items, but sometimes that includes several hundred individual items, rather than just 400 of one particular item.
“We are finding that, using Algopix, we are able to get deals by accelerating our purchasing decisions over more complex inventories,” Weymer explained. “We are finding that we can use opportunities to buy items off of lots that most people may steer clear of because it takes them time to dig through them. But we can speed up that process using Algopix.”
Weymer also noted that Algopix is helpful for researching used and refurbished items.
“We do some refurbishing ourselves,” he said, “and with Algopix, we can consider looking at open-box products. Having the flexibility to look at these types of products is important for us.”
Conclusion: A Highly Scalable Business and a Flexible Career
With the help of Algopix, Discount Gadgets & More is growing at an incredible rate of 40 percent week over week since their launch. Weymer is confident that Algopix will continue to help the business scale even more.
“I’ve personally built a handful of businesses, and part of that involved being part of teams that scaled projects and products from zero to something substantial. But you can’t do that without the right tools,” he said. “Algopix is the tool that we are using to help us scale in a short period of time.”
At the same time, launching his eCommerce business allowed Weymer to have a lucrative career using his experience in retail while giving him the flexibility to be with his family.
He highly recommends Algopix to eCommerce sellers. “In order to run a business today, it can’t be done based on gut instincts,” he noted. “You have to use the data to justify your decisions. That’s how Algopix helps.”
Algopix aggregates data from 16 global marketplaces in real time and analyzes over 12 million products for over 30,000 users worldwide. Using innovative, proprietary algorithms, Algopix provides online sellers with comprehensive actionable recommendations, product research, competitive analysis and more. The Algopix platform saves valuable time, reduces risks, and helps sellers make better, more informed decisions about new and current products in stock and expansion into international marketplaces.