Stage : Get Product Listed & Start Selling
Now the fun starts. You want to be putting sales first when you get to this point, because thatll help sharpen your attitude to a fine edge.
Think like a marketing strategist when you decide on things like the wording youll use in your product descriptions. Everything you decide on from this point forward will affect the number of product sales youll receive, so craft your pitch very carefully.
As always, there are a multitude of freelance and other professionals waiting to assist, should the need arise.
Source Your Amazon Private Label Products
Dealing directly with a manufacturer is the direct route to securing a private label product. Its a daunting prospect for some Amazon sellers, but an essential part of the process. Alibaba is your ideal source for multiple manufacturer options, as is Global Sources, and these should be your starting points.
A slightly less daunting route for beginners is Alibabas sister site, AliExpress, where you can order one-offs of thousands of product choices without directly corresponding with the manufacturer, apart from adding the product to your basket and paying online!
You wont get the best deals this way, however, its an efficient way of procuring samples before you dive in with a full order.
Typically, when dealing directly with manufacturers, you should reach out to between three and five suppliers to allow comparisons, options and of course the opportunity to negotiate between suppliers.
What To Sell On Amazon
- Step-by-step product research
What product should you sell on Amazon? How do you know if consumers will buy it? How do you know how to price it so you make a profit? Well cover all these questions and more, and well show you exactly how to search for winning product ideas.First, a few best practices that will help you enormously in your product research quest:
- Let data guide you, rather than picking a product to sell simply because its something you like. Trust us on this.
- Dont rush it. Product research is essential preparation that requires some time and analysis to be successful.
- Use a tool, like Jungle Scout, that can mine massive amounts of Amazon data to find a product with the trifecta of: high demand, low competition, and positive profitability. Well show you how.
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Draft Your Listing Description
Use the description section to include additional keywords or details that did not fit in your bullets, talk about your business, or share anything else about your product that you want your customers to know.
Add A+ Content
If you are brand registered, you can replace the description section with an A+ content product description, which allows you to add more images and text that highlight what makes your product stand out with more customization and branding. Amazon also has different modules you can use.
When youre creating A+ content, make sure to see how it will look on mobile, as A+ content will actually appear first before your bullets on mobile.
Fulfill And Ship Your Products
Listing products for sale in the Amazon marketplace and managing your inventory are the hardest parts of learning how to sell on Amazon. This being said, once a customer places an order, the next step is to get that product into their hands.
Amazon offers two options for product fulfillment and shipment:
Fulfillment by Merchant
Self-shipping is typically a good option for small sellers and those with smaller margins. You can opt to charge for shipping or offer free shipping. The biggest advantage of FBM is that you can keep everything in-house and not lose more of your profits to Amazon fees.
The disadvantages are that its harder to qualify as an Amazon Prime shipper when you do FBM, so you could lose out on customers with Prime accounts. The other downside is that its more difficult to win the buy box when you choose FBM.
Fulfillment by Amazon
If the nitty-gritty of processing and shipping orders yourself feels overwhelming, go for the shipping method. Through FBA, you can use Amazonâs world-class fulfillment centers, customer support, and other operational tools to scale your business faster than you ever could on your own.
Image source: Amazon.com
How FBA Works
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Consider Specific Product Attributes
So what sort of private label products should you try to sell?
If youre just starting out, I highly recommend starting with products that have the following qualities:
- Small and lightweight. Your product should be able to fit into a small, flat-rate box and weigh no more than one or two pounds. This helps you save on shipping both from the manufacturer and later, when it is fulfilled .
- Non-seasonal. Your products sales should NOT be season-dependent. Examples of seasonal products include: Christmas lights, Valentines Day gifts, winter clothing, etc. Avoid these whenever possible.
- Unregulated. Certain products like food, toys, and batteries come with red tape that can make selling that product difficult. I recommend that you stick to stuff thats easy to manufacture and distribute items that dont require a lot of legal paperwork and/or certifications.
- Uncomplicated. Electronics can be fun to sell, but they often come with a lot of headaches and customer service issues. The same is true for fashion and clothing products, which may require you to have multiple colors and sizes for a single SKU.
Sign Up For An Amazon Seller Account
In order to set up your Amazon seller account and get started selling on Amazon, youll need to choose a seller plan, provide some information about your business, and understand Amazons seller policies.
Choose a Seller Plan
When you sign up to sell on Amazon, youâll choose one of three different selling plans, depending on the scale of your business:
- Amazon Individual Seller: If you own a very small business and plan to sell fewer than 40 items per month, you can sign up as an Amazon individual seller. This will cost you just $0.99 per sale, plus a few other transaction fees.
- Amazon Professional Seller: If you plan to sell more than 40 individual items per month, youll need to sign up for a professional account. Amazon will charge a subscription fee of $39.99 per month, plus some transaction fees on each sale.
- Amazon Vendor: If you manufacture products yourself, you can sell these goods as a wholesale business to Amazon. They will handle product listings, fulfillment, and shipping, and when they run out of stock, they will order more from you.
Be aware that certain products require approval to sellâand, if approved, only sellers with professional accounts are eligible to sell those products. Some products that require approval include specific software, laser pointers, and hoverboards.
Amazon recommends that you use the professional seller plan. Image source: Amazon.com
Create Your Amazon Seller Account
Image source: Amazon.com
Set up Your Seller Profile
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Amazon Private Label Strategy How To Sell Private Label Products On Amazon
Choosing to create private label products to sell on Amazon is an ambitious endeavour. The benefits of launching and selling a private label outweighs all the trouble in setting it up. It will entail a lot of research, hard work and dedication to succeed in promoting and selling your brand.
Complete control of quality, marketing and pricing of all the products made by your brand are the main advantages of building your own private label. To make sure your brand stands out, you need to provide customers with something other brands that sell the same product do not have.
Ongoing Improvements And Updates
There are many more rumored improvements, some of them mentioned at the 2017 Boost with FBA Sellers Summit in New York City. These include:
- Unique Amazon URLs for your brand
- Customizable product details pages with more features and a new design
- Ability to upload custom videos on your product page
All these changes lead to better control for Amazon sellers over their private label brand and give them some of the much-needed protections sellers have been asking for, while also improving the overall customer experience.
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Review Best Sellers Pages Within Your Potential Categories
Next, if you want to explore your opportunities and competition within a certain category, you can simply head to Amazon itself, search for that category and add best sellers to your search term. Heres what we found searching for best sellers novelty scarves:
The Best Sellers page lists the top 100 sellers in that category. From there, you can click into different items and scroll down to gauge their sales popularity.
The product description detail that Amazon provides on each item tells the story of its overall popularity. For example, this item is pretty popular according to:
Its Amazon Best Seller Rank of 5,836 in the huge Clothing, Shoes, and Jewelry category. As a rule, anything with a BSR under 10,000 in a major category has respectable sales velocity.
Its 145 reviews from customers show that this item has a track record of sales.
Reviews add up over time, but each review shows the date, so you can use reviews to gauge how many of a given item sold in a set period of time. According to Amazon Seller Central, only about 10% to 20% of customers actually leave feedback. So 145 reviews can equal anywhere from 700 to 1,500 actual sales.
Its not a perfect market analysis, but it helps you determine if an item has enough demand to make it worthwhile. It also helps you see what your competition is doing and uncover ways to improve upon their products.
Create Your Product Title
The title of your product is second most important part of your listing.
Right now, Amazon recommends that you include the following in your title description.
- Brand and description
- Materials or key ingredient
- Color, size and quantity
In other words you want to describe as much of your product as possible BEFORE someone clicks through.
Remember, you want the customer to have a high likelihood of buying your product if they browse your listing so you want to include as many important keywords as possible in your title but make it sound natural.
Think about your target customer and what theyre looking for and make it enticing. Try to make your listing stand out!
Now whenever I tell someone to make their listing stand out, sometimes they get carried away so here are some absolute no nos.
Never stuff keywords in your title or sacrifice the quality or the understandability of your product title.
Never use all caps and do not include promotional messages like number one or top rated or on sale now.
Overall your title should convey exactly what your product is within the first 5 words and match what your intended customer is looking for.
Now youre probably wondering why its important to include your keywords in the first five key words. The reason is because Amazon displays your products in a variety of places and often times your title will get truncated to the first 5 words.
Here are some examples of truncation.
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Research Product Suppliers And Manufacturers
Now that you have the perfect product idea, and youve verified the sales data using the Jungle Scout Chrome Extension, all thats left to do is to get it made!
Thankfully, in 2020, we have Alibaba to help us get that done.
If youre not familiar with Alibaba, Alibaba is more-or-less the Amazon of China, allowing us to purchase wholesale and bulk products directly from overseas manufacturers.
And not only is Alibaba easy to use, but its safe, too, as they thoroughly vet all of their suppliers.
Here are the basic steps to finding potential suppliers on Alibaba for your private label product:
Typically, I reach out to 3-5 suppliers for a product.
From each of these suppliers, I order a sample of the product.
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What Is Amazon Fba
Fulfillment By Amazon is a service offered by Amazon that provides storage, packaging, and shipping assistance to sellers. Amazon FBA allows sellers to ship their products to an Amazon fulfillment center, where items are stored until theyre sold. Amazon FBA can help sellers scale their businesses and reach more customers.
To sell on Amazon, you simply need a product to sell, a seller account, and a means of getting your product to the customer.
Whether you have a product to sell or just want to get in the game but dont yet know what to sell, theres a business model that will work for you to sell on Amazon. Well review the many options and choices you have when building your business, and focus on one that has proven to be a profitable, scalable method: private label.
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Features Tell Benefits Sell
Ricks first reminder is that features are telling, but the benefits of a product, that is what sells. I talked about this in a previous blog and in when I explained listing optimization. So, a juicer that focuses on features like stainless steel blades and powerful motors will not sell as well as a juicer that Rick sold focusing on its benefits. His company took a totally different approach. He focused instead on the healthy benefits of drinking fresh juice, like weight loss, more energy, and healthier skin, nails, and hair. Positioning the juicer like this helped Rick increase sales exponentially. This is a relatively easy change in focus that has a major impact on sales. Rick explains that it is important to leave the features for the spec sheets and explain the product benefits this is where it counts most on Amazon.
How To Price Private Label Products On Amazon
A question I am often asked is how to price products effectively on Amazon.
Most new sellers instinctually set a very low price point for their product, but thats a big mistake.
I rarely, if ever, set my private label products price so that it is priced lower than my competitors.
Instead, I try to make my product stand out in other ways.
Whether its through better design and packaging, tighter sales and marketing language in the product listing itself, or even through killer customer service offered after the sale is made, I make sure my product stands out .
Still, as a rule of thumb, you should try to keep your price point within 20% of your competitors average sales price.
For example, if I discover that copper measuring cups are selling for around $25.00 on Amazon, I try not to price mine less than $20 or higher than $30.
Furthermore, I always try to launch private label products on Amazon that sell between $20 and $50.
I find that if I do less than $20, it can be difficult to turn a profit after I subtract out the cost of goods and advertising expenses.
On the other hand, if I go above $50, I leave myself open to slower conversion rates and bad reviews from value-based scrutiny.
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Check On Customer Reviews
Amazon is an extremely fast-paced and active site, so in the few days that you forgot to check your page you may have lost the buy box to another seller, went out of stock, had a pricing error, or had your pictures updated to something that you didnt request.
Additionally, you may have missed out on the recent influx of negative customer reviews that complain about a product issue you werent aware of due to a recent shipment of bad product sent to Amazon. Understanding that as a seller or brand you may have hundreds or thousands of pages, it is critical that you at least check your top selling pages frequently and invest in technology that streamlines these tasks across your entire catalog.
Pros And Cons Of Selling On Amazon
Amazon is full of third-party sellers, and when done right, you can be one of the successful ones. That doesnt mean, however, that there arent some drawbacks worth considering.
- Its easy to get started as an Amazon Seller, even if youre a beginner.
- If youve got an exclusive product and a decent profit margin, you can benefit from the Amazon partnership.
- Potential for more sales because Amazon has so much traffic
- Low marketing costs
- No need to carry stock
- Sellers can hijack your listings. They use your legitimate Amazon Standard Identification Numbers to list counterfeit products. Those sellers get all your marketing effort, and you get all the bad reviews for the fake product on your actual listing.
- Amazon fees add up quickly. If you dont have a considerable margin, you may lose it by paying Amazon.
- You dont get control of the experience for customers.
- Youll still be responsible for customer care and nurturing even if Amazon fulfills your orders for you.
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Tips To Create A Private Label Brand For Amazon
Amazon private labeling is a profitable business strategy that many entrepreneurs have come to adopt.
The way it works is simple source desirable goods in bulk, place your own label on them, and sell them as your own brand on Amazon.
But while the process is fairly straightforward, creating a respectable private label brand on Amazon requires a great deal of research, time, and dedication. If you want consumers to remember your brand, you need to get all of your touchpoints rightfrom business name and logo to trademark and product packaging.
In this blog post, well cover the key steps to creating a strong private label brand for Amazon. These steps should put you firmly on the path to building an incredible brand that will help develop long-term relationships with your customers.