Would you like to create your own brand and sell it to the world?
It’s possible, you know. And you may be surprised to know how easy the process it.
The process really is so simple that thousands of people are launching their own businesses on Amazon.
How do you launch your own Amazon private label business? That’s the subject we’re outlining today, and we’ve put together some simple instructions to take you from idea to launch.
Are you ready? Let’s get started.
1. Pick a Product
What product would you like to sell on Amazon? Not sure? That’s ok.
A little research time on Amazon is all you need to find a solid product to start selling.
Amazon does a lot of the heavy lifting here by providing us with their list of best sellers. The value of this list in your research is pure gold.
No need to come up with a product idea and create, test and market it to determine if the product will sell. By looking at the top 100 sellers in each category, you can easily see which items are already selling and look for something that interests you.
Don’t choose a product that already has branding, especially if it’s trademarked. Selling products that are clearly branded to another company will get you in a lot of trouble.
For example, you wouldn’t sell Beats by Dre with your own logo and branding. Instead, look for generic items such as electronics, utensils, office items, and so on.
For your initial foray into selling on Amazon, keep it simple. Choose a lightweight product weighing three pounds or less. Sell a durable product that is easy to ship with little chance for damage before it arrives at your customer’s door.
Look for products priced between $10 and $30. Lower priced items often require hundreds of sales daily just to make supplemental income. Higher priced items don’t usually sell at high volume.
High selling items with a low number of reviews are also good. It means you should be able to compete quickly.
Deciding on a product can sometimes take several hours. But it’s a necessary step and your business foundation will be set upon the products you choose. Take your time and choose wisely.
2. Choose a Supplier
Once you decide what product you want to sell, it’s time to find your supplier.
We’re going to keep it simple here. You can look at U.S. suppliers but do not be surprised if the expense is not cost effective. In that case, head on over to Alibaba and select an international supplier.
Do a product search on Alibaba to find the product you are going to sell, and you may find hundreds or even thousands of products and suppliers.
Look at each listing and see if they allow for private labeling. Also, take note of the minimum order quantity (MOQ) and their pricing range.
Email half a dozen suppliers that pique your interest. Ask what their lead time is and negotiate your order. Be confident and ask for what you want. You can often get a reduced price or MOQ on your first order.
3. Create Your Own Branding and Packaging
While you are corresponding with international suppliers that allow for private labeling, you can also start creating your branding and marketing materials. Decide upon a catchy name for your brand and hit the ground running.
Upwork, Fiverr and 99Designs are marketplaces featuring professional but affordable designers. Choose a designer that can create a unique and memorable logo and packaging that sets it apart from the competition.
Once the designer completes your project, they will give you a number of design files. Simply forward those files to your product supplier and tell them to begin your order.
4. Optimize Your Amazon Listing
The ball is rolling now. Your supplier may require 30 days or more to complete your order so you can use this time to work on the ordering and fulfillment processes.
Start by setting up your Amazon listing.
Use high-quality images in your listing. If your pictures look amateur and the product looks cheap, your sales will suffer.
Explain the benefits your product delivers and why it’s better than the competition. Consumers want to know how your product is going to make their lives easier or better.
5. Set Up Fulfillment by Amazon
You may be wondering how the product is going to get to your customer. You can ship it yourself, but we highly recommend signing up for Fulfillment by Amazon (FBA) instead.
With the FBA option, shipping is completely hands off for you. You don’t have to store the product and ship it each time you get an order.
You have your supplier send your products to Amazon, who then handles all the shipping tasks for you.
Amazon will take a small percentage of your profits, but it is money well spent. Your products automatically qualify for free Prime shipping and your shipping costs are included in your fees.
6. Start Selling on Amazon
Now the rubber meets the road. Your product is in the Amazon distribution center and you are ready to activate your Amazon listing and start selling.
Keep in mind, your first sale is going to be your hardest. Why should customers trust you? Why should they buy from you when you don’t have any reviews?
That’s why you have to have a plan in place to get as many reviews as possible.
Promote your listing on all your social media channels. Tell everyone you know, including friends and family.
Running paid advertising is an outstanding option at this point. Your most effective ad platforms are going to be Google AdWords or Amazon Pay Per Click because your leads will be warm. In other words, your ad will appear to potential customers will do already searching for the product they want to buy.
In the beginning, run a sale to ease customer fears. You can use a price optimizer like PriceFuel to analyze your listings and determine the optimal price point.
Once your product begins to sell, your private label can deliver passive income, which is one of the great benefits of selling online. All you have to do is keep shipping your product from your supplier to Amazon, so they can fulfill your customers’ orders.
The Final Word on Your Amazon Private Label
When you’re setting up your Amazon private label business, look for products that can deliver a 40% profit margin or more. Compare the unit price a supplier gives you with the product’s price range on Amazon to make sure the margin is going to be enough.
Products on the top 100 list can earn thousands of dollars every day while products in the top 500 can earn hundreds per day.
Private label selling on Amazon can be very lucrative. Just be sure to do your due diligence and focus on making customers happy.
Ready to go next level? Check out our guide on how to become successful now.