How to Start Amazon FBA Private Label: A Comprehensive Guide
Creating your own brand and letting Amazon handle all the legwork can be an attractive proposition.
The process, known as Amazon Private Label, requires a significant investment but can yield impressive returns if executed correctly.
In this guide, we’ll explore the necessary steps to successfully launch your private label product on Amazon.
Product Hunting: Your Starting Point
Product hunting is the process of finding a suitable product to sell on Amazon. With myriad products and categories available, choosing the right product is paramount. Here are some tools and recommended categories for successful product hunting:
Tools for Hunting Products
1. Merchant Word: Use it for finding products and the main keyword (broad) search volume.
2. Helium 10: It includes several tools:
- Black Box: Used for finding products and their monthly sale, revenue, BSR, reviews, and price.
- Magnet: Helps in finding High-Volume and Highly Relevant Keywords for Amazon and CPR giveaways.
- Cerebro: Similar to Magnet, but uses Reverse ASIN technique.
- Scribbles: A list optimizer tool.
- Frankenstein: Processes keywords.
- Keyword Tracker: Helps track the rank of your keywords.
- Index Checker: Checks which keywords are indexed by Amazon.
3. Jungle Scout: Assists in checking price, rank, monthly sale, revenues, reviews, and opportunity scores.
4. Viral Launch: Similar to Jungle Scout, but it also displays market trends and offers its own analysis.
5. Keepa: Tracks the product’s price for better monitoring and analysis.
Recommended Categories for Hunting
- Arts, Crafts, and Sewing
- Home and Kitchen
- Kitchen and Dining
- Industrial and Scientific
- Office Products
- Patio Lawn and Garden
- Pet Supplies
- Sports and Outdoors
- Tools and Hardware
- Toys and Games
- Health & Households
Product Hunting Criteria for Amazon FBA Private Label
Criteria for the US market and UK market differ slightly, as given below:
For the US Market
- Minimum of 25% profit margin or a price greater than $25.
- Search volume should be at least 10k+
- Review rating must be at least 4 for 70% of the sellers.
- Less than 1000 sellers
- Target products with average reviews less than 1000.
For the UK Market
- Minimum price of 25 GBP.
- The main keyword search volume must be at least 10,000.
- 50% of sellers must earn at least £2,000 GBP.
- Helium 10 search volume for three relevant keywords combined should be at least 10,000.
- Less than 1000 sellers
Patent Checking: Ensuring Your Product is Safe
After product approval, it’s essential to check for patents.
Sourcing and Logistics: Procuring Your Product
Now that you’ve confirmed your product’s patent status, it’s time to source it. It’s important to select the right supplier, negotiate pricing, order samples, and finalize your supplier.
Criteria for Selecting Supplier from Alibaba
- The supplier should be at least four years old.
- The supplier must have a trade agreement.
- Must have a response rate > 80%.
- Shortlist at least 10 suppliers that fulfill the criteria.
- Start with a smaller quantity, then gradually increase the volume to gauge the price.
- Order samples from the top 2-3 suppliers and compare their quality with the competitors.
- Plan for inventory while keeping in mind the giveaways.
- Generate two labels: shipping labels and product labels.
- Products weighing more than 500g are considered ocean products.
Launching and Ranking: Bringing Your Product to the Market
Listing optimization and product launch are crucial.
Use tools such as 3D images with white backgrounds, infographics, and lifestyle images.
Ensure that all the main keywords are indexed in the listing.
Do backend optimization of the listing and use the Browse Tree Guide (BTG) for selecting search words, platinum keywords, etc.
Amazon Private Label is a potent strategy for creating your own brand and leveraging Amazon’s infrastructure for warehousing, packing, delivery, and shipping.
With a step-by-step approach involving product hunting, patent checking, sourcing, and listing optimization, you can successfully launch your product.
What is Amazon Private Label?
Amazon Private Label is a strategy where you create your own brand of products and let Amazon handle warehousing, packing, delivery, and shipping.
What are the steps involved in launching a private label product on Amazon?
The steps include product hunting, patent checking, sourcing and logistics, and launching and ranking.
What are the tools useful for product hunting?
Merchant Word, Helium 10, Jungle Scout, Viral Launch, and Keepa are some of the popular tools for product hunting.
If you found this guide helpful, we recommend checking out our other comprehensive resources. We have a Complete Online Arbitrage Guide for Beginners, perfect for those wanting to explore more e-commerce strategies.
Also, you can bookmark our Complete Guide for Beginners on How to Start an Amazon Private Label is a great read for those considering the private label route.
Finally, if you need more insights on the wholesale business, our Complete Guide for Beginners on How to Start an Amazon Wholesale Business offers deeper dives into the topic. Happy reading and best of luck with your e-commerce journey!