Follow My Journey Private Labeling a Product to Sell on Amazon – Learn from My Research and Experience on How to Sell on Amazon
Alright, new update on my first article –
If you are new to Amazon FBA and want to know what it means and also learn the basics, I recommend you to read my prior article (link above).
Exciting times are here!
Our first private label product is now on its way from China to the Amazon warehouse.
Or in fact warehouses, since we got assigned 3 different warehouses. The Amazon FBA Program decides where you get to ship your products and how they want to split up the shipping. This is something to consider in regards to shipping expenses. If you get assigned to ship to many different warehouses, it can be a costly experience.
Amazon started this to shorter the delivery time to the end customer. If they have inventory on several locations throughout the country/countries, it most probably shortens the delivery time out to the customer.
What is better for customers is worse for Amazon sellers, but as always, there is a way around this.
Like I mentioned in my first issue, you can apply for Amazon FBA Inventory Placement Program and ship your products to only 1 warehouse, in exchange for a cost of $0.30 per item (standard size products), and $1.39 (over-sized products).
It Is Time to Reveal Our Product
Finally, I can reveal our product and not just the poly bag.
For our first product we decided to go with a Portable Collapsible Silicone Measuring Cups & Table Spoons Set. The measuring cups are made of 100% Food Grade Silicon materials and are a perfect space-saver in the drawers. The table spoons are nesting, so they do not take up much space as well. The products are FDA Approved, BPA Free, and ECO-Friendly, so it feels good to stand behind such a good product.
We Also Made a Conscious Decision to Spare Mother Earth and Only Package It In a Poly Bag –
Nothing Fancier Than That
I have built a web shop on this site to start with, before we start building out with other relevant products, and need a separate website. You can check it out here, or click on the picture below. You can even buy the product straight from the web shop if you would like (I hope you will blink blink).
Why Did We Choose This Product You May Wonder?
I will try to explain the reason behind our choice of product as brief as possible.
First of all, this is a simple product that is foremost small and lightweight – meaning lower shipping cost, and an opportunity to use air shipping, which we are currently using.
Second, like I am listing in my first issue of How to Sell on Amazon for Beginners, it is (was) already a best seller on Amazon. If a product already is a best seller, you can leverage that traffic and try to get a percentage of the sales by creating the listing BETTER than your competitors.
Our strategy is to focus on giving customers a “good feeling” when creating the images and marketing the product. Our pictures are mostly “user pictures” that deliver a happy family feeling.
We think and hope this branding will contribute to customers buying our product, instead of the competitors that have not invested as much in this marketing aspect.
Another reason to why we chose this product was that it was rather cheap to source from China, and we got a pretty okay net profit of 35%. You can find products that will give as much as 50-55% net profit, which will be a future goal. Although, to be able to get those net profits, you have to be able to order in bulk.
For our first round starting out as Amazon FBA sellers, we ordered 500 sets of the collapsible measuring cups & table spoons. What I have discovered from my research and training, is that you actually can start out smaller than we did, and only order 100-200 products and still be able to build your business.
You may have to pay a bit more per item when ordering a smaller amount, and can risk running out of inventory faster. It would not be good if your inventory is running out and it takes weeks to get the re-order back to the warehouse. Your customers will lose patients and order from your competitor instead.
Let us face it – you WILL have competitors. I think there is hardly any product that no one else is also selling nowadays. It would be if you invented a product of your own that is really unique. Except from that, there are always other people doing what you do, so you have to make sure to do it better in all aspects.
Do Not Lose Faith! The Only Real Failure Is to Give Up!
Remember this when things get hard and you are facing hurdles on the way, because you are most probably going to, but that is when you have to fight to overcome your mistakes, learn from them, and become even better. If our product will not sell as much as we have calculated, we will learn from this mistake and try to adjust it the next time around.
You are probably wondering what mistake I am talking about? Let me expose the possible mistake I may have done.
Where I May Have Made a Mistake
I want to be transparent, so that you readers can learn from my failures, and save some time by not repeating my mistakes.
I will probably make many mistakes on the way, but like already mentioned, from failure we learn.
I love this baby’s discontent face. He gets to resemble me when I learned the possible misfortune^^.
So, What Happened?
When doing research of which product to private label and sell, I was – as recommended by the online training and webinar – searching for a best selling product on Amazon to private label.
The ultimate product was also recommended to have a low sales rank and a few reviews – below 200 – to be able to compete for a part of the market.
However, what they did not teach and I did not look for, was the product’s ranking history. Just because the product was a best seller that day, it does not have to be a best seller the next day.
The best seller rank is measured by the number of sales, and is updated by Amazon every hour. If a seller heavily discount their product during a limited time span to increase sells, or try to collect more reviews, the sales rank can pop up to a best seller to later sink again.
I did not know this at the time, and noticed that our product left the best seller rank after some days. However, we decided to still go further with the measuring cups and table spoons set because it still has a sales rank below 3000 in the overall category – meaning that it is selling up to 100 sets a day. If we can get a part of those sales, we are good regarding to this product, and for still being beginners.
Let us see if this will be a mayor setback or not. I will have faith and hope for the better, and that we are re-ordering from our supplier in just a few weeks. More information about this later when I have the facts.
I think I will leave you with this information for now, and I will of course update how it goes in some weeks again. Our measuring cups & table spoons sets are supposed to reach the Amazon warehouses in about 8 days from now, around April 30, 2017. I will keep you guys posted.
I look forward to the Amazon FBA journey with excitement!
If you have any questions on the subject, or something else, please use the comment section below. I update this site daily and will make sure to answer shortly.
If you currently are an Amazon seller, or have prior experience selling on Amazon, I would LOVE to hear from you and your experience. My experience this far is that Amazon FBA sellers are a supportive family that happily help each other out.
Cheers, and all my best wishes to you all and may we have a successful 2017!
About the Author
My name is Stina Pettersson. I am the founder of Make a Living from Home in 2017 and the author of the articles on this site. I am originally from Sweden and am currently a business owner to 3 online businesses.
I help people to start their own online business and make a living from home. I am especially fond of helping the stay at home parent, or single parents to increase their income.
I hope I will get the honor to help YOU achieving your online success.
There are many affiliate programs that offer commissions when referring customers to their websites. Amazon Associates is one of the biggest players on the market.
Learn all steps on how to become an online business owner as an affiliate marketer and start making a full-time income on Amazon – just a click away!
Show Comments (2)