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6 Tips to Discover a Profitable Amazon Private Label Product

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The Amazon Private Label Gold Rush1481414241_amazon

It is no secret that people are always looking for the next big thing. Whether that comes in the form of a gadget, a trend, or in many cases innovative ways to make money. The behemoth known to millions of people as Amazon.com has created a landscape for average people like you and me to generate additional income. The question however, is generally always how to leverage your skills to benefit from such an opportunity. Luckily, where there is a question, there is usually some sort of answer as well. With this actionable checklist on how to discover your private label product, I hope to help you lead the life you want and achieve continual success.

Lets Dig Right In 

In order to discover a profitable product, research is essential. Now’s the time to dig deep.

Once you decide on a product or products you wish to sell on Amazon, you must consider the following:

  1. Price Point1481615932_dollar__

    • Is the retail selling price on Amazon between $10 & $100? -> The answer to this question is important, because it will highlight the profitability of the product offering. We must remember that Amazon charges fees for every sale that is made. Keeping this in mind, we should understand that if the item’s selling price is too low, then it may not be the most opportune item to target. Our aim is to make as much money off of each sale as possible, so having a price point between $10-$100 is where we want to start. It’s much better to go for scalability as well as higher profits, than just trying to scale at a low price point. A lower price point would prevent quicker growth.
  2. Weightscale-154924_640
    • Does the product weigh less than 2 pounds? -> This is another extremely important element in the discovery process. Although you should not discount potential products weighing over 2 pounds, it is highly recommended to target those that weight less than that. The truth is that weight comes into play in a variety of areas in this process.
      • The weight will indicate how expensive your shipping cost will be from China to the United States or anywhere else you may be importing, not to mention any additional freight forwarding costs you may endure.
      • It will also determine your Amazon fee charges. The heavier an item is, the more fees you will succumb to. Limit your potential for losses and stick to a product weighing under 2 pounds. The lighter an item, the greater the reward.
  3. Potential for Market Sharehand-577355_640
    • Are you able to capture significant market share on Amazon or are there too many dominant brands for the item of interest? -> Just like any business venture, one must consider the competition in the target market. Are there too many brand name products matching your potential item, or is it still an untapped resource? This is a vital question to answer, because you want to ensure there is limited competition, so you can influence and dominate the market. If there are too many sellers or brands selling your item on Amazon, then you should re-think the opportunity and consider whether a different product isn’t more attractive. As Pat Flynn of Smartpassiveincome.com often quotes, “the riches are in the niches.” Try to think outside the box and you can maximize your sales output as a result.
  4. Search Keywords1481616408_1-03
    • Does your product have enough key words for people to search it under? -> In order for a product to be a viable selling option online, customers should be able to search for it using a variety of key words. Take a book as a product, for example. Customers can definitively search for books with various key words, including adding a type of book to the search term, such as hardcover, softcover, or e-book. The key words are also interchangeable, so there are many ways you can search for books, making it a very intriguing key word. Consider this point when deciding on your product.
  5. Monthly Searches for top 3 Search Terms
    • Do the top 3 key word searches for the product get searched over 100,000 times a month?  -> If the answer to this question is yes, than we’re in business. If your product is heavily searched for, this means it has potential. By introducing this product, you can provide the users what they’re looking for. Use a service, such as Merchantwords to view the search popularity of your product, so you can gauge how much interest your product generates on a monthly basis. If your product meets this criteria, then you’re definitely on to something good!
  6. Is your product fragile?glass-308019_640

    • How prone is your product to being damaged in transit? -> You want to make sure that the product is generally not made of glass, because glass increases the potential of damage tremendously. You further should consider whether you want to sell liquids, because liquids provide for the possibility of breakage or leakage in transit. That can lead to more damage than just one unit of your product, as water damage or damage from other liquids, can be very costly and unfortunate.

Certainly, there are many other elements to consider when trying to discover your winning private label Amazon product. This is a terrific place to start. Once you’ve covered these points, you can move forward in the search process.

Be creative, and remember, “the riches are in the niches.”

If you need any assistance at all in setting up your private label business, I can help! Contact me today!car-160343_640

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