So you want to start selling Amazon private label products on Shopify ? That’s fantastic! Amazon accounts for nearly $1 out of every $2 spent online in the United States, and experts believe that in 5-10 years, retail would be obsolete, with E-commerce accounting for 80 percent of all transactions, including food.
Selling on Amazon FBA (Fulfilment by Amazon) is simple right now. The entry barrier is relatively low, as Amazon workers handle all of the hard labour, sales fulfilment, and customer service, so all of your time is spent on marketing and product research. Before we get started with the Step-by-Step Guide to Starting an Amazon Private Label on Shopify, it’s vital to remember that Rome wasn’t built in a day, and there is no failsafe way for turning your products into overnight successes. I’m sure you’re asking yourself these questions, and I’m trying to answer them for you.
Is Amazon FBA selling becoming less profitable?
No, and it won’t be unless you plan to jump on a popular listing and compete with 239 other vendors on the same listing, as seen in the image below. If you do your research and select the proper product, make your own private label product listing, and sell it exclusively, you will be the only seller of that product.
How to Sell Private Label on Amazon: A Step-by-Step Guide
Is the Amazon market oversaturated? No, and it won’t be unless you plan on importing cheap generic garlic presses and selling them on Amazon Shopify FBA. It’s saturated, but not entirely. More competition indicates that the sector is expanding. It doesn’t mean you make less money; it just means you have to work harder and smarter to make it. True, everyone and their mother and their dog sell on Amazon, but everyone, their mother, and their dog also buy on Amazon. You’re surely aware that there are thousands of million-dollar ideas, but ideas are essentially worthless.
Execution is everything, and an idea is nothing without some type of execution. So, instead of looking for courses, create an individual Amazon account, find some high-quality products, and gain experience offering them on Amazon.
You will have a million questions as you go through this trip, which you may get addressed through forums and research. There is no school or guru that can teach you everything you need to know to be a great Amazon seller because everything comes down to the product, its demand, rival offers in the marketplace, your advertising budget, and your marketing skills.
Again, don’t squander your money on a course. Spend that money on the product, and start small.Trust me, you’ll learn more from doing it than from any course available. Overall, the process is simple for most people, but there is still a lot to learn about getting your goods from selection to Amazon’s warehouses and selling effectively.
There is an alternative. The lesser the initial investment, the longer it will take to realise the same increase in the future. But either do it or unsubscribe from the podcasts and start doing something else that will generate you money and will make you feel less nervous about. It doesn’t matter if you only make a couple hundred dollars every month. Launching your first product will provide you with valuable insight into what you should and should not do for your future product. If you’re ready, I hope this post saves you money and time. So, without further ado, here is the Step-by-Step Guide to Starting an Amazon Private Label Business. You can use these instructions as a checklist.
The Ultimate Guide to Starting an Amazon FBA Private Label
- Find a market niche.
- Product investigation
- Locate a supplier.
- Make a logo
- Complete the supplier’s agreements.
- Create an Amazon account with a UPC or brand registration.
- Photographic shoot
- Keyword investigation
- Determine product pricing
- Make a listing
- Product introduction
- PPC marketing campaign (marketing)
- Optimization of conversion rates
- Email promotion
How to Locate a Profitable Amazon Niche
Choose a category in which you are already interested or drawn. Choose a product category that does not require a name brand to sell. Appliances, cookware, home decor, pet accessories, phone accessories, and so on. You are not required to find the “ideal” product. If you follow all of the podcasts’ guidelines, which need a product to have x sales, less than x sellers, less than x reviews, light, small, and so on, it will be difficult to locate a “perfect” product because most of those products are already swamped with sellers. Don’t only look for the perfect product. You’ll be selling a variety of things in your specialty anyhow because you’re developing a brand.
What is the significance of this?
When completing your brand registry application, do not pick more than one category. Amazon only allows one unique identification, yet for whatever reason, the programme allows you to select more than one. If you do this, your application will be stuck in limbo, and the only way to fix it is for them to cancel the application and resubmit. Please keep in mind that we no longer approve applications with numerous key characteristics because we have discovered that this causes listing issues.
As a result, I ask that you please respond to us with a single essential property that you would like to employ.
It will be easier because you will be able to expand to comparable similar specialised products. It may take some time to start expanding a private label brand, but once you do, you’ll want to expand into related products to increase your revenue streams. Furthermore, these streams will be able to attract customers to your business via various channels, resulting in increased sales.
The most time-consuming component of the process is when new Amazon sellers get stuck Shopify on product research. It should be this way since this is one of the most important tasks, and even if everything else is done properly, if we don’t choose a solid product, we may fail and lose our money. As a result, throughout the product selection step, the planning should be thorough and not rushed.
Almost every product has a sizable enough audience to succeed on Amazon. The question is whether you will be competitive or not. That is what you should be looking at, rather than whether the product is selling well. Volume is not necessarily everything if you can produce something with a high margin and a favourable ROI. You want to make money at the end of the day. Don’t try to reinvent the wheel by creating a product that no one has ever heard of.
As in, nothing that is already available on Shopify. Nobody would be looking for it. You’ll need to undertake some major brand building for that. The first and most critical step will be to identify a product to private Shopify label. This is the most difficult stage, but with enough research and planning, you will be able to design a product that generates Shopify cash for you on autopilot.
First and foremost, the product must have a positive Return on Investment (ROI)
The most typical mistake that new sellers make is calculating profit margin without considering ROI. Assume you’re comparing two products, say a knife and a spoon. The knife had a 30 percent profit margin, while the spoon had a 20 percent profit margin.
However, when the ROI for each is calculated, the ROI for knives is 53%, while the ROI for spoons is 120%.
Simply based on the profit margin, you would have clearly made a mistake if you had chosen knives, but the ROI calculation demonstrates how much better it is to invest in spoons. Here’s an example calculation to help you understand: Assume you have $1,000 to invest and must select between a bottle opener and a can opener.
The retail price of a bottle opener is $15.
- $5 for sourcing, shipping, and uploading to Amazon.
- You can purchase 200 units.
- Amazon charges a $5 fee.
- Total cost per unit: $10
- Profit margin: 33% ($15-$10)/$15*100
- ROI ($5/$5): 100% (profit margin/cost of goods) (you finish up with $2,000 in your pocket).
- Let us now compute the can opener.
- The retail price of a can opener is $15.
- $7 for sourcing, shipping, and uploading to Shopify Amazon.
- You can purchase 143 units.
- Amazon charges a $3 fee.
- Total cost per unit: $10
- Profit margin: 33% ($15-$10)/$15*100
- Return on investment ($5/$7): 71.5 percent (At the end of the day, you have $1,715 in your pocket)
Despite having the same profit margin, a bottle opener is clearly the better investment if both goods move the same amount in the same length of time and you earn $285 more with the same amount spent. Because the return on investment is better, you will be able to reinvest the funds sooner and have more merchandise on hand sooner.
Alibaba offers a product for less than $10
The product that is neither too heavy nor too large Otherwise, transportation charges and Amazon FBA fees will consume your whole profit. One dangerous mistake that new sellers make while researching Amazon products is underestimating the impact of Amazon’s fees. You can rapidly estimate fees using Seller Central’s fee calculator based on a similar product or ASIN. To estimate FBA fees, use the FBA Revenue Calculator. A comparable product has a Best Seller Rank of 5000 or below in the Main Category but less than 100 reviews.
Best-seller ranking (BSR)
BSR indicates how well a product sells in its category. This indicates whether or not there is a market demand for a product. I recommend focusing on products with BSRs ranging from 1000 to 5000 because they are in high demand. Pay attention to the main categories and subcategories when looking at BSR. Products with a BSR of less than 5000 that sell in the main category should be in the main category. Because subcategories are focused on very specific product niches rather than a broad perspective of how many products are selling, the subcategory BSR isn’t a strong signal of how well a product will do.
There are no national brands on the market. The reason is obvious: they will have established enough trust and authority to attract the majority of clients, making it hard to compete unless your selling price is significantly lower, in which case you will lose money. On the first page, there are 2-3 products with fewer than 100 reviews. 100 reviews may appear to be a lot, especially for a new seller. Non-seasonal goods. Items whose consumption is not affected by the season
Can your product be sold all year? As a new seller, you can’t afford to sell only three months out of the year, and you don’t want to plan how to buy and handle seasonal inventory successfully. As a result, the non-seasonal product will provide you with a greater potential. Again, you can use Jungle Scout to automate things and easily identify a product that meets all criteria. You can learn how to find profitable things on Amazon by reading How to Find Profitable Products on Amazon.
Finding and Negotiating with Alibaba Suppliers
Remember that you make half of your margins by buying low rather than selling high because the selling price is defined by your competition and you can’t cut Amazon fees. Your ability to negotiate a lower purchase price with your supplier could dramatically boost your margins. Keep in mind that with Chinese merchants, EVERYTHING is negotiable, and you have the money and power.
Using Alibaba to look for products
Look for products At Alibaba.com, Contact at least ten vendors with inquiries that are brief, clear, detailed, and succinct. (Send brief, clear emails.) The language barrier exists.) 1688.com offers pricing comparisons (Chinese version of Alibaba)
Request a sample (about $50). 1688 Email Template for Introduction Hi, Peter Koch is my name. I’m curious about your product for my Amazon store and have a few queries. Do you provide DDP and DDU parity? Nota bene: every respectable supplier has this choice, which implies they know what they’re doing.
What is the production lead time once I place an order?
The annual quantity is estimated to be between 5,000 and 10,000 units. You can find a designer on Fiverr or Upwork, but I recommend hiring a manufacturing designer (almost every factory has one and they will do it free of charge). Send them a Word document with a freehand illustration or just your brand name so they know what to print on a product.
Obtain the UPC
You can get them inexpensively from third-party eBay resellers, but this is against Amazon’s TOS.
Purchasing from Alibaba
I would recommend starting with 500 units or fewer. If you’re going to invest that much, I’d buy four or five distinct things rather than a large inventory of one one. By having several paths to accomplishment, you will increase your chances of success. For small quantities, you can employ air freight and let your supplier do the legwork, or you can contact UPS and arrange delivery.Just make sure your order is less than $2,300 to avoid customs processes and associated taxes. Send FBA inventory to Amazon as a resource
Begin Selling on Amazon
You are now ready to begin selling on Amazon. It is now time to register your Amazon seller account, set up your store, and begin listing and selling your products.
Create an Amazon Account
Register here to offer your products to millions of Amazon.com shoppers. You can sell on Amazon.com as an international vendor; here is a list of supported countries. If your nation is not on the list, you will require a Payoneer account. Registering your account with Payoneer allows you to withdraw funds directly to your local bank account.
Make a Listing
Your photographs and title are the most significant Shopify aspects of your listing. Many buyers will not even read past your primary photo, and almost no one will read past the bullet points. If you’re not a good writer, I recommend hiring someone to develop descriptions, bullet points, titles, and keywords for you. To increase traffic to your listing, include many keywords in the title.
At the start of your Amazon FBA journey, you have no reviews, no sales, and your product has no Amazon seller ranking. When a product becomes available, try to locate it on Amazon. Whatever search keyword you use, it’s difficult, right? If it is difficult for you, it will be even more difficult for the customer to find it, and even if they do find it, they will most likely not buy it because there is no reason to trust your product without any reviews.
Reviews reign supreme
I’ve noticed that the guys who gave away hundreds of thousands of inexpensive things in exchange for a review were able to build up a lot of legitimate reviews using that momentum, and organic reviews are VERY difficult to come by.
So, what should you do? Your mission is to generate as many sales and reviews as possible in a short amount of time following the debut. After that, Amazon will rate your goods and begin presenting it to customers organically. Request that your friends, neighbours, and family physically locate your goods on Amazon and purchase it at full price.Hire someone (Fiverr, Upwork, a bartender at a local bar, your dentist…anyone) to look for it and purchase it at full price.
Is there a pattern here? Don’t send a link to your product; instead, let them find it on their own. Amazon will prioritise your product for that specific search keyword. Allow customers to purchase at full price to avoid issues with Amazon and paid reviews.In addition to a review, other potential consumers will notice that it is a verified purchase, and you will have social proof.
You can boost your sales by creating your own website. Create a Shopify login or WordPress store with contact information and your product. Connect Amazon with your website by Login with Amazon.People can use the Login with Amazon app to log in with their Amazon account, select their delivery address and payment option, and then check out. But wait, there’s more: now comes the beauty part.
Sign up for Amazon Affiliates and attach an affiliate link to your Amazon product listing on each of your product pages, so you can earn 1-10% (depending on category) of each order. Yes, you may be an affiliate for your own products, and Amazon will pay you a fee for selling them – isn’t that nice? Remember that Amazon charges greater costs for MCF (Multi-Channel Fulfillment), and the Shopify log in must have equivalent or higher prices. If you have a lower pricing on your Shopify stock price, Amazon will ban you.
PPC Marketing Campaign (Pay Per Click)
Turn on your PPC after receiving at least two Shopify reviews. Sponsored ads necessitate patience and preparation, particularly in the early stages, in order to create a long-term lucrative presence. If you are running sponsored product advertising for the first time, I recommend following these steps:
- Set up a broad match campaign with 50-70 keywords and let it run for ten days.
- Run a report to identify profitable keywords.
- Put them in a phrase matching campaign.
Add negative keywords from your Phrase match campaign to your Broad match campaign. After some time has passed, locate phrase match converting keywords and add the keyword phrase to an Shopify match campaign (repeat the negative keyword stage). Bids in your Exact campaigns should be Shopify optimised and adjusted. (I propose making this value as high as $5 per click.) Amazon will never charge you that much, but unfortunately for us, they frequently charge more than necessary, and this high bid is the only way to ensure you rank on page one for this phrase. When you see the cost of clicks, you will drop your price.)
Optimization of Conversion Rates
Views typically increase with time, but you don’t want to sit around and wait. Product Shopify photographs that are engaging, eye-catching, and of good quality will enhance the click-through rate. Hiring a professional photographer is one of the best expenditures you can make for a successful product line, in my opinion. Customers are now on your list, and you want to convert them. Price and reviews are important factors.Only those will convert and raise the conversion rate, which is critical because higher conversion rates boost Shopify SERP placement.
Spend hours refining your TITLE, BULLETS, and DESCRIPTION. Invest in a professional photographer. Having the most and greatest keywords in the correct places can more than double the number of times your business appears in customer searches. Hire someone on Fiverr, Upwork, or pay a marketing student at your local college to read through your listing and ensure it is appropriate for your target demographic.
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