Amazon is currently the largest retailer & also the fastest growing retailer in America. FBA (Fulfillment by Amazon) allows you an opportunity sell your own product to the largest customer base in the world. Not a bad gig. It’s much easier said than done but if you do your due diligence and eliminate as much risk as possible, it can be done.
We launched 3 private label products 8 months ago on Amazon & have already sold over 4k units!
The very first thing I recommend doing is getting familiar with every aspect of the business. Luckily there are a couple great resources already out there that do a wonderful job breaking the process down & making it as simple as possible.
Read the blogs & listen to the podcast from these guys. It will paint a much more clear picture. I probably would have been overwhelmed without their guidance.
I’m going to break down my personal journey & struggles very briefly through a series of articles.
Part 1 – Finding a niche.
What the heck do I sell? How do I know what will sell consistently? The beginning is actually the most difficult part in my opinion. Deciding what your first product will be. After about a week of scouring the internet I came across Jungle Scout. The Web App is a necessity in my opinion. The Web App allows you to research the Amazon catalog of products in a completely customized way to find a niche that isn’t already saturated.
Main criteria that is fairly universal amongst FBA Private Label sellers.
- Light weight – less than 3 LBS
Because it’s cheaper and easier to ship. Amazon charges more for over-sized products if they are too big or heavy.
- Product costs at least $10 + has enough demand
Because Amazon charges a significant fee to list your products on Amazon Prime. There needs to be enough volume for you to sell 40 units per month to justify paying $40/month membership fee.
- No dominant brands + minimal competition
It would be awesome to have your own brand of shoes but do you want to compete with Nike, Adidas and Under Armour?
- Able to complement with other similar products
The concept of this business is to eventually scale up and earn money. It’s easier to do with multiple products that are similar or already complement each other.
I spent about a week of research using the Jungle Scout Web App & using the criteria to pinpoint a niche that I felt comfortable with. I had 5 or 6 products that qualified for all of the criteria above and finally decided to go with Muslin bags.
I chose muslin bags because they were the lightest/cheapest and had the most demand on Amazon. Muslin bags are also sold in a variety of sizes so it was easy to launch a bigger sized bag first then eventually add a smaller bag as my second product.
Click here for part 2 – Finding a supplier.