Private Label Checklist

Do You Have a Private Label Checklist? – Amazon Seller Podcast, Episode 46

Do You Have a Private Label Checklist?

Do you have your own Private Label Checklist, yet?  If not, you should have one!  This research checklist is a must-have for all Private Label Sellers.  In this episode, we go over our private label checklist that we use whenever we’re evaluating guides of our inner circle members.

Do You Have a Private Label Checklist_

 

The reason we talk about this is because this is something that we do on a weekly basis. Basically, we have created our own checklist that we use for Inner Circle course members. These are members who have gone through our private label training and are part of our inner circle group. We allow those inner circle members to send us their private label evaluation guide.  This is a guide that we have created exclusively for Inner Circle members.  Our members follow that guide with their private label potential product idea. Then they send it to us after they’ve done research and filled out the guide as completely as they can.

The three of us sit down weekly and carve out a couple of hours of our time.  We go over these guides for our course members because we think it’s really a cool feature of the Inner Circle group.  Some of our members have told us that we have saved them from making really big mistakes on products. We’ve really given some people the confidence to move forward with products that are now doing 6 figures plus with products that we’ve evaluated.

The following ideas should make up your own personal checklist as you search for Private Label products:

 

 

 

 

Identifying the Main Keyword

This is the very first thing a seller should be after…the keyword that will rank their product.  A lot of people present their product ideas to us after searching through the Amazon catalog, but they have no idea what their main keyword should be.  The foundation for all good Private Label products is the keyword.  Why is this so important?  Because in online sales, it is search that drives everything, and customers find products by inputting keywords in the search bar.

 

 

 

 

 

 

 

 

How to Identify the Main Keyword 

Now that you know what your first task to complete it, you may be wondering, How do I Identify the Main Keyword?  We like the common sense approach for keywords so we use keywords that describe our product. An example would be if you’re selling a dog leash, the keyword should be “dog leash”.  If your product is whey protein, then use the main keyword “whey protein”.  But if “dog leash” is too saturated, we recommend you modify your keyword to “retractable dog leash”, or “dog leash” for large dogs.

We also recommend tools such as merchant words or magnet from Helium 10.  These tools will give you related keywords as well as volume.  The Amazon auto-suggest gives you a clue as well to the things buyers are looking for in a product similar to yours.  Running an auto-campaign on your product before you launch is also a suggestion.  It will give you an idea of which search terms get impressions and which ones are best converting for your product.

 

 

 

 

 

 

 

Sales Data

This is the next thing on our Private Label checklist that we typically look at.  When our members send us these guides they might have identified their keyword properly.  And it might look like they’ve discovered a pretty cool product.  So we use the market intelligence tool from viral launch for example. We take a look at what the sales are on the first page.

Sometimes we see that a good amount of sellers on the first page are only doing like a thousand or $2,000 a month.  In that case, there’s just no enough demand for that product.  Ideally, it’s not something that we would launch.  We encourage our members to launch products that will do 5, or $10,000 or more in sales every single month.  You can have a good product, but there may not be much demand for the product.

 

 

 

 

 

 

 

 

 

 

 

 

Listing Quality

Finding niches of products where there’s vulnerable listings is something to consider going after.  When you find a product that is selling well on Amazon, and the listing is not done well, that’s a clear indication that Amazon shoppers have a strong desire for that product.  When we say vulnerable listings we look at:

1) The title – most of the time is only 2 or 3 words, even though it’s a product that is selling $30,000/month.

2)  The images – some really good sellers only have a few images.  In fact, some of the images look like the products was taken by a cell phone with the product lying on someone’s bed.  This is probably a seller who is first to market.  But still the product sells well.  This is an indicator that this product has high demand.

3) The bullets – usually vulnerable listings have few bullets.  The bullets do not list the features and benefits.

4) The description – sometimes high-demand products that sell really well have no description at all.  If you decide to compete with this product, you will mostly like have success. Why? Because the product is definitely not selling because the listing is good.

 

 

 

 

 

 

 

 

 

 

 

Ask yourself: Why would the customer buy my product over what’s currently on Amazon?

We have some members who send us guides where we start searching the Amazon catalog and all we see are pages and pages of what appears to be the same exact product over and over. It might have a different brand, a different logo, but it seems like the same product.  So this indicates a couple of things: 1) market saturation and 2) competition.  However, if you can differentiate product well or come up with a unique design where you can differentiate the product, then I think it makes sense to go forward with it.

If you probably ever had a failed product or private label product, you probably didn’t ask yourself that question.   You should be asking yourself “why would somebody buy from me?” You don’t want it to be something just like price because anybody can lower their price anytime to compete with you. You want it to be something a little bit harder for someone to just easily change their listing or do something that they can’t  easily compete with you.  The market intelligence tool on viral launch will show you the price over the past 90 days.  And tools like Keepa extension, look at your competition.  Just see how over a year, two year period, price is being affected within a niche.

 

 

 

 

 

 

 

 

 

Reviews

Reviews are something that is so important to private label sellers and sellers are always talking about getting more reviews. How do you get more reviews or organic reviews? How many reviews currently for competitive products is too much? Our general rule of thumb is:

1) “Are there 3 or more sellers on that first page that have 400 or more reviews on their listing?” So that’s kind of the first initial checklist. The reason why is because if there are, then those 3 sellers are gonna be pretty hard to leapfrog over as you try to rank your product.

2) “Are there other listings on that page that are under a hundred reviews?”  If there are a number of them that are under a hundred, then that could be a good indication that you can break into that market. Because there are newer sellers that are on there with less than a hundred reviews.  Again using tools so you can get a good idea of what those sellers are averaging per month in revenue. That’s like a general guide.

 

 

 

 

 

 

 

 

 

 

 

 

 

Big Brand Dominance

Another thing you really wanna look for,  “Are there products that are really dominating in that niche? If you look right now at blenders on Amazon, on the first page sales revenue of the first listing is doing 600,000 in sales.  The second one 600,000,  third one 400,000  and that’s per listing.   You might look at that and you say “wow” that is huge value.  But look and you see all those blenders are named brands, huge brands right?  So the opportunity to your small private label brand to try to break in on the first page, second page in the blender niche is gonna be very little. It’s not something that you’re gonna be able to do unless you have a lot of money and a lot of resources behind you.

If you think about blenders you can immediately think of some brand names.  It’s probably not a good idea to go into that market. I think of OXO and Ninja and Blendtec and Vitamix. Those are all the top ones on the first page. Nutribullet and those are all gonna be dominating that niche and customers are gonna know them.  Even if look at the reviews, the first one has 9,000 reviews, second one 7,000 reviews, third one 4,000, 3,000, and so on.  It is way too competitive and it’s dominated by big sellers.

If, however,  on that first page when you search for that keyword, that’s the only brand that shows up.  And their listings are not that great as far as reviews then that might be one that you could break into. You definitely want to look at those reviews and see if there’s something that you might be able to change about that product to get better ones.

 

 

 

 

 

 

 

 

 

 

Price point

As far as price points goes, you should avoid having hard guidelines. I think it’s generally a little bit better to start above the 13, 14, $15 price point. Because with Amazon if you’re doing FBA a high percentage of that is going towards FBA fees.  So there’s very little room to change your price and there’s very little room for sponsored products. If you look at sponsored products on Amazon and what you’re paying on clicks, you might pay a dollar or 50 a click.  Even if you’re selling a $10 product or if you’re selling a $50 product.

So the higher priced product, the more room you have to really utilize the power of ads.  These are headline ads, product display ads, sponsored product ads to get more real estate on Amazon. I generally like going for starting at least at that 13, 14, $15 price point.  But then I like to go up as high as $200 – $300 on a product. The higher you go up in price, you probably would have less competition.  And also you don’t need to sell as many units on a monthly basis right? So you can have, if you’re selling a $100 product and you’re selling a hundred units a month, that’s gonna be $10,000 right?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Size

I do think you’re gonna have less competition. The heavier product gets, maybe if it’s over-sized, again you’re gonna have less competition. The worst thing to do is to target a really cheap product.  It’s really lightweight really small from a dimensions standpoint and gets sold in a poly bag. I think where a lot of courses taught a few years ago, that strategy it’s probably not a good strategy today.  Just because of the level of competition.

Generally when a lot of new sellers start on Amazon and kinda test the waters, they will start with a thousand or $2,000. And what kind of products are they gonna go for? Well, they’re going for products that cost them less than $5. So if it costs you less than 5 bucks, you’re probably gonna sell it for 15.  You’re gonna go for products that are air shipped.  You don’t know how to ship by boat or don’ t wanna wait to launch a first product by then. The more complex a product is, the less competition you have.

When  you start getting into making design changes, color changes from what’s typical on Amazon, and packaging. When you start getting into that and it takes you actually longer to produce.  And more time, you’re probably getting into a product that’s gonna have less competition.  If there’s good demand, the competition is not too fierce then those are the type of products that I like to go into.  And then I start thinking about “ok, can I also build a brand around this?” I’d like to add these additional things to my checklist. As far as going after products that are little bit more expensive, maybe have to be shipped by boat.  And it’s a product that I think “Is there a brand story here”?

[shadowbox]If you gained a lot of value from our Private Label Checklist, then you might want to join Amazing Freedom Facebook page.  Also consider signing up for our Private Label course at www.amazingfreedom.com/smart.  Our course will give you a firsthand look at all ways to crush your competition![/shadowbox]

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