Private Label Answers To Your Questions – Part 2
Liran Hirsckorn With Private Label Answers To Your Questions
This episode of the Amazon Seller Podcast answers the questions that were asked in the Amazing Freedom – Amazon Sellers Facebook group recently. Join the group to take part in the next ‘Ask Me Anything’!
Question 1: WHAT IS THE PROCESS FOR COMING UP WITH PRODUCT IDEAS?
Private Label Answer 1: Mostly combing the amazon catalog with a fine tooth comb. Looking in depth in categories and just searching for niches that have potential.
Question 2: HOW MANY REVIEWS SHOULD YOU HAVE BEFORE DOING SPONSORED ADS?
Private Label Answer 2: Don’t wait for reviews, just start the ads.
Question 3: HOW DO YOU SCALE EFFECTIVELY?
Private Label Answer 3: – Scale – Sponsored ads, find product ideas with demand, and keep bringing new products to the Amazon marketplace.
Question 4: HOW DO YOU EFFECTIVELY MANAGE SKU’S?
Private Label Answer 4: Once a listing gets established it usually isn’t too much work ongoing. However, if you are having trouble, my advice is to focus on your top 20% of profit earners and try to never go out of stock on those. Focusing on the winners helps you prioritize what’s important.
Question 5: HOW LONG SHOULD YOU WAIT BEFORE ANALYZING YOUR PPC?
Private Label Answer 5: Typically, you are going to want to wait at least 2 weeks before making major changes to a campaign. If you are not getting enough impressions you might not be able to make a good decision after 2 weeks even and should play with increasing your bid price.
Question 6: HOW MUCH SHOULD YOU BE YOUR INITIAL BUYING INVESTMENT?
Private Label Answer 6: Between $2 – $3k+ is usually a realistic low-end starting place.
Question 7: WHAT IS YOUR FAVORITE CATEGORY TO LAUNCH NEW PRODUCTS?
Private Label Answer 7 :I have successful products in home & kitchen, toys, apparel – really wherever I see opportunity.
Question 8: WHAT IS YOUR PERSONAL OUTLOOK FOR PRIVATE LABEL FOR THE REST OF 2017 AND INTO 2018?
Private Label Answer 8: I am in the process of launching several new products right now. If I didn’t see opportunity here I would just be focusing on my existing products or looking for a different business model. There is still tremendous opportunity on Amazon, you just can’t bring copy-cat products to the marketplace – you have to bring good, quality products to the market.
Question 9: DO YOU THINK HIRING INSPECTION FOR MY FIRST PRIVATE LABEL PRODUCT IS ESSENTIAL?
Private Label Answer 9: Absolutely, inspections are crucial to saving you potential complaints and paying for bad product. You may be able to do just a partial inspection, but depending on the product you might want to get 100% of the units inspected. I’ve personally had good experience with the company Richforth.
Question 10: CAN YOU SHARE YOUR INSIGHTS ON THE NEW BRAND REGISTRY?
Private Label Answer 10: Brand Registry, the next version, should be available sometime in the month of May 2017. Amazon is trying to give brand owners more protection. In addition to needing a logo on your product and packaging like in the first version, it looks like version 2.0 will require you to also have a trademark in order to get brand registered. Whether the trademark has to be approved or just filed, we aren’t sure yet, but I would guess it needs to be approved. The process of getting a trademark approved typically takes between 6 – 9 months.
Question 11: WHAT IS THE PROCESS OF APPLYING FOR A TRADEMARK?
Private Label Answer 11: I used the website Trademark411 to file my trademarks. The process of getting a trademark approved typically takes between 6 – 9 months because they have to advertise your trademark and allow people to dispute your trademark if they think it violates theirs for some reason. My advice is to file a trademark if you have a brand that you think you will work on long-term and appears to be successful. I don’t think it is the first thing you need to do, but it is valuable to get it.
Question 12: HOW MUCH WAS YOUR HIGHEST PRICED PRIVATE LABEL ITEM?
Private Label Answer 12: I have a range of products that sell between $70 – $100. I like higher priced items because they have a larger barrier to entry and it helps to minimize the competition and increase margins.
Question 13: WHAT WOULD YOU RECOMMEND AS THE BEST APPROACH FOR ONE TO BE FAMILIAR WITH ESTABLISHING A PROCESS AND UNDERSTANDING THAT UNDER A PRIVATE LABEL?
Private Label Answer 13: First, I suggest that people listen to the Amazon Seller Podcast and join The Amazing Freedom Facebook Group. But really, I just recommend that sellers get started and don’t worry about doing everything perfectly right away. You will learn as you go and getting started is really the most important step.
Question 14: WHAT DO YOU RECOMMEND AS A MAX MOQ FOR NEW SELLERS?
Private Label Answer 14 : 500 to 1000 units is probably what I would say, unless the item is very very cheap, or it is Q4 and you see big potential.
Question 15: DO YOU HAVE ANY PRIVATE LABEL ITEMS THAT ARE BUNDLES?
Private Label Answer 15: Personally, no. But there is big potential in bundles.
Question 16: DO I NEED PROFESSIONAL HELP FOR MY PRODUCT PHOTOS?
Private Label Answer 16: lifestyle images by a photographer are ideal, but more costly (typically $500+) – our service is excellent – amazingfreedom.com/magic and helps create awesome lifestyle images from plain/boring raw images.
Question 17: WHAT’S YOUR MINIMUM MONTHLY PROFIT THAT YOU LOOK FOR PER SKU’s WHEN BRINGING OVER A NEW PRIVATE LABEL PRODUCT?
Private Label Answer 17: I am usually looking for about $5k minimum revenue from a product – which I would consider a “double”. That usually translates to $1 – 3k monthly profit, which I am good with and will try to just build up a portfolio of those products.
Question 18: DO YOU USUALLY SHIP EVERY SINGLE UNIT INTO AMAZON?
Private Label Answer 18: Usually, yes because I don’t have a warehouse. If I did then maybe I would store some myself.. but I don’t think it is necessary.
Question 19: IF MY LOGO CANNOT BE PRINTED ON THE PRODUCT, IS IT STILL WORTHWHILE?
Private Label Answer 19: Possibly…its good to differentiate your products from competition if you can, logo alone is sometimes not enough, unless there is really not very much competition on amazon
Question 20: WHAT SHOULD I BE CAREFUL WITH WHEN DEALING WITH SUPPLIERS AND USING EXISTING DESIGNS?
Private Label Answer 20: A lot of sellers will take existing designs with a supplier because of the low cost and low MOQ. If you have an idea for a new design you just have to evaluate what it is going to take to get that set up and see if it is worth it to bring a better product to the marketplace based on customer reviews and feedback on Amazon.
Question 21: WHEN SHOULD I CHANGE MY AD GROUP OR KEYWORD ON AN AVERAGE?
Private Label Answer 21: 1) if you are not getting impressions for sponsored ads, Amazon probably doesn’t think your ad is relevant, so you may want to look at your keywords. 2) if you are getting impressions, 1,000 – 2,000 impressions is usually a good minimum to judge a search term. Another thing to look at is clicks. If I have 10 clicks and no sales, then I might determine that a term is not converting very well (unless that is my main keyword, then I will want to look if there is another reason that a term isn’t converting).
Don’t miss the next episode of The Amazon Seller Podcast.