Amazon FBA private label brands are one of the most popular ways for people to start a new e-commerce business. It’s not just the promise of big profits, or the chance to be your own boss and work from home, that appeals to people about this business model. The ease of getting started also makes it particularly attractive.

But as with any entrepreneurial endeavor, it’s not really that easy. There are a few steps you need to know of. Any experienced business person will tell you that selling private label on Amazon is an art. To succeed, you need to master the steps and tips. This article focuses on the steps you need to follow to get started. Here is a simple explanation of how to sell product using FBA.

Step 1: Find a Product

The most important step in the process is finding the right product to sell. There are many different tactics, but below are some great resources for doing this.

·         Zonbase

This is a web application that helps you find products that sell well on Amazon. You can use it to quickly estimate sales, competition and other factors that can help you identify products that are worth selling.

·         Unicorn Smasher

This is another free browser extension that allows you to gather valuable data and research on products listed on Amazon. Use it after searching for products you may want to sell, then download your results as a CSV file.

·         Google Trends

See how often people search for certain keywords over time, which can give you an idea of whether or not a product is trending up or down in popularity.

·         Merchant Words

An excellent resource for finding out what words people are searching for on Amazon. You can also see how many times those words have been searched for each month, which will give you an idea of demand for certain types of products.

Step 2: Order Samples and Conduct Market Research

Once you have identified your top 3-5 potential products, it’s time to order samples from your supplier and conduct market research. There are several criteria that you want to look at when selecting your product. Below are some of them:

·         Market Demand

Is there a large enough market for you to make money? I typically like to see over 300 reviews on Amazon and ideally over 1,000 reviews. You can check this by going to Amazon and looking at the number of reviews a product has. This can give you an indication of how many sales per month an item has. Look at the Best Seller Rank too as this will indicate how many sales per month it has too.

·         Profitability

Do you have enough margins after all costs? After buying the product and selling it on Amazon, how much profit will you have left? Typically, I like to aim for $4 per unit minimum after all costs (including shipping). If possible aim for higher margins than this, but if the product is competitively priced and has good sales volume then $4 per unit is acceptable. It is also worth noting that having a higher margin will allow you more flexibility in promotion methods such as PPC or coupons etc.

·         Customer Reviews

What is the average rating of the product and what are the recurring themes in positive and negative reviews? Are there any features that customers are hoping for that are not included in the current product?

·         Product Quality

How does it compare to other products on Amazon? Is it well made, high quality and durable?

Step 3: Choose a Brand Name

At this point, you will have 2-3 product ideas that are viable candidates to move forward with. Now you need to choose a brand name for your business and develop a logo.

Step 4: Create a Product Listing on Amazon

The next step is to create your product listing on Amazon’s marketplace. Your product listing is what allows customers to find your products using Amazon’s search engine.

Step 5: Place Your Order with Your Supplier and Launch on Amazon

Once you have placed your order with your supplier, it is time to launch your product on Amazon.