Selling on Amazon: Where Do I Start?
So, you want to make some money with Amazon …
First of all, congratulations on making the decision to take some financial control of your life and start an online business!
Amazon has proven to be an effective platform for selling products online and has created many, many millionaires as a result.
But it can be a little overwhelming to try and figure out how to get started, especially if you have no experience in owning your own business.
Lots and lots of people have asked me what’s the best place to start at if you want to sell products on Amazon. My answer to that is always the same: Private Labeling.
What is Private Labeling? In a nutshell, it’s getting “generic” products made cheaply and then branding them yourself. And here are 3 reasons why I think it’s the best place to start …
1. Easier Manufacturing
Mass producing your own products can be very challenging.
While producing quality products is important and should be a priority, it can get very expensive to get products made domestically (if you are based in the US). This is why countless businesses outsource their manufacturing to places like China, where you can produce products in bulk at a more affordable cost.
Manufacturers in China are very commonly used with private label Amazon sellers, where they get all their generic products made in bulk.
One thing to keep in mind, however … if you’re a small business with a product that is all your own, you potentially run the risk of your idea being duplicated and possibly sold for cheaper.
Even if you have patents in place, it might not stop bigger companies from attempting to profit off of your idea.
The safest bet with private labeling is to produce products (like yoga mats, phone chargers, foam rollers, etc.) that are already easy to manufacture. And chances are the supplier you choose to work with already has plenty of experience getting those types of products made.
So when you seek out suppliers in China that will be able to produce your products in bulk for much cheaper, you won’t have to worry about putting your own patented product at risk of duplication.
2. Less Hassle
Let’s face it; it’s a tremendous hassle to start your own business. There is so much that’s involved that you don’t even realize until you’re in the thick of it.
But when you start a private label Amazon business, once you have your products decided and your suppliers in place, what comes next is creating your brand… and that’s the “easy” part.
You’ll have to create your own logo and packaging. Or, you could hire a professional to create those for you.
But this is where the fun begins! You’ll want to create a brand that is catchy, inviting, and sets itself apart from your competition.
Another thing that lessens the hassle of your business in a big way is choosing FBA (Fulfillment By Amazon).
This means that Amazon takes care of the packing and shipping of your orders. They also will take care of your customer service for you.
Going FBA saves most sellers the laborious cost that comes with packing and shipping, which otherwise would suck a lot of time and money out of a small operation that has to do it themselves.
If you become an FBA seller, Amazon will take a small percentage of your profit in exchange for their fulfillment service.
But this is well worth it, as you can focus your business more on creating high-ranking listings and marketing your products rather than getting bogged down with having to pack and ship all of your orders yourself.
3. More Profitability
Cha-ching! This is the best part about private labeling your products… you can make more 💰💰💰!
The trick when starting a private label Amazon business is finding a profitable product niche.
This will require some research on your part. You will need to take a good look at what products are selling well, whether or not they’re seasonal, what their competition looks like, and how saturated the marketplace is.
But the reason you can make more money selling private label on Amazon is that you are selling products that already have value to consumers, and at more competitive prices.
As a rule of thumb, I don’t typically choose products that sell any less than $30k per month. I recommend you follow that rule for yourself as well.
Finding the right product is the hardest part. But once that’s done, it’s all about marketing and getting your product in front of as many potential customers as possible!
One thing I offer to my members of Next Level Coaching is guidance on picking a winning product, whether they’re first-time Amazon sellers or experienced sellers looking to diversify their product line. That way they don’t have to guess what moves to make with selecting a product that will profit them consistently. But anyway, I digress …
After your suppliers are in place, your awesome brand is completed, and your product niche is selected, you’ll be ready to start developing market strategies that will keep you on top of your competition.
If you are brand new to Amazon or have been thinking about starting a business selling products online, I hope this has given you a little bit of perspective on where to start.
There are a TON of great resources out there that can help you figure out how to get your business in motion, but I wanted to give you a general guideline that I know will work. After all, it worked for me 😀
My last piece of advice is this: once you have a framework of what you need to get done, be sure take action quickly! Happy selling! 👍🏼
Photo: Getty Images