Amazon, the biggest E-commerce market across the globe. Most of the population has now become a part of this huge Online Giant in the form of consistent buyers and some in the form of sellers. Recent study shows that 89% of customers prefer buying from Amazon rather than any other selling website. And that is the reason why there are almost 150 million Amazon Prime subscribers (according to a survey conducted in 2020). Have you ever wondered how much business this incredibly gigantic number of consumers would be giving to Amazon? And off course to the whole huge clan of Sellers? They are surely making capital out of the increasing demand of this platform and has got into the race to become a multi-millionaire!
This is neither a piece of cake nor a herculean task. All it requires is right amount of effort with an organized plan of action. This article is designed to discuss Amazon FBA PL (Private Label) in detail and all the procedures required to learn by every new and upcoming seller to do a moneymaking business on Amazon. So, these 5 to 10 minutes of your life are going to prove themselves to be the 1st productive investment towards FBA PL (Private Label) and soon it will be a chain, a longer and stronger chain of profitable investments…
WHAT IS AMAZON FBA (PL)?
FBA PL (Private Label). As we can see it comprises of two sets of abbreviations. In order to gain a proper understanding, we will split these two to get the concept of each more efficiently:
FBA: (Fulfilled by Amazon). This is a business model in which Amazon takes the whole responsibility of your inventory from storing it to pick, pack and ship. It is the most convenient way to start a business on Amazon because you don’t have to provide the customer service or handle anything from picking the parcel to pack and deliver it. You just focus on your sales and leave the rest on Amazon (FBA).
PL: (Private Label). In PL or you can call it WL (White Label), you create your own brand by getting its Trade Mark registered. You buy the product directly from the manufacturers in China and give it a brand name, design your logo along with the packaging and apply for the Trade Mark Registration. In this way you also get rid of the risks of hijackers attacking your listing and get so many other benefits like EBC (use of A+ Content in your description after Brand Registry).
WHY WE ENCOURAGE DOING BUSINESS WITH AMAZON?
Amazon is the biggest online market place around the globe with about 5.7B visits per month. The list attached here will clearly show you the increasing demand of Amazon around the entire E-commerce World. It is on the top of the list of all the other giant market places in 2020 and who does not want to sell his products in a market full of potential buyers! Check out the Stats of visits/month of top 10 online market places on the globe.
You can also check the upsurge in its worldwide sale in all the 4 quarters of three years and in 1st quarter of 2020 to gain a right direction for your upcoming investment. Is it right for your E-Commerce business?
WHAT ARE THE STRATEGIES TO LAUNCH YOUR OWN PRIVATE LABEL BRAND (FBA):
I’m here to explain everything step by step so that you can generate a better understanding about all the HOWS coming in your mind…
NOTE: The chances of being successful in this business increases if you hire a professional to apply all tricks and tips I’m going to mention ahead in this article.
PROPER PRODUCT RESEARCH IS MANDATORY
When you are planning to step into this giant battlefield of the hunters of million dollars, you need to know the right strategies to remain in the battle till long. “Survival of the smartest” will be a justified phrase for this field. So, you need to be the smartest to take over the market.
First and the foremost, you need to hunt a viable product which meets the initial criteria of a good article to be launched. After that, your further product research should be on point by using some important tools for checking all the stats related to your and your competitor’s product to make a proper analysis about how you should proceed to beat the sales of your opponents.
Once you are done with the product research and everything seems good to go, it is always suggested to check the Patent. You are going to spend a huge amount of your money so skipping this step by thinking its less important and to save a few dollars can lead you to a big loss. If you are not familiar with the Patent, don’t worry I’m here to explain…
“Patent is filed to protect your idea so that nobody can steal it”
TYPES OF PATENT:
- Design Patent (To protect the design of the product from copying)
- Utility Patent (To protect the new inventions from copying)
CONTACT THE SUPPLIER / SOURCING AND LOGISTICS
If your product is already patented then you have to look for another product but if everything goes well then you will have to move forward towards next step.
In Private Label, you have to contact the manufacturer by yourself. Negotiate with 10 suppliers and select any 3 of them who are super responsive with trade assurance. Alibaba is considered to be the most reliable online suppliers’ platform; you can check others too.
Ask them for costs, samples and freight or you can hire a consolidating company for delivery from manufacturer to Amazon warehouse (you will get the consolidating company also from Alibaba).
It is recommended to get 30-40% units by air (which is fast and expensive) to start working on your ranking and 60-70% by ocean (which is a little slower but less expensive). You will have ranked your product by giving away this 30-40% of the units till remaining arrives.
CREATING DUMMY LISTING
After finalizing the deal, ask for some rough pictures of your product from the supplier and create a dummy listing with not so fine content just to check whether the product you are going to launch is eligible or not. Open the cases on Amazon at three different times to get the reply of 3 different customer support officers to gain 100% surety of the approval of your product. How to build your profile on Amazon FBA PL?
Before launching, Do not forget to get the photography of your product done with high quality 3D images, hire a content writer and an SEO expert to write a premium SEO optimized content for its description.
Now, you are done with Product Hunting, Product Research, Patent Check, Sourcing and Logistics, Dummy Listing, have got a positive response from Customer Support Officers to go ahead with your product and got your inventory delivered in the warehouse of Amazon. So, what are you waiting for? Just activate your listing and you are ready to Launch now!
But one thing! Everything comes with a cost. You will not get the limelight as soon as you launch your product so don’t expect to be on the top spots in the beginning. You have to work harder so that you can make hay while the sun shines!
There are some strategies to list your product on the top spot as soon as possible to start getting organic sales. Don’t worry keep reading the post…
Ranking is a way to bring your product on the top most spots to come in sight of the buyers by acquiring some smart strategies. I will mention them here:
- Keyword Research- It plays an important role to rank your product. It directs the traffic to your listing whenever a buyer search for the keyword included in your title or description. So, this research should be SEO based and we have to extract some high search volume keywords to optimize in our content and then rank over them.
- Reviews- Your sales will be affected by the quality of reviews you get on your product. Keep an eye on your reviews to stay in the limelight.
- Paid advertisement or PPC- PPC stands for pay per click and it is done by running Facebook and other social media ads to get conversion. You can read about Fundamentals of Amazon Pay-per-Click (PPC)
- Stay Updated- Try to avoid being out of stock by managing your inventory in a way that you get restocked even before running short of all the units. Any delay towards this may pour your efforts, money and time down the drain.
Once you reach on the top spot, don’t hold your horses! Your continuous efforts are required to sustain this position. Optimize your Amazon listing: A practical guide.
PERKS OF AMAZON FBA (PL)
If you are planning to invest around $25k to $30k then Amazon FBA (PL) should be your priority. It offers you the highest extent of profit up to 20% to 30% and sometimes even more. Moreover, you are building a flip able asset which can be sold at any point after 1 year. The brand is yours; the control is yours! You can flip it by multiplying your per month profit by 30 months and enjoy the pure cream.
For instance, if you are making $7k profit per month you can sell it by ($7kx30=$210k). It means you can make $210k by just flipping one asset! How about if you create multiple and keep flipping each after a year?
WHO IS A PROFESSIONAL AMAZON EXPERT?
A Professional Amazon Expert is a person who knows all this nitty-gritty I mentioned above. Moreover, he also has an experience of handling seller central and some launches too. Whereas newbies are also so very energetic to provide their services and pledge the loyalty. They are called Virtual assistants (VA).
You can hire individuals for each task like Product Hunting Specialist, Ranking expert or a complete launch expert from Product Hunting to Ranking and handling your account as long as you want. You just need to pay them a fixed amount of salary per month or you can also work as a partner if you feel that you both can step the planks of the ladder of success faster by sharing profits and losses together.
By hiring a VA, you increase your chances of success because of his expertise but you are also not a neophyte now. You don’t have to sit back and look at your VA working because you have gone through the entire article and have gained enough knowledge to participate with your employee in your business activities. This will further increase the chances of success.
HOW TO FIND A VIRTUAL ASSISTANT (VA)?
There are so many platforms to find a skilled VA. They may be around you; you just need to hunt the talent. There are so many groups on social media platforms just like Facebook where young and energetic VAs are ready to provide their services with a unique blend of knowledge and passion towards Amazon. You can find them on Fiver and Upwork too.
Its suggested to find a complete package who can handle your full launch to prevent yourself from the hassle of handling too many workers for a single launch and keep them tuned in to the same frequency.
Amazon FBA (PL) is an automated business once its ranked, it gives you ownership and a sense of having a flip-able business in hand which can be cashed anytime. But remember there are the chances of profits and losses in every business. No one can guarantee you a 100% success in any business but yeah you can increase the chances of successful outcome and decrease the extent of failure by acquiring some right strategies at right time and this chance will project higher if you seek the services of an expert.
Now you have enough knowledge to decide what to do, where to invest and whom to hire for your business. You can now judge the qualities of a VA by the help of all these key points you just went through. Take the fear of failure out of yourself and do whatever you think you will be good at.