It is becoming more and more complicated to practice Retail Arbitration on Amazon. Indeed, it is difficult to find products for sale. Just as Amazon can enforce restrictions on the sale of certain brands.
On the other hand a generic product is likely to have many competitors. It can quickly drag you into a price war in the hope of winning the Buy Box and cause you loss-making sales.
It is therefore essential to regain control of your products by choosing the Private Label.
Indeed, the creation of a brand or a private label can generate large volumes of sales. It gives you a serious advantage by reinforcing the perceived value compared to competitors through visual differentiation. The Private Label is to sell an existing product with your own brand.
When you launch your Private Label, you sell a product already marketed on Amazon. But you will improve it and differentiate it to sell it as a unique product.
You then have total control over the quality, price, and writing of the product listing. By selling a product in Private Label, you can quickly earn additional income. You can then choose to develop your brand and business on Amazon, or keep a simple additional income.
The launch of a Private Label may initially seem confusing. So we’ll explain the different steps you need to take so you can create your Private Label.
Step 1: The search for the product
The search for a new product for sale on Amazon is crucial. Your business will rely entirely on choosing the first product you will sell on Amazon.
There are two ways to search for a product.
Either, you use the manual method. You’re looking for one of Amazon’s or Ebay’s best-selling products and you control the sales level by analyzing Amazon’s BSR ranking to estimate the sales volume of the product. You can also track a product’s sales history by tracking inventory trends using the 999 method. But this method will take you a lot of time. The work required will quickly discourage you.
The second method is to use software such as Helium 10’s Black Box. You’ll save a lot of time. You’ll be more efficient and precise. Even if you have to pay a subscription, it will be easier. You will get better results from the beginning of your activity without being discouraged.
You will filter your products as follows:
First, you choose a Category.
Then you choose a product with a maximum of 300 comments to be able to compete afterwards.
A price between 25 and 50 euros. Because under 25 euros the customer will not be able to benefit from the “Prime” delivery and above 50, the buyer is no longer in a impulse purchase and will want to talk to his partner or his partner.
The product will not have to weigh more than 1kg or 1.5kg to not pay too much shipping to Amazon
A product that is not seasonal
So you’re going to select a product that sells a lot but with low competition.
You should preferably choose an existing product with a low quality listing, with few images and low descriptions. You can easily improve the product sheet and compete with products that are already in place but poorly worked.
Step 2: Find the supplier
It is best to choose a local supplier. This may save you logistics costs in the long run. When looking for suppliers in China, logistics costs will be higher, but the cost of the product will often be lower. Price differences between a local producer and a Chinese producer can be very important and decisive to the success of your business.
Most Amazon sellers source from Alibaba. You will need to search for a white label product that you can customize for your Private Label.
You need to search for and select a supplier you trust. It will be necessary to compare the offers of a dozen suppliers in order to compare their products, their price, their MOQ, that is to say the minimum amount of order.
It will be necessary to select a producer according to a few criteria:
At least 2 years of experience
The ability to customize the product
You will need to make sure your supplier has experience and a good reputation. A supplier must have the “Trade Assurance” logo. And above all, you have to check that the order amount is within the limits of Trade Insurance. You will also need to consider the transaction level symbolized by diamonds, as well as the number of transactions and their amount.
Most importantly, you have to order samples to check the quality of the product. This will save you from bad reviews on Amazon. To pay for your samples you can pay through Alibaba Trade which offers the best protection in case of a problem.
Step 3: Differentiate the product
You need to make your product unique, and different from your competitors.
This differentiation may relate to the intrinsic characteristics of the product, or to its packaging, images and communication.
The possibilities are endless, so take the time to differentiate your product and take action.
Now that you have ordered your product from your supplier, it will take a few days before it is received. Take advantage of this available time to create your brand. When you are looking for a name for your brand you need to consider future products that you can sell on Amazon. The brand must be adapted to the different categories of Amazon in which you will sell over the next few months.
Make sure the brand is available. For example, visit the INPI or EUIPO (European Union Intellectual Property Office) website to check its availability and register your trademark. It will be legally protected. You can then share your brand name with Amazon to protect your Private Label and avoid Hightjacking.
You will create a logo that you will stick on your product and on your packaging. Try to choose, at the beginning a simple logo. If you don’t have the skills to create your own logo on Illustrator or CorelDraw software, you can go through one of these two websites:
On 99designs.com: You can launch a competition with several designers to design your new logo. You will receive dozens of custom logos for your new product. You have to count a budget starting at 269 euros.
On Fiverr: you can choose a designer by viewing examples of their creation. Prices start below 5 euros. At this price there useless to try to create a logo yourself. It is strongly advisable to go through a professional. You will save valuable time and get a quality logo.
Also consider creating a website with a domain name related to your brand. This website will allow you to develop your brand and sell your product with a better margin, since you will not have to bear Amazon’s FBA fees. On the other hand the website will be a strong argument to register your brand and protect it on Amazon.
Step 4: Save the product on Amazon
It’s time to register your product on Amazon. You will immediately access more than 21 million customers in France.
We invite you to start selling your products on Amazon using the FBA service. FBA stands for “Fulfillment by Amazon.”
So Amazon will manage:
Storing your products all over Europe
Preparing, packaging and delivering your products
And customer service to your customers 24 hours a day, 7 days a week. Amazon will handle inquiries and product returns.
Amazon will add the “Prime” Badge to your product, which guarantees fast delivery and reliable customer service. Your product will be among the first items visible to millions of loyal customers.
On the other hand Amazon will add the “Shipped by Amazon” Badge. Amazon is committed to delivery times, customer service and return management. This will give you a significant commercial advantage over sellers who don’t use Amazon’s Shipped service.
With these two “Prime” and “Amazon-shipped” Labels, expect your sales to increase.
By creating a Private Label you will systematically win the Buy Box because you will be the only one to offer your unique product. It will then be useless to enter a price war to win the Buy Box. And if a HightJacker comes squatting your product you can ask Amazon to intervene.
For example, if you have created your trademark with INPI or euIPO (European Union Intellectual Property Office) you can register on Amazon’s Trademark Register. You will avoid counterfeits by preventing your malicious competitors from stealing your ads. No Amazon seller will be allowed to copy your product description, photos, logo, etc.
Step 5: Optimizing the product list
We are now in the part that most sellers neglect. Your listing must convince the customer to choose your product. Because your product won’t sell alone.
You must present quality photos. The ideal is to hire a professional photographer or failing to invest in a “lightbox” in order to obtain good quality photos. The first photo should have a white background. Then on the following photos you will make sure to present your product in a situation, i.e. with a person who uses the product.
The title will have to be treated by inserting the brand, the materials used, the main characteristics, the size, and the color.
In chips, bullet points, you will indicate the characteristics of the product and present its advantages.
The key point will be to identify the keywords customers use to search for your product. These keywords will have to be added in the title, the points bullets and in the back end of the product. Identifying the right keywords will be key to ensuring a high number of sales.
In order to get the best results you need to insert the most competitive keywords. To identify the most powerful keywords, the ones that generate the most Traffic, you can use, for example, the Magnet app from Helium 10. Several major Amazon vendors use this app to find the optimal keywords for their product lists. You enter a basic keyword and in an instant, the Magnet app lists the best keywords for your ad.
You can use a second application of Helium 10 called Scriblles. This tool is the most popular among the best Amazon sellers. Because it will allow you to easily create attractive ads in your product page. By manually entering your keywords, errors will be inevitable. You may forget to include a word, or a sentence. This could cause you to lose sales. With the help of this powerful Amazon SEO tool, you’ll never forget to include a valuable keyword in the right place. This app will help increase your revenue and speed up your Amazon sales business.
You are looking for a product that sells well and with low competition
Looking for a reliable supplier of white label products
You differentiate your product with your brand, your logo, your packaging
You offer your product for sale on Amazon FBA and register its brand on Amazon’s trademark register
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