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L’article How to start a print-on-demand business in 8 steps est apparu en premier sur Amazon Seller Tools.

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:

1. First, you choose a Category.

2. Then you choose a product with a maximum of 300 comments to be able to compete afterwards.

3. 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.

4. The product will not have to weigh more than 1kg or 1.5kg to not pay too much shipping to Amazon

5. 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.

Conclusion

To recap

1. You are looking for a product that sells well and with low competition

2. Looking for a reliable supplier of white label products

3. You differentiate your product with your brand, your logo, your packaging

4. You offer your product for sale on Amazon FBA and register its brand on Amazon’s trademark register

5. You create the best product list with the Helium 10 app

Launching your Private Label is a long process but every step is very important and guarantees success.

L’article 5 key steps to create your Private Label est apparu en premier sur Amazon Seller Tools.

Then it depends on your product, it can be worth a few euros or several tens of euros.

In this article, we will focus on a sales strategy on Amazon FBA. That is to say, you will entrust the management of your stock and your customer delivery to Amazon. We will be interested in the Private Label, that is to say that you will sell your products under your own brand.

Here we will not talk about making a fortune by investing only 300 €. To be a successful seller you will need to make a minimum investment to make your project viable.

So we’ll make an honest inventory of all the necessary costs that you need to get ready to start your activity on Amazon

Training

A beginner who will launch on Amazon without any training is very unlikely to succeed. A beginner can always find on the internet excellent blogs and free training on Youtube.

But top quality paid training can quickly lead you to success. Unfortunately, many courses are incomplete or lack updated. It is therefore important to check the opinions before buying on the internet a training of several hundred euros. Beyond a simple training, coaching can guide you and help you during your learning phase on Amazon.

Every Amazon seller will sooner or later be faced with a problem, a point of blockage, and coaching will offer you the experience of an e-commerce professional and will save you a lot of time and money. ‘money.

The trainings have a cost, the prices can go from 200 € to 1300 € but often with the possibility to pay in several times.

Amazon Professional subscription

You will need to open an account on the Amazon Seller website. The business account has many features that are not available for the particular account. If you need to manage large sales volumes, if you need to conduct PPC campaigns to boost your sales and if you need to create promotional codes, you will have to choose the business account. Because if you do not subscribe to the professional account you will not be able to sell in certain categories of products and you will not be able to access the order report and benefit from the automatic management of your stocks.

The cost of a professional subscription is currently 39,90 € HT per month. For an individual the subscription is free but you will have to pay besides expenses of sale per article of 0.99 €. Beyond 39 articles sold per month, it will be more interesting to subscribe to a professional subscription.

Be careful that you take a professional subscription or you will have to pay a commission on your sales. This is a percentage that applies to the tax-inclusive price of your product. This percentage varies depending on the Category to which your product belongs. It is very often 12 or 15% depending on the category of your product.

You will also need to add FBA fees, if you choose to delegate to AMAZON storage, deliveries and customer service. These FBA costs will depend on the size and weight of your products.

Product samples

In order not to take unnecessary risk, and receive a stock of unsaleable product, you will have to ask for samples of products.

You may have selected a supplier from a Chinese site like Alibaba, or DHGate or another sourcing platform. There may be confusion between the product described and pictured and the one you have in hand. It is imperative to order some samples to verify the quality of the product by yourself before validating your future supplier.

You will then be able to test and verify if the samples are working according to your expectations, and inspect their strength.

It takes between 50 and 100 € for each sample delivered to your home, within a period of 5 days. It all depends on the initial value of the sample ordered. The cost invoiced for the samples essentially represents the cost of delivery by air.

If you order from a Chinese site, most of the time, the supplier will refund the amount of your samples as soon as you place your first order. This should encourage you to require samples to avoid any unpleasant surprises

Initial stock

To build your initial stock, you will need to order between 300 and 500 product units depending on your budget.

You will preferably look for a product with a selling price between 25 and 50 euros. So why a price between 25 and 50 euros?

Below 25 €, it will be difficult to clear a margin and secondly if your product has a selling price of less than 25 € it will not be eligible for free shipping by Amazon as part of the premium subscription . This may put off many potential buyers.
Above 50 €, your initial investment may be too important for a first experience. In addition, for a purchase over 50 euros customers will prefer to think, talk to their spouse and will be less inclined to buy impulse.
Take the example of a product that will sell 25 € TTC on Amazon, you must aim for a supply cost of less than 6 € per unit. This purchase cost includes the product and its shipment. You will place an order that will amount to 300 units around 1800 €.

It should be noted that suppliers on Alibaba may require a minimum order quantity. This is called the MOQ. You may, however, try to negotiate a lower quantity than the MOQ, but the unit price of your product will be more expensive. It will be necessary to calculate your margin, not to buy a product too expensive and ruin any hope to make a profit.

Packaging

You do not have to have a custom packaging to sell on Amazon FBA. But a beautiful packaging will always have a considerable impact on the perceived value of your product. It’s a great way to stand out from the competition. Because it’s the first impression that counts.

Your product can be at least packaged and protected in a polybag transparent polyethylene bag. But if all your competitors use a low-quality plastic bag, you can stand out with a beautifully designed cardboard box.

This quality packaging is an excellent way to enhance your brand. Your packaging will contribute to the development of your brand. It will protect your product and heal its presentation. It will allow you to differentiate your product from those of your competitors and get better sales.

Applications

You will need to manage your Amazon FBA business from an application.

You will be able to use tools like Jungle Scout or Helium 10. These tools are indispensable and make the difference between the successful sellers and the sellers who undergo the market on the Amazon marketplaces.

These tools will allow you to find your future winning products, calculate the revenue and margins of your next products, improve your product listings, manage your inventory and replenishments, and optimize your advertising PPC etc …

To put the odds on your side you will need, as we saw at the beginning of this article, both a minimum of training and a powerful tool.

For a quality application and to start, it will take a monthly budget between 50 and 100 € / month.

Trademark registered

When you launch on Amazon FBA you may choose the Private Label strategy.

By creating your own brand you will be able to value your product. Customers will no longer look for a product but the brand of your product.

Amazon offers to protect your brand by registering it in its trademark register. Amazon will be able to protect your trademark brand from counterfeiting and listing squatting.

Registering your trademark on Amazon’s registry is free. But you will have to justify a registration of your trademark at the INPI for France for example. This will cost you 210 € if you register your brand directly online and 250 € if you deposit it by mail. The deadline for publishing your mark will be approximately 6 weeks. So to protect your future product, start registering your brand before ordering your product in China. You will have saved time during the delivery of your product and the creation of its listing.

Barcodes and labels

Amazon requires a GTIN barcode when creating your product listing. It is from this GTIN code that Amazon will generate its own code “FNSKU” which will be affixed to the packaging of each of your products.

Amazon informs the vendors of its platform that in the near future, only the GTIN codes generated by the GS1 establishment will be valid.

If your turnover is between 0 and 500 000 € the GS1 annual subscription is € 85 HT + for the first year an entry fee of € 85 HT. At this price, GS1 guarantees the uniqueness of the code that will be allocated to you. You will be able to create up to 1000 GTIN barcodes.

You will always be able to buy on Amazon from other websites a GTIN code for 10aine euros. But beware, it may be a recycled code that has belonged to another company and Amazon may block your product or close your shop if he decides to strictly enforce its rules.

To avoid these costs of buying a GTIN, you can always ask AMAZON to apply an exemption if you market your product under your own brand.

Now that you have your FNSKU code generated by Amazon, you will be able to paste your labels on your products. No product will be able to enter Amazon’s warehouses without having a laser-readable FNSKU label.

If you want to keep your margins high, you may consider printing your own sticky labels and sticking them on your products. However, you will need to appreciate the time needed to print and paste them.

However, you can ask your Chinese supplier to stick the labels on your products for 1 cent label. But beware of labeling errors, label inversions on your products.

Amazon can also tag the items. The cost will be € 0.15 per product.

Product inspection

Many Amazon sellers skip this step, and take the risk of receiving non-sample-compliant products. Quantities and quality may not be respected.

It is possible to go through organizations that will perform for you an inspection of your products before shipping.

Without this inspection, damaged, defective, damaged packaging will cause negative reviews of your customers and have a disastrous impact on your sales. Amazon estimates that 15% of orders are returned due to defective or damaged products.

You should know that if your refund request rate from your customers exceeds 10%, Amazon will suspend your ad and send you a warning. These returns will have a serious impact on your profit margins.

The cost of an inspection is between € 0.20 and € 1 per product depending on the company mandated, the time required, the rigor of the inspection, and the number of products inspected etc …

Taxes and customs duties

As soon as your products arrive on the French territory, the customs services will control the invoice of your Chinese supplier. They will set the amount of VAT and customs duties for import products from a country outside Europe. VAT is calculated on the amount before tax charged by your Chinese supplier.

The freight forwarder responsible for shipping your product from China will take care of your customs declaration and advance the VAT and customs taxes. You will then have to pay your carrier, the cost of transport, the refund of VAT customs duties and management fees for the customs declaration.

Customs duties depend on the nature of your product and the country of origin outside Europe. To know the amount of the customs duties of your product you will be able to consult the Internet site of the customs.

PPC Advertising – Pay Per Click

Your products will not sell on their own. You will need to start your sales with advertising on Amazon. This advertisement is called “Pay Per Click” or PPC. You will have to define the keywords entered by the buyers in the search bar of Amazon. Then you’ll bid on each of these keywords to rank them in search results to make them visible and get visits to your product listing.

As your conversions progress, the natural ranking of your products will improve.

You must consider this expense not as a cost but as an investment.

We can assume that you will invest € 10 a day in advertising for your product, or € 300 per month.

Product photos

The quality of the photos of your product will have a strong impact on your sales. Buyers choose a product, certainly according to its characteristics, but especially according to the proposed photos. It is thanks to the photos that you will be able to differentiate yourself from your competitors.

If your budget allows, you will need to orient yourself to professional images. If you do not, you will always be able to photograph your product with your smartphone. The photos must have a minimum resolution of 1000 pixels per side so that the buyer can zoom the image by hovering over your image.

A full set of professional quality photos should cost you between € 150 and € 500 depending on the photographer.

Reduce the Budget on Amazon FBA

To optimize your initial investment you will be able to achieve several steps yourself.

Thus you will be able to realize alone the design, the photograph, the logo, the writing of your product sheet. You will need to claim an exemption from Amazon to avoid buying a GS1 code. At first, you will be able to skip training. You can then buy books, consult blogs and free videos on the internet. The main thing is to get started and work hard.

It will then remain only incompressible costs:

Your subscription to Amazon: € 39.99 per month
The purchase of some samples produced: € 100
300 units of products with the cost of shipping € 5 € or € 1500
VAT advance on import € 300
Customs fees and carrier’s file costs € 100
Registration fees for your trademark at the INPI € 210
PPC advertising to sell your product otherwise you will not sell anything, € 300 per month
Having tightened your budget, you will need a starting bet of € 2549.99. So plan a budget between € 2600 and € 3000 because there will always be unforeseen. Below this amount you will realize too little margin and your gains will be quickly absorbed by your monthly expenses, and you will quickly be unable to replenish your inventory.

At these costs you should not forget to add the costs of creating your business.

By being realistic, you will avoid losing your investment after a few months.

We thank you for your reading and we wish you a lot of courage.

L’article What Budget to Get Started on Amazon FBA? est apparu en premier sur Amazon Seller Tools.