How to Start a Private Label Business With Amazon FBA
Storage. Shipping. Support. These three ‘S’ regulate the Fulfilment by Amazon (FBA) service. Eligible for Prime free 2-day shipping, FBA allows business people to store their products in Amazon’s fulfilment service and have a broader customer market.
While on one hand, the seller need not worry about storing and shipping their product, associating your product with Amazon’s name increase the chances of expanding your business scope. This gives the seller more time to be involved in marketing and research.
Now, let’s take a look at different steps on how to start a private label business with Amazon FBA.
Product Research
The most important thing with regards to starting a private level business is the research of the product you want to sell. Identifying a good niche is half the job done.
Yes, it’s important that you choose the category that you are interested in, but realistically, competing with products with a goodwill base takes a lot of effort and time. This doesn’t rule out the competition but you would not want to be competing with big business giants with a business that’s just starting out.
Make yourself compete in a place where there is more likeliness to win. This includes checking whether the product you intent to sell has a high market demand and the market is not too saturated for the product. Your product needs to be visible in terms of its features that stand out in the competition. Spend time in analyzing the market demand and how you can address them with your product.
Small and lightweight products are easier to market than others. Also, avoid selling seasonal products like winter clothes, or Christmas related products. Make sure that your product has a market demand all year-round.
You can also take the help of product research tools such as Jungle Scout for the research. Identifying the right supplier so as to maximize your return on investment.
Set up an Amazon Account
You need to register for Amazon FBA to start using the service. If you already have an Amazon seller account, then you can add FBA to your account. Otherwise, you will need to make a new registration. Identity verification is obligatory for the registration. A photo of your driver’s license and photos of your bank account info are required. Also, you will need to purchase a UPC barcode.
Compose a professional listing
Product listing provides visibility to the product. It determines the impact upon the potential buyers who go through the listing. Furthermore, how you rank in Amazon depends largely on the conversion rate of your product listing.
Product listing includes the image, title, bullet points, and the product description. As for every selling platform, images serve as the first introduction of the product. Uploading more than one image taken from different angles will increase the product’s visual description. Use all the slots provided by Amazon, if you can. Including a picture of your brand will give more authenticity to the product.
Next in the list in terms of merit is the product title. Write an informative title that includes the name of the brand, short description of the product with its color, size, and quantity, and key ingredients that need to be mentioned. Making a keyword analysis is vital as this increase the likelihood of customer finding the product. Try including as many keywords as possible but without stuffing them and make your title sound natural.
Choosing the right keyword is important in bullet points too. These points should explain the proposition that you are making about your product. Include features that are unique in your product than the competitor. Write clear and concise bullet points, although without stuffing your keyword and repeating information. Think about the benefits, solutions, specificity or audience while doing the keyword analysis.
While the product description doesn’t influence the visibility of the product in the search engine, write a professional description of your product so that the customers are assured of what you are providing.
Launch the product
Your product is live and ready to make sales after the product listing. But, the hard truth is that without sales and reviews, your product will be without Amazon seller ranking and really difficult to find for the customers. And even if they do find it, your product won’t be credible for them to buy without any reviews.
Amazon Giveaway can help you get reviews initially.
Another solution would be asking your relatives or friends to manually find the product and buy it at full price, as Amazon has banned incentivized reviews. Gathering a couple of reviews will give social proof to your product, along with Amazon raking it. This way, the product will appear organically to the customer. Sending an automated email through automated communication solutions like Feedback Genius can help you send automated emails, asking every buyer to review your product after the purchase. Also, you should consider selling your product at the expense of profit in the beginning, so as to gain the initial momentum which is very hard to come by.
Use Amazon Sponsered Ads
After you have received a couple of reviews, now it’s time to pay for Amazon Sponsered Ads. While they might cost you, pay-per-click (PPC) ads are beneficial to increase the visibility of your product. Amazon PPC ads are lower than PPC costs of other platforms and the conversion rate is higher too.
You can either subscribe to an automated ad campaign or create a manual campaign. Automatic targeting lets Amazon choose the keywords. This will allow you to gather keywords to analyze the data for future campaigns. Look for the keyword with a high and low conversion rate and plan the manual targeting accordingly, taking into account these keywords.
Make use of both the campaign strategies for optimum output.
Amazon FBA is a great platform to start selling your product. However,
constant effort and patience must be maintained in order to succeed with your private label business on this platform.