Amazon FBA Private Label: A Comprehensive Step-by-Step Guide for Beginners

  • Half of all U.S. households are subscribed to Amazon Prime
  • Half of all online shopping searches start directly on Amazon
  • Amazon captures nearly one in every two dollars that Americans spend online–that’s 50% spent on Amazon in the US!

The tech giant is obviously taking over, keeping traditional retail on its toes, but we all know where this is going to end with e-commerce being our main form of purchasing goods. Selling on Amazon FBA (Fulfillment by Amazon) is still easy. There is a very little barrier to entry, and all of the hard work, the logistics (sales, fulfillment, customer service) are done by Amazon itself, so all of your time is spent on marketing and product research.

Obviously, Amazon has a huge audience! But the strategic mindset you need to succeed is to find and sell a very specific product for a narrowly targeted niche.

Becoming an Amazon seller is possible for you.

This is the most comprehensive step-by-step guide for starting your own successful Amazon FBA business.

Start your journey today, and finally start making money on Amazon.

We’ll be updating this guide to keep it up-to-date, so bookmark this page and come back often as you’re building out your new business.

Let the journey begin!

HOW TO START SELLING ON AMAZON:

START HERE

The Simple Overview of Private Labeling

Before we dive into significant detail, you need to understand a simple overview of Amazon private labeling–a simple 5-step process!

  1. Identify a low competition, high demand product
  2. Purchase product in bulk from overseas
  3. Put your label on the product
  4. Send the products to Amazon warehouses
  5. Let Amazon sell, pack, and ship your product

The Comprehensive Overview of Private Labeling

By taking the simple overview of private labeling, we can expand upon it by breaking it down into 15, distinct steps, that take you from an idea to the reality of selling on Amazon (completely autonomously).

  1. How Much Money Do You Need To Sell On Amazon?
    1. Cost #1: Buying Inventory
    2. Cost #2: Opening an Amazon Seller Account
    3. Cost #3: Purchasing UPC Codes
    4. Cost #4: Product Photography
    5. Cost #5: Creating a Logo and Branding for Amazon
    6. Cost #6: Advertising
  2. Product Research
    1. Brainstorm Potential Product Ideas
    2. Tools for Amazon Product Research
    3. Analyze Product Demand
    4. Calculate Amazon Revenue & Determine Pricing
    5. Research Competition
    6. Choose One of These Products
  3. Product Sourcing
    1. Find a Supplier for Your Chosen Product
    2. Evaluate Suppliers
    3. Order Samples
    4. Evaluate Samples
    5. Negotiate with Suppliers
    6. Designing Logo for Amazon Private Label Products
  4. Create an Amazon Account and Product Listing
    1. Selling On Amazon Outside The US (optional)
    2. Open & Setup your Amazon Seller Account
    3. Learn How to Navigate Amazon Seller Central≈
    4. Take Product Photos
    5. Get a UPC Code
    6. Keyword Research
    7. Determine Product Pricing
    8. Create Your Skeleton Amazon Listing (Barebones)
    9. Complete Your Amazon Listing
  5. Import Your Product
    1. Select Single Amazon FBA Warehouse
    2. Create an Amazon FBA Shipping Plan
    3. Place Your Order with Your Supplier
    4. Pay your Supplier
  6. Viral Launch
    1. Strategy #1: Product Discounts / Deal Sites
    2. Strategy #2: Amazon PPC
    3. Strategy #3: Outside Paid Acquisition
    4. Strategy #4: Launch to Existing Audience
    5. Strategy #5: Build an Email List
  7. Review Automation
    1. Email Marketing
    2. Amazon Early Reviewer Program
  8. Amazon Product Conversion Rate Optimization
    1. Quick Hacks to Rank Amazon Products
    2. Amazon Marketing Services (AMS)
    3. Keyword Optimization
    4. Pricing Optimization
    5. Product Optimization
  9. Setting Up a Business
    1. Choose Your Business Structure
    2. Pick and Register Your Business Name
    3. Get Licenses and Permits
    4. Choose Your Accounting System
  10. Building a Brand
    1. Create a Logo
    2. Create a Website
    3. Social Media Branding
    4. Register Your Brand with Amazon
  11. Legalities
    1. Patent Search
    2. Trademark Search
    3. Label Laws
  12. Taxes
    1. Getting Your FBA Business Ready for Tax Time
    2. Tax Tools
  13. Automation
    1. Processes That Can Be Automated
    2. Pricing Automation
    3. Virtual Assistants (VA)
  14. Evaluation
    1. Analyze your Reviews
    2. Resupply Inventory
    3. Evaluate Pricing
    4. Update Backend Keywords & Description
    5. Update Product Photos
    6. Remove Negative Amazon Seller Feedback
    7. Promotions
  15. Amazon Hacks

 

 

 

 

Module 1: How Much Money Do You Need To Sell On Amazon?

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1. How Much Money Do You Need To Sell On Amazon?

There are currently 6 costs directly associated with starting an Amazon business. These figures can range depending on how much you’re willing to invest and how much you’re willing to bootstrap some costs, in the beginning, to keep startup costs low:

$$$    Cost #1: Buying Inventory

$$$    Cost #2: Opening an Amazon Seller Account

$$$    Cost #3: Purchasing UPC Codes

$$$    Cost #4: Product Photography

$$$    Cost #5: Creating a Logo and Branding for Amazon

$$$    Cost #6: Advertising

Cost #1: Buying Inventory

Inventory is the main money suck in an Amazon FBA Business. The way you minimize this cost is by starting with a small test order so you can sample the market for that specific product; think of this as a science experiment! You don’t want to buy $1,000 dollars worth of product, only to find out that no one is willing to buy your product.

We recommend finding your suppliers on Alibaba. Depending on who you talk to, they will tell you that Alibaba is full of scams and will give you other options. Alibaba is the largest supplier network on the planet, and if you can’t trust them, who would you trust? Interestingly enough, Alibaba’s revenue is correlated to Amazon’s revenue.

Take the necessary precautions to avoid scams on Alibaba by always using PayPal to pay and doing your due diligence. You want a supplier that you can communicate with effectively and is willing to create a long-term partnership with you.

Benefits of Placing a Smaller Order

  1. Test out the market for your product
  2. Low cost of inventory
  3. Test out one or more suppliers
  4. Quick turnaround times

Pro Tip: When placing a small 10-50 unit order, some suppliers are willing to discount the cost of that order as samples by crediting your future order with them, making your inventory free!

And remember, just ask! Not all suppliers do this, but if you’re lucky they will.

Pro Tip: Always use air shipping, never use sea shipping until you have a vast amount of experience under your belt.

Example Estimates

Supplier Quotes

  • 50 unit order @ $2.50/unit
  • 5-pound shipment
  • 1 box @ 12”x12”x12”
  • Shipping via DHL Air 3-5 days to the USA (directly to Amazon Warehouse)

Cost: $184.05 (including PayPal Fees)

Amazon Estimates

  • $17.95 price on Amazon
  • $6.27/unit fees on Amazon

Sales: $584

Net Profit: $584-184.05=$399.50

The Demand is Real.

And that’s the point of validating a product like this, you’re not just testing out the product, you’re also testing out the supplier and measuring market demand with REAL SALES!

Cost #2: Opening an Amazon Seller Account

You have to pay Amazon to sell on their platform, it is how they make money. That’s a small price to pay to get access to the largest pool of online buyers in the world.

We always tell people to start small. Start with the individual Amazon Seller Account, which allows you to pay $1 per item sold.

The Professional Seller Account costs $40 per month, so if you’re selling less than 40 items, you can save some money in the beginning.

Once your sales volume increases, then you can upgrade to a Professional Seller plan instantly.

Cost #3: Purchasing UPC Codes

UPC codes tend to confuse people because they don’t understand the difference between a UPC code and an FNSKU number.

Here’s the deal: You’re purchasing a product from a supplier without a UPC code or “barcode”.

Amazon’s terms of service require that a product have a UPC code to list it on their platform. Remember, the barcode is only for initially listing the product.

Once you have a UPC code that Amazon recognizes they give you an FNSKU number. That FNSKU is required for you to place on the packaging of all your products.

Cost #4: Product Photography

Product photography doesn’t have to be expensive, and we use it for all of our products. It is a necessity in our eyes.

Pro Tip: Save money and take incredible product photography using your cell phone and a bathtub.

Pro Tip (back-to-back): Never even touch the item and ask your Alibaba supplier for THEIR professional photography to use in your listing, and then pay someone on Fiverr to enhance it (if needed).

When you’re selling Amazon you’re competing against other sellers that are selling similar products to you and it’s critical to be able to stand out.

What about Professional Photos?

We always use professional photos, but only after we know a product will sell. It is best to make an MVP by either using the stock Alibaba photos or taking photos in your bathtub before committing to professional photography.

But, we love companies like Virtuous Graphics.

Cost #5: Creating a Logo and Branding for Amazon

Let’s say you did a bunch of product research, tested your product on Amazon (maybe even on eBay), and you’re confident you want to continue selling your product.

Now, it’s time to think about logo and branding.

I always recommend you do this right when you get your first large order since then you can start doing some marketing on your brand.

How Do You Start Branding?

You can hire an awesome freelancer for pennies on the dollar, and a bit more if you want even more done.

They can help you with:

  • Packaging design
  • Product inserts
  • Logos
  • Infographics

Cost #6: Advertising

Ahh, the dreaded cost, but potentially the most useful one–Advertising.

This is by far our favorite cost because it lets you essentially trade in $1 and get $2. Who wouldn’t make that deal?

This cost can range from $0 to infinite. I always recommend that people start using Amazon PPC as soon as possible, and optimize because it will pay you dividends in the future.

Typically, we recommend a monthly cost of $75 and increase it from there after further optimization. More on this later!

 

 

Module 2: Product Research

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2. Product Research

This is by far the longest part of the process and this is where most new Amazon FBA sellers get stuck and give up (don’t be one of them!!). I first recommend that new sellers find a specific niche that they want to target, this should be a category you’re already gravitated to, which will end up making the long process so much easier.

You should choose a category where you don’t need a name brand to sell. Things like appliances, kitchenware, home decor, pet accessories, and phone accessories are a couple examples.

Once you’ve found a category that you want to hone in on you can move on to the next part of the product research process.

Brainstorm Potential Product Ideas

This is the fun part, brainstorming product ideas. Before you get carried away and list our 10,000 products, let me give you some hints.

The goal is to make this process blocker free and motivate you to continue and make progress.

Now, remember when I mentioned niche earlier? Yeah, well that was a bit of a white lie–it isn’t about the niche, but rather the product. You need a profitable product, not a good niche.

The ImportPanda Basic Guidelines for Finding a Profitable Product

  • Selling price between $21-$99 (USD)
  • Small, Light, and Easy to Ship
  • Sells a minimum of 5 units per day
  • Sells for a minimum of 3X cost
  • Can be shipped via Express Air Shipping
  • Under 150 reviews

This is a great starter list for you to find a profitable product, and they can be found everywhere. A few of my favorite places to find profitable products are:

  • Amazon Best Seller’s List
    • They’re best sellers for a reason!
  • Retail Store Exploration
    • Space is worth money, retail stores stock only products that are worth it, take a look
  • Amazon Movers and Shakers
    • These are interesting because they are trending, definitely makes you think
  • AmazonBasics by Amazon
    • Amazon found success with some specific types of items, sometimes you can find poorly performing items here or find ideas
  • Amazon Storefronts
    • Check out Amazon 3rd Party Seller Storefronts, you will be surprised what you find
  • Amazon Product Sub-Tiers
    • Products have multiple tiers of categories, check the sub-tiers
  • “Customers Also Bought” Section
    • Scroll down to find a related item that people have been buying
  • eBay Trending
    • Who says you have to stay on Amazon? eBay is also a hot market
  • Shopify Stores
    • Shopify is the next biggest thing, not all platforms mirror
  • Pinterest
    • Requires a lot of work to look through, but there are some good niche products here
  • AliExpress Weekly Best Sellers
    • Bestsellers on Aliexpress, you’ll definitely find different products here than Amazon
  • Amazon Sponsored Products
    • If someone is spending money advertising them then there’s a good chance the product is selling well.

Just like there is a good criterion for product selection, there are characteristics we need to avoid.

The ImportPanda Guidelines to Products to Avoid

  • Mechanical (moving parts) and demands high-quality standards
  • Fragile or requires a lot of preparing to ship
  • Large volumes are being sold daily on Amazon (BSR typically under 500)
  • Trademarked (“Disney” for example)
  • Big brand name dominating the market

Tips Before You Start Researching

Avoid Restricted Amazon Product Categories

Amazon requires that you apply and gain approval to sell in certain categories. Check out the restricted categories here. The more time you spend trying to get yourself ungated the less time you have to test products. Save selling in restricted categories for when you have more time and money to spend on un-gating services.

Tools for Amazon Product Research

People who succeed on Amazon know that Product Research is where the money is at, and naturally, you will do anything you can to get a leg up on the competition. Therefore we think it is best to have the right tools for Amazon Product Research

We personally use 4 Product Research tools here at ImportPanda:

Jungle Scout – Our Favorite Product Research Tools

Jungle Scout is one of the most advanced tools for Amazon research to find best selling products. Jungle Scout integrates directly into your Google Chrome browser, streamlining your research process. Extract ranks, sales volume, FBA fees, weights and much more!

Unicorn Smasher – How We Started Product Research

Similar to Jungle Scout, Unicorn Smasher is how we teach every one of our students to start off. Why? Well, it’s free… although not the most accurate.

Google Trends – The Internet is NOT Consistent

Google Keyword Planner – Determine Internet Demand

Analyze Product Demand

Does your product have enough demand? We get this question all of the time, because, sadly some products just don’t have enough demand to make it worth it.

The minimum number of units per month we recommend looking for is 50 units. Anything under this number, and you will wind up with a stagnated product that will never be able to lower its Best Seller Rank.

We recommend using JungleScout and/or the 999 Cart Tracking Method to determine if the competitor’s product you’re looking at have sufficient demand. More likely than not, if they’re only selling 50 units per month, you will be selling less (at least in the beginning).

Never neglect this step, I’ve made the mistake multiple times and wound up with inventory unsold.

Before you move on, make sure that your product ideas pass this step.

Calculate Amazon Revenue & Determine Pricing

Amazon is going to take over the world, and the only way they’re going to do that is if they take their cut of your sales. After all, Amazon does deserve something after doing all of the heavy liftings for you! Before you ever purchase a product from a supplier, you should know how much you’re actually going to make.

Introducing the Amazon Revenue Calculator.

This extremely useful tool is going to tell you how much profit is left after all the Amazon fees. Knowing this allows you to properly negotiate on Alibaba and plan for necessary expenses like shipping.

What does Amazon charge for?

  • Fulfillment fees — refer to Amazon Fulfillment Fees
  • Monthly Storage fees — fees for keeping your goods in storage (watch out for long-term storage fees, which is inventory that has been there longer than 6 months)
  • Professional Seller Account — $39.99/mo (you can opt-out for a basic seller account that costs $0.99/sale)
  • Optional: FBA Inventory Placement Service (Send all units of a specific ASIN in a shipment to a single Amazon fulfillment center)
  • Optional: Amazon PPC Advertising
  • Optional: Multi-Channel Fulfillment (sell your products on 3rd party sites)

 

Research Competition

These days, there is a LOT of competition on Amazon. You can pretty much guarantee that your e-commerce competitors are listing on here. In 2014 alone, third-party Amazon sellers shipped a total of more than 2 billion items.

To succeed in this business, you’re going to have to do a lot of research on your competition. If you don’t, they will find a way to overtake you.

Question to always ask yourself about competitors

  1. How much are they selling?
  2. What is their pricing history?
  3. What product variations do they offer?
  4. What is good about their listing? bad?
  5. How many reviews do they have?
  6. What reviews are negative? Positive?

Track Their Pricing & Profit Margins

For looking into price history, CamelCamelCamel lets you track the price of products, and gives you access to price history charts.

By looking into your competitor’s pricing changes over time, you can determine your own pricing strategy. Additionally, looking back in time can provide context for the popularity of a product and its value over time.

Looking into your competitor’s profit margins is also incredibly valuable, and will allow you to determine your pricing strategies and track the success of a certain product.

I recommend using the Jungle Scout Chrome extension.

With this tool, you can export lists of similar products into a spreadsheet and do some analysis to compare their profitability based on various factors

Investigate Product Variations

Product variations tell you more about the story. Within a certain product, they could be selling a certain variation well, or all variations could be performing well.

Product variations can be investigated further by using Jungle Scout and it lets you compare the successes of variations by color, size, etc.

You can use this information to source the most popular products or determine another strategy.

Spy on their Keywords

Keywords let you increase rankings and tailor your product to certain buyers.

The easiest way to spy on their keywords is by reading their listing, but additionally, you can search by their ASIN and include a keyword to see if their being ranked for it.

Competition Takeaways

Never import a product without taking a look at your competition. You need to do competitor analysis to succeed on Amazon, and if you do, you will be able to determine what the market is looking for, and what it isn’t.

Choose One of Those Products

Congratulations! After going through the steps within Product Research, you should now know if you can proceed with a product. If none pass, go back to the drawing board and find a new set of products.

If you have multiple products that you are ready to import, choose the best one or your favorite and continue!

 

 

 

Module 3: Product Sourcing

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3. Product Sourcing

Find a Supplier for Your Chosen Product

Websites to Search for Suppliers

Evaluate Suppliers

Supplier Criteria

  • Accepted Payment Methods
  • Alibaba Status (i.e. Gold)
  • Supplier Verification
  • Language Quality
  • Supplier Reputation
  • Sample Quality
  • Response Rate
  • Supplier Type
  • Pricing
  • MOQ

Order Samples

Ordering a Sample Template

Hi {Supplier Name},

I would like a sample of {insert product}. Please ensure the product sample is the best quality. Could you please send the sample to:

{insert your address}

  1. What is the cost for the sample, and will this be refunded upon completing my order?
  2. What are the different shipping methods and cost for each shipping method?

Thank you,

{Your Name}

Pay for Samples

Always pay for samples using PayPal. It may cost you an additional 4% (since the supplier will offload this cost on you) but it will definitely be worth it.

Evaluate Samples

Evaluate samples by looking for key product criteria and comparing it between your other samples.

Ask yourself some key questions:

  • Would You Feel Satisfied if You Bought this Product?
  • Does this Product Satisfy Negative Competitor Reviews?
  • Lifecycle Testing (Test Product 100 Times; Still Working?) (i.e. press the on/off button 100 times)
  • Product Quality
  • Supplier Communication
  • Product Feel (i.e. leather notebook)
  • Product Durability (will it break easily?)
  • Could you add a size variation?
  • Could you add a color variation?
  • Could You Offer Premium Quality? (i.e. iPhone 8 vs. iPhone X)

Negotiate with Suppliers

List all the negatives about the product and communication that you believe you should get a deal.

Alibaba Supplier Negotiation Template

Dear {NAME},

As I am sure you can understand, we cannot divulge secretive information like monthly sales volume. Based on what you have told me / what I have seen, your volume is enough for us to be interested in your factory, especially given your broad range of products and your focus on quality control.

However, my boss is not willing to switch accounts / my boss is not willing to pay for samples to any new supplier until we prove things out by moving slowly. The steps he would like to follow are:

We test a normal and high capacity cartridge internally in the field with our 20 sales reps = 40

Then we test on a broader scale with 100 units, preferably with a different printer line =100

After, we move to 1,000 units to test happiness with customers in our many channels of distribution =1,000

Assuming all goes well, we go to 5,000-10,000 units and really begin to migrate to your factory fully for that line = $

Your factory seems like a great potential partner for our company, and we’re excited to do business with you. But this is our company’s standard procedure for new products and suppliers.

Please let me know if you’d like to do business together, and I’ll let my boss know immediately.

Look forward to working together,

{YOUR NAME}

Designing Logo for Amazon Private Label Products

Introducing a logo on your brand can significantly impact your sales.

Branded products usually get priced higher than unbranded products so it’s something worth testing.

I recommend not adding a logo during the testing phase, but rather creating a logo after you prove your product can sell.

 

 

 

Module 4: Create an Amazon Account and Product Listing

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4. Create an Amazon Account and Product Listing

Selling On Amazon Outside The US (optional)

One of the biggest question we get:

“How can I sell on Amazon outside the US?”

This is what you’ll need:

  • Credit Card that can be charged internationally; Visa or Mastercard are the most common ones
  • A US bank account that supports what’s known as ACH (automated clearing house) which only means that your local bank can receive electronic transfer payments from Amazon (you can get a free US bank account through Payoneer)
  • A US Mailing Address (you can get one here!)
  • A US-based Phone Number (hint: you can use Google Voice)
  • A US EIN number–You don’t have to be a corporation and have any type of legal status in the US to get this number. An EIN may be obtained by filing IRS Form SS-4, Application for Employer Identification Number

There you go, it’s that simple.

Open & Setup your Amazon Seller Account

The benefits of being an Amazon seller with FBA is tremendous.

  • Offers free 2-day prime shipping
  • FBA handles your customer service and returns
  • Scale quickly by being able to send products from your supplier directly to Amazon
  • Shipping costs from Amazon to your customer are in your FBA fees
  • Amazon FBA offers multi-channel fulfillment if you have an eBay or Shopify store!

If you already created an Amazon seller account you can upgrade your account to Amazon fulfillment by clicking this link.

Learn How to Navigate Amazon Seller Central

Navigating Seller Central takes some time, I recommend that you just start out by learning the INVENTORY tab.

Take Product Photos

Get a UPC Code

Buying a GS1 UPC Code

  1. Go to: www.gs1.org/contact
  2. Contact GS1 [Choose the closest GS1 office near you and contact them]
  3. Join GS1 & estimate the number of UPC codes you’ll need
  4. Choose a membership level based on how many codes you need
  5. Fill out the application and pay online
  6. Create your barcodes

Note about 2nd Hand Codes

Alternatively, you can buy a 2nd hand GS1 UPC code from online sites like eBay

Note that Amazon requires you to own the UPC code. If you use a 2nd hand UPC code Amazon can take down your listing at any time.

However, currently, most FBA sellers are using 2nd hand UPC codes.

Keyword Research

Determine Product Pricing

Create Your Skeleton Amazon Listing (Barebones)

  • Product ID (UPC)
  • Product Name
  • Brand Name
  • Manufacturer

Complete Your Amazon Listing

  • Product Variations
  • Upload Product Images
  • Product Description
  • Key Product Features
  • Keywords & Search Terms
  • Dimensions & Weight

 

 

 

Module 5: Importing your Product

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5. Importing Your Product

Select Single Amazon FBA Warehouse

  • Step #1 – Login to Amazon Seller Central
  • Step #2 – Click On “Fulfillment by Amazon“ Amazon Seller Central > Settings > Fulfillment by Amazon
  • Step #3 – Select Edit InBound Settings
  • Step #4 – Select Inventory Placement Service
  • Step #5 – Save Changes

Create an Amazon FBA Shipping Plan

Amazon FNSKU Barcode

Amazon Shipping Labels

Place Your Order with Your Supplier

Determine Appropriate Quantity

Pay your Supplier

Preferred Payment Methods

 

 

 

Module 6: The Viral Launch

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6. The Viral Launch

By now you have decided on the product you are going to import, chosen your supplier and listed your product on Amazon.

At this point, you may get some sales for your product but that’s not good enough for us. We want to jump-start your listing on Amazon!

When a new product is listed on Amazon it is given a slight boost in the search rankings. This is to see if they can stack up against current products and competitors in the marketplace.

This is a huge opportunity for you! This is your chance to take control, get as many sales as you can for your product while you have this boost and make sure your product stays with a higher rank for the long term.

What is a Viral Launch?

A Viral Launch is a quick & immediate way for you to make as many sales for your product as possible. In this course, your goal is to get 10-20 reviews for your product.

One of the traps that we often see with new entrepreneurs is they take a passive approach to business. For example, after listing a product on Amazon they believe they have done everything to prepare themselves and now it’s up to chance if they’ll be successful or not (fingers crossed).

Those people don’t succeed. The ones that do take a proactive approach.

You’ve listed your product, awesome! Now it’s time for you to take control of your listing and get those early product reviews. The fate of your product’s success is not up to chance; it’s up to you!

Strategy #1: Product Discounts / Deal Sites

This method is quick and simple, as it just requires a subscription to a deal site where you can promote your product with discounts to boost your sales velocity in the early days. However, there are many other methods which don’t require a subscription to a deal site, such as social media.

PROS CONS
  • Easy setup, takes about 5 minutes with no experience
  • Guaranteed sales
  • A Quick increase in BSR
  • No technical skills required
  • Higher review rate
  • Costs, you must offer deep discounts to get sales (typically 50-90% discounts + monthly fee to the deal site)*
  • Unverified reviews when product discounted 50% or greater*
  • Not the best customers
Cost: Typically 50-90% discount per product, full Amazon fees and fulfillment, and potentially a monthly fee to the deal site ($0-29/month)

* You can negate the monthly fee if you decide to not use a deal site

** 50% or greater is based on sellers experience and Amazon is always changing their algorithm, however, expect that any discount results in an unverified review.

Strategy #2: Amazon PPC

Run ads directly on Amazon’s own platform to drive sales.

PROS CONS
  • Relatively easy to set up, you should be able to set up a campaign in less than an hour
  • You’ll want to set up these ads at some point, regardless
  • You can use this data to optimize your listing
  • Usually you won’t be able to drive enough sales to give your listing the sales it needs to rank higher
  • Supply/Demand marketplace, the cost is rising on the marketplaces
Cost: Varies, like any advertising platform. You must continually optimize your campaigns, and you will get some keywords that get 10-40% ACoS*, and some that get above 100% ACoS*. Expect around 40-50% ACoS in the beginning.

* ACoS stands for Advertising Cost of Sales, i.e. your product sells for $10, 50% ACoS means $5 for a single sale.

You should always utilize Amazon’s auto-targeting when first starting a new product. Sure–you can’t scale as well, and you’re going to be paying more than you should, but Amazon is giving you free conversion rate optimization tips.

I recommend you doing Amazon auto-targeting for 2-4 weeks right after a product launch and spending at least $100 on ads. The more you spend, and the more time, the more data. Next, you can export your Search Term Report and sort the terms included in that report by highest volume. After you’ve sorted this data, modify your listing based on this data and you will have instantly optimized your listing!

Strategy #3: Outside Paid Acquisition

You could run ads on platforms such as Facebook, Google, and other social media networks to gain traffic to your new product listing and generate sales. I would not recommend this strategy until you have time to dedicate into paid acquisition, however, it is incredibly useful for the long-term.

PROS CONS
  • Essentially unlimited volume
  • SEO boost for using an outside site with a high domain authority
  • Can increase earning by using Amazon Associates*
  • The long-term strategy that will always work
  • Most people cannot do this profitably
  • Steep learning curve, and expect to lose money during that learning phase
  • Difficult to track conversions unless you use a 3rd party website
Cost: Unless you are already a marketing expert, I would hold off on this strategy. The cost varies, depending on the advertising market–but expect around $5-10/sale.

*Amazon Associates is Amazon’s affiliate program where you will earn up to 10% per sale.

Strategy #4: Launch to Existing Audience

You could reach out to an audience that is interested in your product niche to let them know about your new product launch. This method requires having access to an audience from the get-go. If you have the willpower, you can always try to gain an audience before launching your product, during the product sourcing phase when you’re waiting.

PROS CONS
  • Inexpensive and simple, send an email
  • Easy, non-technical
  • You need an existing audience, ideally relatively large
  • Difficult to build an audience
Cost: If you have an existing audience, the cost is virtually free. If you are building an audience from nothing, it takes time and sometimes money (depending on how quickly you want to build it)

Strategy #5: Build an Email List

Building an email list a LOT of work, but it will pay you dividends in the future. By building email lists, you can use that list over and over again for various products of the same brand.

PROS CONS
  • Unlimited volume
  • You control your list
  • Low cost to send an email
  • Takes a long time to build an email list
  • The list is usually tailored to a specific product or brand, and you don’t want to spam them with unrelated products
Cost: No cost once you have the list, but it usually takes a lot of money and time to build the list

Launch Strategies Summary

All of these strategies each have their own pros and cons, and it is up to you to choose which is best for you.

Product Giveaway Amazon PPC Existing Audience Outside Paid Acquisition Email List
Effort 1/5 2/5 2/5 4/5 5/5
Difficulty 1/5 3/5 1/5 5/5 5/5
Cost $$ $$$ $ $$$$$ $

My Launch Sequence

The strategy I always recommend for sellers new to Amazon FBA during launch is Amazon PPC for 2-4 weeks and run a deal site promotion concurrently for 1-4 weeks (depending on

discount percentage).

Week 1 Week 2 Week 3 Week 4
Amazon PPC Running Running Optional Optional
Promotions Running Optional Optional Optional

For more advanced strategies, I will either build out a completely new email list using a website landing page and promotion combination and use outside paid acquisition to lead them there. I usually set up this strategy while I am doing my product sample research, however, it requires a lot of time and I do not recommend it until your second or third product so that you can focus on the Amazon side first.

As you get more experience, you will figure out what types of strategies work best for your product and you will end up utilizing them all together in parallel–which definitely sets you off for a great launch!

 

 

 

Module 7: Review Automation

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7. Review Automation

Email Marketing

Feedback Genius

Amazon Early Reviewer Program

The Early Reviewer Program encourages customers who have already purchased a product to share their authentic experience with that product, regardless of whether it is a 1-star or 5-star review. Amazon shoppers depend on reviews to learn more about products, and this program helps to acquire early reviews on products that have few or no reviews, helping shoppers make smarter buying decisions. Customers who have purchased a product participating in the Early Reviewer Program may be asked to write a review and those customers who submit a review within the offer period will receive a small reward (e.g. a $1-$3 Amazon.com Gift Card) for helping future shoppers.

 

 

 

Module 8: Amazon Product Conversion Optimization

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8. Amazon Product Conversion Rate Optimization

Product listings are the lifeline in an Amazon business but usually ends up completely neglected.

People want more eyes on their listings and people want more sales but never stop to think that maybe their product listings might need a little bit of work.

The 6 Most Important Factors for Amazon Product Listing Optimization are:

  • Product Titles
  • Product Images
  • Key Product Features
  • Amazon Listing Descriptions
  • Amazon Product Reviews
  • Product Rating

 

The Rest: Steps #9 – #15 Are Coming Soon

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