Criteria For Picking Profitable Products To Sell & Private Label On Amazon
Need help finding a profitable product to sell and private label on Amazon?
Selecting the right niche or market is one of the most important things that will determine your success with selling on Amazon.
If you choose a niche that isn't profitable, doesn't have high demand and doesn't meet the right criteria – then it can be a challenge. I've often seen people fail because they don't do the proper research and due diligence during this critical phase of selling on Amazon.
In this video blog, I share some of my criteria for choosing a profitable product to sell and private label on Amazon.
Watch the video below:
My Criteria For Choosing A Product To Sell
I will mention that this criteria isn't fool-proof. There are more things I'd consider, such as looking at the Amazon Bestselling Ranks, Competition, and all of the numbers that go along with that.
That's why I recommend a course such as the Amazing Selling Machine to help you determine the right product for you, as you want to be sure that you're making the right decision with which product to sell.
1. Profitable Market & High Demand
You need to ensure that the market that you're selecting is PROFITABLE. There has to be a demand for whatever it is that you're selling.
You might have an amazing idea for a product… but who cares? Just because you think your product idea is good, doesn't mean that other people want it or that there is a demand there.
That's why you need to do the right research. You need to identify what KEYWORDS people are typing in on Amazon, what they're looking for, and then carefully assess the existing products in that market to be sure that they're selling and profitable.
One way to do this is by looking at the Amazon Bestseller Ranking for the products and identifying how much they're selling.
This will give you “proof of concept” before you enter the market. It will give you the confidence that you too can be successful and make money selling in this market, because the demand is there.
2. Reasonable Competition & Amazon Reviews
You can find a hot market with lots of demand and potential, however, how does the competition look?
If the market is too competitive, then it'll be a challenge for you to compete and get ranked at the top.
Nothing is impossible. But some markets will be easier for you to be successful at than others.
For example, if you wanted to sell a “water bottle”, while that's a great market on Amazon, the competition is big.
Some of the competitors have thousands of Amazon reviews and have been selling for a long time. They have more experience, knowledge and money than you to get themselves be ranked at the top.
The truth is, nearly EVERY good market has some form of competition on Amazon. And if it doesn't right now, then if it's a good money-maker, then eventually others will come in and compete with you.
That's why I say Reasonable Competition. For me, competition with a couple hundred reviews for the top product is something more realistic that I can compete with.
When first starting out to private label on Amazon, I recommend going after something you have a good chance of winning in. For your first product, don't go after the biggest market or most competitive. Just get your feet wet and go after something you feel CONFIDENT you can succeed at.
That's what I did for my first product. I chose something that won't make me millions, but can make me a good amount of money that I know I can succeed at. Now that I have more confidence after doing it once, I can now go after more competitive markets and products to sell.
3. Sells For More Than $10 On Amazon
You want to be sure that the product you choose to private label can sell for more than $10 on Amazon. The reason is, if your product is less than $10, then Amazon lists it as an “Add On Item”. This basically means that nobody can just buy your product directly – rather, they have to buy something else with it in order to purchase your product.
Also, the profit margins are too low on products less than $10. Amazon takes their fees (which depends on your product category) and you want something that can sell ideally for $10-$30 range, so you can see some good profit margins.
4. Light & Relatively Small
When selling on Amazon, you also need to factor in your products weight and size. There's shipping involved in selling physical products, so you want to make sure it's not too heavy or big, as that can cost you and the consumer more money.
For example, selling dumb bells on Amazon wouldn't be a good idea. Same with refrigerators.
Actually, it's not that it's a BAD idea… it's just that I wouldn't recommend it when you're starting out. I'm sure there's a method, time and place to be successful at selling those items. But when starting, keep it simple for yourself.
5. Branding & Can Expand Product Line
When selling on Amazon, you want to think about building a brand.
You're in it for the long-term and you want to build something that will last. Something that will be recognizable and that you'll have more products to sell under your company.
When choosing what product you want to private label on Amazon, make sure to consider the long-term direction you want to go.
What other products can you sell that would compliment this product?
What could you bundle together?
Where do you see your brand and company going?
In my case, I'm selling a supplement and plan on building an entire line of nutritional supplements.
6. Choose A Product That You're Passionate About
Passion is such a powerful emotion, that it's a huge advantage if you can have it in your Amazon business.
In the past, I've been in businesses that I haven't fully been passionate about. The challenge was, it didn't provide LONG-TERM motivation for me to continue building and growing it. Eventually, I moved on and found something else I was more passionate about.
You don't have to be passionate about your product – but it's a plus. Some people are in it just to make money, which is fine.
I've found though, if you have that passion, you'll feel more comfortable sharing your product with your friends and family. Because you love it so much, you'll do whatever it takes to promote it and get it in the hands of others.
Passion is what will get you waking up early and staying up late to sell your product. It will get you to do whatever it takes, to do the blog, YouTube channel, Instagram, Pinterest, SEO, Facebook, etc… that will make your product #1 and stay at the top.
In my case, I am passionate about health and fitness. I love and use the products that I sell. I have done fitness competitions before and I workout daily.
I KNOW that I will do well selling my products, because I can create fitness videos and articles to promote it. I also have a brand, Project Life Mastery, that many of my subscribers would benefit from my product with.
These are some very important things to consider when deciding on which product you want to private label and sell on Amazon.
However, I believe there's more important factors.
When analyzing potential opportunities, looking at the numbers of how well the market is selling, the competition, etc… is all very important in making this decision.
My advice is to take your time. Be patient with this process and don't rush it. Make sure the decision you make is a GOOD one, and even consider getting the opinion of others that are selling on Amazon to be sure it's a worthwhile market for you to pursue. Remember, you're in it for the long-run and you want to make sure you're heading towards success.
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