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Criteria For Picking Profitable Products To Sell & Private Label On Amazon

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Criteria For Picking Profitable Product 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:

(Click here to watch on YouTube)

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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.

More Factors…

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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Criteria For Picking Profitable Products To Sell & Private Label On Amazon
4.6 (91.11%) 9 votes
  • TSG TSG

    Hi Stefan,

    Are you planning on offering a course about this? I would rather buy a course from you than someone else. I have heard of the amazing selling machine but paying 3500 is overly expensive, and not worth it based on the reviews I’ve made. There are courses out there that charge way less. The benefit that the ASM has is the community. But I’m not willing to dish out that much for a community. I just want a general blueprint and I can figure out the rest. Please tell me you will eventually offer a course on amazon FBA. I know I would not be disapointed as everything you do is top notch and offers soooo much value.

    • I have no plans to currently. I’m a raving fan of ASM and there’s thousands of reviews and successes with them, so I don’t plan on creating something when they already have something amazing that I’d endorse. If I were to create something similar to ASM, I too would charge thousands of dollars for it, because what they’re giving is worth every penny and they over-deliver with it. The softwares they’ve developed and everything involved makes it worth it.

  • Thomas Kemp

    Seriously, a shitload of value right here. The amount of quality content you publish lately is just insane.

    I’m already experienced with Kindle books – would you recommend starting FBA (or at least selecting a product) alone or is ASM required? Thanks in advance.

    • Thanks Thomas, glad you’re enjoying it! For FBA, you could do it without a program, but to be honest, I would have been lost without ASM. If you’re going to do it (because it’s a costly business, and if you fail you have a lot at stake) then I’d recommend doing it the right way with a program such as ASM.

  • Akshay Gandhi

    Hi Stefan I’m from India I’ve been following your blog and watching your videos in got inspired for internet business.I wanna ask you that does greeting cards will sell good on Amazon? And what would be the strategy to apply to sell? Because I’ve a business of printing press here in India and I’m totally a newbie so i wanted some advice on it..thanks in advance

  • viet

    hello thank you for your advice.
    One question i do have is. When you private label and create your own listing do you automatically own the buy box?

    • Yes, however, others can compete with the buy box if they have your product and choose to re-sell it on Amazon.

  • Ayman Moussally

    So I could use some insight! My buddy and I want to do this, and start it out together. Do we need to be incroporated if we want to use a company name (eg A&M good). Or can we just go to amazon, sign up with a company name and go from there?

  • Kristy Marett

    My question is also about brand naming, but a little different that Ayman’s question below. Should I register my brand as a trademark?

  • Gintare

    When you say labelling you mean that I need to come up with my own logo and packaging? Can I sell in the same package as I bought?