What the perfect product to private label for Amazon FBA?
The product that hits page 1, sells, dominates, and makes you feel like…
The perfect product has 2 things:
(1) Great physical specs and
(2) Great Amazon market conditions.
So today, we’re going to look at what specs and market conditions you should look for, then I’ll give you some actionable tips to find product ideas.
(1) Great physical specs
A few pounds, max. The lighter, the less money you lose in shipping and duty fees.
> Fits in your pocket.
Or at the very least, a shoebox. This avoids excessive shipping and Amazon storage fees down the line.
> Profitable to sell.
Buy low, sell high. Aim for a retail price of $25 to $100. This leaves room for profit, but isn’t expensive enough for buyers to have to consult anyone before purchasing. As for margins, aim to make at least $15 in profit on a $30 product. Remember to account for product cost, shipping fees, duty fees, Amazon fees, and currency exchange rates (if applicable). For example, the Canadian dollar is weak right now. Go Raptors.
> Not patented.
Check out Google Patents to get a sense of whether your item has been patented, or has other IP issues. Of course, Google Patents isn’t an exhaustive patent search nor is this isn’t legal advice; consult a licensed attorney.
> Brandable and customizable.
You can improve the physical form without great expense. For example, you should be able to add a brand logo to it (hence the term “private label”), a helpful modification, a handle, a protective case, a foam coating. Fixed form factors like diecast metals and plastic made from molds leave less room for differentiation, which is bad.
> Not at Wal-Mart.
Ideally, buyers can’t get this item in big box stores and are forced to buy online — which means Amazon, which means you.
> No instructions needed.
The customer should know what to do straight out of the box. Go ahead: include your free PDF guide. But ultimately, your product should be drop-dead simple.
> Can be re-ordered.
Better yet: it’s something that can be used, enjoyed, and then re-ordered. After all, the second sale is easier to make than the first.
> Simple tech.
Consider avoiding charging and batteries, as more can go wrong. Tech that doesn’t work will hurt reviews down the line.
> Passes a stress test.
Can it survive a drop from a building? Yes. Is it safe in the hands of a toddler? Yes. So it won’t break during shipping, resulting in better reviews and fewer customer service issues.
> Single SKU.
Imagine you start out with 3 sizes and 3 colors: small red, medium red, big red. Small blue, medium blue, big blue. Small yellow, medium yellow, big yellow. That’s effectively 9 products to keep stocked at all times. Start with medium red and if it does well, roll cash into variations.
Let’s look at a perfect example of good physical specs: silicone wedding rings.
Fits in your pocket.
No IP issues.
Wal-Mart does have them, but only 5 listings right now.
Intuitive to use.
Won’t break in shipping and could survive being dropped from the CN Tower. Go Raptors.
Sounds great! Why don’t we all private label silicone wedding rings?
And now the market looks like this: