Product Research is the most important element in a Private Label. Your Total investment can become trash if your product isn’t the right choice.
What product is fit for me?
The product that is fit for you depends upon your Launch Budget. Let’s consider it with an example.
I have researched a product that is good for me and has a good amount of sales.
Let’s Consider my budget to be 15K USD. which is a good budget for PL.
The Top 20 sellers have 1500+ reviews and the product gets monthly sales of about 3000units i.e (100orders/day)
if I try to Launch it, it would be a fail for me as if I only order inventory most of the budget will be used and the one that I put on marketing would wipe out even before my listing ranks. If another investor comes with say 45K USD budget the same product will be a good choice as he can use plenty of budget on marketing and have it ranked on the first page of amazon. After ranking he would be getting a chunk of sales with a ratio of 30% orders through amazon PPC and 70% organically.
Another scenario could be product sourcing is low but competition and sales are high or product sourcing is expensive but competition is low hence you would bleedout onjust the inventory hence its recommended to let the experts do work and find you a product in your recommened price range. They should also justify that why the product can be launched in the recommended price range . At Ecommesy we USE our PEES (PRODUCT EVALUATION ESTIMATION SHEET) to have a greater idea of the product .
How Should I research products ?
You can research products from various platforms Like , Alibaba , Ali Express , Pinterest but the most recommended method is through amazon it self. We can research the the Help of Tools Like Helium 10 or Jungle Scout so that you have stats in hand to make a right choice .
Can Legal Issues Arrive in Products ?
Yes , 100% they can .You might find a product you like and get inventory made asap then when it starts to sell on amazon you get delisted and accounts closes . WHY ? because you started to sell a Product with Patent . With Product Research second step in to check for patent and trademark and then you start working on product sourcing as after paitent check you might need to drop the product .
If Amazon has so many issues then why to people want to sell on it ?
Amazon is a brand with trust and offers their buyer the best support thats why its the leading marketplace . With being the eCommerce Market Leader it has over 60% of the internet sales and your single successfull product can make you a brand owner . Amazon does a trillion dollar Business and you can get a small chunk of it to make a great living out of it . Its worth the risk to try amazon . Might be your the next Amazon Seller Millionare
A Quick Checklist of Product Hunting Criteria
- Product prices that fall between the range of $10 and $50
- Products that make at least 10 sales a day
- Similar products that feature a best seller rank of at least 5,000 in the main category
- The top 3 related keywords have 50,000+ monthly searches on Amazon
- Not seasonal products. They can be sold year-round
- 2-3 products with less than 50 reviews on the first page
- Small and lightweight products (under 2 to 3 pounds)
- No brand names or trademarks associated with the product
- A product can be set up for 25% or even lesser than the sale price
- Proper room for product optimization and improvement of present listings
- Multiple product-related keyword opportunities
- Quick and easy product sourcing from China
- The product should not be fragile
- Ability to expand your brand with related products
- Can make a superior product over similar products in the market
- The product encourages recurring purchases
- The product should not have any legal issues