The Best Private Label Products to Sell on Amazon in 2020
The Best Private Label Products to Sell on Amazon in 2020
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More people are discovering the huge opportunities offered by selling their own Private Label products on Amazon. The first question for these sellers is “How do I find the best Private Label product to sell on Amazon?”
What is Amazon Private Label?
Creating your own brand and then selling either branded generic products or manufacturing your own totally original product. These products are usually sourced from China using sites like Alibaba.
In this post, we will show you exactly how to build a list of viable product opportunities. From this list, you can then select the best product to Private Label on Amazon.
Amazon is where you want to sell your products, so Amazon is where you should go to find what customers are buying. Rather than scratch your head wondering “what should I sell”, approach it from the angle of “what do people WANT?”
So how do we find out what people are searching for on Amazon? Take a look at the following sections first;
Amazon Hot New Releases
The Amazon ‘Hot New Releases’ list displays products across all categories that have just entered the Amazon marketplace and are already “selling like hotcakes.” This gives you an indication of what is in demand right now. It may not be an indication of long term success, so take this information with a grain of salt.
What sells on Amazon? Amazon ‘Best Sellers’ lists the top 100 best-selling products in each category. This is updated hourly and based on sales velocity. You can see what products are selling consistently well over a longer period of time. You can then drill down into sub-categories to get even more ideas and inspiration.
Using the Amazon Best Sellers Rank to Select a Product
Many first-time Private Label sellers will look at BSR (Best Sellers Rank) to estimate the sales volume for a particular product.
When you are looking at BSR, be aware of the product category you are evaluating and use tools like JungleScout or UnicornSmasher to give a rough estimate as to how many units a product is selling each month.
These estimation tools tend to exaggerate the sales volume. Actual sales will usually be less than forecast as so many other factors will come in to play.
Also using browser plugins like CamelCamelCamel and Keepa will enable you to view a product’s BSR over time. These tools are also helpful for highlighting seasonality patterns on specific products.
We use the FREE Jungle Scout Sales Estimator to get monthly sales volume for any product being sold on Amazon – test it out here – Jungle Scout Sales Estimator
Amazon Movers and Shakers
The Amazon ‘Movers and Shakers’ is like a sub-category of Best Sellers. It shows trending products on Amazon that are moving quickly up the best-selling ranks denoted by green arrows and a percentage increase (similar to stock signals). This is valuable for pinpointing Amazon best sellers that are trending more so than others in a category.
Amazon keeps track of what people put on their wish list. The ‘Most Wished For’ is what people REALLY want. So why not use this list as inspiration for providing them exactly what they have always been looking for?
Amazon has gift-wrapping services available and allows merchants to provide this service for their customers. Being as such, Amazon tracks the sales that include gift wrapping, so they know what products are being bought as gifts. This is another indicator of the popularity of the products.
Pro Tip: If you are a private label seller using Amazon FBA, you should have “gift wrapping” and “gift messaging” checked in your seller central backend for your products! This doesn’t cost anything to you as a seller, and people love to have options. Giving your customers the ability to give your product as a gift is another value-added benefit that can set your product apart from the competition and will result in more sales.
Step 2: 8 Essential Criteria for Your Amazon Private Label Product
These are the 8 most important criteria for choosing the best products to sell on Amazon;
A Product that is Small and Light
Select a Product with Low Seasonality
Select a Product with No Licenses, Trademarks, or Patents
Avoid Complex Electronic Products
100-500 Amazon Product Reviews
A Product That Sells for $20-$80
A Product That Has Plenty of Room for Improvement
The Potential to Create a Range of Products
1. A Product that is Small and Light
The best products to Private Label are “Smaller than a loaf of bread” and “Lighter than a pair of Shoes”. Shipping costs from overseas tend to be based on unit volume (weight x dimensions). You need to be aware that shipping larger products will cost you more and eat into your profit margin.
Remember that Amazon has an oversize limit and this limit is 18 inches x 14 inches x 8 inches. If you go oversize, you will pay a lot more in monthly storage fees which can eat into your profit. Sellers often get caught out with stock levels on their first product. It is a big advantage to have a product that can be priority shipped from China by air in an emergency without costing a fortune.
2. Select a Product with Low Seasonality
The best products to Private Label have solid all-year-round demand. Selecting a product like Halloween costumes would limit you to only 30-60 days before demand dropped significantly. Having seasonal products also severely limits your cash flow which will prevent you from scaling your new Private Label brand.
3. Select a Product with No Licenses, Trademarks, or Patents
The last thing you want is a letter or call from a lawyer asking you to cease and desist selling your product on Amazon after you have invested thousands of dollars! Use the United States Patent and Trademark Office database (called TESS) to search for existing trademarks. Google has a patent search tool which can help you locate patents on a specific product.
Avoid electronic items or those operated by batteries (of any kind, but especially lithium).
5. 100-500 Amazon Product Reviews
Product reviews indicating low to moderate competition relative to the category (generally speaking, between 100-500 reviews)
Pro Tip: Look at the number one product on page one of an Amazon search and record the number of reviews. Then look at the rest of the products on page one. What is the range of reviews on page one? If one product has over 500 reviews, but all the others have just a few, then there is room for you on page one and it is likely you will be able to compete for one of these page one spots.
6. A Product That Sells for $20-$80
The best products to sell on Amazon normally have a sales price point of between $20 and $80 USD. Consider that Amazon takes a big chunk of your gross profit in fees. Expect to pay Amazon anywhere between 35%-50% of your gross profit in various selling fees. This can be closer to 50% if participating in Sponsored Ads or Amazon Marketing Services.
Understand that generally, the higher the price range, the higher the profit margin but also, the more you will have to pay for inventory. This is a business consideration that you will have to take into account.
7. A Product That Has Plenty of Room for Improvement
When you sell Private Label on Amazon you want products where you can improve the quality of the listing or the product itself with enhancements.
You should look for products where the average feedback rating is below 4.0. This means you have the opportunity to tweak the product and hopefully outsell the existing products which have these problems.
Pro Tip: You should actually read the reviews of potential products to see what the problems are and whether it is something that can easily be rectified.
8. The Potential to Build a Range of Private Label Products
Finally, remember you are building a brand not just selling a single product. Look for products where there is the potential to create an entire range of related products. For example, maybe you decide you want to sell a dog collar. Dog collars need dog leashes. And dog leashes might need dog harnesses. If you have a dog, maybe he is old and needs some all-natural supplements. Pretty soon you have a full range of products all around the dog’s niche.
The benefits from this really come into play once you are building up your website and social media presence. If you start building an email list you can promote your new dog-related products to your existing customers.
The opposite to this would be to pick a fad toy that may be popular for a year or two at best (anyone remember fidget spinners?), and then as more competition floods the space, it rapidly becomes a race to the bottom in terms of price. This is something you want to avoid as a private label seller. The point is to think about long-term sustainable profits, not short-term skyrocket sales.
Step 3: Create a Spreadsheet to Compare Your Best Product Ideas
1. Open up Google Sheets
2. Using the ‘8 Essential Criteria for Your Amazon Private Label Product’ guidelines above, start compiling a list of products that meet these criteria.
3. You can use our ‘Private Label Product Ranker’ as a tool to help you list and score your opportunities. This will help you find the best products to sell Private Label.
Simply fill in your email and we will send you a copy of this awesome tool instantly!
Step 4: Use Amazon Product Research Tools to Conduct Your Final Analysis
There are several tools available for Amazon sellers which cut your research time drastically. The way you use these tools can mean the difference between picking a winner or picking a dud, so let’s be sure we understand how each one works and what you can use it for:
1. Jungle Scout – We use Jungle Scout to determine the average selling price, number of reviews, feedback score, and your estimated net profit after FBA fees.
3. Keepa – Use this tool to scope out best sellers rank over time for a product.
4. Google Trends – Use the Google Trends site to determine if there is seasonality to your product. If you see peaks and valleys in the trend over a 1 year period, it means there is seasonality and you should not select this product. You will also know if the product is generally increasing in popularity.
As you can see, selecting a good product to sell on Amazon is a process, but it is not difficult. With the proper tools and strategies, you can easily build a list of viable candidates to select from and begin the process of sourcing your chosen private label product.
Now it’s your turn! Use this guide as a starting point. Remember do not be tempted to skip any steps. And be sure to check out our Facebook group the Amazon FBA Masters
About the Author
Kindra Martinenko created her own successful Private Label brand and is now a 6-Figure seller on Amazon and other platforms. She is the CEO of Active Action Brands, LLC – a Digital Marketing company specializing in eCommerce marketing, Amazon listing management, and Business Coaching.
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