More and more people are discovering the tremendous opportunities available by selling their own private label products on Amazon FBA.
So how do successful sellers find the best private label items to sell on Amazon?
In this post, we’ll take a look at what an Amazon private label item is and then show you how to quickly build a list of viable opportunities to sell Amazon private label items.
From this list, you’ll be able to choose the best private label items to sell on Amazon FBA. 🤩
🤠 Quick Answer: How do I find the best private label items for sale on Amazon?
“Do a manual search or use product research tools to find products with high demand, low competition, potential for improvement, and a 20-40% profit margin that are lightweight, priced at $20-$80, and have 100-500 reviews.”
🕵️♂️ Here are 3 basic steps we’ll cover:
- Step 1: 8 key criteria for your Amazon Private Label product.
- Step 2: Use Amazon’s product research tools to conduct your analysis.
- Step 3: Use Amazon as a starting point.
So, let’s dive into this….
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Want to take a shortcut?
We use Helium 10 to quickly find popular items with low competition on Amazon FBA private label.
Helium 10 will save you time and help you avoid costly mistakes.
Learn more about Helium 10 ◥
What is Amazon Private Label? 🤔
Amazon PrivateLabel refers to products made from scratch, or generic products sourced from a vendor but sold under their own brand on Amazon. Sellers customize these products with their own branding and packaging and sell them as unique items, offering more control over price, quality, and profit compared to reselling other brands.
Amazon private label items are usually sourced from China from sites such as Alibaba or AliExpress.
Step 1: 8 essential criteria for your Amazon Private Label product
Here are the 8 most important criteria for choosing the best private label products to sell on Amazon:
- Small and lightweight product
- Choose a product with low seasonality
- Choose a product without licenses, trademarks or patents
- Avoid complex electronic products
- 100-500 reviews of the product on Amazon
- A product that sells for $20-80
- A product that has a lot of room for improvement
- Potential to create a range of products
🟢 1. Small and lightweight product
The best products for Private Label are usually “smaller than a loaf of bread” and “lighter than a pair of shoes”
The cost of shipping from overseas is usually based on the volume of the unit (weight x dimensions). You should realize that shipping bulky items will cost you more and reduce your profits.
Remember that Amazon has an oversize limit and that limit is 18 x 14 x 8 inches. If you exceed the limit, you will pay much more per month for storage.
Sellers often get caught out with the inventory level of their first item. It’s a great advantage to have an item that can be shipped from China by airplane in a hurry without spending a fortune.
🟢 2. Choose goods with low seasonality
When selling private labels on Amazon, you should aim for a product with year-round demand. By choosing an item like Halloween costumes, you’ll be limited to only 30-60 days before demand drops off significantly.
Having seasonal merchandise also severely limits your cash flow, which will prevent you from scaling your new Private Label brand.
🟢 3. Choose a product without licenses, trademarks or patents
The last thing you want is a letter or call from a lawyer asking you to “cease and desist” from selling your product on Amazon after you’ve invested thousands of dollars in it!
Use the U.S. Patent and Trademark Office database (called TESS) to search for existing trademarks. Google has a patent search tool to help you find patents for a specific product.
You can find more information about trademarks here: Amazon Private Label: Search for a trademark◥
🟢 4. Avoid complex electronic goods
It’s best to avoid electronic goods and battery-powered goods (any, but especially lithium).
🟢 5. 100-500 product reviews on Amazon
Try to target products that get around 100-500 reviews. This shows that there is a demand for the products, but the competition is not too high. Then you can create your own branded version with enough chances of success.
In the example below, we used Jungle Scout to analyze the product and it does show the average number of reviews to help you decide on the viability of the product.
TIP: Look at the number one product on the first page of your Amazon search and note the number of reviews. Then look at the other products on the first page. What is the range of reviews on the first page? If one product has over 500 reviews and all the others have just a few, then there’s a spot for you on the first page and you can probably compete for one of those spots. 💡
🟢 6. A product that sells for anywhere from $20 to $80
The best products for sale on Amazon are usually priced between $20 and $80. Keep in mind that Amazon takes a big chunk of your gross profit in the form of commissions.
Expect to have to pay Amazon 35-50% of your gross profit in the form of various sales fees. If you participate in Sponsored Ads or Amazon Marketing Services, that figure can be closer to 50%.
Realize that the higher the price range, the higher the profit margin, but also the more you’ll have to pay for inventory.
🟢 7. A product that can be improved
When you sell Private Label on Amazon, you need products where you can improve the quality of your existing listings or the product itself.
You should look for products that have an average review rating of less than 4.0 stars. If you look at the reviews, you will see what problems people had with the product that prevented it from getting the full 5 stars. If you fix these problems, you can hopefully outperform the original.
PRO TIP: You should read reviews of potential products to see what the problems are and if they can be easily fixed. 💡
🟢 8. Potential for creating a range of private label products
Finally, remember that you are building a brand, not just selling one product. Look for products that have the potential to create a range of related products.
For example, you decide to sell dog collars. The collars need leashes. And leashes may need dog harnesses. If you have a dog, it may be old and in need of natural supplements. Pretty soon you may have a whole assortment of products in the dog niche.
The benefits really show up when you build your website and social media presence. If you start building an email list, you can promote your new dog products to your existing customers.
Contrast this with choosing a fad toy that will be popular for a year or two at best (anyone remember fidget spinners?) and then quickly become a race to the bottom in terms of price when competition floods this space.
This is what you want to avoid as a private label seller. The key is to think about long-term sustainable profits, not short-term sales spikes.
Step 2: Use Amazon’s product research tools to conduct your analysis
There are several tools available to Amazon sellers that greatly reduce research time. How you use these tools can mean the difference between picking a winner or picking a loser, so let’s break down how each one works and what you can use them for:
1. Helium 10 😍- We use Helium 10 (free trial) to easily find related keywords related to your product and identify other traffic trends.
Learn more about Helium 10 ◥
2. Jungle Scout 😍 – We use Jungle Scout to determine average selling price, number of reviews, review score and estimated net profit after FBA fees.
Learn more about Jungle Scout ◥
📝 If you’re trying to decide between these two, read our comparison review: Helium 10 vs Jungle Scout◥
3. Keepa – Use this free Amazon tool to find out a product’s recent sales volume and price.
Learn more about Keepa…
4. Google Trends – Use the Google Trends site to determine if your product has seasonality. If you see peaks and valleys in a 1 year trend, it means it has seasonality and you shouldn’t choose that product. You’ll also find out if the product is growing in popularity overall.
Using Amazon’s top seller rankings to choose a product
Many aspiring Private Label sellers look at the BSR (Best Sellers Rank) to estimate the sales volume of a particular product.
When you look at the BSR, keep in mind the product category you are evaluating. We recommend you use free tools like Jungle Scout Estimator to estimate how many units a product sells each month.
These estimating tools tend to overestimate sales somewhat. Actual sales will usually be less than projected sales as many other factors come into play.
Using browser plugins such as CamelCamelCamelCamel and Keepa will allow you to view a product’s bestseller ranking over time. These tools are also useful for identifying the seasonality of specific products.
🧐 We use the FREE Jungle Scout Sales Estimator to get a monthly sales volume for any product sold on Amazon – try it out here – Jungle Scout Sales Estimator◥
Step 3: Use Amazon as a starting point
Amazon is where you want to sell your products, so Amazon is where you should go to find out what customers are buying. Instead of puzzling over the question “what should I sell?”, approach the question from the perspective of“what do people want?”
So how do you find out what people are looking for on Amazon? Start by familiarizing yourself with the following sections:
✅ Amazon’s Hot New Releases
Amazon’s Hot New Releases list displays products in all categories that have just launched on the Amazon marketplace and are already “selling like hotcakes”
This gives you an idea of what is in demand right now. It may not be an indicator of long-term success, so take this information with a grain of salt.
Check out Amazon’s hot new releaseshere: Amazon Hot New Releases◥
✅ Amazon’s Best Sellers
What’s selling on Amazon? The Amazon Bestsellers list lists the top 100 best-selling items in each category. This list is updated hourly and is based on sales velocity.
You can see which items are selling consistently well over a long period of time. You can go to subcategories for even more ideas and inspiration.
Check out Amazon’s best sellers here: Amazon Best Sellers◥
✅ Amazon Movers and Shakers.
Amazon ‘Movers and Shakers’ is like a subcategory of ‘Amazon Best Sellers’. It shows trending items on Amazon that are quickly climbing the bestseller rankings and are indicated by green arrows and percentage increases (similar to stock signals).
This is very useful for identifying Amazon bestsellers that are selling faster than others in a particular category.
You can view a list of Amazon Movers & Shakers here: Amazon Movers & Shakers◥
✅ Amazon’s most coveted products
Amazon keeps track of what people add to their wish lists. The Most Wished For category is filled with things that people really want. So why not use this list as inspiration to provide them with exactly what they’ve always been looking for?
Check out the Amazon Most Wished For list here: Amazon Most Wished For◥
✅ Amazon Most Gifted
Amazon offers gift wrapping services and allows sellers to provide this service to their customers.
Amazon tracks sales that include gift wrapping, so it knows what products are being purchased as gifts. This provides another good indicator of what products might be good for Amazon Private Label.
You can take a look at Amazon Most Gifted here: Amazon Most Gifted◥
PRO TIP: If you sell private label products using Amazon FBA, you should have the “gift wrapping” and “gift messaging” options checked in your seller central backend for your products! This costs you nothing as a seller and is another added benefit that can set your product apart from the competition. 💡
Summary
As you can see, finding the best Private Label product for sale on Amazon FBA involves an organized process.
With the right tools and strategies, you can easily create a list of suitable products and start the process of searching for your chosen Private Label product.
Now it’s your turn! Use this guide as a starting point. Remember, don’t be tempted to skip any steps.
And don’t forget to check out our Facebook group ” Selling on Amazon FBA for Beginners and Professionals” – For those just starting out on their Amazon FBA journey and for professional sellers. 😎
Questions and answers about selling private label items on Amazon
Q: What are some examples of private label brands?
A: Many major retailers now have their own private label products. Examples of private label brands include Kirkland Signature from Costco, Morphe, Trader Joe’s, AmazonBasics, Walmart’s Great Value brand. Anker is probably the best example of a successful private label brand that was launched exclusively on Amazon.
Q: What is an Amazon private label?
A: Amazon now has several of its own private brands such as Umi, Eono, Mama Bear, Pizon and AmazonBasics. It is increasingly difficult to compete with them due to their low prices and good quality.
Q: Which private label brands are the most successful?
A: One of the most successful private label brands on Amazon is Anker, which sells electronic accessories. Other examples of successful private label brands are Utopia Deals, Joyin, Carlyle, Gorilla Grip, Lepro, and Fintie.
Q: Is Amazon private label profitable?
A: Amazon’s private label brands are considered high risk and high return. It takes longer to launch and costs more than wholesale or retail arbitrage, but profits can be much higher. Just one very successful product can be your companion for life. Just take your time, make sure your first product is successful so you can develop it further. Amazon FBA private label is becoming increasingly competitive but still profitable in 2024.
Q: What are the disadvantages of selling private label products on amazon?
A: The main disadvantages are that you are selling a product from scratch, which means you have to create a listing on Amazon and promote your product, otherwise it will be virtually invisible. There are also issues with the fact that you are liable if a buyer is harmed as a result of using your product, so insurance is recommended. Another major hurdle is that it costs more to start selling private label than wholesale or arbitrage sales.
Q: What is the best country to sell private label products on Amazon?
A: China is currently the number one source of products for Amazon private label products. People mostly buy products from manufacturers they find on Alibaba. You can also look into buying locally, which will save you the stress and hassle of importing from China.
Q: Do I need to set up an LLC for Amazon private label?
A: You can start selling on Amazon as a sole proprietor, so you don’t need an LLC.
Q: How much does it cost to start selling private label items on Amazon?
A: Starting a new private label on Amazon can cost anywhere from $1500 to $6000. The main costs come from a professional Amazon seller account, inventory, UPC codes, shipping and samples. You can also include training course, product photography, software, verification services, and PPC advertising.
Q: Can I do private labeling on Amazon without registering a brand or trademark?
A: It is recommended that you get a trademark as this means you can register your private label on Amazon FBA. This will provide more protection for your product from counterfeiting and listing hijacking. For more information, click here – Amazon Trademark Guidelines for Private Label Sellers.
Q: Is private label the same as dropshipping?
A: Amazon FBA private label is when you sell items under your own brand, while dropshipping involves another company shipping their branded items directly to your customers. We recommend FBA private label over dropshipping, as dropshipping doesn’t really work on Amazon due to strict regulations.
Q: What is the difference between Amazon FBA and private label?
A: FBA stands for Fulfillment by Amazon, where Amazon will pick, pack, and ship your product to your customers. Whether you are private label, wholesale, or arbitrage, you can use FBA or do the picking and packing yourself. If you do it yourself, it is called Fulfilled by Merchant (FBM).
