1). Picking Your Model: Private Label vs. Wholesale
There are two main approaches: Wholesale and Private Label.
Wholesale involves buying products from existing brands in bulk and reselling them on Amazon. It can work, but competition is fierce, and margins can be slim.
Private Label, on the other hand, means creating your own brand by manufacturing a product and selling it under your name. This gives you full control over pricing, branding, and marketing, making it a more consistent and scalable business model. That’s why I focus on Private Label, and that’s what this guide will cover.
2). Finding a Niche
If you get one thing right, make it this—product hunting is everything. Rushing this step is one of the biggest mistakes new sellers make. Take at least a month to research and analyze potential products before making a decision.
To do this properly, invest in a good research tool like Helium 10 or Jungle Scout. They cost around $39 per month, but they’ll save you from picking a bad product, which could cost you thousands.
What to look for when doing product hunting on Amazon?
- Price: At least $20
Lower price means lower margins, which usually isn’t worth it. - Revenue: > $3,000
- Reviews: < 100
This indicates the products in this niche are not established yet and we can easily compete with them.
Avoid seasonal trends and products dominated by big brands unless you have a solid angle to compete.
I’ll link a full tutorial on deep product research so you can dive in further.
3). Improving Your Product
Gone are the days of just picking a random product on Alibaba and listing it on Amazon!
If you want to succeed, you need to differentiate your product in some way.
Start by researching your competitors. Read through their reviews to see what customers love and what they hate. Look at their product images—are they high quality? Are they missing key selling points? Even small changes, like upgrading your packaging, can make a big difference in how customers perceive your brand.
If every other seller is offering the same generic item, adding better packaging, including an accessory, or improving the material can set you apart. Small tweaks can lead to big results.
4). Manufacturing in China
When it comes to cost-effectiveness, China is still the best place to source products. Use Alibaba to find multiple suppliers and reach out for quotes.
Always order samples from different suppliers to compare quality before committing to a bulk order.
Once you’ve chosen a supplier, don’t be afraid to negotiate. Most suppliers start with higher prices, expecting some back-and-forth.
What about shipping?
Shipping is another important factor—while air freight is fast, ocean freight is significantly cheaper, so use a freight forwarder to handle logistics efficiently.
5). Launching Your Product on Amazon
Once your product is ready, it’s time to launch. Your goal at this stage is to build momentum, not maximize profit. Start by pricing your product lower than the competition to encourage initial sales.
More sales lead to more reviews, which ultimately drive long-term success.
Amazon PPC (pay-per-click) advertising is also crucial. If you don’t know much about PPC yet, start with an automatic campaign and let Amazon do the targeting for you. Over time, you can refine your ads based on performance data.
