Launching Private Label Amazon FBA Products: 5 Things You Need to Know

Discover 5 things that you need to know about launching private label Amazon FBA products.
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A lot of people focus on the initial research stage of private labeling… and don’t think about the market and launch. In this video, we’re going to discuss 5 things you need to know before launching private label Amazon FBA products.

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#1: The Most Important Thing to the Amazon Algorithm is Sales

There are several factors that make up the Amazon search algorithm such as conversions, reviews and list relevancy. But the most important, number 1 factor, is sales. What Amazon wants to see is that your sales match (or beat) your top ranked competitor for your chosen keyword.

Launching private label products is a unique business model, as most digital businesses are built on paid traffic.

Matching your top competitor when you just launch can be challenging, but there is a quick “cheat” method to help you do so – product giveaways. This is when you create a discount coupon code that discounts an item down to just 99 cents. You then give this coupon away to people. When they use the coupon to buy the item, it counts as a sale.

#2: Don’t Be Afraid to Spend Money to Make Money

The most successful sellers who are launching private label products on Amazon FBA aren’t afraid to spend money because they know they’ll make it back in organic sales. Product giveaways are expensive, but they have big rewards from the organic traffic gain from ranking your product fast in the Amazon search engine.

#3: The Minimum Order Quantity Isn’t Always the Best

When launching private label products on Amazon FBA, if you can start with the minimum order quantity from a supplier, then this is the best thing to do because it minimizes your risk. But sometimes, the minimum order quantity isn’t enough to match the demand from your buyers.

This is especially important if you are going to run a product giveaway to match your competitors sales velocity. You need to check how many sales they are making every week, and ensure that you have enough inventory to match those sales.

#4: Be VERY Careful with Price Competition

One marketing strategy when launching private label products on Amazon FBA is price. It’s not a bad thing, but it’s an advanced technique most new FBA private labellers should stay away from:

1) You risk getting into a pricing war. You lower your price, so your competitor lowers their price, so you lower your price. The only person that wins in a pricing war is the customer.

2) It’s often unnecessary. Your competitors in the market have already tested the prices for you, and have found what is called “market equilibrium.” This is when the price matches the demand.

3) You risk losing sales because of perceived value. Lowering the price psychologically lowers the value of your item.

The safest place to price your items is somewhere in the middle. Not the most expensive, not the cheapest – somewhere in the middle.

#5: Follow Up Emails are KEY for Getting Reviews

Reviews are key for launching private label products on Amazon FBA. To get reviews you need to send emails. If you don’t follow up with the customer, your conversion rates can be as low as 2-3%. But a simple 3-email sequence can bump it up to over 10%.

Here is a good 3-email sequence to follow when launching private label products on Amazon FBA:

1) Send the first email to the customer when their order is shipped. This builds anticipation and it also shows that you care about them as a customer since you are keeping them informed.

2) Send the second email a couple of days after the product has been delivered. Ask them to please leave a review. Another important thing to ask is for them to email you if they are having problems before they leave feedback. This should stop most negative reviews.

3) Finally, send them the first email a week after the product has been delivered. Ask them to leave a review, and tell them it would mean a lot to you if they did. It is also important to ask them to contact you if they are having any issues before leaving feedback.

Remember: it is against the terms of service to ask for a positive review. But it is not against the Amazon terms of service to ask for an honest review!