Now that selling private label products on Amazon has become so popular, it's interesting to see what people think are good products to build a brand around. There are some who reach for the stars and build complicated items that cost a lot of money to produce, while others go the simple route.
Hopefully by the end of this article you will know what are the best private label products to sell on Amazon.
Why are you private labeling?
I think the best way to start any endeavor is to ask yourself why. Why are you creating a private label product in the first place? I would venture to say that most people who are trying to create their own brand on Amazon are doing so because they are tired of running around from store to store doing retail arbitrage, or spending hours online trying to find products they can flip from eBay to Amazon and so on.
Let's face it, reselling sucks… Sure it's great for some quick cash, but the fact that there's never any stable and consistent income without putting it in a lot of time can be very difficult.
Most people see private label products as an opportunity to provide consistency in revenue as well as a means to cut down on overall labor.
While folks definitely understand and see the benefits of building your own brand when it comes to not having to constantly find new products in order to make revenue, there is one thing that keeps them from being successful with private label products… Over complication.
We think that the more complex the item, and the more work that's put into the item, translates to the more revenue generating capability it has. Sure, and iPad is going to have much more value than a plastic cup, but building the next iPad does not guarantee that anybody is going to buy it.
There are far more people making tons of money with simple items then there are those that produce complex products in the private label space.
The simpler the better
When it comes to the best private label products to sell on Amazon, the simpler the better. There are a few rules that I have when it comes to products that I brand myself. It's not rocket science, but it works:
- Is the item Evergreen? Meaning, will someone buy this product over and over again (for example, people will always buy shampoo. When they run out, they will buy more shampoo.)
- Are people actually searching for your kind of product? Imagine spending thousands of dollars on your own branded product only to find out that nobody is even looking for it. I don't mean that they aren't searching for your specific brand, I mean that they aren't even looking for your type of product. The easiest way to test what people are looking for prior to spending a lot of time and money on product id to do keyword research on Amazon. You can do this by manually typing in keywords into the Amazon search bar to see if people are searching for that word, or you can use software. There are a lot of tools out there that just automatically use the Amazon suggestion bar to come up with ideas, and that sort of works, but I prefer Keyword Inspector or KIPRT because the former lets you do reverse ASIN searching that tells you exactly what customers searched for when the went to a particular listing, and the latter gives you a ton of data that lets you find gaps in the market that you can take advantage of. The reverse ASIN searching doesn't just rely on keywords that's in the listing too... for example, if you are looking at a bulldozer toy some of the keywords that Keyword Inspector brings up might be something like "construction toys for kids" even though it might not be in the listing at all. It's really powerful.
- Does the item have a lot of competition? You'd be surprised that there are still a ton of items that don't have a lot of competition. On top of that, even if your product has "competition" are you able to easily make multiples that you can use to make new listings that your competition can't? \
- Is the item simple and cheap to produce? Like I said before you don't need to build the next iPad. I'd rather sell 20 units of plastic cup bundles a day at $24.99 each than one iPad at $299 with a very low profit margin.
- Does the item have proven sales data against it? Have I tested the listing that I created on Amazon with products that I found at retail stores first before I made a decision to buy in bulk? A lot of people miss this step, which is probably the most important, because it proves whether or not your product is actually going to sell prior to you spending a lot of money sourcing from a manufacturer
That's it. Like I said, it's not rocket science. The best private label products to sell on Amazon are those that are simple, Evergreen, and have proven sales data. Doing private label this way allows you to rinse and repeat easily. The more that you do it the more assets you build for yourself in the long run.
Updated December 2015: A really easy way to get private label product ideas quickly by people that create and manage private label products for a living is through a site called MooFlip. They have vendors that do online arbitrage, Merch by Amazon done for you designs, and done for your private label product research. It's a great way to save a ton of time researching private label products to sell on Amazon and just get them handed to you. You can check out MooFlip by clicking here.