Amazon owns over 80 different private label brands. Even Amazon, one of the most powerful eCommerce companies globally, understands the use of leveraging smaller businesses. Establishing an Amazon brand has multiple advantages over selling other people’s products.

This article will address many of those advantages. We will leverage the experience of Milos, a successful eCommerce, and Amazon specialist with five years of experience.

Milos is a business school graduate with a dream to achieve financial freedom. Through his experience, we will provide you with real-world situations where you can also achieve this dream.

Step One: Do Niche and Product Research

When selling products, it is important to have a complete plan of action. This full guide will inform you of the exact steps you need to take for product research.

To begin, know that the best products generally fit these requirements. These suggestions are based on Milos’s sales experience :

• High demand and low competition.
• Lightweight and small (below 5 lbs and below 18” x 14” x 8”).
• Moderate price ($10 to $60).
• Use a sales price that is at least 25% from your target price.
• Without moving parts.
• Customizable (so you can help it stand out in a saturated market).
• Products under 200 reviews.
• Stick to daily use items (not seasonal).
• A profit margin of around 10 to 20%.

Eventually, Milos and their team settled on selling shower curtains.

Shower curtains are literally a blank canvas you can draw on. These products are also lightweight and simple to ship.

Much of this will be necessary, as Milos can tell you from personal experience that you should avoid spending more than $1,000. While you might not need much money, research often has you returning to the drawing board.

So as long as you apply the four product requirements above, you will simplify your research process. Here are some tools you can use to find the best products:

• Using Keyword Research Tools

When Milos began their eCommerce journey more than five years ago, there weren’t many research tools available. Thankfully, the use of third-party tools has grown, enabling people who know what they are doing to gain a quick competitive advantage.

Here are a few research tools you can use:

• Google Trends — Google Trends is a keyword research tool that enables you to see breakout topics and significant trends. Utilizing this is a great way to take advantage of short-term keywords, perfect for selling seasonal products or modifying product descriptions to meet seasonal needs.

• Google Keyword Planner — Google Keyword Planner enables you to see current search volumes. Because it is often part of AdWords and Analytics, it allows you to easily see keyword difficulty based on the investment amount of those paying for rankings.

• Amazon Keyword Research Tools — There are numerous Amazon Analytical Tools available from third-party providers. Milos typically uses AMZScout, which includes reverse ASIN search, keyword searching, and other tools.

• Using Amazon Analytical Tools

Amazon Analytical tools enable users to look through low-competitiveness marketplaces. Ideally, your marketplace should have a certain level of sales without being too overly competitive.

Milos typically uses AMZScout, but you should try on many options to see what meets your needs.

Here are a few things worth looking for:

• Stick with niches that have less than three hundred reviews.
• Seek out niches that receive a consistent number of sales, enabling you to make a profit. Ideally, this should be about four thousand or more sales, but all that depends on how many products you need to sell to make a profit exceed your break-even point.
• Look for products with a solid average monthly revenue. Ideally, it should be above $50 thousand. Compare this number to how much you spend.
• Look for products that have an average price per item that appeals to common people. Ideally, this should be around $10 to $60.
• A visibility score can tell you how easy the product category is to spot, look for analytical tools that mention this.
• Always stick with analytical tools that offer historical data.

• Using Social Media

Social media platforms enable users to identify influencers in their target market and trends around product categories they want to sell. There are numerous social media options available, but here are some of the best:

• Twitter — Twitter sorts information by category already. Given the “sub-categories” that Twitter has, it is easy to be an active member of your niche.
• Instagram — Instagram is an influencer paradise, full of numerous people who use multiple products in your niche. Find out what and how influencers are using to find out what works in your preferred niches.
• Pinterest — Crafting and DIY is a strong niche for those willing to get into it. However, the various boards that users can host cover many popular trends happening in your niche.
• Reddit — Redditors enjoy creating numerous boards related to a vast number of niches. If you want to connect with your audience, join a board and start chatting with people.

Being across multiple social media pages is a great way to understand customer needs. If you ask, people are more than happy to share their experiences.

• Using Reports and Selections

Amazon provides numerous reports to those who are curious. Those reports set the tone for products for many years. Here are categories you should look out for:

• The Amazon Trend Report is a yearly report indicating a significant change in an overall product category. This year’s trend report tells us of an increase in exercise equipment of 55%.
• The Amazon Best Sellers Category is a comprehensive report of the best sellers based on consistent performance. You’ll find that the information gets more valuable as you drive further down your product category under the department list on the left side.
• The Amazon Movers and Shakers Category is often more important than best sellers because it measures the percentage change over 30 days. This enables you to see short-term trends in action, which might signify that the product category is becoming more popular.

Step Two: Create an Amazon Seller Account

Before you can utilize much of this information, you need to have access to Amazon Seller Central. Seller central requires you to create an account, meaning you will need to follow these steps:

1. Fill in a form regarding your full name, address, phone number, and current information.
2. Connect a current bank account that will enable you to receive regular deposits and make payments.
3. Schedule an interview to confirm your identity that involves you having a current photo ID and (sometimes) bank statement.
4. Await a postcard containing a code you will need to enter to confirm you live at your physical address.

Because Amazon does not support all bank accounts, your need for a bank statement will depend on whether or not Amazon can confirm your bank electronically. In this case, you will need access to your bank’s routing number and your own account number.

This does not have to be a business bank account. Individuals have the same access as businesses when it comes to being an Amazon seller.

However, you will have to choose between having an individual or a professional account.

• Individual accounts are better if you don’t plan to use Amazon’s analytics platforms or sell more than 40 items, but it includes per-item listing fees of $0.99. It costs $9.99 per month.
• Professional accounts are best if you sell more than 40 items and want Amazon’s advertising and analytics platforms. All serious Amazon sellers should pursue a professional account. It costs $39.99 per month.

Step Three: Find a Supplier

When finding a supplier, the most common avenue is the use of overseas options like Alibaba. Milos shares that the biggest issue is finding a supplier that speaks English well enough to hold a conversation.

Milos reminds us that finding a supplier who can understand what you want out of them is essential. This avoids issues during the product production process.

This goes beyond language barriers, as it is important to have a supplier who is willing to listen to you. If they ask a lot of questions, you are in the right direction.

Keep these additional tips in mind when finding a supplier:

• Look for suppliers and manufacturers that have good reputations. Find them online and seek out their Trustpilot profile as well. If they don’t have one, seek out opinions of them on Google.
• Request a sample before ordering any bulk products. If the supplier refuses a sample, they are likely selling low-quality products.
• Many times people are willing to provide deep discounts for bulk orders. Compare many providers to see the best rates and measure those rates against the quality of samples.
• If you are using an overseas manufacturer, be sure to account for shipping costs. If you find someone who is familiar with Amazon’s systems, you might save yourself some time.
• If your product allows for it, stick with local suppliers. You can find them by going to trade shows associated with your niche.

Step Four: Joining The Amazon Brand Registry Program (Step By Step)

When joining the Amazon brand registry, you access numerous tools that assist you in brand building. These tools include Amazon Posts, Amazon Brand Analytics, and enhanced advertising tools.

Here is a step-by-step process for joining the program:

1. Acquire an active trademark in the country you are doing business with. You can easily acquire a trademark through the Amazon IP Accelerator
2. Be aware the trademark must have either a text-based mark or an image-based mark with words, letters, or numbers.
3. Acquire the trademark registration number from your Intellectual Property office. If you are registering through the IP accelerator, you will still need this.
4. Produce a list of product categories that your brand will be part of.
5. Submit the information to Amazon as the trademark owner. You cannot submit this without being a brand owner.

Amazon will accept pending trademarks, but you will need a clear brand name. Milos’s experience tells us that it is necessary to get an expert copyright lawyer. Getting one can save you time, money, and avoid headaches that might result in lawsuits.

Milos also shares that to be sure you have a domain name and a website associated with your brand. That way, when your brand starts to grow recognition, you can leverage it with your website.

Step Five: Choosing How To Fulfill Your Orders (FBA vs. FBM)

Order fulfillment refers to the method you use to ship and store your products. Most sellers prefer FBA (Fulfillment By Amazon) because it cuts costs and enables you to specialize in marketing and product research.

However, you would be foolish to think that you can ignore logistics. Milos’s experience reminds us that you need to be incredibly focused on inventory management, specifically, making sure you can afford it.

Tracking how many items you need, having a large enough order to take advantage of discounts, while also balancing to avoid storage fees can be tricky. With experience (and some helpful tips if you talk with fellow sellers), you can excel in this area.

Inventory management is one of the most critical aspects of Amazon FBA selling.

Fulfillment By Merchant, or FBM, is your alternative option. This means that you have complete control over shipping and inventory management.

Likely, you won’t be able to outdo Amazon, but handling warehousing and shipping might be better if you use Amazon to sell to local providers. However, shipping to other states, countries, provinces, or international locations is almost always better done by Amazon.

Step Six: Amazon Ads

When it comes to Amazon advertising, you might want to overcomplicate matters. However, Milos shares that the most important aspect of their advertising efforts was “good old-fashioned pay per click.”

Milos also did some Facebook promotion and had some minor partnerships, but PPC is still the most effective method. When it comes to advertising, sticking with what works is crucial.

Amazon advertising is vital as a brand creator, as you must pay for all of your first sales. Unlike wholesale or retail arbitrage, having your products manufactured and managed by you puts your success in your hands.

Final Thoughts — Tips for Beginners

For the most essential tips for beginners, Milos shares the most important thing that brought them success: finding the right product.

With a good product, you can fail almost every other aspect of selling. As Milos says, you need to sell something that people want to buy. No amount of skill will compensate for that.

By focusing on providing quality items and working strategies, you can also succeed where Milos did. Be sure not to overcomplicate matters and focus on strategies that work.