In past few days, I have spent incredible amount of time learning about various business ideas I am working on this year. In fact, I didn’t get to write any blog, public or private, since January 9th.
Selling Private Label on Amazon
This seemed like an easy way to make semi-passive money. However, it requires a lot of upfront effort and cost. My brother is helping me with this but I think this should not be our first step. Selecting products for private label is easy. We are using JungleScout webapp. It helped us narrow down several promising niches. The next steps would be:
- Find manufacturers on AliBaba.com. Filter by Gold and Trade Assurance.
- Order samples.
- Order UPC codes ($250 for only 10 UPCs with $50 annual renewal fee. There are also 3rd party resellers that offer UPC). Also we can bypass UPC requirement if we can get Brand Registry. But Brand Registry approval process requires your product with the brand logo on it.
- Create the product listing on Amazon and get FNSKU.
- Design packaging with FNSKU and send final order to manufacturer. Use Air for shipping. It would cost more but it would be faster and avoid dealing with Customs.
- Once order arrive use inspect and send to Amazon.
- Start marketing on Amazon using PPC.
We might be moving on this slower than our initial plans. The other option is to order product first with our branding. Then apply for Brand Registry. This would save us at least $250. If we do this then we will not have FNSKU until after product is designed and shipped to us. So we will have to attach labels for the first batch of products. Then we can update our packaging design and incorporate FNSKU in it.
So while searching on how Private Label works on Amazon, we came across Retail Arbitrage.
I have been selling my old games and books on Amazon for a while but never used FBA before. So first we created a test FBA shipment, the process is a little confusing but in end everything went smoothly. One video game sold within couple of hours of going live.
Pro account give you access to Amazon Seller App. The app lets you scan items and tell you how much you can sell it for on Amazon and if you are allowed to sell it. So we will try Retail Arbitrage though we don’t want to invest too much time in this as this is not passive at all.
I am still learning to design and use Photoshop.
But I am thinking instead of selling my T-Shirts just on RedBubble and Private Label just on Amazon, why not create a real brand that we can grow.
So I am thinking about setting up a Shopify store. Shopify let you push products to Amazon so you can easily manage your products from one place. I can still use FBA to fulfill orders for Private Label.
Then for T-Shirts, I can use Teelaunch or Printful and integrate that with Shopify. These service will automatically fill orders. This should be better in long run. And once my brand is registered with Amazon, then I can push products directly to Amazon too.
To avoid $30 per month fee of Shopify, I could use WooCommerce. That is another area I need explore.