How to Build a Brand on Amazon
Amazon owns over 80 different private label brands, understanding the power of leveraging smaller businesses. Creating your own brand on Amazon has many benefits compared to selling other people’s products. This article will dive into these advantages, using the insights from Milos, an experienced eCommerce and Amazon specialist with five years in the field. Milos, a business school graduate aiming for financial freedom, offers real-world examples to help you achieve the same dream.
Step One: Do Niche and Product Research
First and foremost, having a well-thought-out plan is crucial when selling products. Here’s a guide to help you with product research, based on Milos’s experience:
1. Look for products with high demand and low competition.
2. Choose lightweight and small items (under 5 lbs and 18” x 14” x 8”).
3. Opt for moderately priced items ($10 to $60).
4. Ensure your selling price offers at least a 25% margin.
5. Avoid items with moving parts.
6. Pick customizable products to stand out in crowded markets.
7. Target products with less than 200 reviews.
8. Stick to everyday items—not seasonal ones.
9. Aim for a profit margin of around 10 to 20%.
Milos and his team eventually decided to sell shower curtains because they are lightweight, easy to ship, and essentially a blank canvas.
Research tools can simplify this process:
Keyword Research Tools:
1. Google Trends: Use this to spot significant trends and breakout topics, useful for seasonal products.
2. Google Keyword Planner: This tool helps see current search volumes and keyword difficulty.
3. Amazon Keyword Research Tools: Third-party tools like AMZScout offer reverse ASIN search, keyword research, and more.
Amazon Analytical Tools:
1. Target niches with fewer than 300 reviews.
2. Ensure consistent sales, aiming for about 4,000 or more.
3. Look for products with monthly revenues above $50,000.
4. Choose items priced between $10 to $60.
5. Look for tools offering historical data to track trends.
Social Media:
Platforms like Twitter, Instagram, Pinterest, and Reddit can help you identify market influencers and product trends. Engaging with your audience and understanding their needs can provide invaluable insights.
Reports and Selections:
1. Amazon Trend Report: Highlights significant changes in product categories.
2. Amazon Best Sellers Category: Lists consistently performing best sellers.
3. Amazon Movers and Shakers Category: Tracks percentage changes over 30 days, useful for spotting short-term trends.
Step Two: Create an Amazon Seller Account
To sell on Amazon, you need an Amazon Seller Central account. Here’s how to set it up:
1. Complete a form with your details.
2. Link a current bank account for payments and deposits.
3. Schedule an interview to confirm your identity with a photo ID.
4. Enter a code from a mailed postcard to confirm your address.
Choose between two account types:
– Individual accounts ($9.99/month): Best for selling fewer than 40 items without using Amazon’s analytics.
– Professional accounts ($39.99/month): Ideal for selling more than 40 items and utilizing advertising and analytics tools.
Step Three: Find a Supplier
Most sellers use overseas suppliers like Alibaba. Here are Milos’s tips:
1. Ensure your supplier speaks good English for clear communication.
2. Verify their reputation online, checking Trustpilot or Google reviews.
3. Request samples before placing bulk orders.
4. Compare rates among providers for the best deal and quality.
5. Consider shipping costs, especially with overseas suppliers.
6. Local suppliers might be beneficial for certain products; find them at trade shows.
Step Four: Join The Amazon Brand Registry Program
Joining the Amazon Brand Registry unlocks tools like Amazon Posts, Brand Analytics, and enhanced advertising. Here’s the process:
1. Secure an active trademark in your business country.
2. Ensure the trademark includes text-based or image-based symbols.
3. Get the trademark registration number from your IP office.
4. List the product categories under your brand.
5. Submit the information as the trademark owner.
Having a domain name and website is also recommended to leverage your growing brand.
Step Five: Choosing How to Fulfill Your Orders (FBA vs. FBM)
Fulfillment By Amazon (FBA) is preferred for cutting costs and focusing on marketing and research. However, effective inventory management is crucial.
Fulfillment By Merchant (FBM) allows complete control over shipping and inventory, but it might be less efficient than Amazon for broader shipping needs.
Step Six: Amazon Ads
Milos emphasizes using “good old-fashioned pay per click” for advertising. While Facebook promotion and partnerships worked to some extent, PPC remains the most effective. As a brand creator, paying for your first sales is vital since you manage your products entirely.
Final Thoughts — Tips for Beginners
The most critical tip Milos offers is to find the right product. Selling something people want is essential; no strategy can make up for a product that doesn’t resonate with customers. Focus on quality items and tried-and-true strategies to succeed. Keep things simple and effective.