10 Easy Ways to Earn a Passive Income Using Amazon FBA ?

“Making money while you sleep” has a beautiful ring to it, doesn’t it? After hearing about people making hundreds and thousands of dollars while sleeping, we know that you have become obsessed with passive income. When you need additional income, the banal proposal offered is to get a part-time job. But what if you don’t have the energy and time to put in all those extra hours? This is where Amazon FBA comes into the play.

Amazon has become a great source of passive income for people who want to generate extra income for their endeavors. The best part about knowing how to generate passive income using Amazon FBA is that there are no limitations to the amount of money you can generate. So much so that you can even quit your job and become a full-time Amazon seller.

Over the years, Amazon has shaped itself to become of the easiest and safest online business models to generate passive income from, especially the Private Label Selling.

Amazon has access to millions of customers worldwide from which you can tap into.

But here’s the thing – it takes an eternity to create good quality products and even longer to promote if you don’t know the basics.

Yes, you heard that right! It is not easy as it sounds, and if you want to make passive income from Amazon, you need to think like a regular Amazon seller. From product research to the product listing, branding, marketing, and more, everything goes into the play.

Well, this should not worry you because we are here to help! In this post, we will be discussing the best ways using which you can become an Amazon FBA Private Label Seller and earn passive income.

So, let’s get started.

Why go with private label selling?

Amazon private label has emerged as a practical way for online retailers to start off their passive income venture. When you own a label or brand, it creates an identity of its own that can ultimately drive large volumes of sales. Private label selling is perfect for products that are generic in nature.

However, generic products are likely to have a lot of competition, and this makes establishing your brand and winning the Buy Box become a lot complicated.

A supplier or a retailer legally own a private label product brand. However, the retailer or supplier doesn’t make the products themselves but appoints a manufacturer to produce the goods under their own private label. The manufacturer has no rights over the private label product or brand. They only get their share of revenue by producing the goods.

• online retailers to start off their passive income venture
• products that are generic in nature
• establishing your brand and winning the Buy Box

what are the benefits of selling Amazon private label products?

• For starters, it relieves you of the stress of sourcing products. With private label, you don’t have to source multiple products in small quantities. You can emphasize on obtaining larger volumes of products.

• With private label selling, you can control the pricing of the product. That is, you are responsible for the Amazon product listing of yours. When we talk about other Amazon business models like wholesale selling and retail arbitrage, there is a tendency to destabilize the competition by cutting down the price. However, in private label selling, you are more in control of the price of your products.

• With private label selling, you have the opportunity to generate a better return on investment. You can predict your sales, and you have more control with your brand image.

Private label selling has some fantastic benefits, but you may experience some pitfalls if not done in the right manner. It all starts with product research. The products you choose to sell play a critical role in determining the success of your Amazon FBA private label business.

In the next section, we will be discussing the ways using which you can perfect private label selling and earn passive income.

#1 Find a profitable product to sell

You need to have the right items in your inventory to start private label selling. When you are beginning product research, you need to apply a set of criteria to the product so that you can ascertain its worthiness. These criteria may include:

• Small size and lightweight
• Non-perishable
• Falling within a specific price range
• Exclusivity
• Ability to create recurring demand

You need to establish their criteria based on the market or niche you are choosing. Obviously, you don’t want to sell products that already has countless competitors. And you also don’t want to sell products that are not popular or not in demand. Hence, your first step would be to study the market and identify the products that best suit Amazon private label selling.

Product research is one aspect where most sellers get stuck or waste money on products that will never make any profit.
When looking for a new product to sell on Amazon, you must keep in mind the competition, demand, seasonality, sourceable, and shipping criteria as well. The best place to start when scoping new product ideas is the Amazon Best Sellers list. Here, you will find lots of inspiration, along with high competition as well.

However, don’t just stop there. There are lots of other places from where you can find niche and product ideas to sell on Amazon. These may include Alibaba, eBay, Reddit, many keyword research tools, and more.

Once you have narrowed down the best possible candidates to be part of your Amazon private label selling, you can perform further screening in order to determine the perfect product. The checklist of Amazon product research requirements include:

• The price of the product that falls between the range of $10-$50
• The product should make at least 10 sales in a day
• The best seller rank (BSR) of the product should be at least 5000 in the main category
• The primary keywords (top 3) of the product must have 50,000+ monthly searches on Amazon
• The product should have the ability to sell year-round and must not be seasonal
• The product should have less than 50 reviews on the first page of Amazon search engine results page
• The product must not be associated with trademarks or brand names
• The product should be able to set up for 25% or lower than the selling price
• The product must have scope for improvement and proper room for optimization (product listing).
• The product should have multiple product-related keyword opportunities
• The product should be easy to source
• It should not be fragile or easily breakable
• The product should have the ability to expand your brand with related products
• The product must encourage recurring purchases
• The product must not come with any legal issues

When in doubt, make sure to follow the tips stated below:

• Focus on the Customers Also Bought, Frequently Bought Together, and Sponsored Products sections, as they provide better data intelligence that you can use to find a perfect product

• Look for a product of any type from Amazon’s Best Seller Page. This is sufficient to help you come with ideas
On the other hand, there are plenty of online product research tools available that you can use to conduct product research. This is the quickest way to perform product research.

#2 Find the manufacturer/supplier who makes your product

Once you have found the perfect product for your private label FBA business, it is time to find the manufacturer or supplier who is willing to supply the desired units with utmost quality. You can find the manufacturer either in China or in the United States.

However, we always encourage sellers to search for local procurement options. If the product is manufactured locally, your buyers will generate a sense of trust in you. Not only that, the near vicinity of the manufacturer and your warehouse is going to save you a lot in logistics cost.

Although Alibaba is one trusted platform for Amazon sellers for sourcing their product, it comes with its own set of challenges. So you need to act accordingly when choosing a supplier.

#3 Creation of Logo, Design, and Packaging.

As you may know that there are plenty of other sellers selling the same product on Amazon. Hence, you need to differentiate your product from others in order to make it stand out from the competition. The best way to do is by branding your product. This is part where you need to imagine how better you can market your product or demonstrate it to the potential buyers.

It starts with a nice logo and product packaging. Logo and packaging will help in differentiating your product. You can always hire a freelance designer for designing your logo and packaging. Or you can do it on your own if you know the basics of CorelDraw or any other platform.

• how better you can market your product
• logo and product packaging
• sellers selling the same product on Amazon

#4 Product Branding and Trademarking

As an Amazon private label seller, you may experience situations where your product content is changed by a third-party seller or counterfeit issues. To deal with this, you need to avail the help of Amazon Brand Registry. You need to trademark your brand so that no other seller can counterfeit your products and make profits. For this, you need to come up with a brand name.

Choose a name that’s easy to pronounce and doesn’t already registered. You can always check with the United States Patent and Trademark Office to see whether the brand name already has a registered trademark against it.

brandding amazon fba

#5 keyword Research

Keyword research is as vital as product research. However, you may cover this part when you are product researching. Amazon keywords are foundational; they are essential in making your product reach the targeted customer base. Your products will be searched using keywords. Hence, you need to find all the relevant keywords matching your product.

These keywords will be used in the product URL, product title, and product description, among other product optimization segments. But most importantly, you need to avoid keyword stuffing. It will do no good if Amazon finds about it.

#6 Product Title

As per Amazon, you have about 50 words or 250 characters to write a killer Amazon product title for your product. Your Amazon product title must include the following information:

• Brand Name
• Primary Keyword
• Color, Variant, or Flavor
• Quantity or Size

You need to capitalize the first letter of every word. Avoid using symbols and always write numbers as numerals and not words. Never put promotional information, price, seller information, and other aspects of the product title. It should be short, easy to read and understand.

#7 Product Images

This is one of the most critical parts of private label selling. You are allowed to include up to 9 quality product images. As buyers can’t physically examine the product, they mostly rely on product images when making a buying decision. You need to upload high-quality HD product images in all the angles possible that provides a clear look of the product. You can always check with Amazon Product Photography guidelines. You can hire freelance product photographers to ensure that the images follow the obligations of Amazon.

• high-quality HD product images
• Amazon Product Photography guidelines
• critical parts of private label selling
• obligations of Amazon

#8 Product Description

After product images, it is the product description that most buyers read to know more about the product they are going to purchase. Amazon product description character limit is 2000 characters or 300 words (approx.). You need to write an interesting product description mentioning about your brand, the benefits of using the product, the value they get, and more. You can check your competitors’ listing to get a better idea of the Amazon product description.

#9 Key Product Features

The product features are what you mention in the bulleted list. This includes the benefits and features of the product. In section, you need to make buyers believe that this is the product they need. Use simple language and do not write large sentences – keep the sentences short (15-25 words). Include the primary keywords and LSI keywords accordingly.

• benefits and features of the product
• make buyers believe that this is the product
• primary keywords and LSI keywords

#10 Opt for Amazon FBA

Leverage your sales using Fulfillment by Amazon. Amazon FBA saves you the hassle of packaging and shipping. All you need to do is send your inventory to any of the Amazon warehouses. From there, Amazon will take care of everything from processing the order to packaging, and timely delivery of the product.

Conclusion

That’s it! This is your way to Amazon private label selling. If you want to generate passive income, Amazon FBA is the best opportunity you have got. If you can understand the basics and follow the instructions provided, your side hustling can one day become your primary source of income. If you have any queries or questions regarding selling on Amazon, feel free to ask us.

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