Building a Successful Passive Income E-Commerce Business and AMAZON FBA Private Labeling

Can you really make passive income Amazon FBA by selling products on Amazon? And how is it really passive – will Amazon be doing the heavy lifting here? Over the years, Amazon has emerged as one of the most straightforward online business models to make passive income from. It provides you access to millions of potential customers from across the globe. As long as you are able to sustain this income-producing cycle, Amazon will remain to yield profits for you. Nevertheless, it is safe to say that a number of people want to start their Amazon FBA business, and many do. However, we believe that most of the beginners are paralyzed with preconceived notions that there is little to learn to accomplish this quickly.

Generating passive income Amazon FBA through private labeling requires a lot of work. Private labeling seems to be on everybody’s mind lately. In the recent years, so many people have shown their interest in private labeling, and if done the right way, this Amazon business model holds the potential to lead a very reliable revenue stream for the sellers. We have been guiding the ‘wannabe’ online marketers and sellers for a while now. The following is going to be our attempt to give anyone considering Amazon Private Label a robust and comprehensive guide on how to build a successful passive income e-commerce Business through AMAZON FBA Private Labeling.

The points and tactics we are going to mention are tried and tested but doesn’t guarantee anything. How your private label business performs will entirely depend on how you approach it – from choosing the right product to targeting the right audience and marketing and more. If done right, your private label business has the potential to generate passive income while you sleep.

So, let’s get started without wasting a minute.

Different methods and ways of private labeling

Private labeling is one of the hottest ways to generate passive income. Most online retailers dream about the opportunity of creating a brand and Amazon private label business model gives them the opportunity to create something from scratch.

There are many different ways and outlets to call private labeling. The following is the basic overview of the methods and platforms to private label.

White Labeling

White labeling and private labeling are practically synonyms with each other. When you are white labeling, you are following the same guidelines and starting essentially the same business as a private label seller.

Benefits to private labeling

Private labeling is one of the most fun ways to start an online business and make passive income Amazon FBA. You can build a brand and take it as far as you are willing to go. The best part about private labeling is that it can be easily scaled. When there is a demand for your product, scaling becomes the most natural part of your private label FBA business. Scaling your Amazon FBA business can take many shapes and forms. It is the notion of getting a return no matter the money spent on creating and forming your business. With private labeling, this is an achievable feat. On the other hand, starting a private label business on Amazon can be fast. All it requires you to have is the basic skill set. Depending on your knowledge, your growth can be positive or negative.

What are the skills that you will need to run a successful private label business and generate passive income Amazon FBA?

1.Market Research: you need to determine where there is an opportunity in the competitive market with the ability to
recognize the market before anyone else does.
2.Finding and Sourcing a Product: finding and sourcing a relevant product is the crucial phase of private label
selling. You need to determine a way to create a unique product that sells or go out
and buy it.
3.Building a Brand: selling private label is all about creating a brand. It will be critical to your private label
selling.

The time involved in starting a private label Amazon FBA business

One of the biggest cons of owning your private label FBA business is the amount of time it takes to get things in place. Unlike other Amazon business models, private labeling can take a whole lot of time to set up. The longest part of the process is the shipping time. Finding and shipping a product can take days to accomplish. It typically takes around 2-3 weeks from when you order the product for samples to receive it. Although three weeks to start a business isn’t awful, there is no guarantee that everything will go the way you have planned. Truth to be told, based on experience, it will take you at least two months to establish your Amazon FBA private label business. Below is the rough draft of the timeline for starting your Amazon private label business, assuming you have the skill and knowledge to get things done in a proper manner.

  • Finding the right product may take up to 1 week
  • Talking to the manufacturers and wholesalers and convincing them to get the product at a cheap rate may take up to 1-2
    weeks
  • Ordering the product for samples may take up to 3 weeks
  • Testing the product, creating a listing, and product photography may take up to 2 weeks
  • Finally, marketing your product and targeting the right audience may take up to 3 weeks

Getting Started with Private Label Selling

As said, generating passive income Amazon FBA through private label selling is no child’s play. It takes a lot of patience, research, finding the manufacturer, and a lot more to get things right. Passive income is the money earned by not directly trading time for a specified amount of money. That is, you may be spending as little or more time as you want and the amount of money you earn doesn’t associate with how much time you spend.

#1 It all starts with product research

We cannot stress this enough. Product research is, by far the most vital part of the entire process. Finding the right product is the key to private label success and passive income. If you don’t put the necessary energy and time into this process from the beginning, you will pay a considerable price. The Amazon private label business is one of the simplest of all. You just need to keep your mind in the right place. Don’t overcomplicate the process of product research. Your goal is to find a product that’s already selling on Amazon. By doing this, you are not creating a new product from scratch; you are just ‘out marketing’ the current competition that is also selling the same product. That is, if you properly perform the research, you will be able to find a product that is proven to sell on Amazon, which is already selling with very little competition. We recommend that you search a profitable product, read the customer reviews of the same product from different sellers, mark down all the negatives, and try to right the wrongs in the current product. This way, you will have a unique product to sell on Amazon that your target audience will love.

For a successful product research campaign, we recommend starting out with any product that you have already thought of and then determining if it hits the basic guidelines first. You can achieve this by creating a spreadsheet that you can keep and maintain for future reference as well. You can add products to your spreadsheet based on the following metrics for easy tracking and to see the potential of the products.

The following are the characteristics of a good product. Ensure that the product you choose to sell boasts the given attributes.

1.Retail price between $15-$50 USD

When the product is under this price range, it becomes easy to cover direct costs like advertising costs, cost of units
sold, and Amazon’s fee, among others. Products higher than the $50 mark have a drop in the conversion rate percentage of
potential buyers seeing your product. This ultimate decreases the potential sale of that particular product.

2.Less than 200 reviews

The more the reviews, the higher the competition. You need to find a product that has less than 200 reviews. This will give
you a chance to stand out in the competition.

3.Low seasonality

Seasonality of the product is an essential factor to consider when product researching. You need products that sell
throughout the year. This is important if you want to generate passive income.

4.The product must be small and lightweight

Smaller and lightweight products are faster and easier to ship. Such products don’t make you break the bank as they aren’t
too expensive to import.

5.Scope for improvement

Always choose a product that’s open to modification and improvements. Read the customer reviews of the product you want to sell and see the negatives or the parts where the customer is not satisfied with the product. This will give you an idea of what can be changed when you order the product.

6.Best Seller Rank (BSR Rank)

It is through the Best Seller Rank how Amazon determines how well a product is performing currently. The lower the BSR rank, the higher is the number of sales per day/month. That is, if your search results show that your product has a Best Seller Rank of #1190 that means in that entire Amazon category, your product is the #1190 most selling product.

7.Easy to manufacture

You need to avoid highly complex products like electronics, glass, etc. altogether if you can as you don’t want to run into manufacturing challenges or quality control. Look for simple products that are easy to manufacture and will sell well on Amazon.

#2 Check out the competition

This is the phase where you need to study your market thoroughly and determine your competition. Factors like how well your competition is, how your competitors are approaching the targeted market, etc. will help you plan out your strategy. For example, let’s say the product you have finalized to sell on Amazon is a wooden cutting board. Although you may be notified from the top 100 rankings that one wooden cutting board brand sells fine, you are required to identify and study more about the competitive analysis, that how vast the competition is.

You can simply do this by typing ‘wooden cutting board’ on the Amazon search box. In the results page, open the top five listings and focus on information such as the number of reviews, price, Amazon BSR, and the quality of the listing. Doing quality research will enable you to tell the difference between a lousy product listing and a good one.

#3 Find and contact a supplier

Now that you have researched the product and analyzed the market, it is time for you to find a supplier/manufacturer who is willing to source you products at decent rates. You need to learn how to negotiate if you want to make the most out of your private label selling and generate a passive income Amazon FBA. A site like Alibaba is the prime source for Amazon sellers. However, if the product is manufactured and supplied locally, it gives you an added benefit. People trust local products more than anything. All in all, shortlist at least 4-5 suppliers and see what they have to offer for supplying the same product. Choose the one who fits according to your requirements such as reasonable price, quality product, secure and easy shipment, etc.

#4 Craft a compelling listing

Depending on the supplier, your unit may be shipped within 10-30 days. You need to use this time wisely in creating a persuasive product listing. Follow the Amazon protocols and directions for creating your Seller Account. Create your product listing using

  • High-quality images
  • Attractive product title with the necessary primary keyword
  • A compelling product description
  • Explanation of the product features and values using a bulleted list
  • And more

Finally, use Amazon FBA to create passive income..

Most of the people reading this article may feel like the procedures mentioned above doesn’t sound like passive income Amazon FBA. Given that you have followed the recommended steps thoroughly, you are almost ready to sit back and reap the benefits. The Fulfillment by Amazon program allows the sellers to sit back and relax while they manage the monotony of picking, packaging, and shipping/delivering orders.

Conclusion

That’s it! It is easier said than done. Creating a private label business on Amazon is not easy. It takes months of research in finding the perfect product and ways to identify how to source them. You need to focus more on creating a quality product listing once you have found the right product. Then after, you can work on building email lists and other campaigns.

Use ProductSpyPro to find killer products to sell in amazon. We save time and deliver product research reports to your inbox so that you can spend time in improving your business and less time in spending time in using variety of tools available in the internet.

Take Product Spy Pro for a test drive right now by signing up for a free 7-day trial.