Private Label Product Research for Selling on Amazon UK

Private Label Product Research for Selling on Amazon UK Speaker 1: Hello everyone. So today, I'm going to be showing you how to conduct product research to find a product to start selling on Amazon for private label. Now, I'm going to be taking you through a step-by-step guide on using AMZScout to do this. Now, this is very much going to be an AMZScout tutorial and it will very much be geared towards sellers in the UK. But if you're elsewhere like Europe, USA, Canada, all these concepts will still be completely applicable. My name is Neelan Myani. I'm a seven-figure Amazon seller and I want to show you guys exactly how I would use AMZScout to find a product to start selling on Amazon for private label. So this will be about finding products for you to start selling on your own brand on Amazon. So when it comes to product research, one thing for you to note is that product research is absolutely crucial to get correct if you want to be successful at selling on Amazon, right? And the reason for that is no matter how cool your logo, your branding, Your page design, all of that is completely irrelevant if the product that you have to sell is not very good, right? If people don't want the product that you are selling, then you're gonna have a really bad time trying to sell that product, right? If it's something that is not in demand of a unique niche and good quality, you're gonna really struggle to sell that product, right? So you are genuinely looking for a product which is of good quality, unique niche and in demand, right? Now, when we do this product research, what we're going to do is we're going to do this product research to find something to sell on Amazon. And we're going to do this with five key factors in consideration. So the first thing we're going to be considering is we're looking for a product which isn't too competitive and likely to have big players that we're competing against. The reason you want to avoid these big players is because these big players have much bigger budgets, so much better buying power to buy the same products as you but cheaper and to be able to advertise the same products as you but more far-reaching. So for that reason, you don't want to be competing against big players. So for example, you don't want to be trying to sell Trainers in competition with Nike because you're likely to always lose. So really you want to be competing with other like-sized sellers, small individual sellers just like yourself instead of competing with global brands because that always ends badly, right? The second thing you want to consider is you're looking for products with high search volumes. This is because products that have high search volumes are having high search volumes because a lot of people are searching for them. If a lot of people are searching for them, that means a lot of people are looking for them. If a lot of people are looking for them, that means they're in demand. Right. So high search volumes indicate high demand. So as I say, you're looking for products which have high search volumes to indicate high demand. Now, the third thing we're considering is we're looking for small, cheap products to start selling on Amazon. Ideally, products that weigh less than 1.3 kgs or less than three pounds, if that's the unit you're measuring. This is because products generally tend to incur less shipping and storage charges when they're smaller and lighter. If your product's bigger and heavier, it's likely to be more expensive to ship, more expensive to store, and also your FBA fees are likely to be higher. So if you want to be more profitable, you're better off sticking with smaller, lighter products. Now, the fourth thing you should be considering is looking for a product that's selling on Amazon priced between £15 and £35. The reason we keep £15 on our lower end is to protect your volume of profits. The reason we keep £35 on your upper end is because research shows that most products that tend to sell on Amazon tend to be priced £35 and below. And I'll even ask you to check your own Amazon order history over the last couple of years, right? You'll also notice yourself that most of the products that you've bought over the last couple of years tend to be priced £35 and below. There will be a couple that are higher priced items, but most of what you buy tends to be £35 and below, right? I can almost guarantee it. Now, the fifth thing you're going to be considering is you're going to be looking for a product with a profit margin of 25% or more, right? The reason we're looking for 25% as a minimum is because when you've got a 25% minimum profit margin, it's much, much easier to actually start scaling up your profit margin to roughly 30 to 35%, right? You've got enough of leeway room there to actually start expanding your brand and expanding your profit margins to get you to that 30 to 35% profit margin. So for that reason, you want to be avoiding any products on Amazon which look like their profit margin is going to be lower than 25%. Because if your product is lower than 25%, that profit margin is way too thin to give you the space to start scaling with. If you follow these five factors, ideally you should get yourself to a point where you are seeing 250 to 350 pounds per day selling on Amazon with your product, which is sustainable and you can begin to use this Turnover and profit to start scaling out to new products. So as an example of how that can work in real life, when I first started selling on Amazon, I founded my own brand of Amazon private label products called Proxenova and Proxenova was selling motion sensor security lights, right? So I used some tools but mostly organic research to lead me towards my first winning product, right? And this was it. Now, I took this first winning product and scaled myself up to roughly 250 to 350 pounds per day selling on Amazon. And from there, I used that profit and turnover to actually take this winning product, reverse engineer it to find its winning formula, then took that winning formula and reiterated it over and over and over and over again in different design variations. And in doing so, we were able to literally use our first product idea And literally take that one idea and turn it into, as you can see here, five different products, right? So with that, all you're looking to do is take your first winning product, reverse engineer it to find its winning formula, and take that winning formula and reiterate it over and over again in different design variations, giving you a whole new product range surrounding that original idea, right? And as I say, that's going to allow you to take one idea and turn it into five separate products. So that is the idea of what we're trying to do here and that is to find a winning product and then just keep reiterating over and over again with different small variations, right? So onto AMZScout. Now, AMZScout is a software which can be used to conduct product research on Amazon and it helps you to also optimize your listings as well. So this is really, really important and helpful to being successful at selling on Amazon. Now, product research can be done without AMZScout or any other tools, but the learning curve is much, much steeper, right? So I'd recommend actually using AMZScout to make this a simpler and easier process for you. Now, I've used this tool as well as a few others but mostly organic product research mechanisms to actually help me find my first six-figure product which was This one here. And it helped me grow my business past a million pounds per year in income. And now this method is exactly what I'm personally able to use and advise on to help guarantee to help my clients and students get to 10,000 pounds per month selling on Amazon, right? So tools like AMZScout have been very, very powerful in my business. And I really hope that it can be even more powerful in your business Since AMZScout didn't even exist as a tool when I first started selling on Amazon, right? So this should give you a lot more advantages than even I had starting out. Now, I'm going to show you exactly step-by-step how you can... Now, I'm going to show you exactly step-by-step how to conduct product research using AMZScout. If you don't have AMZScout, click on the link below and it will lead you to a discount of 20% off, which will save you a good bunch of money when setting up your subscription on AMZScout. So, once you log into AMZScout, your dashboard is going to look a little bit like this. Now, the very first thing you're going to do is change your marketplace from the default of USA to United Kingdom, right? That is really important to make sure that you're actually researching in the right marketplace. Now, everything that I'm going to be showing you is going to be applicable to every single marketplace. So, the US, UK and all the other kind of marketplaces that you might be looking for. But make sure that you select the same marketplace that you intend to begin selling in, right? So, in our case, it's going to be United Kingdom. Once you've clicked United Kingdom, what you're going to do is hover your mouse over this button that says Product Research and then you're going to click Product Database. Now, once you click Product Database, you're going to see this small drop-down box that comes up here, right? Now, once you see this here, you're going to come over here on the right-hand side to More Filters and you're going to click that button there. Now, once you've clicked that button there, what you're going to find is there are a load of boxes that come up for you to input certain values within this filter for this search here. Now, the first thing you're going to be starting with is categories. Now, when it comes to product subcategories, the first thing you're going to do is click on this arrow, this drop down arrow next to 26 categories, and you're going to click clear, right? So it unselects all of them. Now, once you have cleared these subcategories, when it comes to product subcategories, I typically recommend to my clients to go for Electronics and photo, home and garden, garden and outdoor, DIY and tools, power, garden and hand tools, automotive tools and equipment, home and kitchen, arts, crafts and sewing, cooking and dining, Pet supplies, toys and games, everything else, baby products, computers and accessories, stationary and office supplies, sports and outdoors and fitness, right? So I'd recommend going for these 13 categories. So just to recap that, you're looking for electronics and photo, home and garden, garden and outdoors, DIY and tools, power, garden and hound tools, Automotive Tools and Equipment, Home and Kitchen, Arts, Crafts, Sewing, Cooking and Dining, Pet Supplies, Toys and Games, everything else, Baby Products, Computers and Accessories, Stationery and Office Supplies and finally, Sports and Outdoor Fitness. So these are the 13 categories that I would highly recommend you start by looking within. Now once you've ticked all these categories, you're going to click Apply. Now once you've done that, What you're going to see is you're going to need to fill in the rest of these input boxes here within this filter. Now, the first one to look at is included keywords. We're actually going to leave this blank because we're not looking for anything specific. The same goes for excluded keywords. Now, the first one you do want to be inputting is price. So if you remember a few minutes ago, we discussed that we are looking for a product which is retailing for between 15 and 35 pounds. So here we're going to enter 15 and in the next box, we're going to enter 35 pounds. Now, when it comes to reviews, we're looking for products which generally have a thousand reviews or less. The reason we're looking for products with a thousand reviews or less is because when a product has too many reviews, it's not something that we can compare against when it comes to looking at how to launch a product, right? Because it's very difficult to see how a product can be launched when the example that you're observing has 20,000 reviews, right? It's going to be very, very difficult to see how to bridge that gap between launching and 20,000 reviews. However, when a product has 1,000 reviews, that is much more realistic and achievable and much more relatable for you to be able to bridge that gap between a launch and 1,000 reviews. Now, 1,000 reviews might sound like a lot, but as you've seen on some of these ASINs that I took you through, a lot of my own product ASINs do have more than 1,000 reviews. And you'll be surprised how quick and easy it is to actually get 1,000 reviews on your ASIN. So we go as far as to say that 1,000 reviews is kind of the benchmark for saying that this is what will flag a... So with that, a thousand reviews is kind of like our benchmark to say that anything above this amount is considered an established seller within this kind of product. So, when it comes to 1,000 reviews, we're going to use that as a benchmark to say anyone who has more than 1,000 reviews is going to be considered an established seller for whatever their product might be, right? So, for that reason, we're going to leave from blank and we're going to put to 1,000 reviews, right? Now, you can also edit the kind of results that you're going to be yielding from this filter by changing some of the numbers here. 1,000 here, right? Now, the next box will be estimated sales. Now, this box can actually be left blank because this isn't so as important as estimated sales revenue, right? This is going to be a more relevant number to be inputting within your filter. But let's cross that stage when we get to it. The next thing we're going to be looking at is seller type, right? And at the seller type, you're going to be wanting to tick FBA and merchant. And the reason you're taking these two and not also Amazon is because you are looking to compete against other individual sellers like yourselves who have offered their products on Amazon FBA, so fulfilled by Amazon and who are also offering their products fulfilled by merchants, so sending the products out themselves, right? So these two sellers are going to be So these two seller types of FBA and merchant are going to be very very similar to you, right? They're going to be relatable sellers to you. However, the reason you're not looking to tick Amazon seller type is because when Amazon is a seller of a product, you have no chance of winning, right? Amazon is the one who creates their own search and ranking algorithm. And that is designed to make sure Amazon wins every time that Amazon is a competitor against other sellers. So for that reason, if you try to compete against Amazon on the Amazon marketplace, you're always going to lose. So for that reason, we want to remove any results that are to do with Amazon as a seller, because we want to be benchmarking ourselves against sellers very much like ourselves, i.e. individual sellers on FBA and merchant sellers. Now, the next thing we're going to go to is product tier. You're going to be choosing a standard size product because again, just like we mentioned a few minutes ago, you're looking for products which are small and light and ideally weighing less than 1.3 kilos, right? So the reason for that is it's going to maintain a low price in terms of shipping and storage, which is going to allow you to be making more profits, right? If your product is oversized, it's likely to start costing a lot in terms of shipping and storage, so you want to avoid oversized products. Now, the next part is going to be weight. Now, again, if you remember what I said a few minutes ago, we're looking for a product which is weighing 1.3 kgs or less. Now, So if you remember what we spoke about a few minutes ago, we're looking for products which are going to be weighing 1.3 kgs or less. So in the from box, we're not going to put anything, but from the 2 in kg, we're going to put 2 kg. So we're going to make sure it is roughly the size of a small parcel. Now, generally in the UK, when you send parcels, The yardstick tends to be anything that is weighted at 2kg or below tends to be considered a small parcel, right? So for that reason, we're going to be putting 2kg into this box here. Now, when it comes to rank, you don't need to put anything here at all. When it comes to estimated revenue, we want to put in from £8,000 onwards. We don't want to put any maximum number, but we want to put £8,000 as a minimum sales revenue that any product that we want to see is going to be making. Anything less than £8,000 isn't going to be worth actually reviewing. We want to make sure that anything we review is doing at least £8,000 per month in sales on Amazon. And we have no upper limit. We don't care how big this gets, but we want to make sure this is not too small. The next thing that you're going to be moving on to is rating. Again, you can leave this blank because more relevant was the Number of reviews which was said to be a thousand or less, right? Now the number of sellers here you want to put one and one and the reason for that is because when you are looking for a private label product, you're looking for a private label product which has only one seller, right? Because if it has more than one seller, a four, five, six sellers, whatever that might be, That product that you're looking at is likely to be a resale product. It's not likely to be something that has Become successful as a private label product. It's become successful as a product which has been resold typically by a bigger brand or a more established product, right? So for that reason, we want to make sure there's no more than one seller and no fewer than one seller, which means that we are guaranteed to see results of products that have only one seller. And as I say, the reason we're looking for only one seller is because most private label products are going to be sold by just one seller, right? So that is going to make sure that the results that we see are specified to private label, right? Now, the rest of these boxes, we don't actually need to fill in. However, just underneath here, you're going to see two tick boxes, new products and trending products. What you want to do is untick both of these. The reason is because you don't want to be coming across trending products. You are not looking for trending products because the thing about trending products is they constantly change because trends change. I would say that fidget spinners are an example of a product which is a trending product. They were popular for a little while but now they're not. The exact same thing goes for new products, right? As I say, we're looking for evergreen products, not trending products and not new products. So if a product is new, sure, that's great. But that doesn't mean we don't want to consider older products, which have shown themselves to be evergreen over many years and many seasons, right? So for that reason, new products and trending products need to be untipped. Now from here, what you're going to do is click find products. Now, as I keep saying, if you don't want to be scribbling away notes, just click on the link below and I'll send you all the detailed notes for this process so you can actually watch this video and understand what's going on instead of trying to memorize it, right? So let's scroll down and get some ideas here. Now you can see there are a lot of toys, games, stationery, office products. These tend to be the main kind of products that we're seeing here. So as you scroll through these results, I just want to remind you that you're looking for products which tick these five specific boxes that we just went over recently. So if you remember those, the first one is we're looking for something that's not too competitive, i.e. something that's likely to have big players as your competitors, which is going to make things very, very difficult. The second thing we're looking for is products that have a high search volume, which is going to indicate a good demand. The third thing we're looking for is a product which is small and light to keep down your shipping and storage costs. And that's already been determined through your filters above in here. The fourth thing we're looking for is a product which is selling for between 15 and 30 pounds. Again, that was determined in our filters above before we started our search. And the fifth and final thing is we're looking for products with a profit margin of around 25% or more. So now what you're going to do is scroll around through these results on AMZScout and look for a product which has these five key factors which I just mentioned. Now as we scroll through, this top result here is actually a really good example. They're selling a thousand units of this product a month and their revenue is just shy of £23,000 every single month, which is a really, really serious number. This is a really, really nice number. And what's even better is we were looking for a product which was doing a minimum of £8,000 per month, but this result here is something that is doing £23,000 per month. So this is more than good enough. Now, once we've gotten here, What we're going to do is on our selected results, so this one right at the top here, we are going to scroll across the page so that we can see a few more details. And what we can see here is this product has a rating of 4.4 out of 5. Now, 4.4 out of 5 is pretty good, right? It's not the best, but it's not the worst. However, it's not like something that's 4.7, 4.8, 4.9 stars out of 5. It's 4.4. So as I say, pretty good, but not the best. And it's only got 1500 reviews. Now, we did say we're looking for products which generally have fewer than 1000 reviews. However, this product isn't too far out, right? As you can see, it's got 1500 reviews, but that is not wildly different in terms of, you know, it's not got 38,000 reviews or 42,000 reviews or even 4,000 reviews. It's only got 1,500 reviews. So it's a little bit further out than what we're looking for, but it's still a very good example of a product which can do very well, which will probably sell in these similar kinds of numbers, even if it were to have less than 1,000 reviews, right? Because it's doing these numbers at just 1,500 reviews. So for that example, this is a really, really nice product, the Moon 360 degree travel mug, right? Now, once we've decided that we are interested in this product, we are going to do two things next. The first thing we're going to do is we're going to see if we can find this product on Alibaba and see what kind of price it's being sold for on Alibaba and see what kind of price we can purchase this in order to actually sell it at a profit, right? Now once we've decided where we can purchase this from and what price, how do we know if that price is profitable and how much profit we are likely to make, right? And that's exactly what I'm going to show you now. So firstly, finding a supplier for this product and seeing what kind of prices the suppliers are selling at, right? So the way to do that is go to this result that you're interested in and underneath click more actions. Now underneath more actions, you're going to click find on Alibaba. Now, what's going to happen is when AMZScout takes you to find this on Alibaba, what it's going to do is put a small box within the image to show you what part it's searching. Now, you want to make sure that box is covering everything relevant within your product image, right? So, for example, you know, we can see there are two different sizes here. So, we're going to make sure that this box covers both of those sizes. And now what we can see here is there are a few quite interesting results in relation to this. So when we are looking for suppliers for your product, one note is you're looking for a supplier that is a minimum of three years old. You don't want to go lower than three years because young suppliers are likely to be less reliable and more likely to make mistakes. Whereas suppliers that tend to be three years older tend to be a bit more reliable and less likely to make mistakes. Here's a perfect example of that. This product here. It's quite similar to this product that we've seen here. As we open it up, we can see that this supplier has been a verified custom manufacturer on Alibaba for 15 years. We were looking for a minimum of three, so this very much covers that. Now, as you can see, the cost price per unit for, let's say, 100 units would be roughly $2.68, right? Now, this would, let's say, for shipping, that would cost another $1 per unit for shipping, right? So let's call that $3.68 per unit when you buy 100 units of this one product here, right? Now, assuming that's $3.68, What we're going to do is take that cost price and convert it back to pounds. So we're going to do USD to GBP. And we had decided that this product is likely to be costing around $3.68. So if we were to type in $3.68, This is going to be costing us in pounds £2.84. So the cost price of this item is likely to be around £2.84. Let's round that up to £3 just to give us some room for error. So this product here is likely to be costing you around £3 to buy and ship to the UK. So that's going to be your landed cost, £3. Now, as we come back to this product on AMZScout, what you're going to do here is move across the results and click on this little calculate button and expand that here. Now, you can see that AMZScout has already input 22.99 here, right? Now, what you want to do here is input your buying price and we have just agreed that this buying price will be Now, when we input that buying price there, what's going to happen is AMZScout is going to run through all of the costs that you are going to be incurring in terms of actually selling this product on Amazon. And at the end, it is going to give you a total profit per unit, which is £13.52, right? So what that means is if you were to buy this product, From Alibaba for £3 per unit and then come back and sell it on Amazon just like this product for £22.99. If it were to cost you £3 from your supplier, you would be making £13.52 profit per item, right? And your FBA fee on that will be £6.42. So that means you are able to actually work out your profit margin and how much profit you're likely to be left over with, as well as the costs in between your selling price and your profit margin, right? So this is a really, really good way of binding that kind of product. So by the way, on that note, if you're doing private label, if you find a great product just like this, whatever you might end up selling, make sure to first buy a really small amount to avoid losing money if it doesn't go the way you expected it to the first time around, right? Now, you won't make money on that first small batch because that's not the point. You want to make sure that these products sell before buying bigger volumes. So, for example, if you can't sell 20 units, how in the hell will you sell a thousand, right? So, there are a lot of people that say that this type of system doesn't work, that Amazon private label is old and this market is completely dead, but it actually continues to grow every single year. While many more sellers do join every year, 99.9 of those sellers Fail because most of those people sell the exact same kind of obvious products, right? So things like iPhone charging cables, smartphone cases, yoga mats, water bottles, reed diffusers. Stop me if I'm listing anything that you've ended up thinking of selling yourself, right? Now, the reason this has been amazingly successful for myself and all of my students is because we look for unique ideas that most people are simply overlooking, right? That is where the money is. Now, the best bit is if you set things up correctly to begin with, it's very, very passive to maintain. It's like your own personal money machine. So guys, that is everything for today. Now, as I say, it's pretty much a step-by-step guide on using AMZScout to find a product to start selling on Amazon UK. Now, of course, there is a lot more to it than that. So, as I promised, there will be a lot more videos to come to help break that down for you, to understand it easily in more detail. So if you did like this video, don't forget to hit the subscribe button and like this video so you don't miss out on those free guides. So you don't just save more money getting started selling on Amazon, But you could also learn to make more money selling on Amazon too, right? If you do have any comments or suggestions, please drop them down below and I'll be replying to all of them. I really hope this has been useful to you. Reply to my notes or guides if you do get stuck. And thank you guys so much for watching today. Happy selling and I'll see you in the jungle.