- Brandon Checketts
- On March 10, 2014
- 0 Comments
- resource video
Manufacturing and private labeling merchandise to sell online is big business. Many companies are making tons of profit creating their own brands and bringing them to market. In this series, we hope to explain how you can achieve success in this area. We will look at choosing a product to manufacture, working with manufacturers to get the product produced, and marketing your product online. Producing your own products and brands can be very rewarding, but it is also a very challenging business that requires a great deal of effort. Hopefully, the information in this series will encourage and give some hints to those who are looking.
The internet is typically going to be the best launch point for most new products. It’s easy to get new products on marketplaces like Amazon or eBay, and since they have millions of shoppers, it makes your job a lot easier. Before you jump into the manufacturing process, you need to have a great product idea. If you’re not sure of exactly what you want to produce, try browsing through the bestseller list for categories on Amazon you find interesting. For this post, we look at the Sport and Outdoors category.
To see the top items in a category, just find an item in that category and then click the “see top 100 in …”
Listed below are some suggestions that will help you identify good products that you may want to use as inspiration. These are of course suggestions that don’t apply to every situation.
Low sales Rank: The lower the better just make sure your product has high demand.
Price Range $10-$50: If you are just starting out, you probably don’t want to have an extremely expensive product. They require more capital and are harder to market among other things. On the other hand, you need to make sure you have enough margins to cover shipping and marketplace fees.
Consider Patents, Trademarks etc: Make sure you think about intellectual property. For example, just because Disney Princess Dolls sell well it does not mean you should go create a new Princess Doll. Disney Dolls sell well because of the huge film franchises that create demand. Also, if you are thinking of making a product very similar to something already out, it would be in your best interest to do a patent search.
Light Weight: Shipping cost both from the manufacturer and to your customers can eat away at your margins. Heavy products can still be money makers, but it’s best to start with something light.
Choose your competition: Competition can be good. It helps give you insight into how your product will do, but don’t set yourself up for failure by choosing a market where super brands dominate. For example, trying to launch jean company would be tough. Unless you have a huge marketing budget or something extremely unique, it’s going to be difficult to gain traction.
Keep it simple: If you’re just getting started, you should try to keep your product as simple as possible. Don’t attempt to create complicated electronic devices or devices with lots of moving parts. You can worry about that when you have more experience and capital.
Product Reviews: Product reviews are one of the key drivers of sales on Amazon. If you are looking at going head to head with products that have thousands of reviews, you may be biting off more than you can chew. It’s not impossible, but it will take a really large budget. You are much better off looking at items in a category that have 200 or less reviews.
As you are looking through Amazon, start to take note of items that give you inspiration. Hopefully, you will start to get some ideas. In our search, we noticed lots of water bottles showing up with very low sales ranks. Some were popular names and others were not.
- Camelbak Eddy Bottle
- Nalgene Tritan Wide Mouth
- Hydro Flask Insulated Wide Mouth
- Polar Bottle Insulated Water Bottle
- Klean Kanteen Stainless Steel Bottle
Looking at the water bottles, it looks like they meet a lot of the suggested guidelines. The best seller list had lots of low sales rank bottles. Many sold for a good price. Some were name brands, and other were not. Some had a ton of reviews, but others did not. It should be a simple product that is not that hard to make and is light. It looks like we may have potential candidate in some sort of cool water bottle. In the next post, we are going to do show you some tools to use to better understand the market before you start the manufacturing process.