How to Identify Highly Profitable Products for Your Private-Label Amazon Business | Part 1

How to Identify Highly Profitable Products for Your Private-Label Amazon Business | Part 1
By Franz Jordan in Amazon Marketing Tips. Last updated on

Identifying the right products is the foundation for every successful private-label business. Even with terrible marketing, a great product will generally sell better than a terrible product with great marketing. Effective and thorough product research is one of the key steps to starting or expanding a private-label business.

Unfortunately, it’s also one of the most difficult. Finding the right product ideas, evaluating revenue potential and analyzing the competitive landscape require a significant amount of manual work. Even after going through this time-consuming process, success is not guaranteed. You can never be certain if new products will sell well or flop, costing your business thousands of hard-earned dollars.

Sellics is here to help. We’ve developed a solution that helps find better products, reduces product research time and effort, and mitigates the risk of slow sellers. Below we describe in more detail how our product can help your business identify winning products in a cost-effective way.

Three Key Characteristics of the Perfect Private-Label Product to Sell on Amazon

Before we dive into the Sellics solution, let’s quickly review the primary objective of the product search. There are many blog posts, YouTube videos, checklists and training courses so we won’t go into detail and repeat all of them. In essence it all comes down to three key characteristics.

The perfect private label product for Amazon


1. Choose Products in High Demand on Amazon

The bigger the market, the more you can sell. The sales rank is probably the best way to estimate product demand. The higher the sales rank (a lower number equals higher rank), the higher the Amazon sales volume will be. Sellers usually look for products with a sales rank of less than 5,000 or even 2,000. Another way to estimate demand is to track actual product sales volume with special tools.

2. Low Competition is Best for Private-Label Selling

Less competition means you can capture a higher share of demand. The easiest way to measure competitiveness is to look at the number of reviews for competing products. The more reviews, the harder It will be to surpass your competitors. Sellers therefore look for products with less than 500 or 250 reviews. Ideally, competitors also have a low listing quality, i.e., bad images, short titles, no bullet points etc. and do not use sponsored products ads, indicating competitors are relatively unsophisticated.

3. Private Label Suitability for Selling Amazon FBA

The ideal product has high e-commerce suitability. It is light with small dimensions for low shipping and storage costs; hard to break, leading to low return rates; and has no seasonality, ensuring it will generate steady cashflow. If an existing product has a feature that draws consistent customer complaints that you can improve, that’s a good indicator for future success. Find a way to improve the feature and set yourself apart from the competition.

The trick is finding a product that meets these criteria. Until now, that was extremely difficult and could only be done through time-consuming and tedious product analysis – or simply getting lucky. Sellics completely changes the product search dynamic and significantly reduces the effort expended while improving the results. We tell you all about it in Part 2: How to Identify Highly Profitable Products for Your Private-Label Business.


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