1. The number one goal is to understand profit vs revenue. Profit is the amount you make after it*costs to make the product*costs to ship product from manufacture to your house or to Amazon*costs of inspection*costs of labelling, boxing*costs of keeping it on Amazon, keeping it.
2. The perfect product must be perfect. Let me say that again. The perfect product must be perfect. Get 10-15 different samples of your product from different manufacturers. If you are truly serious about building a solid business, you must have the best product. I’m serious. Don’t waste time on a mediocre product because you will get stomped on by not only the competition but your customers who will be posting bad reviews. I can’t stress how important this is.
3. Ask your friends if this product is something you like.
4. Do you believe in your product? You must through the highs and lows of business and entrepreneurship.
5. Does the product fit you? I tend to only get into product labels that fit me. I’m an outdoors guy. I love sports. I love computers. I love to be competitive in both. I play soccer and tennis. I love to read. My product will be on something I love because why would I spend inordinate amounts of time doing something I don’t like to do every day a lot.
6. Don’t do it for the money. Do it to build something that will last. Do it because you believe you can bring something better into the world than what currently exists. Money is a byproduct of your ingenious decision making to bring a better, premium product to market.
7. The Secret in private label is picking the best product among all the products that exist around your category. Its’ not about buying low, selling high. Well yes, it is, but the main goal is being the best so you secure long-term business. That’s why we’re in it. If you don’t believe that then you should reconsider this “business.
8. Understand how Amazon works and build your product around that. I won’t go too much into detail yet about this, as this is a big secret. Amazon uses search algorithms. The algorithm is based on keywords, titles, and a multitude of other things. When picking your product, envision how it will be listed before you jump on that product. This foresight into product placement will make your listing stand out in front of all the newbie listers.
9.Manufacturers. Manufacturers. I don’t think Americans can really grasp how big, and how many manufacturers exist out there. I’ve heard ridiculous stories about the Canton fair where you can spend 7 days there and still not visit all the manufacturers. And then know that not every manufacturer goes there. And then know that – not all manufacturers are in China. It’s a misperception. There are manufactures everywhere. And sometimes it’s even cheaper to source your product in the. The U.S. Without going into it much, air shipping, sea freight are a hassle. There’s that big physical void between you and the manufacturer that you never see unless you hang out on a ship commandeering the vessel.
10. It all comes down to numbers. Know how much you have in the bank. Know your cost per product. Know your profit margin. Know your advertising spending. Have it all in an excel sheet. These services do it for you, but I’m not going to say them just yet. If you just starting, you should manage your finances yourself and do them in excel.
That’s all for today folks. I hope this was very helpful to everyone.