Before you start a private label business you might have heard of some rumors or myths about the private labelling business that have held you back from starting your own business. I will de-bunk each myth and explain to you why you should start your own private label business.
"The best time to start a private label business was yesterday. The next best time to start a private label business is now," Me :)
In today's episode, I share with you the 5 most common myths people have that hold them back from starting a successful private label business.
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One thing I love is dispelling fears people have when it comes to running an Amazon based business. Every now and then certain myths or rumors rear their head when talking about starting an Amazon business. People start to believe these myths and rumors. I don’t want to see you fall short of a your goals or give up because you heard one of these myths.
To start a successful Amazon business, you need to have clarity and understand what’s going on in the business.
Here Are The Five Myths About Private Labeling Products
I’ve noticed online and even in some Facebook groups that people say that private labeling is dead or that it’s too difficult. I can understand why d’d think that way. Private labeling is the hardest strategy to sell products on Amazon. You could do retail arbitrage and wholesaling before starting a private label business.
Building a product and being able to generate consistent sales can be hard especially when you don’t have a brand. What happens however, is that you believe that private labeling is dead.
Do you know how many successful private labelers I keep seeing on Amazon or the clients I’m working with? Things haven’t really changed that much. If you’re willing to put in the work and do the research, your product will succeed. You should be able to find gaps in the marketplace that you can exploit.
"Who you are tomorrow begins with what you do today," - Tim Fargo
If you throw up a product on Amazon and do everything half-assed, why would the product sell? That’d be the same as buying a lottery ticket. If you do that, private labelling will be dead for you.
If you’re applying what I’m teaching you, then private labelling is still alive. Big companies are still using private labelling today to stock their shelves.
With the rise of companies like Alibaba, people believe that Chinese sellers will destroy Amazon. Honestly, this is something that concerned me. They’re popping up all over Amazon and shipping their products directly into the Amazon warehouses in America, Canada, and all over the world.
Is this the end of the world because the Chinese can do everything so cheap? Here’s the thing, while some areas of the marketplace are affected, we’ll always have an advantage over the Chinese because we know our marketplaces so much better than they ever will.
If you’re selling products in the country you live, you will understand the products a lot more than the Chinese. You’ll have an understanding of people’s desires, their issues, and the quality they expect from a product. Not that the Chinese can’t do this, I don’t believe they’ll have much hope competing against us the marketplace.
If you’re smart about things, you can make your product stand out in the marketplace. People can’t compete with a brand especially if you build a brand identity. When you build a brand identity people will trust you.
People seem to think that getting reviews are now really tough. I think it must be a year ago that Amazon changed their terms and conditions stating that you couldn’t incentivize customers to leave a review.
When Amazon changed their terms and conditions tons of private label sellers freaked out and wondered where they could get reviews.
A lot people still believe that getting reviews is too difficult. Here’s the thing, I generally get between 3 and 5 reviews each week on my private label products. Some weeks I get a lot more reviews.
How do you get that many reviews? It’s quite easy, actually. Message your customers and ask them to leave a review.
If you’re doing your marketing and promotion properly and you have a product that people want, your product will often sell at its full price.
You might have to ask your customer a few times to leave a review but by being polite and pushing them a little in the right direction, they should leave a review for you.
This is a solid strategy for increasing the number of reviews on your product over time.
Reviews are important, but what’s even better is high quality reviews. What I’ve noticed is that people who buy your product at full price leave better reviews than those who get your product for free.
When starting an Amazon business people think that they need to use hundreds of different marketing techniques to get consistent sales.
It can be intimidating when you first launch your product on Amazon. Your product is sitting there with a not so great sales rank and you’re wondering to yourself about how you will get your product to sell.
This is when newbie sellers go on a goose chase to get the first sale of their product. They try a hundred ways to sell their product.
The fact is, you don’t have to use tons of marketing techniques in the beginning.
Personally, I opt for three main strategies to get my products to sell. They aren’t exciting, but they work.
My first strategy is listing optimization. Make your listing as good as you possibly can.
My second strategy is running sponsored ads. I run my sponsored ads until I make sales. Once I see sales on my product, then I go to my third strategy and run promotional ads. Because the product is already selling the promotional ads will only help to increase my sales.
When you use those three strategies, you will get your product off the ground. Once you realize your products potential, then you can look to outside marketing techniques.
It’s a myth that you need to know hundreds of different marketing techniques. Pick the three basic marketing techniques and run with them.
The last myth is that people think everybody will copy their product and the competition will crush them. This is a big myth, but I can understand why you’d believe it. What would stop someone from going to China, finding the same manufacturer as you and copy the same thing as you and compete against you?
I’ve actually had people copy my products. Yet, every single time that someone tries to copy your product, you can always do something to differentiate yourself.
Here’s a few things you can do if someone tries to copy your product.
You can optimize your listing even more. Look at the copywriting of your product description. Make sure your title is powerful with tons of high trafficked keywords. This allows you to set your product apart. Make it clear how your product benefits the customer.
Other sellers probably won’t do that much research. It doesn’t even matter if they have a carbon copy of your product.
Another thing you can do is create a brand presence. Launch a bunch of different products within your brand name. Get tons of reviews for your products.
When you create a brand presence and someone tries to copy your product, it will become clear that they’re copycat.
"The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself," - Peter Drucker
Also, if someone is copying your product, you can bundle a bunch of your products together. Now the listing you have differs completely from your competitor.
It’s not the end of the world if someone copies your products.
You want to sell in places on Amazon that aren’t very competitive. You will get competition but there are ways to deal with it.
If your product is on the first page and there’s tons of revenue being generated in your niche, you’ll still create a ton of profit for yourself.
I hope I’ve been able to dispel any myths you might have believed or any fears that you had.
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