Best Products to Private Label for Amazon FBA
6 Tips for Private Labeling on Amazon FBA & Choosing a Product (w/ Greg Mercer)
Jungle Scout Criteria
- 50 reviews or less
- 300 units sales per month or more
- $20 – $50
- 2 lbs or less
- Not big brand product
- Not bulky
- Not difficult to manufacture
- Not likely to break easily
- Don’t require variations
- Top sellers are selling for $20 average or more
- Top ten sellers are collectively makes 3000 sales per month average
- Top ten sellers have 3000 sales per month average spread evenly or distributed evenly
- 1 seller in the top 5 with 50 reviews or less
- 3 sellers in the top 10 results with 50 reviews or less
How to Find Manufacturers
Step 1: Go to Alibaba and find the search bar. Type in the name of a product that you are interested in selling. In this video I used vitamin pills as an example.
Step 2: Because a lot of suppliers have duplicate listings on Alibaba for the same item (because it increases their presence in the Alibaba search engine) you will need to filter the results by clicking on “browse by suppliers.”
Step 3: To filter the results down further, search by “Gold Suppliers.” Most suppliers will do this because it has become basically a prerequisite for having new buyers contact them. It doesn’t cost them much money to do this, so the results will only be filtered by a small amount.
Step 4 (OPTIONAL): If the list of suppliers is still too long, then click to filter the results by “assessed supplier.” This is only necessary in very popular niches where you have a large number of suppliers that you need to filter down to a manageable amount.
Step 5: Contact 10-20 suppliers at least. If you have time, then contact more. The more you contact, the better.
Here is the email template referenced in our video tutorial on how to find a supplier on Alibaba:
My name is [INSERT NAME] from [INSERT BUSINESS NAME].
Our company director asked me to contact your company about working together on a lucrative, long-term venture. We are a company that sells products related to [INSERT NICHE HERE] and we do over 2 million dollars in sales each year. We’re looking to expand our product range and create a profitable partnership between your company and ours.
We are planning to purchase [INSERT ITEM] to our product line. It would need to meet these specifications:
- Specification (e.g size)
- Specification (e.g. quantity)
- Specification (e.g. colour)
We have been researching different companies in China that manufacture [INSERT ITEM] and we think that your company could be a great supplier for it. We would like to get some more information and have a few questions that we would like you to please answer:
- Can we please get a sample of the product as soon as possible. Can you please let us know how much you will charge for the sample, including Express shipping to [INSERT COUNTRY], zip code [INSERT ZIP CODE]? We would like to pay with PayPal.
- How long will it take to receive the sample? * What types of packaging do you usually use for this product? * How long does it take to manufacture once an order has been placed?
- What is the product-per-unit cost including shipping via Air Express to the United States, ZIP code 85043? * Do you accept PayPal for the full-order?”
We would be very grateful if you would contact us with answers to the above questions as well as any additional policies that we may need to know. We would also like to discuss with you further about doing a sample order for the product.
We are hopeful that we can start a mutually beneficial relationship.
Please add me on Skype and talk to me, as this is my ideal form of communication: [INSERT ID] Alternatively you can email me back at this address: [INSERT ADDRESS]
Kind regards, [NAME]”
Here are some final tips to keep in mind when you are looking to find a supplier on Alibaba to manufacture your Amazon FBA private label products:
Tip #1 on how to find a supplier on Alibaba: Don’t judge the supplier/manufacture by their Alibaba response rate. The Alibaba response rate only takes into account how fast they respond within Alibaba’s email system, and it doesn’t take into account how fast they reply to personal emails. This is not a good indicator of how responsive they will be to private communication, which is all you should care about.
Tip #2 on how to find a supplier on Alibaba: Avoid manufacturers that try to vet your business. If a manufacturer comes back and starts asking questions about your business, clearly skeptical of the size of your company, it is best to move on. Manufacturers that do this will usually decline to work with you as they are only to work with other large companies, so you don’t want to waste your time.
Tip #3 on how to find a supplier on Alibaba: It is OK to work directly with a sales rep – if they offer you a better deal.
When you are looking to find a supplier on Alibaba, you’ll discover that sales reps often have inflated prices (due to commission cuts). But occasionally, a sales rep will have a better relationship with a factory and so are able to negotiate lower prices. They will also often have good english, making communication easier. Vet sales reps and treat them as equals during the process of picking and choosing the right supplier.