As a follow up to The Sellers Conference, March 7-10, 2017 in Philly I would like to thank all those that attended the event as well as viewed my presentation. The event presented solid information and strategies, great motivated attendees, speakers and exhibitors that made for a successful meeting.
My background and APF.Archway’s expertise comes from years of experience in online ecommerce and how to source and create private label brands for online channels such as Amazon.com. APF.Archway also offers the expertise and experience of attorney and partner Fei Hu to cover all the legal areas that ensure your private label brands have the best intellectual property legal advice available.
Our presentation focused on the exceptional opportunities in the Private Label Specialty Coffee business. APF.Archway have been sellers and private branders of fine specialty coffees for some time and presented this strategy covering sourcing from Colombia and other countries, branding, marketing and selling fine estate coffees.
The market timing has never been better for this consumable. Not only on the premier online channels such as Amazon, but the many other sales and marketing channels as well. In fact, you can create a flagship brand that can grow and produce ongoing revenue and profits in not one, but a wide range of markets.
For those of you that attended the event and my presentation I look forward to connecting with you in the future. Those that did not attend please do not hesitate to contact me for more information on an extraordinary opportunity!
Top 10 Landmines in Building Private Label Products For Your Amazon Seller Business
Imagine owning your own successful line of private label products on Amazon: high customer demand, no direct competition, ability to set your own prices easily, and larger than usual margins. What’s not to like about this arrangement? Nirvana for any seller obviously. It sure beats the challenges of procuring national branded products that millions of other sellers are fighting you to source. However …..
While building your own private label brand has appeal for lots of reasons, going alone to build a private label product business is rampant with risk: the hidden costs of private-label product sourcing must be clearly understood by anyone considering this approach. We want to instill informed confidence in you to build a private label business properly. Read on!
- Trademark and patent infringement
- Does your private label product violate someone else’s trademark or patent? Are you borrowing too heavily to be deemed a legitimate alternative vs. a counterfeit reproduction? It won’t take long for national brands to notice your product’s sales growth on Amazon, and their lawyers may be paying you an expensive call. No one wants to be stuck with 1,000 generic plastic egg flippers and a big legal bill.
- Importation delays
- If this is the first time you import products from overseas, there is a very good chance you won’t have filled out the customs paperwork properly, or directed your supplier to label boxes appropriately. A seasoned partner can streamline this extensively.
- Not negotiating small enough quantities on test buys / samples
- Overseas suppliers have gotten much more responsive to small sample buys by new customers. You need to know how to balance the issue of large enough samples to identify consistent production quality with the issue of not being stuck with a basement full of boxes of undesired test product.
- Not planning on enough experimentation
- You’re doing well if 2 or 3 out of each 10 products you try turn into products that generate decent sales. You will need to test a lot of products to figure out if you really have found meaningfully differentiated products that customers are prepared to buy from you.
- Overseas manufacturers non-exclusive production practices
- What are you doing to make sure your overseas suppliers aren’t unscrupulously producing the same products for one of your competitors? Believe us, it’s a real issue.
- Picking the Right Supplier / Production quality issues
- Just because you got a few good samples to verify product quality doesn’t mean your subsequent large-scale batches will maintain the same product quality. It’s critical to know how to evaluate and negotiate with suppliers to make sure you get high quality product every time
- Not setting up product properly on Amazon
- Who is making sure you have good feeds with proper item Classification to ensure Amazon customers are finding your products soon after your product launch? You need to have a process for promoting the products on social media channels, highlighting points of differentiation, getting customer feedback and product reviews quickly.
- Not effectively managing tickets from Amazon’s Seller Performance
- How do you plan to handle situations where Amazon customers claim you are selling a counterfeit product? We know of many too many situations where Amazon sellers that own their brand and have registered those brands in Amazon’s Brand Registry program are STILL being accused of selling counterfeits of their OWN brand! What do you need to know to protect yourself about misinformed claims by Amazon customers or vicious competitor accusations?
- Other national brands may complain to Amazon about you counterfeiting their products. Even if you have a legitimate brand of your own, Seller Performance may be over-reactive to large national brands that complain, even if you are operating within the law. You need to know how to handle Seller Performance in such situation.
- Time Before Amazon Competitors Notice
- Once your private label product starts to get decent sales on Amazon, expect potential competitors to notice quickly. You have a short window on most private label products you build before others enter the same markets
- Protecting your private label product on Amazon
- As your private label products grow, and competitors enter your space, you will find some competitors will blatantly copy your products or match unlike products on your listings. Amazon isn’t always very responsive to your claims that competitors are hijacking your product listings with different products. There are specific pre-emptive actions you should take, as well as specific issues you should plan to accept as a cost of doing business in the private label space on Amazon.
An effective system to build a private label product business should include product evaluation, proper legal vetting, identification to the right manufacturer partners overseas, small minimum order quantities (MOQ) on a wide range of products, and all of the hard work needed to get your products launched on Amazon. If you are committed to the investments of travel, time and money needed to be successful in the private label product space, we can arm you with the right information.
If you are ready to take the next steps to build your Private Label business, contact Anthony Fichera at email@example.com
Anthony will also participate on a panel of trading companies at the prospershow.com Feb 8-9, 2016 in Salt Lake City. Enroll now to learn from Anthony and other workshops led by former Amazon insiders!