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October 12, 2015

#16 How to Deal with Increased Amazon Private Label Competition

This Episode, #16,  deals with another hot topic area: How to deal with Increased Competition among Amazon Private Label Sellers. It’s  a topic that intimidates  some, but it’s a reality you need to deal with if you want to develop a real business and actually make profits in 2015 and going into 2016.


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Head over to iTunes now and leave your review! If you haven’t  already, you can also subscribe through iTunes to get all the info you need to start your own successful Amazon business!

CONTEST EXTENDED to the end of November or 1st 25 reviews, whichever comes first !


The 7 Mistakes Amazon Private Label Sellers make that let the Competition beat them – and 7 Strategies to Overcome Them!

Mistake #1: Going for Individual Products not a market.

Strategy #1: Go for a niche market of people you understand, and to whom you could potentially sell a whole host of products – including training or informational products

Mistake #2: Not differentiating your product/ Copycat products

Strategy #2: Be clear about who your customer is: the Person and their Problem – and find a solution to their problem – don’t just copy everyone else’s products.

Mistake #3: Expecting “easy money”; Not planning for and then putting in Time, Money & Focus

Strategy #3: Prepare to put in serious money (See Episode # for details on this), Time and Focus.

For full details of what it takes to run an Amazon business, see Episode #13 show notes, and listen to the podcast episode.

Mistake #4: Over-committing to one product initially; Relying on Research not Testing

Strategy #4: Test every assumption! Two tactics:
1. Get  MOQ of unbranded product, Market it normally and see if it sells; if yes, go and get a branded (Private Labelled) version.

2. When you go back to your supplier for new inventory, order an MOQ of an  (unbranded) additional product to test.

Mistake #5: Relying on one Traffic Channel (Amazon!)

Strategy #5: Develop new Traffic Channels –  e.g., YouTube videos, Facebook Page/Ads, Google Ads, Own Website (more a brand reassurance than a traffic source).

Caveat – one at a time! Don’t spread yourself too thin. Firstly,  Test properly what works, then systematise what works. That includes eliminating time and money wasters (campaigns that bring little or no result), automating (e.g. using software to post content), and eventually delegating to VAs etc.

Mistake #6: Not building your own customer lists

Strategy #6: Build your own customer lists- mostly email

Tactic: put in inserts in your product packaging “To activate your Warranty, go to www.yourbusiness.com/warranty. Then set up a Landing page aka opt-in page with say WordPress on a Bluehost hosting or Leadpages, and an email autoresponder, e.g., aWeber. If you don’t have the know-how, outsource this, e.g., try fiverr.com. I’m about to create an episode dealing specifically with this. Stay tuned!

Mistake #7: Having a Small Back End! Trying to make all your money in the first sale to a new customer

Strategy #7: Create a suite of products that you could sell to existing customers. Especially aim to create and/or sell digital (information) products because each sale of those is  nearly all profit!

You can sell other people’s products initially (try clickbank.com) as an affiliate if you don’t have time/inclination to create your own products at first.


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Watch Seven Classic Competition Mistakes in Amazon FBA

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Michael Veazey

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  1. Hi Michael

    Thanks for another great podcast

    Competition is always going to be there so you can’t protect yourself from competition
    I come from a property background and despite being many property investors there is still enough for everyone depending on how much work and effort they put in

    Also on the matter of MOQ under private label, my suppliers are actually creating my products under my private label for a MOQ of 400 and 500 so I’m for private label all the way

    And that also feeds into the long term vision of my private label
    Also started on the affiliate side of things with the help of a VA so all for looking at long term vision 🙂

    1. Hi, Anila,
      Thanks. Yes, Competition will always be there, it’s true, and as you say, if you put work and effort in, that will be rewarded. I do also think that it helps to approach the thing correctly from a strategic point of view.

      Yes, I agree with you, Private Labelling is certainly the way to go if it’s affordable, I just know that for some people, the MOQ for OEM (Private Labelled) products is a barrier, and is something that slows them down. In their cases, I recommend getting going with unbranded MOQ’s for speed and affordability. But there’s no doubt that you’ll build your brand better and quicker going in Private Labelling from the off. Everyone needs to find their own path, but I just hope it’s helpful to show people more than one option.

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