"Build" Guide - how to Build your Private Label Business
Chris Green says: Merch by Amazon, like all Amazon models, is not best done by trying to game the system. The best practice it to reverse engineer the system instead. Figure out what Amazon wants you to do, because that will be rewarded. You can try to game the system, but if Amazon doesn’t like it, you will face consequences.
There are time-tested methods for creating and launching new products with FBA. With Merch, how do you select new products, and how do you launch them?
A lot of the people, Chris Green has been working with are relying on organic traffic. One way you can find new products is to search on Amazon. Start typing in the search bar and see what’s populating and you will find the products people are looking for. So if you see that people are buying “I love Panda” shirts, then maybe you should make one. Make sure you don’t copy. However, there is nothing original in this world. Everything is built on something else. So make your “I love Panda” shirt or whatever is popular, but make it your own.
The people that are going to win at merch by Amazon, are the people driving traffic. If there is already a demand for something, find out where the demand is, and go give them a product. For example, there are a lot of Facebook groups for classic cars. Now, there are probably sayings and phrases that go along with classic cars that you can put on a shirt. Have someone create a mockup of a cool car and make a shirt. There are some shady ways of promoting it, but the best way would be to go to the admin, and offer to give him/her some shirts that they then and giveaway to those in the group.
This applies to anyone with an audience, not exclusively Facebook. You might consider making a mockup of a logo for a smaller YouTube channel. You could find someone with a podcast that is respected by their listeners. Approach them with the idea of the shirt, share the link to the listing, you can make it unlisted so you’re not selling anything, and offer to share the royalties. It’s about getting creative with the platform you have because most people want to keep doing what they’re doing.
Chris Green feels that advertising within Facebook groups is under-utilized. Some groups you can just post a link and that’s fine, but if you need to approach the admin, you can give them something to giveaway to make them look good, or cash may work. Just ask if you can advertise in the group for $100. If you have a good design then people will go buy the shirt and you’ll make your money back.
Or, you could get involved in the community. If you know about classic cars, join the group. Ask questions, answer questions, help other people and you will gain rapport and you’ll have more freedom to advertise the shirt.
Here is an actual secret from Chris Green: Send them to redirect them to Amazon. You can send them straight to Amazon to buy the shirt, but you won’t get any data or analytics. However, if you send them to your website first and redirect them to Amazon automatically. That way you can attach a Facebook pixel and get a lot more data. This way you know that everyone that clicks through that link is into classic cars and you can target them using Facebook ads with all of your classic car shirts. You now have a list of people that are into classic cars right now and are willing to click out and to look at a t-shirt.
If you’re selling your shirt for $7.68, then you can spend $7 per sale and you’re still making money. Better yet, you’re spending money on highly targeted people who are the most likely to buy your shirt. Since Amazon is doing all the work, every sale is like printing money. That is the huge potential with Merch by Amazon. Unlike with FBA and private label, you have no money tied up. Right now it’s only t-shirts, this is the ground floor. In time we will look back and reminisce about when Amazon merch was only t-shirts. Now is the time to carve out you space.
Amazon is where the customers are. Sure, there are other options like eBay or teespring where you can sell your shirts, but the people are on Amazon. They want Prime shipping. They will filter out products to make sure it is Prime eligible. People don’t search on Google, they go straight to Amazon and you need to be where the people are. Merch by Amazon is prime eligible, and no inventory and you can’t find that elsewhere.
Let’s say you have 10 designs. What is the simplest way to get going?
Leave Facebook until after you get some sales. Don’t get into that fancy targeting stuff right away. First thing would be to post it on Facebook and ask your friends for their opinion. Get some feedback for it and be prepared for them to be honest. Which is what you want. Bad looking shirts won’t sell so get feedback first so you don’t waste your time on a bad design.
Look at what is selling. Don’t reinvent the wheel. See what people are buying and make your own version of that. See what’s popular. It’s election season in the U.S. right now so Trump and Hillary shirts are popular. Go to your local school and sports teams and do a fundraiser. Put their logo on a shirt on Amazon and have all the kids push them on their social networks. Every shirt sold with mean $5 to the group. People are more likely to buy the shirt than donate the money.
Find local businesses that want to want people to wear their logo. Give them a shirt to display with a link to the Amazon page. They can offer promos and discount to customers wearing the shirts. The possibilities are endless. There are so many different things you can do. If you’re a marketer, you can team up with a designer and split it 50/50. You might be good at promotion, or networking, or relationship building; find what you’re good at and then fit in the missing pieces.
How does launching a new shirt work? Is it similar to launching with FBA private label? Do you do a lot of giveaways to get your ranking up? Does ranking work in a similar way?
There is definitely some overlap between merch and private label. If you want to be competitive, and get your shirt to the top you’ll need some recent sales and reviews. You can certainly do giveaways; buy the shirt and put someone else’s address on it. You can send Amazon gift cards instead of refunds. Have your shirt as a prize in some kind of drawing. You can bundle it with your private label items. Put an insert in the box that gives the buyer an opportunity to get a free shirt.
Is there any way to gauge competition or predict sales?
You can certainly see your ranking just like you can with private label, says Chris Green. So with retail arbitrage, everyone is fighting over the same pie. THere’s only so much to go around. With private label, you introducing a brand new pie into the market and you get all the pieces. With merch, you own the pie but the pie is getting bigger. There is no limit to the market because you’re not fighting over the same design, you’re introducing new designs and the best ones will win out.
The biggest mistake Chris Green thinks people will make is relying on organic sales. He thinks Amazon will reward people that drive traffic. When people search for something, Amazon will determine what the best products are for that customer. If your product has better page views and conversion rates, you will be one of them. And having a better ranking gives customers more confidence in your products.
GET AN ACCOUNT NOW! There is no reason not to. You have nothing to lose, even if you never doing anything. As of right now, there is a waiting period to get your invitation, so even if you’re not ready to do anything yet, apply now so that when you are ready, you don’t have to wait for the invitation.
Merch by Amazon is only one of many ways that Chris Green has been selling online. He started out as a seller on eBay actually. After Amazon opened their platform to other sellers he began listing there. He found that it was much lower maintenance on Amazon as he wasn’t getting a ton of questions from the buyers and he began listing more and more.
The major turning point for him came from being a buyer after signing up for Prime. With free 2-day shipping he and his wife order a lot from Amazon and realized that if he was hooked, other people would be as well. With the introduction of FBA, he and other sellers would have access to these same benefits and knew this was a golden opportunity. The fees were lower, it was much less work, and his customers would get the product faster. He was all-in after that.
With Amazon doing so much of the work, he found he had too much free-time. He would then go to bookstores and yard sales and scan books to send for Amazon. After that, he was bored again and wanted a better way to scan for products and came up with ScanPower, the leading FBA software tool where you can scan any barcode and it will tell you what you can sell it for on Amazon.
He got his start as a public figure after self-publishing a book, Arbitrage, teaching how to make money on Amazon. It started as a simple book that answers the most common questions about selling on Amazon and ended up being the go-to guide for people wanting to get started on Amazon.
Merch by Amazon is a very simple concept and Chris gets a lot of questions about it, mainly because it seems too good to be true. That there is no way Amazon would do this, or if you’re hearing about it then it’s too late and there is no more opportunity. That is all false. This is the ground floor of this platform because no one has heard of it.[Compare it to Prime and FBA.] Prime is a household name. There may be a few people that have never heard of it but it’s relatively commonplace, and it’s 11 years old. Most people don’t know what FBA is or have never heard of it, and it’s 8 years old. Merch by Amazon has been out less than a year.
Basically, all you need to do is come up with a design, make it a .png, and upload it to Amazon. They will then sell this as a physical product that people can buy and you get a cut of the profits. All you have to do is make an image that is 5400x4500px and 300 DPI png file. Then you upload it, make a listing and that’s it. You can pick 5 of the 15 colors in every size. If it sells, you get a royalty check. If it’s a $20 shirt, you’re looking at an $8 payout.
FBA wasn’t a new idea just like the t-shirt print on demand isn’t a new idea. There have been warehouse fulfillment companies for decades before Amazon got into the industry. However, Amazon has a huge customer base and has Prime which these other companies can’t compete with. That’s why Merch by Amazon is going to be so huge. People aren’t going to hop onto T-Spring and buy your stuff but they are going to Amazon and there they can buy with one click and get free 2-day shipping.
Yes! With FBA you have to get the product, buy hundreds of units, prep it, pay for it to get to Amazon, and hope it sells at a price that will return a profit. With Merch by Amazon, you don’t pay for anything. If you don’t sell a shirt, you’re out the time it took to make that image. You can make almost $8 on a $20 sale and not use any of your own money.
The only investment for Merch by Amazon is the image. You can now get Photoshop for $9.99 a month and they have their own tutorials. Or you can get on YouTube and find hundreds of videos on using the programme. If you go to http://merchshirts.com/ you can search for a keyword and see every item on Amazon for that word and you can see what’s selling.
You choose your selling price with Merch by Amazon. The royalty has to be at least $0.01 and a max of $49.99. There is a 15% fee so the final cost will vary depending on the royalty cost. When you make the listing, you put in what the final cost will be and it tells you what the royalty is. You can adjust the price based on what you are trying to get out of it. If it’s a brand t-shirt, you might price it lower so that you can get more sales and get your logo out there. You might price it higher if you are trying to make a profit. The most common price is $19.99 so if you don’t know what to price it, start there. If you’re going to charge more than $19.99, you better have a reason.
Different options will affect your royalty. The example Chris gives is a $19.99 Anvil shirt, with front side image. Cost plus listing fee is $12.31 giving you an estimated $7.68 royalty per unit. Even if you pay someone $5 for a design, as long as you sell one shirt you are making a profit.
It is completely separate. Go to merch.amazon.com and request an invitation. As of right now, due to the popularity of the program, they have a waiting period. In order to slow things down and to scale properly, they decided to limit how many new sellers are coming in.
As of right now, it’s tied to a buyer account. So if you use your personal buyer account to sign up, you may not want to bring people on because you would have to give them your personal account as well because they are tied together and cannot be changed. But only the login. If your account gets suspended for whatever reason, then your merch by Amazon won’t be affected. The best advice is to make a brand new account just for merch,
The term merch came from the concert scene where bands, in order to make money, would sell their merch after a show. At the time of this recording, merch is only t-shirts. However, there is a huge demand for other products. They didn’t call it t-shirts by Amazon so expect to see other items available in the future. Probably not in the near future due to logistics. Right now the have 15 colors, in 5 sizes, for men, women, and children. If they decide to do another type a shirt you’re looking at over 1,300 blank shirt options that they have to stock and keep track of.
Amazon has the data and has determined that t-shirts are the place to start. It is likely they will add more types of merchandise but it will be slowly.
You can see this trend in Amazon’s history of expanding from one product type outwards . Amazon started as a book company. Jeff Bezos was debating on 7 different categories and decided to start with 1 and getting established in that. Then they expanded out gradually into other categories.