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 instil informed confidence in you to build a private label business properly.
The top 10 landmines for Amazon private label sellers are in the infographic below.
You might never have heard of Momox, but this German company is the world’s second largest seller on Amazon, by volume of feedback received. Momox is also the fourth largest seller on eBay, by the same measure.
That’s an amazing achievement on it’s own, but there’s more. The company’s international selling accounts feature four more times on our list of the world’s top Amazon sellers, and are again on the eBay list with their fashion brand ubup.
But what does that translate to in sales? Well, this year Momox has reached 100 million Euros in annual revenue. That’s 112 million dollars, or 73 million pounds. They have two warehouses, with about 70,000 square metres of space (750,000 square feet) and 1,000 employees.
So where did this ecommerce giant come from?
Actually the company started from nothing only twelve years ago when Christian Wegner, then unemployed, sold a few second-hand books on eBay. Last week Wegner generously spared the time to talk to me about how his business has grown over the years. Here’s what he told me.
Many thanks to Marc Jarrett of Emjay Consultancy for his help with the interview and translation. Emjay Consultancy helps companies expand into the UK, Germany and China.
This post is by Chris McCabe. After several years evaluating seller account performance for Amazon’s merchant assessment teams, Chris left Amazon to apply those skills as a merchant account liaison. If sellers need help communicating with Amazon or navigating its occasionally opaque processes, he intercedes and facilitates solutions.
Why are Amazon account suspensions on the increase in 2015?
This is a subject of frequent debate among those active on Amazon marketplaces. I have watched the spike in aggressive actions and tried make sense of what initiated this rise in account restrictions.
The Product Quality squad had to strengthen policy enforcement across the board once management decided that too many buyers were complaining of counterfeit or fake items, of items arriving in a condition other than what was described, and of items which were generally not as they had been listed on the site.
This team came together in an effort to implement more punitive strategies that would reduce these complaints and reinforce buyer trust in marketplace item quality. As a result of this, every buyer complaint is assessed in either automated or manual fashion and a warning is sent. If additional complaints come in, more actions are taken, up to and including suspension.
I do my best to guide sellers through the reasons why they have lost their accounts, either temporarily or permanently, due to suspected policy violations. In the course of these conversations, I have discovered some misconceptions among sellers.
This post is by Pilar Newman, an eight year Amazon seller veteran who runs her business full-time while travelling the world. She started her business on a few hundred dollars to later becoming a multi six-figure seller. In addition to working on her first Amazon FBA training course, she writes for her Amazon seller blog at pilarnewman.com.
Learning how to capitalize on fast-moving industry trends can significantly bump sales for any ecommerce seller.
It’s an opportunity that sellers such as myself seek out like a hawk in order to quickly turn around products at some of the highest profit margins. This is especially true when one uses private labelling as a method to enter the marketplace at a competitive cost, and ride the wave of a hot new trending item.
One of the easiest and fastest ways to profit from a trending item is to produce a secondary product relevant to the main item. This is often seen when the latest tech gadget is released, and a rash of new compatible accessory items erupt onto the marketplace.
But competition is very high when it comes to profiting from trending products, and you can’t just jump on the bandwagon and expect to be successful.
In this article I’ll tell you how I’ve made money from trends in the past, how you can identify hot products yourself, and my best tricks and tips for creating your own complementary items.
Two things surprise me about XSellco.
First, their Chairman is a hugely successful Irish technology entrepreneur – Ray Nolan. His many ventures include the world’s top hostel-booking site Hostelworld.com, and flight comparison tool Skyscanner. But that’s not what surprised me. What’s unusual is that Nolan isn’t just a passive investor in XSellco, he’s the company’s founder, and has been hands-on in shaping their software for online sellers.
Second, XSellco acquired competing company ReplyManager earlier this year. Acquisitions aren’t exactly rare in this industry, but this case was unusual again: ReplyManager was the only direct competitor to XSellco’s Fusion, and the company will continue to provide both tools indefinitely.
So I caught up with Nolan and new XSellco CEO Victor Corcoran to talk about why the company was founded, what makes their tools different, and their plans for the future.