Private Label Concierge with Christian Little
Have you ever wanted to create your own private label product but don’t know where to begin?
Maybe there is already a product that you love but you think it would be even better with some enhancements?
Or perhaps you just get excited about taking an idea from scratch, through the design process, getting it manufactured, and raking in the profits as it hits the market.
This is your opportunity to get started with a partner that has launched several successful private label products!
Who is Christian Little?
Christian Little is a member of our coaching team and an eCommerce seller based out of Vancouver, Canada.
He’s done several private label products over the past year and learned a lot about working with manufacturers, international trade, customs, brokerage, packaging design, and getting a new product to market.
He initially failed with many PL products when starting out. But with every failure, he learned to go through the process and figure out better ways of getting a product from the design phase all the way to the market launch.
We’ve a few requirements before you can use this service. If you don’t meet these requirements, then this program isn’t for you yet, as you’ll hit some major roadblocks that could prevent your product from getting to market. They are as follows:
➔ A business license in Canada or the United States. More specifically – you must have either a Canadian Business Number (BN) or US Employer Identification Number (EIN). These are required to import products into their respective countries, without one of these your products will not clear customs.
➔ At least $1,000 to spend on the first batch of products. I highly recommend $2,500 or more. This will get you the first order of products so you can start selling them on Amazon and other places.
➔ An idea for a product. It doesn’t need to be detailed, but you must have some idea of a kind of product in mind that you want to develop and bring to market.
If you have these 3 things, then Christian will show you how to bring a product to market. Whether it’s something simple such as a pin or something really complicated (such as his latest PL product which has 2,000 parts!), he’ll guide you along the right path to ensure your product is a success.
In January 2016 Christian ventured into private label. He wanted to manufacture a beauty product because he’d recently become ungated for the beauty Category on Amazon and really wanted to have his own product in that niche.
The product made it’s way to Amazon and started selling. But it immediately got terrible reviews, ratings, and returns.
The problem was the product itself was terrible. It was too small, it had a bizarre odor, and even worse – the product came out as a liquid instead of a cream which is what it was advertised as!
Customers immediately started complaining about it, generating returns, and he found out after the fact that it was a defective batch from the factory! He was devastated, as he’d spent thousands of dollars on this products and weeks developing it.
That’s when he started looking at the failure more critically. He stopped blaming the factory (though they really did screw up the formulation, and they verified it was a bad batch). He looked back at how he’d approached the situation and what mistakes he’d made.
➔ He rushed the product out to market without doing proper due diligence.
➔ H assumed the factory wouldn’t screw up his order.
➔ He didn’t do proper market research, the product couldn’t compete.
It was an $8,000 lesson (literally), and he realized he could only blame himself for rushing into PL.
Learn From His Successes
Fast forward ten months from that first PL disaster and let’s look at one of his latest products (a crafting product). Within a week of checking into FBA:
Furthermore, it reached the top 0.5% best sellers rank in Arts and Crafts on Amazon:
➔ He initially ordered 50 units. Despite what a lot of people tell you, you can negotiate lower MOQ’s with most suppliers when you are doing PL.
➔ This product costs $8 to make.
➔ This product sold out within 10 days of checking into FBA.
➔ $0 spent on promoting the product.
Hi, Christian here.
Creating a product is hard work. Getting it from the factory to a place it can sell is hard work. Selling it is hard work. Notice a theme here?
I want you to understand what you are getting into when you partner with me on your PL project – my job is to take the hard work off your shoulders. I will work with you to figure out what you want, and then I will handle it from there.
At the end of the process you will walk away with a supply chain setup for your product.
I’ve outlined how this process works below:
Phase 1: Your Idea + Market Research
You’ve got an idea for a product, but that’s all you’ve got. It might not even be a really detailed idea, but you have something in your mind you want to create.
I’m going to extract that idea from your brain and hammer out the details. You can expect several calls with me to discuss the details, hammer out the specifics, and make sure we both have a very clear idea documented.
During this process, I’ll be teaching you ways to do market research and together we will take that information and harness it into your idea to make your product even better.
Duration: Approximately 2 to 4 weeks.
Phase 2: Manufacturing & Logistics
Once we have an idea worked out for the product, I’m going to start looking for potential manufacturers, factories, and suppliers where we will source the product from.
It’s very likely the product will be manufactured in China or India, but depending on the specific product we may look in other countries for suppliers.
This is a very lengthy process because there is a lot of due diligence needed to ensure the right finished product is delivered.
Luckily for you, this phase is about 90% hands-off for you – I will do all the heavy lifting here from contacting suppliers, negotiating terms, ordering samples, and all the back and forth that is required to get your product made.
Duration: Approximately 2 to 8weeks.
Phase 3: Listing
Once we have a solid product made, it’s time to get it up on Amazon. You will order a small batch of products (usually 25 or 50 units) and we will send them to your Amazon account.
We will also need to take good quality pictures (I have an amazing contact up here that can shoot professional quality product pictures for $250 per product) and I will help you create the listing on Amazon.
Once the listing is created and the product is at FBA, I do recommend some test PPC campaigns using Amazon’s sponsored
products program. For a new product launch I typically set a budget of $5 – $10 per day, no more.
Duration: Approximately 4 weeks
By now your PL product should have sold all or most of the initial batch. My work is done – everything gets handed off to you. I ensure you have everything you need to order additional units from the supplier(s). This operation is now fully under your control.
It will take usually 8-12 weeks to get to this point depending on how quickly we can piece everything together. If this is your first time creating a product I would plan for the process to take 12 weeks.
Aside from my fee, you need to be aware of a number of other costs that you will incur when you go down this road (this is why it says you need at least $1000 to start this process, $2500 is better):
● Product Costs. For your first PL product I recommend we aim to spend $8-$10 to create the product which then sells for $30-$40. Plan to buy 25-50 units of product (approx $250 minimum, probably closer to $500).
● Freight Costs. Initially we will air freight the product in. This takes approximately a week, but it will cost about the same as the product cost (another $250 to $500 can be expected here). Once you have a proof of concept you can expand and switch to ocean freight which is significantly cheaper but takes 3-6 weeks for product to arrive.
● Brokerage Fees. Expect to spend around 10-15% of your product cost on brokerage fees, this is the cost to clear customs. So on $500 worth of product you can safely expect around $50 in brokerage fees when your product enters the country.
● Barcodes. You need to have UPC barcodes. You can get 5 GS-1 barcodes directly for $750 + $50/year, or you can buy them from a third party like SpeedyCodes for significantly cheaper (this is what I recommend at first, Amazon still accepts SpeedyCodes UPCs).
● Design/Formulation Fees. Depending on the product, you may have to pay for design and/or formulation fees. This usually only happens if you are making a truly unique product or a chemical (I don’t recommend either initially, start with something more simple).
● Amazon & UPS Fees. You need to ship your product to Amazon once it’s in the country. You will incur the usual fees for shipping stuff to Amazon, plus the cost of running low-budget PPC campaigns (I highly recommend running a $5/day PPC campaign initially when you product first reaches Amazon).