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5 MISTAKES I Made When First Private Labeling On Amazon FBA (Lost $10,000 In Sales)

Published on: November 30 2022 by Carter Maxwell

5 MISTAKES I Made When First Private Labeling On Amazon FBA (Lost $10,000 In Sales)

Table of Contents About 5 MISTAKES I Made When First Private Labeling On Amazon FBA (Lost $10,000 In Sales)

5 MISTAKES I Made When First Private Labeling On Amazon FBA (Lost $10,000 In Sales)

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00:00:00 00:00:03 what's up guys in this video I'll be
00:00:01 00:00:05 going over the five mistakes when I
00:00:03 00:00:09 first started private labeling that lost
00:00:05 00:00:10 me potentially $10,000 in sales so if
00:00:09 00:00:12 you don't know me already my name is
00:00:10 00:00:14 Carter Maxwell I'm a 17 year old
00:00:12 00:00:16 entrepreneur and I go over the nick name
00:00:14 00:00:17 of the high school hospital and if
00:00:16 00:00:19 you're trying to create an online
00:00:17 00:00:21 business and make money wisely then this
00:00:19 00:00:23 is the chanter for you so go ahead and
00:00:21 00:00:24 hit that subscribe button I thought this
00:00:23 00:00:26 would be a great video to kind of go
00:00:24 00:00:28 over the mistakes that I made when I
00:00:26 00:00:29 first started product labeling so
00:00:28 00:00:31 hopefully if you guys are thinking about
00:00:29 00:00:33 starting private labeling or maybe
00:00:31 00:00:35 you've already just started in your Nuvi
00:00:33 00:00:38 they can hopefully avoid these mistakes
00:00:35 00:00:40 and avoid missing out on potential sales
00:00:38 00:00:43 so the first mistake that I had made in
00:00:40 00:00:45 my private label career was ordering too
00:00:43 00:00:47 much inventory and of course this
00:00:45 00:00:49 happened on my first transaction that I
00:00:47 00:00:51 ever made when private labeling so I
00:00:49 00:00:53 went ahead and I ordered about a hundred
00:00:51 00:00:56 units of a fairly expensive product from
00:00:53 00:01:00 me at the time it was about $13 after
00:00:56 00:01:02 shipping per unit so I wondered $113
00:01:00 00:01:04 thirteen hundred dollars total for my
00:01:02 00:01:07 first door I was like okay I didn't
00:01:04 00:01:09 really do the proper research like you
00:01:07 00:01:10 know I'm just going to take action I'm
00:01:09 00:01:12 gonna go out I'm gonna see what happens
00:01:10 00:01:15 well let me tell you that was a really
00:01:12 00:01:17 really bad mistake that I made I had
00:01:15 00:01:20 lost a lot of money because I'm the
00:01:17 00:01:22 proper resource that I did not do so for
00:01:20 00:01:25 instance the product I was trying to
00:01:22 00:01:28 sell for around $30 I ended up having to
00:01:25 00:01:30 try to dump it at $19.99 just to try to
00:01:28 00:01:33 make my money back and still I only sold
00:01:30 00:01:35 about ten about twenty or thirty at that
00:01:33 00:01:37 break-even point as I just had like
00:01:35 00:01:39 basically just dumped the rest of them
00:01:37 00:01:41 because I couldn't really sell them and
00:01:39 00:01:43 I had to sell I sold most of them at a
00:01:41 00:01:46 loss so I kind of got about half my
00:01:43 00:01:47 money back for each product so overall
00:01:46 00:01:49 it's just a bad experience I mean I'm
00:01:47 00:01:52 glad that it took action because now I'm
00:01:49 00:01:54 making a really good income from private
00:01:52 00:01:56 labeling but when I first started out I
00:01:54 00:01:58 just ordered too many units and what I
00:01:56 00:02:01 recommend when you first start out is
00:01:58 00:02:03 just make a test order okay the worst
00:02:01 00:02:04 thing that can happen is you don't sell
00:02:03 00:02:06 any and because you made a small order
00:02:04 00:02:08 because you're making a test order you
00:02:06 00:02:10 didn't lose out too much morning you can
00:02:08 00:02:12 usually dump them and recruit most of
00:02:10 00:02:12 your money but what you don't want to do
00:02:12 00:02:14 is you know
00:02:12 00:02:16 want to go in on a project you're not
00:02:14 00:02:18 sure about order thousands and thousands
00:02:16 00:02:20 of dollars of inventory and then get
00:02:18 00:02:21 stuck with it because you can't sell it
00:02:20 00:02:22 so that was the first mistake that I
00:02:21 00:02:25 made
00:02:22 00:02:27 so the second mistake I made was selling
00:02:25 00:02:29 trendy products in to get this out there
00:02:27 00:02:32 selling trendy products is not a bad
00:02:29 00:02:33 thing you can make a good really really
00:02:32 00:02:36 good amount of money selling trendy
00:02:33 00:02:38 products the thing that I'm going over
00:02:36 00:02:39 the mistakes that I made was my exit
00:02:38 00:02:41 strategy and what I mean by that is
00:02:39 00:02:44 exiting out of selling that product
00:02:41 00:02:46 because just like every trendy product
00:02:44 00:02:48 it's going to have its up stage until it
00:02:46 00:02:51 starts to crash and then it gets
00:02:48 00:02:53 overpopulated saturated and you can't no
00:02:51 00:02:55 longer make any money on it so the
00:02:53 00:02:58 reason this is the second mistake I made
00:02:55 00:02:59 is because I lost a lot of money on the
00:02:58 00:03:02 trend you thought that was selling I
00:02:59 00:03:03 found it early in the stage my listing
00:03:02 00:03:06 had gotten going I've gotten reviews it
00:03:03 00:03:07 was fully optimized and our product was
00:03:06 00:03:11 selling really really well I was
00:03:07 00:03:13 consistently having $1000 days from one
00:03:11 00:03:15 product so yes it can't be done I did
00:03:13 00:03:18 this at 16 years old so anyone can do it
00:03:15 00:03:21 there's no excuses but anyway as that
00:03:18 00:03:23 font was going up and up it slowly
00:03:21 00:03:24 started to die off and the worst thing
00:03:23 00:03:26 that happened was I went out of stok
00:03:24 00:03:28 well oh that's not that bad of a problem
00:03:26 00:03:31 let me just place another reorder Oh
00:03:28 00:03:32 before I got him in thousands and
00:03:31 00:03:34 thousands of other people had come in
00:03:32 00:03:37 trying to sell that product and as my
00:03:34 00:03:38 listing had been out of stok slowly the
00:03:37 00:03:40 rank was going up enough because it's
00:03:38 00:03:41 not selling you want the lowest sales
00:03:40 00:03:45 rank possible because that means your
00:03:41 00:03:47 product is selling more often so my rent
00:03:45 00:03:49 kept going up and up I was losing a lot
00:03:47 00:03:51 of results for the keywords that you're
00:03:49 00:03:54 ranking for and once I got back in stok
00:03:51 00:03:56 I can never get back to sales that I had
00:03:54 00:03:57 been getting and at the time more and
00:03:56 00:03:59 more people had come in just getting a
00:03:57 00:04:02 lot more saturated now I'm just losing a
00:03:59 00:04:04 lot of money and so ended up being able
00:04:02 00:04:06 to actually dump most of them I still
00:04:04 00:04:09 lost a decent amount of money but I
00:04:06 00:04:11 learned from it a lot and just the thing
00:04:09 00:04:12 as we start training products you can
00:04:11 00:04:14 make really good money from just make
00:04:12 00:04:16 sure you have an exit strategy don't try
00:04:14 00:04:18 to get too greedy and when it starts get
00:04:16 00:04:20 super saturated placing these gigantik
00:04:18 00:04:22 orders just kind of slow it down and
00:04:20 00:04:24 just settle with the money that you've
00:04:22 00:04:25 made from it because trust me don't want
00:04:24 00:04:28 to have thousands of
00:04:25 00:04:31 dollars of inventory and on my last
00:04:28 00:04:34 order I ordered over $18,000 with
00:04:31 00:04:36 inventory of this product try to sell so
00:04:34 00:04:38 trust me it's not a good position to be
00:04:36 00:04:39 in so you need to have the proper exit
00:04:38 00:04:42 strategy when it comes to selling
00:04:39 00:04:44 eternity products so the third mistake I
00:04:42 00:04:46 made is not correctly private labeling
00:04:44 00:04:48 my product so those of you that don't
00:04:46 00:04:50 know or aren't familiar with private
00:04:48 00:04:52 label private label is basically the
00:04:50 00:04:54 branding of a generic products you're
00:04:52 00:04:56 taking your company's brand your
00:04:54 00:04:58 company's logo and branding that product
00:04:56 00:05:00 to them resell it back on Amazon and so
00:04:58 00:05:02 I've not correctly done that I basically
00:05:00 00:05:04 skip the strategy of actually branding
00:05:02 00:05:05 the product and I just created the
00:05:04 00:05:08 listing and trying to sell under my
00:05:05 00:05:09 brand is this a generic product and
00:05:08 00:05:12 things start to really pick up I was
00:05:09 00:05:13 making really really good good amount of
00:05:12 00:05:15 sales placing reorders and stuff like
00:05:13 00:05:18 that that all sudden someone came on my
00:05:15 00:05:21 listing and started to sell my product
00:05:18 00:05:22 my branded product but hey I don't have
00:05:21 00:05:24 any rights over him because I did not
00:05:22 00:05:26 correctly private label the product and
00:05:24 00:05:28 so as I was getting this new reorder in
00:05:26 00:05:29 which takes about a week or two to place
00:05:28 00:05:31 the order for them to then produce it
00:05:29 00:05:33 ship it to you and then you didn't ship
00:05:31 00:05:35 back to Amazon so all this time sellers
00:05:33 00:05:38 were coming onto my listing and selling
00:05:35 00:05:40 my product on the listing that I created
00:05:38 00:05:42 the pictures that I took all because I
00:05:40 00:05:45 didn't correctly profit label my item
00:05:42 00:05:48 and because of that reason I lost out on
00:05:45 00:05:51 a lot and a lot of sales and so finally
00:05:48 00:05:53 I got my actual product branded I then
00:05:51 00:05:55 got new pictures taken and my listing
00:05:53 00:05:57 updated to where I could then have those
00:05:55 00:05:59 hijackers removed but at the time I
00:05:57 00:06:01 already lost a lot of sales from those
00:05:59 00:06:04 people that were selling my product
00:06:01 00:06:06 because I did not quickly brand it so
00:06:04 00:06:08 when it comes to private labeling take
00:06:06 00:06:10 that extra amount of that your budget
00:06:08 00:06:13 and put time it's actually branding the
00:06:10 00:06:16 product and branded don't pry don't
00:06:13 00:06:18 private label and just send up a generic
00:06:16 00:06:19 product that's not private labeling and
00:06:18 00:06:21 people can come on to the listing and
00:06:19 00:06:24 sell you need to have your brand your
00:06:21 00:06:26 company your logo on that product to
00:06:24 00:06:27 kind of minimize the possible hijackers
00:06:26 00:06:29 on a listing so that was the third
00:06:27 00:06:31 mistake I made
00:06:29 00:06:33 so the fourth mistake I made was not
00:06:31 00:06:37 having a automated email response
00:06:33 00:06:39 service at my disposal so what I mean by
00:06:37 00:06:41 that is reviews in the
00:06:39 00:06:43 I have this campaign and this service is
00:06:41 00:06:45 to try to get organic reviews on my
00:06:43 00:06:47 product listing because when your
00:06:45 00:06:50 private label seller and an Amazon
00:06:47 00:06:52 seller in general reviews are a big part
00:06:50 00:06:55 of converting buyers to actually
00:06:52 00:06:56 purchasing your product the reason being
00:06:55 00:06:58 people go on your listing they see the
00:06:56 00:07:00 pictures everything and most of them is
00:06:58 00:07:02 a decent amount of a price or they're a
00:07:00 00:07:03 little bit hesitant they're going to
00:07:02 00:07:05 read the reviews and if they see
00:07:03 00:07:06 negative reviews or they don't see
00:07:05 00:07:08 enough reviews they're going to be
00:07:06 00:07:10 really hesitant on actually purchasing
00:07:08 00:07:12 the product so the best thing that you
00:07:10 00:07:14 can do is get an email service for
00:07:12 00:07:16 instance I use jumps in and that's
00:07:14 00:07:18 actually an extension of jungle scout
00:07:16 00:07:19 which is a Chrome extension and the web
00:07:18 00:07:21 app as well as which do your product
00:07:19 00:07:23 research so on jump Sun you can actually
00:07:21 00:07:27 add your products and create your own
00:07:23 00:07:29 campaign to where they'll send two three
00:07:27 00:07:31 emails just kind of thanking the bar for
00:07:29 00:07:33 their purchase the second one might be
00:07:31 00:07:35 something like here you can make a
00:07:33 00:07:37 review for happy with your service it's
00:07:35 00:07:39 stuff like that and it's not against
00:07:37 00:07:41 Amazon's Terms of Service and using this
00:07:39 00:07:43 email service is going to increase the
00:07:41 00:07:45 possibility of you getting reviews for
00:07:43 00:07:47 your listing and obviously the more
00:07:45 00:07:48 reviews you get on your listing the
00:07:47 00:07:50 better you're going to be able to
00:07:48 00:07:52 convert those possible customers into
00:07:50 00:07:54 buyers so an email campaign service for
00:07:52 00:07:56 reviews is a fourth mistake because I
00:07:54 00:07:58 did not hop on it earlier I didn't get
00:07:56 00:08:00 in till later on in my career but now
00:07:58 00:08:02 that I have it it's a great tool that I
00:08:00 00:08:05 use every single day for every one of my
00:08:02 00:08:07 products that I sell so the 5th and
00:08:05 00:08:09 final mistake I made early on in my
00:08:07 00:08:12 Amazon private label career was not
00:08:09 00:08:13 running PPC campaigns and for those of
00:08:12 00:08:16 you that don't know with PPC stands for
00:08:13 00:08:17 it stands for pay-per-click basically
00:08:16 00:08:21 it's Amazon's
00:08:17 00:08:23 system their sponsor ad system so when
00:08:21 00:08:25 you look up a keyword for instance let's
00:08:23 00:08:27 just put food slicer when you look up
00:08:25 00:08:29 food slicer it's obviously going to pull
00:08:27 00:08:31 down a whole first page of listings and
00:08:29 00:08:33 at the top of that page you're going to
00:08:31 00:08:36 have two or three products that qualify
00:08:33 00:08:38 as sponsored and those are people that
00:08:36 00:08:40 are bidding on that keyword for instance
00:08:38 00:08:42 food selector that are then going to get
00:08:40 00:08:44 ranked and come up for that keyword to
00:08:42 00:08:46 potentially convert people searching
00:08:44 00:08:48 food slicer to buy their product
00:08:46 00:08:50 basically it's a really good way to get
00:08:48 00:08:52 some extra sales and make extra money as
00:08:50 00:08:53 well because you
00:08:52 00:08:55 it sails organically that's just people
00:08:53 00:08:56 searching food slashers scrolling
00:08:55 00:08:59 through and finding your product but a
00:08:56 00:09:01 great way to help rank your products and
00:08:59 00:09:03 get extra sales as well is to run PPC
00:09:01 00:09:06 campaigns and obviously people are like
00:09:03 00:09:08 oh I don't want to pay money but you
00:09:06 00:09:10 need to pay money to make money and to
00:09:08 00:09:11 do paid advertisements it's only going
00:09:10 00:09:13 to be for the people that know how to do
00:09:11 00:09:15 it the sophistikated people and so it's
00:09:13 00:09:17 actually a big it's a really good way
00:09:15 00:09:20 for you to help rank because not only
00:09:17 00:09:22 are you making organic sales you're
00:09:20 00:09:23 making paid sales and every paid cell a
00:09:22 00:09:25 make through that keyword for instance
00:09:23 00:09:28 if you were bidding on the keyword
00:09:25 00:09:30 through slicer and you made a sale well
00:09:28 00:09:32 slowly your listing is going to rank
00:09:30 00:09:34 under that keyword food slicer and then
00:09:32 00:09:35 soon what you want to do is you want to
00:09:34 00:09:37 get on that first page so that you have
00:09:35 00:09:38 your sponsored campaign on there as well
00:09:37 00:09:41 and then you're getting organic
00:09:38 00:09:42 purchases so those are just two
00:09:41 00:09:44 different ways that you can get
00:09:42 00:09:47 purchases and that's the fifth mistake
00:09:44 00:09:48 that I have made because if I didn't
00:09:47 00:09:49 start it earlier my crew I just start in
00:09:48 00:09:51 the middle
00:09:49 00:09:53 um it was just later on when I first
00:09:51 00:09:54 figured out about I was like you know
00:09:53 00:09:55 what I need to spend some money I need
00:09:54 00:09:57 them really spend some time because
00:09:55 00:09:59 people are having success with this and
00:09:57 00:10:00 by off the bat I was starting to lose
00:09:59 00:10:02 some money I was getting a little bit
00:10:00 00:10:03 frustrated then I started to get the
00:10:02 00:10:05 hang of it and now every one of my
00:10:03 00:10:07 products I really go into the PPC
00:10:05 00:10:09 campaigns and it's just extra sales
00:10:07 00:10:10 extra money in my pocket every single
00:10:09 00:10:13 time so that would be fifth mistakes
00:10:10 00:10:15 I've made but hopefully you as an Amazon
00:10:13 00:10:17 seller or someone who is looking into
00:10:15 00:10:19 selling Amazon you can take something
00:10:17 00:10:20 from this video and hopefully not make
00:10:19 00:10:22 the same mistakes I did
00:10:20 00:10:24 hopefully not miss out on potential
00:10:22 00:10:26 sales like I did and just learn from
00:10:24 00:10:28 your mistakes as well because no one's
00:10:26 00:10:31 perfect everyone makes mistakes just try
00:10:28 00:10:33 to minimize them if they are learn from
00:10:31 00:10:35 them and obviously don't make them again
00:10:33 00:10:36 so if you guys enjoyed this video please
00:10:35 00:10:39 feel free to comment below with any
00:10:36 00:10:41 questions and/or video ideas you like to
00:10:39 00:10:43 see in the future also don't forget to
00:10:41 00:10:45 Like and subscribe as I'm always giving
00:10:43 00:10:47 away different tips and tricks on how to
00:10:45 00:10:50 make money online now not note I'll see
00:10:47 00:10:50 you guys next video

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