There’s not really any one part of running a business that’s easy, but consistently stocking the right inventory can be a particularly tricky one. Add in trying to find the most profitable items you can sell under a private label, and RepricerExpress definitely feels your pain. Luckily, we believe in getting the hardest stuff out of the way first and are passing on our best tips to you.
Use the Right Formula Every Time to Find Profitable Products
Too often, too many sellers try and be too abstract about the whole process of finding items for private label. But when you break it down into a simple formula, life suddenly becomes a whole lot easier. And in the name of simplicity, we’re keeping things down to just three factors.
1. Find Items with the Highest Demand Before you start digging around for that needle in a haystack, remember that pretty much the only two things you need to think of are low sales rank and highly-ranked keywords.
2. Narrow Down to Items that Don’t Have a Lot of Competition Why go up against more sellers than necessary? No no, narrow your focus down to the items that either contain few reviews (not many people have bought them) and/or have a low listing quality.
3. Finish Off with This Last Check-list: Once you’ve arrived at this step, there’s just a final small check-list to go through. Look for items that are fairly light and durable (i.e. won’t break when shipped), can be used across the seasons, aren’t strongly identified with any one or two brands, and have a price that runs between a movie ticket and pair of shoes.
Use the Right Formula to Find Private Label Items
Find the items that’ll net you the most profit under a private label is a two-step process, with the first you’ve just completed (finding profitable items) and the second finding which of those will be appropriate for private labels. Again, for simplicity’s sake, we’ve broken things down into just three steps so you can attack it as fast and efficiently as possible.
1. Research the Right Product Ideas: We recommend using two methods of research to settle on product ideas. The first is to use the data that’s already out there, because why wouldn’t you want to capitalise on the work that others have already done? But you’ll also want to balance that out with your own subjective knowledge (aka your gut feeling) and business acumen.
2. Figure out if it Has a Ready Home: We’re going to borrow on some of the concepts in the first step here by telling you to look at how much competition that item has, how in-demand it is, how much profit it’ll bring in (revenue vs. cost), and if it’s affordable/light/durable/non-seasonal.
3. Confirm Your Earlier Work: If you approach this part like a science experiment in that the first two steps were your hypothesis and this part is where you set out to prove it (or prove another theory by incidentally finding new products for private label), then you’ll do alright. This is also the time where you’ll be crunching serious numbers, so don’t skimp on any work. If you’re not the numbers-and-figures type of person, find someone who is — the end goal should be to come up with detailed sales estimates that are as accurate as possible, but ones that also identify in advance what the potential improvements can/could/should be (before they happen or before someone else, like a buyer with a negative review, points them out for you).
Wowza, this was a lot to take in, no? It can feel a little overwhelming, especially if it’s your first time selecting products for private label. But once you’ve completed the process, you’ll need RepricerExpress to take you the rest of the way, filling in all the little gaps you might have forgotten about or don’t want to worry about. And with a 15-day free trial waiting for you, there’s no reason to say no.
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