What Should My Cost Per Unit Be To Have a Successful Private Label Product? – AM/PM FAQ – EP96
When looking for a product to sell on Amazon it is very important to consider how profitable the product could be. Making the wrong decision here could mean the difference between having a successful private label brand and a catastrophic failure. In this episode we share what we look for in the products we consider to private label.
- After all Amazon costs, product costs and shipping costs, what is the average dollar amount to aim for when launching new products? (before advertising cost)
- What is the average percentage ratio of profit and cost that I need to aim for on my product?
- Should I set my profit goals as dollar amounts or percentages?
- What factors or scenarios should I consider in setting a realistic target profit for my product?
- Can I aim for a higher profit percentage?
- How do I compute my profit after factoring all my cost?
- When do I need to adjust my price point?
- Do I need to adjust my price point to be competitive despite having a more potent product?
- How does it help building a brand if I set a lower price point?