FBA vs. Create Your Own Product

1st Year Selling on Amazon:

In this video, I will explain why the old way of making money off Amazon is dead. The old school Private Labeling does not work anymore because of three things: China, Over saturation, and Amazon Basics. Fortunately, with the death of this old way comes a better opportunity to make money off Amazon that defeats those three things mentioned above.

Why Private Labeling is dead?
1. China
Most people that private label buy their products from China. However, China is getting smarter. They find profitable products, copy them, and sell them at a better margin, cheaper than you possibly could. Some people are avoiding this by properly branding their private label product.
It used to be that you just find a product on Amazon that has good sales but a bad product listing. You make your own brand in that product and make a better listing of it on Amazon. This does not work anymore because there is so much competition.

2. Oversaturation
Because there is so much competition, it is more difficult to find products now than it used to be. Even when you do find a good product, you’ll have dozens of competitors by the time you launch the product.

3. Amazon Basics
When you have a really good private label product and start making money out of it, Amazon will find out about it and eventually create their own Amazon Basics version of it. This version will always rank higher than your private label product and will most likely steal your customers.

New Opportunity
Amazon FBA is not dead, but only Private Labeling. Most people who are making real money out of Amazon is creating their own product. One of the good things about this is that there is no startup capital required if you do it right. Below are also some other benefits of creating your own product:
• No Competition
• You Can Sell on Shopify
• You can use Instagram and Facebook Ads to sell your product
• You can use Kickstarter to raise money for your first round of production

Here is how you can create your own product:
1. Idea
Create a product that does not exist that you wish existed in the world. Find something that you believe in and are passionate about.
2. Product Launch Group
Use social media platforms like Instagram and Facebook to get fans. You get their emails and get them into a Facebook Launch Group. Have them help you develop the product.
3. Crowdfund
Launch on Kickstarter to raise money for production. Your Kickstarter group will be your initial supporters.
4. Production
5. Sell on Amazon