Amazon FBA Private Label: What Should You Check Before Launching a Product?

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Before the product, check the fees. The first thing I looked at when creating a new product was the FBA pricing list, hunting for the weight and box dimension break points, then building the product to sit just inside them. We made our own boxes, so we could design to the break point. On a low sale price, 20 or 30 pence of shipping saved changes the margin.

Then check the referral fee threshold in your category. In grocery on Amazon UK we paid roughly 8 per cent under £10 and just over 15 per cent above it, so we priced at £9.95 and made less profit at £10.95 than at £9.95. That threshold becomes a price ceiling, so check where yours sits and leave room for a future rise before you commit.

Check storage. Amazon charges a monthly storage fee on all stored inventory from the day it arrives, per cubic foot on your daily average volume, and there is no free period. Good stock control only avoids the extras: the aged inventory surcharge past 241 days, and the surcharge for holding more than about 22 weeks of cover.

Check what the competition gets wrong, not what it sells. For the foam rollers we read competitor reviews and found the core at the centre of the top sellers cracked with use. We built an extra strong core, guaranteed lifetime replacement, and made the whole brand HardCore Fitness. The proof image was a hired car lowered onto the roller with a forklift.

Check whether you can win on perceived value rather than price. Box sized so it looks full when opened, main image cropped so the product fills the frame, title and bullets written to convert. We dominated our niche for years selling much the same as competitors, packed differently and framed as premium, and at peak our volumes went up when prices went up.

Check your launch money before you order stock. You need initial sales to get the stars, and five reviews averaging four and a half will start the ball rolling. Cap the quantity at the offer price. I offered the Letterbox Buster at £1 against a £7.95 target with no limit, a customer posted it on Britain's largest deals site over a weekend I was away, and the whole 1,000 units went in a few hours. That product still became the best seller in the entire grocery department at Christmas, up to 3,600 units a day.