Hi everyone,
Looking for some mentorship from the seasoned members of this coomunity regarding private labelling.
I have a general concept in mind of a product. I have looked it up on jungle scout. It comes up as high demand with low competition.
Average monthly sales 1500
Average revenue 50k
Average price 26.75
Average reviews 2100
Average BSR 36,100
The top six have between 100-500k monthly revenue and may thousand reviews.
However after the top 6, the number of reviews drops down a lot.
There are ones with between 10-300 reviews that have 40k-80k monthly revenue and 1-2k monthly units sold.
What questions do I need to ask to analyze this further? I am sort of stuck with these numbers and don’t know what to do next. Thank you!
Do not obsessed too much about metrics or you will end up with analysis paralysis.
If you are doing private label, it’s actually very simple. Go after products with high AOV (with the potential of charging high retail price). By that I mean that there’s something about that product that has a high perceived value as opposed to what it costs to manufacture.
Then make sure that the market is not dominated by big fish (well known brands). You want to enter a market with regular sellers, specially if you are just starting out. If the demand is fair enough and the product is not seasonal, that’s all you need to move forward.
Then comes the really important part, you need to make sure that there are enough suppliers making this product. The more suppliers make it, the easier it will be to get a decent unit price.
AND LAST BUT NOT LEAST!
You want to make sure that you are working with a factory, not a middleman. This will make your life easier to customize your product. You do not want to just put your logo on the box. You need differentiation!
Feel free to reach me, I’d be glad to help you out!
Good luck!
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Your numbers look good, especially because low-review sellers are still getting strong sales. Now check profit after PPC and fees, demand stability, IP risk, competitor quality, organic vs ad sales, differentiation potential, and sourcing costs because the real decision depends on these factors, not only Jungle Scout data.
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Check profit margins, PPC costs, supplier quality, review trends, and if low-review sellers get sales consistently. That shows real opportunity.
Good numbers on the surface but a few things to dig into before you move forward.
That review gap is the real story. Top 6 with thousands of reviews means PPC costs will be high competing for the same keywords. The ones with 10-300 reviews doing 40-80k is actually the more interesting signal, worth understanding why they are converting without the social proof.
Questions I would ask next: What does the listing quality look like for those low review sellers?
Are they ranking organically or running heavy ads? What is the seasonality on BSR over 12 months, not just now?
Can you land at 25-30% net margin after FBA fees, COGS and ad spend at that price point?
Average reviews at 2100 is also a long runway to build credibility if you are starting from zero.
Sorry for stupid question but when you look at a list then how can you tell how much comes from organic versus ads?
The short answer: you can’t tell just by looking at a listing.
From the front end (as a shopper or competitor), there’s no label that says this sale came from PPC" vs this was organic.But as a seller or analyst, you figure it out through data inside Seller Central and your ad reports.
Is that for every listing that you sell on or just the ones that you make?
Analyze product viability (seasonal, regulatory issues?) and competition (gaps in top listings?) validate demand with ads or surveys, and assess profitability considering costs and amazon fees.
Those numbers are a good starting point, but now the real analysis begins. The biggest questions are: why are the lower-review listings still getting strong sales, what differentiates the top sellers, and where is the gap you can realistically compete in? I’d look deeper into review velocity, PPC intensity, profit margins after ads/shipping, seasonality, brand dominance, and whether demand is stable or trend-driven. Also check if the low-review sellers are newer listings ranking through aggressive PPC or if they genuinely have weak competition. Another key question is whether you can improve the product enough to justify entering the market instead of becoming another copy listing. In private label, high demand + low competition on Jungle Scout is only the first filter — the real opportunity is usually hidden in customer complaints, poor branding, weak images, or product gaps competitors are ignoring.
How can you tell the ppc intensity? The reviews are actually all relatively strong.