Let’s say a product launch would cost £5000, and splitting the cost would bring it down to £500 per person. It’s a risk some can afford. If the product is successful or fails, the group can move on to the next product launch, maybe.
To be honest, I don’t have all the knowledge or answers about private labels or how the partnership would work. However, I don’t feel comfortable sourcing products and then suddenly being restricted from selling them. Amazon is so unpredictable nowadays, it feels like gambling to me.
Sharing a buy box won’t help in sales increment. It’s like 1 person getting 10 unit per day sales or 1 unit per day for 10 person. Your overall listing sales will remain the same. However, it will add additional cost of setting up Amazon seller central accounts for all 10 sellers.
Solution is write an agreement, pool in the funds and let one seller launch the product. Your purpose of reducing the risk per person will be achieved.
It will also require 5-10 times the effort, as it involves 10 separate shipments to Amazon, ad campaigns, etc. You’d be better off pooling the money and using a single account, but you’d need a very clear outline of how decisions will be made.
Splitting the cost of a product launch among a group can certainly reduce individual financial risk, but it’s essential to approach private label ventures with clear agreements and well-researched strategies. While Amazon’s unpredictability can feel daunting, proper due diligence, such as researching product demand, competition, compliance requirements, and ensuring supplier authenticity can mitigate risks. Partnerships should include clear roles, profit-sharing agreements, and contingency plans for unexpected issues like account restrictions. While success isn’t guaranteed, thorough preparation and collaboration can increase the likelihood of positive outcomes in such ventures.
What is the point of selling a product, if there will be 10 of you on the listing and no one will be making solid sales? You will be all paying excessive storage fees.
If you only mean it to try if it will initially sell and then remaining on the listing as the only seller once everyone else sold their stock, then ok. But what motivation would the other people have?
I completely understand your concerns. Launching a private label product can feel like a gamble, especially with Amazon’s ever-changing policies and marketplace challenges. However, spreading the cost and risk, as you mentioned, is a smart way to test the waters without overcommitting.
Here’s how I can help:
With over 7 years of experience launching private label brands, I can guide your group through the process to minimize risks and set you up for success. From product research and sourcing to compliance checks and listing optimization, I’ll help ensure your launch is as seamless as possible.
What I can offer:
Risk Mitigation Strategies: Navigate Amazon’s policies to avoid restrictions.
Product Validation: Find products with high demand and low competition.
Step-by-Step Launch Plan: From sourcing to PPC campaigns, I’ll provide a clear roadmap.
Post-Launch Guidance: Learn how to scale or pivot based on results.
Amazon is unpredictable, but with the right approach and expertise, you can significantly increase your chances of success. Let’s chat! I’d be happy to discuss how I can help your group with the product launch journey. Feel free to DM me or reply here.
Here’s how I can help:
What I can offer: