How to Create Amazon FBA Products from Scratch

Creating your own Amazon FBA products from scratch is an advanced strategy for those with experiences and serious dollars to invest.

This is more complex than common approach towards private label selling on Amazon. The one where you take an existing product off the shelf and make slight modifications, in the hope that the market chooses yours over a competitor.

In this guide, I’ll be covering how existing Amazon sellers can start to separate themselves from almost-identical competitors, through product innovation.

Creating unique products in an already established marketplace is an excellent way to stand out and acquire new customers, but there are some hoops to jump through.

Pros and Cons of Amazon product innovation

Before we get into the meat and potatoes, let’s establish exactly why I like the strategy of innovation for existing Amazon and eCommerce sellers. At the same time, I’ll highlight some of the downsides too.

This is an approach that can:

1. Create significantly better product than your copy-cat competitors
2. Allow you to more easily apply and be successful with patent applications
3. Potentially garner a significant piece of the sales volume in a particular niche
4. Lead to potential ‘product fame’ if your product is featured in mass media publications

Whilst at the same time, there is a higher cost to start an Amazon product from scratch. This deters a significant amount of competitors. New product moulds, for example, generally start from $3,000 and can go into the 5 figure range.

Quite clearly, this isn’t beginner-friendly

There is also the fear of a factory taking your new design and brushing it off as theirs. This risk can be reduced through having both parties sign non-disclosure agreements, and choosing vetted suppliers that have been audited through services such as V-Trust.

Lastly, there is simply more work involved than just the typical ‘product off the shelf’ approach. I’m talking about talking large modifications here that require frequent discussions with your supplier until the final sample is ready, including new packaging.

I’ve typically seen that the expense and work involved is worth it in the long run. After all, I’m an advocate of playing the long game, whilst also protecting your Amazon account from hijackers.

Making a start

Starting with creating unique products to sell on Amazon can be complex. After all, you’re creating something in which the world has never seen. The Chinese certainly aren’t known for their innovation, so the responsibility really rests on you.

But you’ve got this! After all, you’ve probably been selling on Amazon for a while now. It’s time for a new challenge.

This series of steps gives a good outline of the process to follow.

Scope your product

After validating your product will have sales velocity, scope your exact product that you wish to have created, including measurements and materials.

Here you should detail as much as you possibly can, to avoid making changes later on, which can cost both time and money.

It’s design time

Send your product specifications to Upwork or any other freelancing website. I wouldn’t recommend Fiverr for this approach.

Be as detailed as possible, as this can reduce constant back and forth communication with your freelancer.

Ensure you can’t be copied

Whilst your product is being sketched and brought to life, it’s a good time to organize legal paperwork for your product factory.

Remember: you don’t want your Chinese factory brushing it off as their design. You can protect your product with a professional non-disclosure agreement.

Find a factory

Upon completion of your sketch designs, it’s time to find a suitable factory. This, in itself, can be a challenge. Whilst most will agree to opening a new mold, a smaller percentage can actually follow through to completion.

As I’ve mentioned previously, Chinese suppliers will almost always say yes to Amazon sellers initially, to avoid losing relationships.

Move on to samples

Pay for a new mold and get a sample. A key reason why people don’t create unique Amazon products from scratch is the mold cost.

It can be in the thousands, or in the tens of thousands, depending on the product type. After paying and manufacturing, you’ll naturally get a sample for evaluation.

From here, the normal flow of sourcing a product continues. From sample to initial batch production, listing, shipping, PPC and optimization.

Protecting your product

Now, we’ve got our own unique product on Amazon. We’ve built it from scratch, and it’s live and selling. Chances are – customers love it!

It’s a bit more of a thrill. You’re the only seller with that unique product on Amazon. This is both an adventure and feeling that those copy-cats will never experience.

But there’s a danger. In fact, several dangers that people new to Amazon product innovation aren’t aware of.

These include:

• Hi-jackers jumping on to your listing (Bindwise can alert you immediately)
• Negative reviews by competitors who don’t like that you’re now 2 steps ahead
• Your Chinese supplier thinking that it’s OK to show your product at trade fairs
• Someone rushing in with the naming rights of your product moments before you

You can prevent some of these issues quite easily. Lodging a trademark and design patent is one that many existing Amazon sellers like to start with.

It’s also wise to have a non-display agreement signed with your supplier to prevent them showcasing your product at the Canton Fair, among other fairs.

Accelerating product growth

So now we have our unique product on Amazon, it’s time to accelerate our growth prospects. Whilst I love selling on Amazon, it’s not the only option.

Let’s look at where else we might consider:

1. Go live on other marketplaces such as eBay, Wish, Jet, Etsy and Shopify. Amazon does account for a lot of sales, but as any successful Amazon seller will atest to, it shouldn’t be totally relied upon for the experienced seller.
2. Look at retail distribution channels. That is, brick and mortar stores. There are wholesalers and distributors constantly on the lookout for new and innovative products that they can purchase in bulk.
3. Lastly, your factory could innovate further. If you’ve been successful at this new and innovative Amazon product launch, then consider working with them to build complimentary products.

It’s good to set a 5 or 10 year plan in place.

Trademarks are essential

With a trademark and patent in place, it also creates a safety-net for a prospective buyer. When you successfully launch an innovative product on Amazon FBA, it might bring forward a 6 figure exit when you capture the attention of the big sellers.

Exiting early may accelerate your business growth, especially if you have another Amazon business that requires capital for inventory. So it’s quite clear that there are more advantages than just increased sales velocity when compared to ordinary products.

In closing

Innovating unique Amazon products from scratch isn’t a game for beginners. It takes a lot of investment, both time and money.

But in doing so, gets you away from the many copy-cat Amazon sellers. You’ll really find yourself in new territory, at least until the competition catches up.

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