How to choose a Private Label Product–Q&A - a podcast by Michael Veazey

What matters?

Budget required. My rule of thumb: The monthly revenue at around position 6 ranking for a keyword should not exceed your initial budget for your first order (not including marketing costs or reorder)Eg $10K in bank, don’t go for markets where product in pos 6 much over $10K/mo

Market share of competition If your top competitor has over 30-40% of market share, walk away 

PriceIs there an obvious gap in the market? 

No space here for more detail but leave it with me and I’ll redo some of the videos by end oct. 
DetailsSo, we've got our list of keywords (around 130 of them)

Well done!and we're now using jungle scout to analyze each keyword, but what we're struggling with, namely me (Jamie), is what to look for in the results, and what numbers - reviews, price per review - we should look for and whether this tells us it's a market we could enter.

Okay I’ll try to clarify 

We're not so clear on what we're actually looking for in these numbers, ie, if we get a price per review of $18, is this a good number, or not? 

Revenue per review is what we’re looking for, not price just to be clear. As to whether it’s good or not - it’s all RELATIVE. Compare different keyword markets. In this case, the higher the better. 

 And should we be taking the opportunity score on JS into serious consideration, for example... one keyword we have is"Clear Polycarbonate Scoop", the Score is 7, but we can see it's being dominated by one products which has 47% of the market, and revenue per review is $11, so I would see this is a bad market to enter (dominated by one products, low revenue per review), but JS says otherwise.

 Short answer - not really. If you’re really…shall we say pushed for time (I didn’t say “Lazy!” But) or if you want to outsource the work of raw data crunching to a VA, you could use the JS score as a crude metric. But really I’ve not found it highly useful. 

 Another example is the keyword"asian bamboo steamer"which has an opportunity score of 4, but looking into the numbers the revenue is spread out between the different sellers, and the revenue per view is $31. 

 So there are 3 elements here, let’s separate: 

opportunity score of 4, Ignore this

but looking into the numbers the revenue is spread out between the different sellers, That’s a GOOD thing - you DON’T want a market dominated by one seller

and the revenue per view is $31.  

This is all relative - see above - but it’s better than for example $18 as above.  

One seller takes up only 13% of the total reviews,This is not a metric I’ve ever taught or been interested in. Whatever works for you is good, of course, but what does it tell you?

  so because it's not dominated by a few sellers, the revenue is spread out evenly, and there isn't a crazy amount of reviews to compete with, we would assume this is a pretty good market to enter.

correct 

We're just after more explanation on what numbers, or pattern of numbers should we look out for. We really don't understand what the revenue per review is... well we can get a number but we don't know whether it is good or not.

 Revenue per review is JUST a way of comparing markets. You seem hung up on it. It’s not actually that critical. It just gives another metric for competition level in a niche. 

Market share (% of revenue) is more important.Price is more important.

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