amazon private label business plan

2024 Guide to Amazon FBA Private Label

Brian Connolly

January 2, 2024

Email Marketing , Private Label , Private Label Product Launch , Seller Resources , Uncategorized

Launching your very own branded product on Amazon is one of the most lucrative ways to sell products online — this is why the private label business model is so heavily favored amongst Amazon sellers. 

According to Jungle Scout’s 2023 State of the Amazon Seller report , 54% of Amazon sellers use the private label business model for their own brand and product line. The following sales methods trail behind: wholesale (26%), retail arbitrage (25%), online arbitrage (24%), dropshipping (17%), and handmade (8%).

In this article, we will go over the following: 

• What Amazon private label products are
• Why you should sell private label products on Amazon
• How to sell private label products  
• Examples of products that work well for private label

What are Amazon private label products?

Private label products are goods manufactured by one company, to be branded and sold by another. These products typically already exist in the market; as a private label retailer, you are simply putting your own branding twist on a product. And chances are, your manufacturer is producing the same product for another brand.  

This means that you don’t have to reinvent the wheel or develop a brand new concept to sell products under your own unique brand. 

Private labeling is a common practice amongst the biggest retailers in the world — not just Amazon sellers. Think of any grocery store you frequent; most have their own private label products, such as Costco’s Kirkland Signature brand. Kirkland Signature offers products similar to those by more prominent brands — but at a much lower price.

Why sell private label products on Amazon?

With all the other ways to sell products on Amazon , there are many reasons why selling private label products is the most common sales model. Here are five benefits of selling private label products on Amazon.

1. You own the brand

Private labeling means the brand belongs to your company; unlike in arbitrage or wholesale, where you would resell products from other brands. The private label model allows you to market, grow, and price your products how you see fit. 

You don’t need to seek brand approval or jump through hoops to find discounted products to resell at a higher price. 

2. Higher profit margins

Since you’re sourcing your products directly from a manufacturer or supplier, your costs are much lower than if you were reselling products by other brands. If you’re selling wholesale products, you’re buying from the brand owner or a distributor who has marked up the product’s price, leaving you with a smaller profit margin. 

With private label products, there is no middle person. You’re purchasing inventory at the lowest possible cost. 

3. Customize your product

Completely customize the product however you want. You can look at customer reviews on competing products and pay attention to what issues people have with their purchases — these are fantastic cues. You can then assess how to make your product even better than the top-selling brands. With this sales method, you can be strategic, figure out ways to improve the product and beat what already exists in the marketplace. Simply placing a logo on a product isn’t enough — here’s where you can work with your supplier and graphic designer to make your product stand out. If you sell something that looks the same as every other product on Amazon, it will be hard to compete. 

4. Creative control over the Amazon listing

When you launch a private label product, you create a brand new listing in the Amazon marketplace. This means you’re able to easily edit images , pricing, listing copy, and keywords to your advantage, whenever you want.

If you’re reselling on an existing Amazon product detail page, it’s not easy to edit the images or copy if needed since you were not the seller who listed the product. 

5. No competing for the Buy Box

If you’re reselling other brands’ products on Amazon, you are likely competing for the Buy Box with other marketplace sellers. If your offer is not in the Buy Box when a customer makes a purchase, that sale will not go to you. 

With private label, you will be the only seller on the listing, and you will own 100% of the Buy Box.  

How to sell private label products on Amazon

So, you want to sell your private label product on Amazon? Awesome! Let’s go over what you need to do before launching. 

Product research

Researching the right product to sell is one of the most critical steps in this process. If you rush through it or don’t analyze the data, you could pick a product no one wants. 

That may sound harsh, but I want you to understand how vital product research is! Don’t worry, though. Jungle Scout has you covered when it comes to finding high-demand, low-competition products that are profitable for your Amazon brand. 

When choosing a product to sell, make a decision based on data. Don’t choose a product because you like it or are passionate about it. You can start gathering ideas based on your hobbies but make sure you validate those ideas based on how similar products are selling on Amazon. 

Here are our criteria when conducting product research:

Price: $20-$70

Sales: At least 300 sales per month

Number of reviews: The top 10 products have an average of 500 reviews or less

Rating: Try to find products with a lower rating and a maximum of 4 stars. This tells you there is room for improvement in product development.

Listing Quality Score: 5 to 7 LQS; this tells you the competitor’s listings need improvement.

Following these criteria, give or take, will help you find high-demand products with lower competition. 

Find a supplier

After you find the perfect product to sell on Amazon, you need to find a supplier to manufacture the product. The best way to do this is to search on Alibaba or use Jungle Scout’s Supplier Database . 

Contact a few different suppliers to see who can offer you the best quality product at a reasonable price. Once you agree on the terms, you can place your order and arrange to ship it to an Amazon FBA fulfillment center. 

Create your Amazon listing

Now that you have found a product and a supplier, your next step is to create and optimize your Amazon listing . This includes arranging for professional product photography, creating a pricing strategy, purchasing a UPC , and writing compelling copy. 

Take this step seriously. You’ve gone through all the trouble of researching products and suppliers — don’t let your investment go to waste. Creating a compelling and optimized listing will make a big difference in whether or not a customer purchases your product. 

If the listing does not contain relevant keywords, how will a customer find it? If your listing does not have high-quality images and infographics, they won’t feel confident enough to make a purchase. 

If you are not sure about how to best create your listing, you can hire an Amazon professional to do it for you. 

Choose your fulfillment method

When selling on Amazon, you have two options for fulfillment. You can fulfill your orders with Fulfillment by Merchant (FBM) or have Amazon fulfill the orders for you using Fulfillment by Amazon (FBA.)

If you’re looking for a hands-off fulfillment process, FBA is the best way to do so. Amazon handles storage, packaging, fulfillment, and customer service for you. 

Launch your product

Now it’s time to sell your product! To help get a new listing off the ground, you must create a proper advertising strategy to ensure your target audience sees your products. 

Advertising includes creating a Sponsored Products  campaign and if you’re enrolled in Brand Registry, Sponsored Brands , and Sponsored Display ads. 

Learn more about private label Amazon FBA

This was a basic breakdown of the steps needed to launch a private label product on Amazon. If you need a more in-depth guide, check out our guide, How to Sell on Amazon FBA for Beginners . It’s worth a read. 

This is also gold: our complete, step-by-step How to Sell on Amazon in 2024 video! 

In each, our experts go over everything you need to know, from finding the perfect product to sell to launching your product on the Amazon marketplace.

Examples of private label products

Let’s go over a few examples of private label products that perform well on Amazon. 

Amazon Basics Batteries

Here is one of the most successful private label brands on the platform. Amazon Basics offers in-demand products at a fraction of the cost of some of the more prominent brands. For example, this 20-pack of Amazon Basics Batteries is around $15, compared to the 24-pack of Duracell batteries for $22. 

Tip: Try to stay away from products that Amazon Basics is selling, as they’ll likely be able to beat you on price and search result positioning. 

Jungle Creations Washable Pee Pads

This private label product was featured in our recent Million Dollar Case Study and is a stellar example of how you should be launching private label products. Compared to similar pee pads, this product listing features professional quality images and infographics that give customers all the information they need without reading the description. 

Anker products

Anker is one of the biggest private label brands on Amazon and exclusively launched its brand on the platform. They offer quality electronic accessories such as charger ports for phones and computers but at a much lower price than Apple or Samsung.

Are you ready to launch a private label FBA product on Amazon?

We hope this guide gives you a better understanding of what a private label product is and how anyone can sell private label products on Amazon.

What are you waiting for? Start researching products you can launch on Amazon!

Do you have more questions about private label products? Let us know down in the comments. 

Make sure to check out our 2024 edition of How to Sell on Amazon FBA for Beginners to walk you through each step of the selling process. Also, check out our new Youtube video on launching a private label product in five simple steps!

Want to learn more about how you can use Jungle Scout to launch, grow, and run your Amazon business? Click the “Learn More” button below!

Learn more about Jungle Scout

Brian is a writer and entrepreneur with over 6 years of experience in e-commerce and selling on Amazon.

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Amazon Private Label: The Ultimate Guide [2024 Updated]

• 2024 Aug 01
• Read Time: 40 minutes
• Category: Amazon Private Label

Are you tired of settling for low profit sales on wholesale items that leave you with little control over your business? 

It’s time to break free from the limitations and unlock unlimited success by starting your very own Amazon private label business. 

This game changing model holds the key to skyrocketing your profits and achieving unparalleled growth, but only for those bold entrepreneurs ready to roll up their sleeves and put in the necessary effort.

In this action packed post, we’re about to reveal the secrets of this exhilarating opportunity.

Get ready to understand the Amazon private label business comprehensively, from meeting all the requirements to confidently launching your private label products on Amazon.

Let’s go!

Table of Contents

What Is Amazon Private Label?

Private labeling vs. other business models on amazon, are private label products cheap or expensive, how many private label sellers are on amazon, why should you start a private label business on amazon, is amazon fba private label worth it, benefits & challenges of amazon private label, how to start an amazon private label business (step-by-step), how to brand your own private label products on amazon, how to find profitable products for your private label on amazon, how to find qualified suppliers for your amazon private label brand, how to choose the best fulfillment type, brand registry is a must, step by step : enrolling in amazon brand registry:, best pricing strategy for your amazon private label products, amazon ads for your private label brand, what sets your brand apart from private label competition on amazon, 5 inspiring examples of private label brands on amazon.

Amazon Private Label means selling unique branded products by leveraging manufacturers & suppliers. It is a program that allows sellers to create and sell their own branded products on the Amazon platform, giving them control over the entire production process, from development to branding, while leveraging Amazon’s vast customer base for sales.

Picture this: You can create and sell your own brand of products on Amazon, reaping the rewards of higher profits, and full control over your business. That’s the magic of Amazon Private Label, a game changing opportunity that empowers you to dominate the eCommerce world like never before.

That means instead of competing with countless other sellers for generic wholesale items; you’ll craft a unique brand that stands out from the crowd, capturing the hearts and wallets of customers around the globe.

The benefits? Oh, they’re plentiful. With Amazon Private Label, you’re in control of every aspect, from product development to pricing, branding, to marketing. 

You call the shots and the profits? They’re yours to amplify. No more settling for meager margins. Instead, enjoy the potential for higher profitability and scalability that comes with building a brand of your own.

But it doesn’t stop there. With Amazon Private Label, you unlock the power of differentiation. Gone are the days of generic, unremarkable products. You have the freedom to create unique, high quality offerings that resonate with your target audience, fostering loyalty and repeat business.

The best part? You don’t need to be a seasoned entrepreneur to dive in. Amazon Private Label welcomes both newbies and experienced sellers alike. 

Private label products are usually cheaper than name brand products and can be just as high in quality. As a result, many sellers switch to a private label business because it offers an excellent opportunity to build a strong brand and earn a high profit margin.

Private label products on Amazon also tend to have less competition than their name brand peers, so ranking well in search results can be easier. 

If you’re interested in starting a private label business on Amazon, there are a few things you need to keep in mind:

Amazon is the world’s largest online marketplace, showing no signs of slowing down.

According to studies, there were over 5 million sellers on Amazon in 2022. 

Of those sellers, over 2 million were using the private label business model. This means that over 40% of all Amazon sellers were selling private label products.

The number of private label sellers on Amazon is growing rapidly. In 2016, only about 1 million private label sellers were on Amazon. 

This growth is being driven by a number of factors, including the increasing popularity of Amazon, the low barriers to entry for private label sellers, and the potential for high profits.

Private label businesses on Amazon are on the rise, and there are many reasons why you should start one too. First, private label products often have higher quality than wholesale ones.

This is because they are made by a specific company and are not generic or “one size fits all.” Private label products also tend to be more expensive, so you can make a higher profit margin on them. 

Moreover, starting a private label Amazon business can be a great way to build your own brand. It lets you put your unique logo on a product, creating a strong brand identity.

Although your private label brand on Amazon is unique, it’s not unrivaled, and you’ll have to deal with many other ASINs. It also takes some time and money to get started, and, despite popular belief, private labeling is not a set it and forget it type of business.

Instead, learning, perseverance, and hard work are required when running an Amazon FBA private label business. Is it, however, worth it? That decision is ultimately yours, but we say a loud yes!

Amazon’s private Labeling, in our opinion, has far more pros than cons. Will every Amazon seller who launches a product be successful? Probably not, but if you put in the effort, form effective amazon private label strategies, constantly improve, and learn from your mistakes, you will master it.

For Medium-Sized Businesses

In terms of both time and money, Amazon private labeling has a much lower startup cost than almost all other types of businesses. 

With a budget of around $10,000, you are almost certain to succeed and see a return on investment far exceeding your initial investment. 

However, new products must be launched with an ad budget to get those first few reviews and start ranking organically. You also need to pay the cost of registering a brand trademark, which is necessary for the Amazon Brand Registry and premium features to help your brand stand out.

If you have a $500 or less budget, you’d better start with retail arbitrage or wholesale and focus on flipping your investment as soon as possible.

A budget of $500 will cover the costs of a mid level designer and content writer for creating Amazon A+ content and several product samples. So, the starting cost for a private label Amazon FBA business in 2023 is approximately $3100.

You’ll also need $39.99 to purchase a Professional Amazon Seller account and additional fees for each sold item. You should strive to reduce your manufacturing costs while increasing your selling price. 

You can get better deals by placing large volume orders and locating cost effective 3PL warehouses for delivering manufactured goods to Amazon warehouses.

Moreover, the initial investment depends on your logistic infrastructure if you’re about to use Amazon FBM or SFP programs.

For Small Businesses

For small size items, a landing cost of $4 per unit is low. Amazon Marketplace requires all sellers to use UPCs. Inventory storage, fulfillment, unplanned services, return processing, and other services are all subject to fees. In addition, referral fees are calculated as a percentage of the product’s total sale price.

Amazon Brand Registry (ABR) is one of Amazon’s services created with various benefits, such as high quality content creation and customized advertisements. 

Furthermore, if you have the necessary skills, you can create your own unique logo and storefront design. It’s also worth mentioning that an average professionally shot and edited photo costs about $75. You should consider purchasing a professional camera to expand your sales. 

Benefit 1: Branding Power

In contrast to reselling products from other brands through arbitrage or wholesale, Amazon Private Label allows you to establish and own your brand. This means you have the freedom to market, grow, and price your products as you see fit, maximizing profit and sales.

Example: Let’s say you’re passionate about health and wellness. With Amazon Private Label, you can create your own line of organic supplements, giving you full control over the branding, product quality, and pricing. 

You can build a brand that resonates with health conscious consumers and positions your products as premium choices in the market.

Benefit 2: Boost Your Profit Margins

When you source products directly from manufacturers or suppliers for your private label, your costs are significantly lower than reselling other brands’ products. This translates into higher profit margins for your business.

Example: Suppose you’re selling kitchen utensils as a private label on Amazon. By partnering directly with a manufacturer, you can negotiate better pricing, allowing you to offer competitive prices to customers while still enjoying healthy profit margins. 

That gives you a competitive edge over sellers who rely on wholesale products and have to deal with higher costs.

Benefit 3: Create Uniqueness that Sells

One of the greatest advantages of Amazon Private Label is the ability to differentiate your products and make them stand out in a crowded marketplace. 

You have the flexibility to customize and improve upon existing products based on customer feedback, enhancing their features or addressing pain points.

Example: Let’s say you discover that many customers are dissatisfied with the durability of existing smartphone cases on the market. 

As a private label seller, you can work closely with your manufacturer to develop a more robust and stylish case that offers superior protection. This way, you can attract customers who are seeking an improved product.

Benefit 4: Control Your Product Details Page

With Amazon Private Label, you have complete control over your product details page. This means you can optimize product images, pricing, copy, and keywords to improve visibility and conversion rates.

Example: Suppose your competitors’ product images lack visual appeal and fail to showcase key product features. By investing in high quality product photography and creating engaging lifestyle images, you can capture the attention of potential customers and increase the likelihood of conversion. 

Additionally, you can refine your product description and bullet points to highlight the unique benefits and value your private label product offers.

Benefit 5: Win the Buy Box Battle

As a private label seller on Amazon, you don’t have to compete with other sellers for the Buy Box. You automatically own the Buy Box for your private label listings, ensuring that you capture most sales.

Example: Consider a scenario where a customer searches for a specific product on Amazon. If you’re the sole private label seller offering that product, you will consistently secure the Buy Box, making it more likely for customers to choose your listing over others. 

This exclusivity strengthens your brand visibility and increases the chances of driving sales.

Benefit 6: Freedom from Brand Restrictions

Unlike selling products from established brands, Amazon Private Label allows you to create and develop your own brand without limitations. You can establish a unique brand identity, design captivating packaging, and build brand recognition among customers.

Example: Let’s say you’re passionate about eco friendly products. With Amazon Private Label, you can create a line of sustainable household cleaning products. 

By using environmentally friendly ingredients and packaging, you can attract environmentally conscious consumers actively seeking such products. This level of freedom allows you to align your brand with your values and attract a loyal customer base.

Benefit 7: The Power of A+ Content

As an Amazon-registered brand, you gain access to A+ Content (Enhanced Brand Content), which enables you to enhance your product listings with multimedia content. 

By utilizing images, videos, infographics, and comparison charts, you can provide a richer and more engaging shopping experience for customers.

Example: Imagine you’re selling fitness equipment as a private label brand on Amazon. By utilizing Amazon A+ Content , you can showcase workout videos demonstrating the correct usage of your products, display high resolution images highlighting their quality and features, and provide detailed infographics illustrating the benefits of your equipment. 

This immersive content not only informs potential customers but also builds trust, increasing the likelihood of purchase.

While Amazon Private Label offers numerous benefits, it’s important to be aware of potential challenges to make informed business decisions. Let’s explore a few:

Challenge 1: High Initial Investment

Launching a private label brand requires a significant upfront investment. Manufacturers often require bulk orders, and cost management is crucial. 

However, by conducting thorough market research, selecting the right product niches, and carefully planning your inventory, you can optimize your initial investment and maximize long-term profitability.

Challenge 2: Branding

Creating a unique brand identity can be a complex process that demands budget, time, effort, and creativity. 

However, by defining your target audience, conducting competitor analysis, and developing a compelling brand story, you can differentiate your private label brand and create a strong emotional connection with customers.

Challenge 3: Mitigating Risks

As with any business venture, there are risks associated with private label selling. However, by conducting thorough market research, validating product ideas through testing and sampling, and implementing effective inventory management strategies, you can minimize risks and increase your chances of success.

Challenge 4: Building Customer Trust

Establishing trust with customers accustomed to established brands can be challenging. To overcome this, focus on providing exceptional customer service, soliciting and showcasing positive reviews, and leveraging social proof to build credibility. 

Offering guarantees, warranties, and responsive customer support can also help establish trust in your private label brand.

Challenge 5: Managing Minimum Order Quantities

Manufacturers often have minimum order requirements, which may be higher than what you typically order. By leveraging third-party logistics (3PL) warehouses, you can store excess inventory and ship it to Amazon’s fulfillment centers as needed. This helps manage your inventory costs and ensures efficient order fulfillment.

Challenge 6: Avoiding Unsold Inventory

Predicting demand for new products can be challenging, and ordering excessive inventory can lead to unsold items. 

To mitigate this risk, conduct thorough market research, test the market with smaller initial orders, and use data driven insights to make informed inventory replenishment decisions.

Amazon Private Label empowers entrepreneurs to build their own brands and sell unique products on the world’s largest online marketplace. Here’s a comprehensive breakdown of how this lucrative business model works, along with actionable tips to help you succeed:

Step 1: Identify Aa Profitable Product Niche

To start your Amazon Private Label journey, thorough market research is crucial. Look for product niches that demonstrate high demand and relatively low competition.

Analyze customer preferences, trends, and pain points to identify opportunities where you can provide a unique solution or improved product.

Example: Let’s say your research reveals growing demand for natural skincare products. By identifying specific gaps in the market, such as the need for organic facial serums, you can target a niche audience seeking clean beauty alternatives.

Step 2: Source Quality Manufacturers Oror Suppliers

Once you’ve identified your product niche, the next step is to find reliable manufacturers or suppliers who can bring your vision to life. Seek out partners with a track record of producing high-quality products and adhering to industry standards.

Example: In the case of organic facial serums, search for manufacturers experienced in formulating natural skincare products. Request product samples, and certifications, and conduct thorough due diligence to ensure the supplier aligns with your brand values.

Step 3: Customize & Brand Your Products

Differentiation is key in private label selling. Collaborate with your chosen manufacturer to customize your products and infuse them with your brand’s unique identity. 

That includes designing attractive packaging, incorporating your logo, and adding branding elements that resonate with your target audience.

Example: Work closely with designers to create visually appealing packaging that reflects the natural and organic qualities of your facial serums. Use eco friendly materials and highlight key selling points, such as cruelty free formulations or sustainable sourcing.

Step 4: Create Compelling Product Listings

Once your products are ready, it’s time to create persuasive and informative product listings on Amazon. Craft attention grabbing product titles, concise bullet points, and compelling descriptions that highlight the unique features and benefits of your private label products.

Example : For your organic facial serums, emphasize their potent botanical extracts, advanced anti-aging properties, and gentle formulation suitable for sensitive skin. 

Clearly communicate the benefits your customers can expect, such as improved skin texture and a youthful glow.

Step 5: Optimize Your Product Listings For Discoverability

To maximize visibility and attract potential customers, optimize your product listings for search engine optimization (SEO). Conduct keyword research and strategically incorporate relevant keywords in your product titles, bullet points, and descriptions.

Example: Identify commonly used search terms like “organic face serum,” “natural anti aging skin care,” or “vegan facial serum.” Incorporate these keywords naturally throughout your listing to enhance your product’s visibility in search results.

Step 6: Promote & Market Your Private Label Brand

To accelerate sales and increase brand awareness, implement effective marketing strategies. Leverage various Amazon advertising options, such as Sponsored Products or Sponsored Brands, to boost visibility and drive targeted traffic to your product listings.

Example: Run targeted advertising campaigns focusing on skincare enthusiasts, eco-conscious consumers, or individuals seeking clean beauty alternatives. 

Craft compelling ad copy that highlights the unique selling points of your organic facial serums, such as their nourishing ingredients or noticeable results.

Step 7: Monitor, Optimize, and Expand

Continuously monitor the performance of your private label products, gather customer feedback, and make data driven decisions to improve your offerings. Optimize your listings, pricing, and marketing strategies based on market trends and customer preferences.

Example: Regularly analyze customer reviews to gain insights into product satisfaction and identify areas for improvement or new product ideas. Engage with customers, address their concerns, and demonstrate your commitment to providing exceptional products and customer service.

Branding your products on Amazon opens up a world of opportunities to establish your unique identity and reach a massive customer base. 

With Amazon’s powerful branding tools at your disposal, you can create a professional and distinctive product image that captivates your audience. Here’s how to get started and maximize your branding potential on Amazon:

Step 1: Choose a Powerful Amazon Brand Name

Your brand name sets the stage for your entire identity. Select a name that conveys your message effectively and stands out from the competition. Consider keywords relevant to your product and target audience to enhance discoverability.

Example: If you’re launching a line of organic skincare products, a brand name like “NaturaGlow” instantly communicates your commitment to natural beauty and captures customers’ attention.

Step 2: Develop a Strong Branding Strategy 

Craft a clear and concise branding strategy that aligns with your target market and sets you apart from competitors. Define your brand’s values, unique selling propositions, and visual elements that will shape your product’s perception.

Example: If you’re targeting health conscious consumers with your organic skincare line, emphasize your commitment to sustainability, cruelty free practices, and the use of ethically sourced ingredients. Incorporate these messaging points into your branding strategy to resonate with your ideal customers.

Step 3: Create Professional Product Packaging

Your product packaging is the first point of physical contact with customers. Invest in high quality packaging that reflects your brand’s identity, values, and product quality. Utilize Amazon’s resources for designing and printing custom packaging to ensure a professional and visually appealing presentation.

Example: If your brand focuses on eco friendly practices, consider using recyclable or biodegradable materials for your packaging. Incorporate your brand logo, colors, and unique design elements that convey your brand’s essence and appeal to your target audience.

Step 4: Utilize High-Quality Product Photos

Captivating product photos are essential for generating interest and trust. Hire a professional photographer or invest in high quality equipment to capture stunning product images. Showcase your products from different angles and highlight their features to entice potential customers.

For example If you’re selling kitchen gadgets, include photos that demonstrate the functionality and versatility of your products. Show them in use, highlighting how they solve common cooking challenges and make life easier for your customers.

Step 5: Optimize Your Amazon Listings

Maximize the impact of your Amazon listings by optimizing them for visibility and conversion. Write compelling and concise product descriptions that highlight the unique benefits and features of your products. 

Incorporate relevant keywords in your titles and descriptions to improve search rankings and attract the right audience.

For example If you’re selling fitness apparel, use descriptive language to convey the comfort, durability, and performance enhancing qualities of your products. 

Include keywords like “moisture wicking,” “breathable,” and “premium materials” to attract fitness enthusiasts searching for high quality active wear.

When selecting products for your private label on Amazon, certain characteristics can significantly impact your success. 

You can streamline operations, maximize profitability, and minimize potential challenges by focusing on small and light items, non seasonal products, unregulated categories, and uncomplicated items. 

Let’s take a closer look at each factor and how to benefit them.

1. Small and Light: Optimize Shipping Costs & Fulfillment

Choose products that can fit into small, flat rate boxes and weigh no more than one or two pounds. This allows you to save on shipping costs from the manufacturer and reduces expenses when fulfilling orders, whether you handle it yourself or utilize Amazon FBA (Fulfillment by Amazon).

Example: Consider selling lightweight accessories like phone cases, travel organizers, or compact home decor items that fit into small packages. These products are cost effective to ship and can be easily stored and shipped in bulk.

2. Non-Seasonal: Ensure Consistent Sales Throughout the Year

Focus on products with year around demand to maintain a steady flow of sales. Avoid products that are heavily influenced by seasonal trends or specific holidays, such as Christmas lights, Valentine’s Day gifts, or winter clothing, as they may lead to sales fluctuations.

Example: Instead of selling Christmas ornaments, consider offering evergreen products like home essentials, beauty products, or fitness accessories that cater to customers’ needs throughout the year.

3. Unregulated: Streamline Compliance & Documentation

Simplify your business operations by selecting products that don’t have extensive legal requirements or certifications. Selling regulated items like food, toys, or batteries often involves complex compliance processes and additional paperwork, which can be time consuming and costly.

Example: Focus on items such as kitchen gadgets, home decor, or pet supplies that don’t require specific certifications or face strict regulatory hurdles. This allows you to avoid potential legal complications and concentrate on scaling your business efficiently.

4. Uncomplicated: Minimize Technical Challenges & Customer Service Issues

Choose products that are straightforward to manufacture, distribute, and provide customer support for. Avoid complex electronic devices or fashion items that come with intricate variations in colors and sizes, which can lead to logistical challenges and potentially poor customer experiences.

Example: Instead of dealing with complex electronics, consider offering simple and practical solutions like smart home accessories, fitness equipment, or eco friendly household products. These items have a broader market appeal and are less likely to result in technical difficulties or sizing issues.

When building your Amazon private label brand, partnering with reliable and qualified suppliers is crucial to ensure the quality, reliability, and success of your products. 

To find suppliers that meet your standards and align with your brand’s vision, follow these advanced level strategies:

Step 1. Conduct Thorough Supplier Research

Start by researching and identifying potential suppliers that specialize in manufacturing the type of products you want to sell. Look for suppliers with a proven track record of producing high quality goods, preferably with experience in the ecommerce industry or with Amazon sellers.

• Online Directories: Utilize reputable online directories like Alibaba, Global Sources, or Thomasnet to find various industry suppliers.
• Trade Shows: Attend industry specific trade shows and exhibitions to connect with suppliers in person, evaluate product samples, and establish direct relationships.

Step 2. Evaluate Supplier Credentials

Ensure that potential suppliers are qualified and reliable by thoroughly vetting their credentials. Consider the following criteria during your evaluation:

• Manufacturing Capability: Assess their production capacity, manufacturing processes, and ability to handle the volume of orders you anticipate.
• Quality Control: Inquire about their quality control measures to ensure consistent product quality and adherence to industry standards.
• Certifications: Verify if suppliers have relevant certifications, such as ISO 9001, to demonstrate their commitment to quality and compliance.
• Client References: Request references from their current or past clients to gain insights into their reputation, reliability, and customer satisfaction.

Step 3. Request Product Samples

Requesting product samples is essential to evaluate the quality, design, and overall suitability of the supplier’s offerings. Inspect the samples closely, considering factors like material quality, workmanship, packaging, and any customization options.

• Test Product Performance: Conduct thorough tests to assess the product’s functionality, durability, and performance. This step is especially crucial for products with specific requirements or technical specifications.
• Seek Feedback: Involve others, such as industry experts or potential customers, to provide feedback on the product samples and gather different perspectives.

Step 4. Communicate Clearly & Effectively

Establish open and transparent communication channels with potential suppliers. Clearly communicate your brand’s requirements, expectations, and any customization or branding specifications.

• Language and Culture Issues: If dealing with international suppliers, consider language barriers and cultural differences. Ensure effective communication by using professional translation services or hiring local sourcing agents if necessary.
• Promptness and Responsiveness: Assess the supplier’s response time and willingness to address your queries, as good communication is crucial for building a successful partnership.

Step 5. Verify Supplier Compliance & Ethical Practices

Ensure that your suppliers adhere to ethical and responsible business practices. Consider factors such as labor conditions, environmental impact, and social responsibility.

Factory Audits: Conduct on site visits or hire third-party auditing firms to assess the supplier’s facilities, working conditions, and adherence to labor and environmental regulations.

Compliance Documentation: Request relevant compliance documentation, such as factory certifications, social compliance audits, or environmental impact reports, to ensure alignment with your brand values.

Step 6. Negotiate Favorable Terms & Agreements

Once you have identified a qualified supplier, negotiate pricing, payment terms, lead times, and any other contractual agreements. Aim to secure favorable terms that align with your budget, inventory management, and overall business strategy.

• Pricing: Negotiate competitive pricing that allows for a sufficient profit margin while maintaining product quality.
• MOQ and Lead Times: Discuss minimum order quantities (MOQs) and lead times to ensure they are feasible for your business needs.
• Intellectual Property Protection: Consider including clauses in the agreement that protect your brand’s intellectual property and prevent the supplier from selling your product to competitors.

When starting your own private label on Amazon, one of the key decisions you need to make is which fulfillment option to choose. 

The three main options are Fulfillment by Amazon (FBA), Fulfillment by Merchant (FBM), and Seller Fulfilled Prime (SFP). Each option has its advantages and considerations, but we highly recommend enrolling in the FBA program for the following reasons:

1. Streamlined Operations & Customer Satisfaction

By opting for FBA, you can outsource logistics to Amazon, allowing them to handle crucial aspects such as storage, packaging, shipping, and customer service. 

This not only frees up your time but also ensures a seamless and efficient order fulfillment process. Plus, FBA sellers qualify for Prime delivery, which is associated with higher customer satisfaction and can boost your sales potential.

2. Access to Prime Benefits

Being part of the FBA program grants you the opportunity to offer Prime shipping to your customers. Prime members, known for their loyalty and preference for fast, reliable shipping, will have access to your products with the Prime badge, increasing their trust and likelihood of purchasing from your brand.

3. Cost-Effective & Scalable Solution

While there are fees associated with FBA, the convenience and benefits, it offers make it a worthwhile investment. 

With FBA, you can leverage Amazon’s vast fulfillment network, tap into its advanced shipping capabilities, and benefit from its discounted shipping rates. This allows you to scale your business efficiently and focus on other crucial aspects of your brand’s growth.

4. Time & Effort Savings

By utilizing FBA, you can offload time consuming tasks like inventory management and order processing to Amazon. This gives you more time to concentrate on product development, marketing strategies, and expanding your private label business.

Amazon Brand Registry is a powerful program designed to protect your brand’s intellectual property and enhance your selling experience on the platform. 

By enrolling in Amazon Brand Registry, you gain access to a suite of exclusive tools and benefits that can help you establish and maintain your brand presence. 

Step 1. Verify Your Eligibility

To enroll in Amazon Brand Registry, you need to meet certain eligibility criteria. These include having an active registered trademark for your brand that appears on your products or packaging. 

Ensure that your trademark meets the requirements set by Amazon to move forward with the enrollment process.

Step 2. Prepare Your Documentation

Gather the necessary documentation to support your brand’s eligibility. This typically includes a clear image of your product packaging with the brand name visible, a registered trademark certificate, and additional evidence of your brand’s use in commerce.

Step 3. Create or Sign in to Your Amazon Seller Account

If you don’t already have an Amazon Seller Account, create one by visiting the Amazon Seller Central website. If you already have an account, sign in using your credentials.

Step 4. Access Brand Registry Enrollment

Once you’re logged into your Seller Account, navigate to the Brand Registry section. You can usually find this under the “Brand” or “Brand Registry” tab in your Seller Central dashboard . Click on the option to enroll in Brand Registry.

Step 5. Provide Brand Information

Fill in the required information about your brand, including the name, trademark details, and the countries where your brand’s products are manufactured and distributed. 

Be thorough and accurate in your responses to expedite the enrollment process.

Step 6. Submit Supporting Documentation

Upload the documentation you prepared in Step 2 to verify your brand’s eligibility. This may include your registered trademark certificate, product packaging images, or any other relevant proof of brand ownership. 

Ensure the documents are clear, legible, and meet Amazon’s guidelines.

Step 7. Review and Submit Your Application

Before submitting your application, carefully review all the information you have provided. Double-check that your documentation is accurate and complete. Once you are satisfied, submit your application for Amazon’s review.

Step 8. Monitor the Application Status

After submission, Amazon will review your application for Brand Registry. This process can take several days or weeks. Monitor the status of your application through your Seller Central account. 

Amazon may request additional information or clarification during the review process, so be responsive and provide any requested documents promptly.

Pricing your Amazon private label products strategically is vital for maximizing sales and profits. To achieve optimal results, consider the following factors and utilize advanced tools like Dynamic Pricing to drive your pricing strategy:

Tip 1. Determine the Right Sales Velocity

Strike a balance between sales speed and profitability. Setting low prices may lead to quick sales but minimal profit margins. Conversely, high prices could result in limited sales and potential costs associated with stagnant inventory. 

Dynamic Pricing, powered by AI, can help identify the optimal price range that ensures both high sales velocity and maximum profitability.

For instance, if you’re selling electronic accessories, finding the right price point will ensure steady sales without compromising your profit margins.

Tip 2. Analyze Market Demand

Study the pricing landscape of similar products in your market niche. Ensure your prices align reasonably with the competition, neither significantly above nor below. Dynamic Pricing constantly monitors market demand, allowing you to adjust your prices accordingly and stay competitive.

Suppose you’re launching a new line of organic skincare products. Observing the market demand and adjusting your prices accordingly will help you position your brand effectively within the market.

Tip 3. Factor in All Costs

Consider all expenses associated with your product, including manufacturing, shipping, and advertising costs, when determining your pricing strategy. 

Dynamic Pricing integrates with Eva’s inventory management and advertising platform, enabling you to calculate Total Advertising Cost of Sales (TACoS) and all relevant Amazon fees automatically. This holistic approach ensures you can establish the minimum profitable price for your products.

For example, if you’re selling kitchen appliances, accurately accounting for manufacturing, shipping, and advertising costs will allow you to set prices that cover expenses and generate substantial profits.

Remember, while there isn’t a one size fits all pricing strategy for Amazon private label businesses, leveraging advanced tools like Dynamic Pricing by Eva can help you find the optimal pricing approach for your unique brand.

>>> Try Eva FREE For 15 Days: Try Out The #1 Integrated AI Platform To Help You Increase, Traffic, Conversion, Availability & Profits From Amazon.

Running Amazon ads for your private label products is a crucial step in maximizing your brand visibility, driving sales, and staying ahead of the competition. 

With millions of customers browsing Amazon every day, strategic advertising can significantly enhance your product’s discoverability and increase your chances of converting browsers into buyers. To make the most of your Amazon advertising campaigns, consider leveraging the following advanced ad types:

1. Sponsored Product Ads

Sponsored Product Ads allow you to promote individual products within search results and on product detail pages. These ads can increase your product’s visibility, especially when targeting relevant keywords and popular search terms. 

By bidding on keywords related to your private label products, you can effectively target customers actively searching for similar items, boosting your chances of conversions.

For example, if you sell premium yoga mats under your private label, running Sponsored Product Ads with keywords like “high-quality yoga mat” or “non-slip yoga mat” can help your product stand out to potential customers.

2. Sponsored Brand Ads

Sponsored Brand Ads are ideal for promoting your private label brand as a whole. These ads feature your brand logo, a customizable headline, and a selection of your products. 

These ads appear in prominent positions on search result pages, providing a powerful way to build brand recognition and capture customer attention.

Suppose you have a private label brand specializing in organic pet food. Running Sponsored Brand Ads with your brand logo and featuring a range of your pet food products can help establish your brand’s presence and attract pet owners looking for healthy and natural options.

3. Sponsored Display Ads

Sponsored Display Ads allow you to reach potential customers beyond Amazon’s website, targeting them while they browse other websites and apps. 

These ads can increase brand awareness, re-engage previous customers, and even target audiences interested in similar products or categories.

For instance, if you have a private label line of skincare products, running Sponsored Display Ads that target audiences interested in skincare, beauty, and wellness can expand your reach and expose your brand to new potential customers.

Competing with Amazon’s private label brands can be daunting for third-party merchants on the platform. Here’s how to stand out from the crowd:

1. Marketing

Highlight the unique features and qualities of your products that distinguish them from cheaper private-label alternatives. 

For example, if you offer organic and sustainable products, emphasize the environmental benefits and quality of your materials. 

Utilize persuasive storytelling techniques to create a connection between your brand and the target audience. Share your brand’s story, values, and mission through compelling content on your product listings, social media channels, and website. 

Additionally, consider collaborating with influencers or running targeted advertising campaigns to increase brand awareness and reach a wider audience.

2. Customer Service

Exceptional customer service can be a powerful tool in building trust and loyalty. Prioritize prompt and helpful responses to customer inquiries and address any issues or concerns promptly. 

Offer personalized assistance, easy returns, and hassle-free refunds to ensure a positive shopping experience. 

Proactively engage with customers through post-purchase follow-ups, requesting feedback or reviews, and providing valuable resources or tips related to your products. 

By going above and beyond to exceed customer expectations, you can foster positive word-of-mouth and build a loyal customer base.

3. Product Variation

Explore opportunities to create new variations or bundles of your existing products. By offering unique combinations or value-added features, you can differentiate your offerings from those sold by Amazon. 

For example, if you sell kitchen appliances, consider creating a bundle that includes complementary accessories or recipe books. 

Conduct market research and listen to customer feedback to identify gaps or untapped niches within your product category. Introducing innovative variations can attract customers seeking specialized or customized options, giving you a competitive advantage.

4. Shipping & Fulfillment

Assess your shipping model and compare options like dropshipping versus Fulfillment by Amazon (FBA). As Amazon’s fast shipping times become increasingly challenging to match, utilizing FBA for your private label brand can be advantageous. 

FBA not only ensures quick and reliable delivery but also provides benefits such as Prime eligibility, improved visibility, and increased customer trust. 

However, if you have the resources and capability to offer fast and reliable shipping independently, consider optimizing your logistics and fulfillment operations to maintain a competitive edge.

5. Brand Building

Invest in building a strong and recognizable brand identity. Create a professional and visually appealing brand logo, packaging, and product labels. Consistently present your brand across all touchpoints, from product listings to social media profiles, to establish brand recognition. 

Leverage content marketing strategies such as blogging, video tutorials, or educational resources related to your products to position your brand as an authority in your niche. 

Collaborate with influencers or industry experts to expand your reach and gain credibility. By consistently delivering a cohesive brand experience, you can cultivate customer loyalty and stand out in a crowded marketplace.

The Snuggie, a popular blanket with sleeves, became a massive success through private labeling. 

It was initially introduced as a generic product, but a private label strategy allowed the company to brand and market it as a unique and innovative product. The Snuggie went on to generate millions in sales and became a cultural phenomenon.

Pro Tip: When private labeling, identify existing products with potential and add unique value to make them stand out. Invest in branding, marketing, and creating a compelling product story to capture consumer attention.

 Anker is a well known brand in the consumer electronics industry. They started as a private label seller on Amazon, specializing in power banks and charging accessories. 

By focusing on high quality products, competitive pricing, and excellent customer service, Anker gained a strong reputation and gradually expanded its product line. Today, Anker is a trusted brand in the electronics market.

Pro Tip: Prioritize quality and customer satisfaction to build trust and establish your brand’s reputation. Continuously innovate and expand your product offerings based on customer needs and market trends.

3. Quest Nutrition

Quest Nutrition is a successful private label brand in the health and wellness industry. They specialize in protein bars and other nutritional products. 

Quest Nutrition gained popularity by offering low carb, high protein options that catered to the growing demand for healthy snacks. 

Their strategic branding, online marketing efforts, and commitment to product quality propelled them to become a leader in the industry.

Pro Tip: Identify niche markets and consumer trends within the health and wellness industry. Develop products that address specific needs and offer unique benefits. Invest in targeted marketing campaigns to reach and engage with your target audience.

4. Poo-Pourri

Poo-Pourri is a private label brand that disrupted the air freshener market. Their innovative product is a pre-toilet spray that eliminates odors by creating a protective barrier on the water’s surface. 

Poo-Pourri’s humorous and bold marketing campaigns garnered significant attention and propelled the brand to success. 

They leveraged social media, viral videos, and influencer partnerships to create brand awareness and drive sales.

Pro Tip: Think outside the box and find unique solutions to common problems. Embrace creativity in your marketing efforts to make your brand memorable and engaging. Utilize social media platforms and influencers to amplify your message and reach a wider audience.

5. Honest Company

The Honest Company, founded by actress Jessica Alba, is a private label brand that provides safe and eco friendly products for babies, personal care, and household cleaning. 

Through their commitment to transparency, sustainability, and high quality ingredients, the Honest Company gained a loyal customer base. 

Their success story demonstrates the power of building a brand around values that resonate with consumers.

Pro Tip: Consider the importance of values and sustainability in your product offerings. Cater to specific customer needs, such as eco consciousness or natural ingredients. Clearly communicate your brand values and product benefits to connect with consumers on a deeper level.

List Of Best Private Label Products To Sell On Amazon

Pro Tip: Coffee is also one of the best selling private label products on Amazon. Private label coffee is often seen as a more premium product than national brands and can be priced with a much higher profit margin. 

In addition, retailers who offer private label coffee often source their beans from top notch suppliers and roast them to perfection, resulting in a delicious cup of coffee that coffee lovers can’t resist.

In conclusion, Amazon private label presents a tremendous opportunity for growth and profitability in 2023. 

By following the steps outlined in this blog, you can start your own brand, find reliable suppliers, optimize listings, implement effective pricing strategies, and compete with other private label brands. 

Remember to stay updated with the latest trends and strategies to stay ahead of the competition. Subscribe to the Eva Newsletter for valuable tips and actionable advice on selling on Amazon. Start your journey towards success in the world of Amazon private label today!

Private label on Amazon refers to the practice of creating and selling your own branded products on the platform. It involves sourcing products from manufacturers, adding your branding, and selling them under your brand name.

The income generated from Amazon FBA private label businesses can vary greatly. It depends on factors such as product selection, pricing, marketing strategies, and market demand. Successful sellers have the potential to make significant profits, but individual earnings will vary

Amazon owns and operates numerous private labels across various product categories. While the exact number is not publicly disclosed, they have a wide range of private label brands, including AmazonBasics, Amazon Essentials, and Amazon Elements.

Amazon wholesale involves purchasing products from established brands or distributors and reselling them on Amazon.  Private label, on the other hand, involves creating your own brand and selling products under that brand name. With private label, you have more control over branding, pricing, and product quality.

While brand registry is not mandatory for private label sellers on Amazon, it is highly recommended.  Brand registry provides additional benefits such as enhanced brand protection, access to advertising features, and increased control over your product listings. It helps establish and protect your brand identity on the platform.

Private label can be highly profitable for sellers who effectively differentiate their products, optimize their listings, and implement successful marketing strategies.  By offering unique products with strong branding, sellers can capture market demand and generate significant profits.

Private label can be worth it for entrepreneurs and businesses looking to build their own brand and gain control over their product offerings.  It allows for higher profit margins, brand recognition, and long-term business growth. However, it requires careful product selection, branding, and marketing efforts.

Private labels are not necessarily more expensive than other brands. In fact, private labels often offer competitive pricing since they eliminate intermediary costs associated with traditional retail channels.  By sourcing products directly from manufacturers, private label sellers can offer quality products at competitive prices.

The largest private label on Amazon is difficult to determine definitively as it can vary depending on the product category and geographical region.  However, AmazonBasics is one of the most well-known and successful private label brands owned by Amazon, covering a wide range of products.

Like any business venture, private label carries inherent risks. These include product quality issues, competition, changing market trends, and the need for effective marketing.  However, with careful research, planning, and implementation, the risks can be mitigated, and private label can be a successful and rewarding endeavor.

Some potential disadvantages of private label include the need for an initial investment in product development, branding, and marketing.  Additionally, private label products may face competition from established brands. It also requires ongoing effort to differentiate and promote your brand in a crowded marketplace.

Amazon’s main marketplace, Amazon.com, is the most popular and widely used platform for private label sellers. It provides access to a large customer base, robust fulfillment options like FBA, and advanced advertising and marketing features.  However, regional Amazon marketplaces, such as Amazon.co.uk or Amazon.de, can also be viable options for targeting specific markets and expanding your private label business internationally.

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Amazon FBA Private Label: A Comprehensive Guide

Amazon Private Label is a long and tough, but can be the most lucrative

Amazon seller & Software Founder

Skip around this article:.

Are you interested in starting your own business on Amazon? One of the most profitable ways to do so is with Amazon FBA private label. This business model involves finding a product, branding it with your own label, and selling it on Amazon using the Fulfilled by Amazon (FBA) service.

If you’re new to the world of Amazon FBA private label, it can be overwhelming to know where to start. You may have questions about finding the right product , creating your own brand, managing inventory, and marketing your products effectively. However, with the right knowledge and strategies, you can build a successful business and generate a reliable income stream.

We do recommend starting on Amazon first by selling books or other easy products so that you can fully understand the Amazon ecosystem. Navigating the private label world in ecommerce can lead to many money pits if you don’t take your time and move strategically.

Understanding Amazon FBA Private Label

What is amazon fba private label.

Amazon FBA Private Label is a business model in which you sell products under your own brand name on Amazon. As the brand owner, you have full control over the product design, packaging, and marketing. You source products from a manufacturer, customize them with your brand name and logo, and then sell them on Amazon.

Benefits of Amazon FBA Private Label

There are several benefits to using Amazon FBA Private Label for your business:

• Full control over your brand : With Amazon FBA Private Label, you have complete control over your brand. You can create a unique brand identity and differentiate yourself from competitors.
• Higher profit margins : By selling your own branded products, you can charge a premium price and increase your profit margins.
• Scalability : Amazon FBA Private Label allows you to scale your business quickly. You can easily add new products to your product line and expand into new markets.
• Access to Amazon’s customer base : Amazon is the largest online retailer in the world, with millions of customers. By selling on Amazon, you have access to a massive customer base that you can tap into.
• Fulfillment by Amazon : With Amazon FBA, you can take advantage of Amazon’s fulfillment network. Amazon handles all the storage, shipping, and customer service for your products, freeing up your time to focus on growing your business.

In summary, Amazon FBA Private Label is a powerful business model that allows you to build your own brand and sell products on the world’s largest online retailer. With full control over your brand and higher profit margins, it’s a great way to scale your business and reach new customers.

Starting Your Amazon FBA Private Label Business

If you’re looking to start your own Amazon FBA private label business, there are a few key things you need to know. This section will cover the basics of getting started, including choosing the right product, finding a reliable supplier, and creating a unique brand.

Choosing the Right Product

The first step in starting your Amazon FBA private label business is choosing the right product to sell. This can be a daunting task, but with the right research and tools, you can find a product that will be profitable and in demand.

When choosing a product, consider factors such as:

• Market demand
• Competition
• Profit margins
• Product size and weight
• Shipping costs

Take your time to research potential products thoroughly. Use tools such as Jungle Scout or Helium 10 to analyze market demand and competition. Look for products that have a high demand and low competition, and that you can sell at a profitable price point.

Finding a Reliable Supplier

Once you’ve chosen your product, the next step is to find a reliable supplier. This is crucial to the success of your business, as your supplier will be responsible for manufacturing and shipping your products.

When looking for a supplier, consider factors such as:

• Quality of products
• Production time
• Minimum order quantities
• Price per unit
• Shipping options

You can find suppliers on websites such as Alibaba or through a sourcing agent. Be sure to thoroughly vet potential suppliers and ask for samples before placing a large order.

Creating a Unique Brand

Creating a unique brand is an important part of building a successful Amazon FBA private label business. Your brand should stand out from the competition and resonate with your target audience.

When creating your brand, consider factors such as:

• Logo design
• Product packaging
• Brand messaging

Choose a brand name that is memorable and easy to pronounce. Work with a designer to create a logo that is visually appealing and represents your brand’s values. Invest in high-quality product packaging that will make your products stand out on Amazon.

By following these steps, you can start your own Amazon FBA private label business with confidence. Remember to take your time and do your research to ensure the success of your business.

Product Listing and Inventory Management

Creating an effective amazon listing.

When it comes to selling your private label products on Amazon, creating an effective listing is crucial. Your listing should be informative, engaging, and persuasive enough to convince potential customers to buy your product. Here are some tips for creating an effective Amazon listing:

• Use high-quality images that showcase your product from different angles
• Write a clear and concise product title that includes relevant keywords
• Provide detailed product descriptions that highlight the features and benefits of your product
• Use bullet points to break down key product information
• Include customer reviews and ratings to build trust with potential buyers

By following these tips, you can create a compelling Amazon listing that will help you attract more customers and increase your sales.

Inventory Management Strategies

Proper inventory management is essential for the success of your Amazon FBA private label business. You need to ensure that you have enough inventory to meet customer demand, but not so much that you end up with excess stock that ties up your cash flow. Here are some inventory management strategies you can use:

• Use Amazon’s inventory management tools to monitor your stock levels and sales velocity
• Set up automatic reorder alerts to ensure that you never run out of stock
• Use sales data to forecast demand and adjust your inventory levels accordingly
• Consider using a third-party inventory management software to streamline your operations

By implementing these inventory management strategies, you can optimize your inventory levels, reduce your costs, and improve your overall profitability.

In conclusion, creating an effective Amazon listing and implementing proper inventory management strategies are critical to the success of your Amazon FBA private label business. By following the tips outlined in this section, you can improve your chances of attracting more customers, increasing your sales, and growing your business.

Marketing and Sales Strategies

As an Amazon FBA private label seller, you need to have a solid marketing and sales strategy to succeed in the highly competitive marketplace. Here are some effective strategies that you can use to boost your sales and grow your business:

Pricing Your Product

Pricing your product correctly is crucial for your success as an Amazon FBA seller. You need to find the right balance between profit margins and competitiveness. Here are some factors to consider when pricing your product:

• Cost of Goods Sold (COGS) : Calculate your COGS, including the cost of manufacturing, shipping, and Amazon fees.
• Competitor Analysis : Research your competitors’ pricing strategy and adjust your prices accordingly.
• Value Proposition : Highlight the unique features and benefits of your product and price it accordingly.

Using Amazon Sponsored Brands

Amazon Sponsored Brands is a powerful advertising tool that can help you increase your product visibility and boost your sales. Here are some tips for using Amazon Sponsored Brands effectively:

• Targeting : Choose the right keywords and target the right audience to maximize your ad’s performance.
• Budget : Set a realistic budget for your ad campaign and monitor your spending regularly.
• Ad Creative : Use high-quality images and compelling ad copy to attract potential customers.

By implementing these strategies, you can improve your marketing and sales efforts and increase your chances of success as an Amazon FBA private label seller.

Understanding Amazon FBA Fees and Profit Margins

If you’re considering selling private label products on Amazon, it’s important to understand the fees associated with using Amazon’s FBA (Fulfillment by Amazon) service and how they impact your profit margins.

Breakdown of Amazon FBA Fees

When you use Amazon’s FBA service, you are charged a variety of fees. Here are some of the most common fees you’ll encounter:

• Fulfillment fees: These fees cover the cost of picking, packing, and shipping your products. They vary depending on the size and weight of your products.
• Storage fees: If your products remain in Amazon’s warehouse for more than a certain amount of time, you may be charged storage fees.
• Referral fees: Amazon charges a percentage of the sale price of each item sold as a referral fee.
• Closing fees: If you sell media products, such as books or DVDs, you may be charged a closing fee.
• Return fees: If a customer returns one of your products, you may be charged a return fee.

It’s important to factor these fees into your pricing strategy to ensure that you’re making a profit on each sale.

Maximizing Profit Margins

To maximize your profit margins when selling private label products on Amazon, you need to carefully consider your pricing strategy. Here are some tips to help you do that:

• Calculate your profit margins: Before you set your prices, calculate your profit margins. This will help you determine the minimum price you can charge for your products while still making a profit.
• Consider your competitors: Look at what your competitors are charging for similar products. You may need to adjust your prices to stay competitive.
• Factor in Amazon fees: Make sure you’re factoring in all of the fees associated with using Amazon’s FBA service when setting your prices.
• Offer promotions: Offering promotions, such as discounts or free shipping, can help you attract more customers and increase your sales.
• Reduce your costs: Look for ways to reduce your costs, such as by negotiating better prices with your suppliers or by finding more cost-effective shipping options.

By carefully considering your pricing strategy and factoring in all of the fees associated with using Amazon’s FBA service, you can maximize your profit margins and build a successful private label business on Amazon.

Customer Service and Returns Management

As an Amazon FBA private label seller, providing excellent customer service is crucial to your success. This includes managing customer queries and returns efficiently. In this section, we will cover how to handle customer queries, manage returns, and process refunds.

Handling Customer Queries

Customers may have questions about your product, shipping, or delivery times. It is essential to respond to these queries promptly and professionally. You can use Amazon’s messaging system to communicate with customers. Here are some tips for handling customer queries:

• Respond within 24 hours
• Be polite and professional
• Provide accurate information
• Offer solutions to their problems

Managing Returns

Returns are a part of any e-commerce business, and it is essential to manage them effectively. Amazon FBA makes it easier to manage returns as they handle the logistics and processing. However, it is still your responsibility to ensure that returns are processed efficiently. Here are some tips for managing returns:

• Check the returned item for damages or missing parts
• Process the return within two business days
• Issue a refund or replacement promptly
• Use Amazon’s return reason codes to identify trends and improve your product

Processing Refunds

Refunds are a necessary part of the returns process, and it is essential to process them promptly. Amazon FBA handles refunds automatically, but you should still monitor your account to ensure that refunds are processed correctly. Here are some tips for processing refunds:

• Check your account regularly for refund notifications
• Verify that the refund amount is correct
• Respond to any customer queries promptly
• Use Amazon’s refund reason codes to identify trends and improve your product

In summary, providing excellent customer service and managing returns and refunds efficiently is critical to your success as an Amazon FBA private label seller. By following the tips outlined in this section, you can ensure that your customers are satisfied and that your business runs smoothly.

Scaling Your Amazon FBA Private Label Business

If you’re looking to take your Amazon FBA private label business to the next level, scaling is the way to go. Here are some tips to help you expand your product range and optimize your cash flow.

Expanding Product Range

One of the most straightforward ways to scale your Amazon FBA private label business is by expanding your product range. This can help you reach a wider audience and increase your revenue streams. Here are some steps you can take to expand your product range:

• Conduct market research to identify new product opportunities that align with your existing brand and customer base.
• Look for complementary products that can be bundled together to create value for your customers.
• Consider using Amazon’s Multi-Channel Fulfillment (MCF) service to sell your products on other marketplaces like eBay or your own website.

Optimizing Cash Flow

Cash flow is critical to the success of any business, including your Amazon FBA private label business. Here are some tips to help you optimize your cash flow:

• Use Amazon’s payment processing service to ensure timely and accurate payments.
• Monitor your inventory levels and adjust your ordering frequency to avoid stockouts or overstocking.
• Consider using Amazon’s lending program to access additional capital to invest in your business.

By expanding your product range and optimizing your cash flow, you can take your Amazon FBA private label business to the next level. Keep in mind that scaling takes time and effort, so be patient and stay focused on your goals.

Frequently Asked Questions

How can i determine if a product is a private label on amazon.

Private label products on Amazon are manufactured by one company and sold under a different brand name. You can identify private label products by looking for unique branding and packaging on the product page.

What is the cost to start a private label on Amazon?

The cost to start a private label on Amazon varies depending on the product, the supplier, and the marketing strategy. However, you can start with as little as $1000 and scale up as your business grows.

What is the difference between Amazon FBA and private label?

Amazon FBA (Fulfillment by Amazon) is a service that allows sellers to store their products in Amazon’s warehouses, and Amazon handles the shipping and customer service. Private label is a business model where you sell your own branded products on Amazon.

What are some successful private label stories on Amazon?

There are many successful private label stories on Amazon, including the story of Jungle Stix, a company that sells bamboo marshmallow sticks on Amazon. They started with a small investment and grew their business to over $1 million in sales within a year.

How do I create a business plan for Amazon private label?

To create a business plan for Amazon private label, you should start by researching your target market, identifying your competition, and determining your unique selling proposition. You should also create a financial plan that includes your startup costs, revenue projections, and profit margins.

What are the advantages of private label products on Amazon?

Private label products on Amazon offer several advantages, including the ability to differentiate yourself from competitors, build your own brand, and control the pricing and marketing of your products. Additionally, private label products typically have higher profit margins than other products on Amazon.

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How To Master Amazon FBA Private Label & Boost Sales Today

Darren DeMatas

December 21, 2023

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How do I start an Amazon private label brand? Should I open an Amazon account in my country or America? Do I need an EIN or registered business address? Can I use Amazon FBA with private-label goods?

My subscribers send me questions like these all the time. There’s a lot of interest in how to start a private label Amazon FBA , but also a lot of confusion.

That’s why I wanted to answer everyone’s questions with an official post. 🙂

I’ve written before about how to start an ecommerce company from scratch , but not about a private label Amazon FBA specifically.

This article guides you through the early stages of the Amazon FBA private label business, along with what you need to know about FBA and my personal recommendation: Amazon MCF (Multi-Channel Fulfillment).

If you have any questions about Amazon private labels, this article should clear everything up.

What Is Private Label?

Let’s begin with the bare basics, in case you really are starting from scratch. Private labeling, to me, is taking a generic product, making it own by some type of modification, and then selling it under your own brand. (Compare this against “white labeling,” which is selling another manufacturer’s product as is.)

Because different brands can offer the same private label products , the key to success is what you add to the product, which could be a physical feature or superior marketing and customer relations. Your product quality is nearly identical to your competitors, so you have to rely on other sales techniques like branding, pricing, advertising, shopping experience, etc.

Private label selling has its advantages over traditional models, especially when it comes to profit margins. One of the key benefits is the ability to create and expand a unique product line, which can ultimately lead to higher profits. Smaller companies can cut production costs while they build up their brand name, while larger companies can use it to experiment safely in new markets. Think of how many clothing companies branch off into different product lines such as cosmetics or perfumes.

Likewise, private label products could be an upgrade in quality, or resolve some compliance issues. If you’re expanding internationally, it may be more effective to sell a local private label product that already complies with the country’s standards, rather than to alter your existing production process.

Research Better Products to Increase Sales

A private label company’s brand identity and reputation depend on the quality control of their products, making it crucial for brand owners to ensure high standards. That’s why your first step should be sharpening your product research skills. I’ve written a lot about product research before and I don’t want to retread any ground, so take a look at the links below to learn more.

First things first, you need to choose a profitable ecommerce business idea . What’s your niche? Where can you add value to the market? Once you have a niche, you need to know what to sell online  to your followers, both trending products to capitalize on sales and evergreen sellers to stabilize your business.

Private label products have an additional set of criteria for what makes them worthwhile, particularly whether the demand is high enough and whether there’s room for improvement in marketing or on generic features. You can see my list of 29 private label product ideas  to help inspire some avenues you can pursue.

If you’re here specifically for Amazon private label advice, you need to know what to sell on Amazon . If you have some budget to spare, you can also use Jungle Scout  services to reveal new ideas for products and categories in your niche.

What Makes a Brandable Product?

By and large, as a private label seller, you want to sell products that you can make your own, at least in a branding sense. I’d strongly avoid retail arbitrage if you are serious about starting a private label brand. Making a successful private label business relies on choosing products that you can market according to your brand persona.

Some products are easier to market than others. Here’s what I recommend to my subscribers:

• Small products. They’re cheaper to store and ship for your manufacturer, so you can either pass the savings to your shoppers or profit from the markup.
• Lightweight products. Anything under 3 pounds.
• Priced between $15 and $50. That’s the sweet spot before consumers think twice about spending so much money.
• Products that trend on Google. For me, they need a minimum of 1,000 searches per month, but without too many competitors — if two or three small sites still rank on the first page, the “big fish” haven’t caught on yet, so add it to your store.
• Niche influencers are present. This is a sure sign that you can have a product niche you can build a brand around, especially if you offer your own private label products or branded products.

For Amazon FBA private label, you want to make sure there are over 5,000 searches on Amazon every month, but with only low or medium competition. You also want to make sure it’s a niche you understand: can you make a short list of popular influencers and bloggers off the top of your head?

Some entrepreneurs will tell you choosing a product is more about instinct, but I prefer empirical, black-and-white guidelines when deciding on a business model.

How to Find the Best Manufacturers for Sourcing Your Product

Just like you need to research the best products to sell, you also need to partner with manufacturers who you work well with. It’s more than just what products they offer. Are they prompt with deliveries? Do they offer the best prices? Are they legally compliant with the brand registry — you don’t want to get in trouble because you didn’t check their paperwork.

Alibaba is a great place to start your search for finding product ideas and, ultimately, source products from China. This post on finding a manufacturer for Amazon private label  includes a free list of suppliers. Once you do find a short list of suppliers, make sure you get product samples before you do any bulk orders.

Step-by-Step Guide to Selling Private Label On The Amazon Marketplace

Despite its shortcomings, Amazon is a good equalizer for international vendors looking to expand their business worldwide. You can sell on Amazon from pretty much any country, with your only real obstacle just learning the ropes. Here’s how you can set up Amazon FBA in just 4 steps.

Step 1. Register

The first step is also the easiest: you just set up your account. Go to the Amazon FBA main page  and click Get Started. If you don’t already have an Amazon seller account, you can create one now by clicking Register Now.

Just note that you will need multiple forms of identity verification, including a photo of your driver’s license and photos (not screenshots) of your bank account info.

If you’re already an Amazon retailer, click Add FBA to your account.

It also helps to create listings for all your products now, since you’ll need to do that before you send your first shipment to an FBA center anyway. How to make product listings for Amazon is a topic worth its own article, which we’ll get to another time.

Step 2.  Preparing Inventory

The Amazon warehouse FBA program essentially stores and ships your Amazon Brand products for a fee through your Amazon listing. Dealing with an assortment of different vendors from different countries, they rely on organization and automation for fulfillment by merchant to ensure the right packages, with minimum order quantities, get delivered to the right address. That means, before you even start selling, you need to make sure your inventory is ready.

First, you need to make sure your products are eligible for Amazon FBA at all. The program does not accept the following products:

• Loose sleeves or pouches.
• Footwear without a box.
• Products that come in multiple pieces that require assembly before shipment often have minimum order quantities.
• Loose products or products with areas exposed outside of packaging.
• Products that collapse on any side from medium pressure.

Furthermore, some products include mandatory packaging requirements. Refer to the How to Prep Products guidelines  to see the specific protocol if you’re selling one of the following types of products:

• clothes, fabric, plush, or textile
• glass or fragile
• toys or baby products
• powders, pellets, or granular materials
• sharp, pointed, or with other safety concerns
• smaller than 2⅛“ on the longest side
• adult products or products with obscenity on the packaging

Furthermore, product batches as sets must be marked. Bags, too, must be at least 1.5 mil and contain a visible suffocation warning if the opening is larger than 5”.

Next, you need to implement quality control measures to ensure that your products meet the labeling requirements. Amazon FBA uses a barcode-system along with their company ASIN (Amazon Standard Identification Number).

You may not have to do anything if your product packaging already has an unobstructed barcode, as long as the barcode is one of the following:

If your products have one of these on the packaging, double-check to make sure your number corresponds with the official ASIN listing. If it doesn’t correspond, contact Seller Support for assistance.

If your products DO NOT have one of the four acceptable barcode numbers, you’ll need new labels to comply with Amazon FBA policies. You can either print and apply Amazon labels to each of your products on your own (be sure to cover any other non-acceptable barcode on the packaging), or you can have the FBA Label Service  do it for you, at a per-unit fee.

Getting your inventory prepared and making sure it’s compliant can be a hassle. If you have some money to spare, again, you can take advantage of Amazon FBA Prep Service .

Step 3. Assign and Ship Your Inventory to an FBA Center

Sending your shipment to Amazon FBA centers starts with assigning your inventory online. From your Seller Central account, go to Inventory, then Manage Inventory. Click the box to the left of each Amazon private label product you want shipped to the Amazon warehouse FBA center. From the Actions pull-down, click Change to Fulfilled by Amazon. On the next page, click Convert and Send Inventory.

Once your products have been converted to FBA, you can send or replenish them whenever you want by going to Manage Inventory , selecting the relevant products, and then from the Actions pull-down choosing Send/Replenish Inventory.

By default, your shipments are broken up and sent to multiple distribution centers, based on what Amazon thinks is best. You can opt instead to use the FBA Inventory Placement Service  and have them place all your boxes together in the center, however, they charge a per-unit fee.

You can change your settings at any time at Seller Central. Go to Settings > Fulfillment by Amazon > Inbound Settings > Edit > Inventory Placement Option > Inventory Placement Service.

From there, you select either Create a New Shipping Plan or Add to an Existing Shipping Plan. Simply fill in the relevant information and follow the instructions.

Once your shipment has left, mark it as “Shipped” on the Shipment Summary page. Once they arrive, they’ll be marked as “Delivered” for up to 24 hours upon arrival. After that, the status “Checked In” and then “Receiving” means a portion of your shipment has already arrived and begun processing.

All in all, it takes about 3-6 days from when your shipment is delivered before you can actually start selling products.

Shipping products to Amazon FBA can get technical, considering all the rules and extra fees. You can follow along Amazon’s Shipping Plan Workflow  so that you don’t miss any of the details.

Step 4. Manage Orders

The last step is essentially to be a good Amazon vendor: continue to promote and sell your products while keeping an eye on the logistics, including fulfillment by merchant and winning the buy box. Amazon handles most of the ground work like pulling products and applying the right addresses — after all, that’s what you’re paying for — so you’re freed up to focus more on your managerial duties.

You can review active orders at any time from the Manage Orders page of your Seller Central account. In addition to standard data on the order, such as where it’s going, you can also find any warnings or issues that need immediate attention.

While “Payment Complete” is self-explanatory, if a shipment is marked “Pending,” it can mean a few different things:

• The order is on hold while other items are consolidated for free shipping.
• The customer’s credit card payment has not yet been authorized.
• An item in the order is out of stock.
• Split orders can be marked as “pending” until the final item is shipped, even after the payment is completed.

You can also access your sales data at any time to influence your future strategies. Just go to Reports and select the area you’re curious about.

When to Use Amazon FBA Prep Services

Not only is it tedious work to prepare all of your inventory for the Amazon fulfillment center, but it’s also costly. Any time you spend printing labels or measuring boxes is time you could be spending on devising new marketing campaigns for your target audience, researching better products to target customer needs, or simply enjoying the company of your family after a long day.

If you have the resources, you can hire an Amazon FBA Prep Service to take care of the heavy lifting, literally and figuratively. Each one is different, but you can expect these regular services:

• Inspecting products to ensure compliance
• Packing the shipments
• Labeling individual products
• Sorting products
• Packing certain products into poly bags
• Photographing new products
• Forwarding readymade shipments

Sometimes, prep services can even offer shipping cost incentives — if they operate in a tax-free state, for example, or maybe they’re just closer to the Port of Entry that you save of traveling fees. In a lot of cases, they make up their cost. Either way, make sure you understand Amazon sales tax.

FBA Prep Services

Unless you’re pinching pennies, an FBA Prep Service is worth at least looking into. Here are seven of the best to consider:

• EZ Prep  — With a warehouse near the Port of Los Angeles and a flat rate of $1.25 for every standard-sized item, EZ Prep is a good choice for retailers operating heavily in Southern California.
• FBA FlexPrep  — If your top priority is speed, FBA FlexPrep provides 24 processes in the Texas area.
• McKenzie Services  — Offering an enormous warehouse in the Pacific Northwest and a low rate of $1.10 per item, McKenzie Services works well for bulk orders.
• Shapiro  — In the shipment prep business for over 100 years, Shapiro is recognized as one of the best by its clients, including Amazon itself.

Best Practices for Amazon Selling

Are you keen to amplify the success of your private label business on Amazon? By mastering a few essential practices, you can certainly scale your ventures to new heights. Your journey into the sphere of Amazon FBA private label requires commitment, strategic planning, and the know-how to effectively navigate a competitive marketplace. This includes creating a compelling product description that highlights your product’s unique features and benefits. 

Firstly, truly understanding your market is paramount. Each market has a unique set of dynamics and customer wants. Don’t waste resources on products that your potential customers aren’t interested in – study them. Check out their shopping habits, feedback from the customer base on similar products, and responses to sales promotions. Use tools like Google Trends and Amazon’s own market research tools to help with this. 

Secondly, create a compelling and unique brand. Your brand should be memorable, leaving a lasting impression on customers with its unique product. This can be achieved by offering high-quality branded products with low competition. Employ a professional designer to give your brand the professionalism and creative edge it deserves. Having a strong brand is crucial for the success of your business model and for building a loyal customer base. It can be the deciding factor in whether a customer chooses your product over a competitor’s. 

Additionally, aim to consistently improve your listing quality. Rich, detailed, and accurate product listings can differentiate you from a sea of similar products. Use clear, high-quality images and craft accurate, engaging product descriptions for your Amazon private label products. Be sure to embed relevant keywords to boost your search ranking. 

Don’t underestimate the importance of brand registration. Registering your brand with Amazon can add another layer of distinction to your private label products, helping you stand out further in a crowded market. It provides more direct control over your product listings and access to Amazon’s Brand Registry benefits, which include powerful tools for finding and reporting potential infringements of your brand insights into the promotion and growth of your brand. 

Lastly, provide superior customer service. Fast and effective responses to customers’ queries and complaints will enhance your reputation and engender loyalty. Consider automating aspects of your customer service to ensure prompt responses and round-the-clock assistance. 

Remember, scaling your Amazon FBA private label business isn’t about instant results. It’s a meticulous process that requires time, patience, and continuous learning. However, by implementing these practices, you are setting strong foundations for sustainable growth.

Still Interested In Selling Private Label Products On Amazon?

I don’t want to dissuade you if you have your heart set on an Amazon FBA private label company. It’s still financially viable, and there’s something to be said about following through on an idea you’re passionate about. After all, part of the beauty of running your own online business is doing things your way in the world of ecommerce.

No matter which route you take, with or without Amazon FBA, you still need to understand the fundamentals of ecommerce — especially marketing because we’re talking about private labels. Ecommerce brand marketing is a topic I talk about frequently in my courses — members even have access to a free video that deals with it in depth.

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A Comprehensive Guide to Amazon Private Label

Amazon private label has become an attractive venture for entrepreneurs and digital merchants alike.

By launching your own brand on Amazon and selling products beneath it, you can access Amazon’s massive consumer base while having command over pricing, marketing, and inventory management. This blog post will explore the ins and outs of starting an Amazon private label business.

We’ll delve into why selling private label products on Amazon is worth considering and some potential drawbacks. Next, we’ll walk you through launching your product line on the platform – from selecting profitable categories to optimizing your listings for maximum visibility.

After that, we’ll discuss strategies for maintaining momentum after launch and scaling up your operations. Finally, we’ll share examples of two successful private-label brands that have made their mark in this competitive space. So join us as we uncover how you can build a thriving Amazon private label enterprise!

What is Amazon Private Label?

If you’re an aspiring entrepreneur or a small business owner looking to expand your online presence, it’s time to get acquainted with the concept of Amazon private label. In this section, we’ll dive into what private labeling on Amazon entails and why it has become increasingly popular among sellers in recent years.

At its core, Amazon Private Label refers to creating and selling your branded products exclusively on the  Amazon marketplace . This means that instead of reselling items from other brands (which can be competitive), you develop a unique product under your brand name. The goal here is simple: You can gain complete control over the branding process by creating a private label product line to promote customer loyalty and recognition.

• Create Your Own Brand:  By launching a private label product line, you have complete control over branding elements such as packaging design, logo creation, and overall marketing strategy. This allows for greater flexibility in building brand recognition and customer loyalty.
• Select Your Niche:  With thousands of categories available on Amazon, there are ample opportunities for sellers to carve out their niche within the platform. Whether it’s organic skincare or innovative tech gadgets – find something that aligns with your interests and market demand.
• Innovate & Customize:  One significant advantage of private labeling is having full creative control over product development. You can work closely with manufacturers to ensure each item meets specific quality standards while incorporating any desired customizations or improvements based on customer feedback.

So why has private labeling become such a popular choice among sellers? The answer lies in its numerous benefits – from higher profit margins to increased creative control. However, as with any business venture, there are potential drawbacks before diving headfirst into this e-commerce endeavor. In the following sections of this blog post, we’ll explore these pros and cons in greater detail while providing actionable tips for success.

Amazon Private Label presents a chance to build your own label and grow earnings through vending on Amazon. Selling private label products can be an incredibly lucrative business opportunity, so it’s worth considering if you’re looking for ways to make money online or start a side hustle. Since selling private label products on Amazon can be highly lucrative, it may be your ideal choice.

Amazon Private Label is creating and selling your own branded products exclusively on Amazon. This allows for greater control over branding, niche selection, and product development. However, conducting thorough market research and considering potential drawbacks is important before diving into this e-commerce endeavor.

Why Sell Private Label Products on Amazon?

To grow your business, selling private label products on Amazon offers many benefits. Let’s dive into the top reasons why this venture is worth considering:

You Own the Brand

Unlike reselling other brands’ products, with private labeling,  you  own the brand. You can determine all facets of product creation and promotional tactics.

No Brand Restrictions or Trademark Concerns

Selling private label products eliminates any worries about violating trademark laws or facing restrictions imposed by established brands. You can focus solely on building and growing your unique brand without fear of legal repercussions.

More Access to Amazon Tools and Promotions

Amazon Seller Central provides numerous tools and promotional opportunities for sellers with branded products. These include  Amazon’s Brand Registry program , the ability to create  A+ content  (rich text, images, videos, and more) for your listings, access to  Amazon Storefronts , features on  Amazon Live ,  Amazon Sponsored Brands  promotions,  Amazon Attribution  ad analytics, and more detailed  Brand Analytics .

All of our guides for selling on Amazon are 100% free.

Higher Profit Margins

Selling private label products can result in higher profits as no intermediaries are involved in the sourcing process. This means you work directly with manufacturers, eliminating additional costs. Additionally, having control over pricing is easier since there is no competition from other sellers offering the same product under different listings. This allows for more creativity and flexibility when it comes to setting prices.

Create Your Dream Product (Customizations Galore)

• The sky’s the limit when it comes to customizing your product. Whether adding new features or tweaking existing ones, creating a one-of-a-kind item will help set you apart from the competition.
• Remember, though: always ensure that your customizations add value and align with customer needs.

Creative Control Over Amazon Listing

Private labeling gives you complete control over how your product is presented on Amazon. This includes everything from the title and description to images and bullet points. You can craft a compelling listing that showcases your brand’s unique selling points and appeals to potential customers.

No Buy Box Competition

Selling private label products means there’s no need to worry about competing for the coveted Amazon Buy Box. Since you’re the only seller offering this specific item under your brand name, all sales go directly to you–no sharing is required.

Growing Your Brand Beyond Amazon

A successful private label business on Amazon opens doors for expanding into other marketplaces or launching an independent e-commerce website. The possibilities are endless for growing your brand beyond just one platform.

Venturing into the realm of Amazon private label merchandising can effectively expand your enterprise and heighten revenues. Yet, weighing the potential disadvantages before taking the plunge is imperative. Next, we will explore some of these drawbacks so you can make an informed decision about whether or not selling private label products on Amazon is right for you.

Selling private label products on Amazon has several benefits, including owning the brand and having creative control over product design and marketing strategies. Private labeling also eliminates trademark concerns and provides access to Amazon tools for promotional opportunities, resulting in higher profit margins.

Drawbacks to Amazon Private Label

While selling private label products on Amazon offers numerous benefits, it’s essential to consider the potential drawbacks before diving in headfirst. Some of these challenges include higher initial costs, quality control issues, and increased competition from Amazon itself.

Higher Initial Cost and Minimum Order Quantities

Creating your own brand requires a significant investment compared to other selling methods on Amazon. Creating your own brand necessitates covering expenses such as design, production, wrapping, and delivery. Additionally, suppliers often require higher minimum order quantities (MOQs) for custom products, which can be risky if you’re unsure about the demand for your item.

Potentially Poor Quality Control and Manufacturing

Finding a reliable supplier is crucial when dealing with private label products; however, this task can sometimes prove challenging. A poor-quality manufacturer could lead to poor quality items that damage your brand reputation or result in returns from dissatisfied customers. It’s vital to vet suppliers thoroughly by requesting samples and researching their track record.

A More Hands-On Business Model

Selling private label goods isn’t a hands-off business model like dropshipping or retail arbitrage might be. It demands time and effort from sellers who must manage various aspects such as inventory management (including finding prep centers), marketing strategies, and customer service inquiries themselves rather than relying solely upon third-party providers.

Unsold Inventory Risks

When investing heavily in stock upfront without knowing how well it will sell, it may leave you with  excess merchandise taking up valuable warehouse space  and tying up your capital.

If you’re using Amazon FBA, remember that  storage fees can add up quickly for unsold inventory . This expense could eat into your profit margins if not managed carefully.

Amazon Creates Competition

Last but not least, it’s essential to be aware of the competition from Amazon itself. The e-commerce giant has been known to launch its own private label brands, such as Amazon Basics (EcomCrew did a study of  all 88 of Amazon’s brands ), directly competing with third-party sellers’ products. These brands have sometimes overtaken smaller businesses on the platform due to their competitive pricing and prime placement in search results.

In conclusion, while selling private label products on Amazon offers numerous advantages, such as higher profit margins and creative control over listings, it also comes with its fair share of challenges. Potential sellers must weigh both sides before deciding whether this business model suits them.

Although there are some drawbacks to Amazon Private Label, it is still a viable option for entrepreneurs looking to make money online. One must comprehend how to offer private-label items on Amazon to make the most of this prospect.

Selling private label products on Amazon can be lucrative but has drawbacks. These include higher initial costs and minimum order quantities, potential quality control issues with manufacturing, a more hands-on business model, unsold inventory risks, and competition from Amazon’s own private label brands. It is important for sellers to carefully consider these challenges before deciding if this business model is right for them.

How to Sell Private Label Products on Amazon

So you’ve taken the plunge and are now venturing into offering your own private label products on Amazon. Congratulations. But where do you begin? Don’t fret; we’ve got your back covered. Follow these steps to kick off your private label journey with a bang.

Create an Amazon Seller Account

If you want to start selling your products on Amazon, the first step is creating an Amazon seller account. This will give you access to millions of potential customers and allow you to take advantage of all the benefits of being a third-party seller on one of the world’s largest e-commerce platforms.

We’ve put together a comprehensive guide on  creating a Seller Central account .

Product Research

Your first step is finding that perfect product that will fly off the virtual shelves. You can use tools like  Jungle Scout  for in-depth market research and competitor analysis. Look for products with high demand, low competition, and reasonable profit margins.

Save over 70% on Jungle Scout—no code required.

Finding a Supplier

You’ll need someone reliable who can manufacture your chosen product at an affordable price without compromising quality. Websites like  Alibaba  or  Global Sources  are great places to find suppliers worldwide (though China tends to be the most popular). Vet potential suppliers thoroughly by checking reviews, requesting samples, and verifying their certifications.

Create Your Amazon Listing

A well-crafted listing is essential for attracting customers and driving sales. Start by writing an attention-grabbing title using relevant keywords while adhering to Amazon’s guidelines ( e.g., no ALL CAPS or excessive punctuation. ). Craft bullet points highlighting key features of your product along with detailed descriptions that answer any questions buyers might have about it.

Don’t forget eye-catching images. Hire a professional photographer if needed – this investment pays off when shoppers click “Add-to-Cart.”

Determine Your Fulfillment Method: FBA vs. FBM

Next, you must decide whether to use Fulfillment by Amazon (FBA) or handle fulfillment yourself (FBM). With FBA, Amazon takes care of storage, shipping, and customer service for a fee. This allows you more time to focus on growing your business but may eat into profit margins.

On the other hand, FBM gives you greater control over inventory management and potentially lower fees – but it’s also more labor-intensive.

Finding a Prep Center

If you choose FBA as your fulfillment method, consider using an  Amazon prep center . These centers inspect products before they reach Amazon warehouses and ensure compliance with packaging requirements. They can save you time and headaches while minimizing costly errors that could lead to account suspensions.

Launch Your Product

You’ve made it this far; now it’s time for liftoff. Promote your product through social media channels like Facebook or Instagram ads targeting potential customers in your niche market. You might also consider offering discounts or giveaways during the initial launch phase to generate buzz around your brand-new private label product.

Selling private label products on Amazon can greatly increase your profits and build an online presence. After launching your product, utilizing the right tactics can ensure that it is just a commencement of success. Once your product is launched, you must take certain steps to ensure its ongoing success.

To sell private label products on Amazon, start by researching high-demand items with low competition and reasonable profit margins. Find a reliable supplier through websites like Alibaba or Global Sources, create an attention-grabbing listing with eye-catching images, decide between FBA or FBM fulfillment methods, consider using an Amazon prep center for FBA orders, and promote your product through social media channels during the initial launch phase to generate buzz around your brand-new private label product.

What to Do After Launching Your Product

Congratulations. You have successfully launched your private label product on Amazon. Hold your celebrations in check – there’s still plenty of work ahead to ensure success. In this section, we’ll cover some essential steps you must take after launching your product to build a successful brand and keep those sales rolling in.

Create a Brand, Not Just Random Stuff

Your goal should be building a cohesive brand that customers can easily recognize and trust. This means creating products that complement each other and have consistent branding elements like a logo, packaging design, and messaging. Having a recognizable brand identity can be beneficial for customer loyalty and aiding potential buyers to discover your items when searching on Amazon.

Ensure You Have a Trademark

A trademark protects your brand from copycats trying to sell similar products under the same name or logo. Registering your trademark with the USPTO grants you exclusive authority over its utilization within certain types of merchandise or services.

Join the Brand Registry

Sign up for Amazon’s Brand Registry program if you haven’t already. This will give you access to tools designed specifically for private label sellers, like enhanced listing content options (A+ Content) and increased protection against counterfeiters and unauthorized resellers.

Monitor Competition and Adjust Accordingly

• Analyze competitor pricing:  Keep an eye on how competitors price their products so you can stay competitive and avoid pricing yourself out of the market.
• Monitor product reviews:  Regularly check customer feedback on both your products and those of competitors. This can help you identify areas for improvement or potential new product ideas to expand your brand.
• Stay updated with industry trends:  Keep up-to-date with what’s happening in your niche so you’re always one step ahead of the competition. You can use tools like Google Trends or subscribe to relevant newsletters and blogs.

Marketing Your Private Label Brand

Promoting your private-label products is essential for driving sales and growing brand awareness. Here are some marketing strategies worth considering:

• Social media:  Create engaging content that showcases your products, offers promotions, or provides valuable information about your niche. Platforms like Instagram, Facebook, Pinterest, and Twitter are all great options depending on where your target audience hangs out online.
• Influencers & blogger partnerships:  Collaborate with influencers who have a following within your target market by offering them free samples for an honest review or promotional post about their experience using the product(s).

After launching your product, it is crucial to monitor and analyze the performance of your Amazon private label to make necessary adjustments for success. Two thriving private label companies that have seen success on Amazon can be used as a model for success.

After launching your private label product on Amazon, creating a strong brand identity with consistent branding elements and registering for a trademark is important. Joining the Brand Registry program can give you access to additional tools and protection against counterfeiters while monitoring competition, staying updated with industry trends, and utilizing social media and influencer partnerships are essential marketing strategies for driving sales.

Examples of Two Successful Private Label Brands

Starting your own private label brand on Amazon may seem daunting, but looking at successful examples for inspiration is helpful. This section will discuss two successful private label brands: Amazon Basics and  Anker .

Amazon Basics: A Household Name in Affordable Products

Amazon Basics , as the name suggests, is Amazon’s very own private label brand that offers a wide range of everyday items such as electronics accessories, home goods, and office supplies. Launched in 2009 with just a few products like batteries and HDMI cables, it has grown into an extensive product line featuring over 5,000 items.

• Affordability:  One key factor behind the success of Amazon Basics is its focus on offering high-quality products at affordable prices.
• Diverse Product Range:  The brand caters to various customer needs by providing various products across multiple categories.
• Fulfillment by Amazon (FBA):  As part of the FBA program, all their products are shipped directly from Amazon’s warehouses, ensuring quick delivery times and an excellent customer service experience.
• User Reviews:  Most of their listings have thousands of positive reviews, which help build trust among potential buyers.

Anker: From Startup to Tech Giant Through Quality and Innovation

Anker  is another shining example of a successful private label brand on Amazon. Founded in 2011 by Steven Yang, Anker started as a small company selling laptop batteries and chargers. It has grown into a global tech giant with multiple sub-brands under its umbrella, like Soundcore, Eufy, Nebula, and Roav.

• Innovative Products:  Anker’s success can be attributed to its commitment to innovation and providing high-quality products that cater to the ever-evolving needs of consumers.
• Customer-Centric Approach:  The brand emphasizes customer feedback which helps them improve existing products and develop new ones based on consumer preferences.
• Affordable Pricing:  Like Amazon Basics, Anker offers premium quality products at competitive prices, making them accessible for all budgets.
• Dedicated Marketing Efforts:  They have effectively utilized social media platforms and influencer partnerships to promote their product line while investing in sponsored ads within Amazon’s platform.

Drawing inspiration from these two successful brands can help you build your thriving private label business on Amazon. Remember that focusing on quality products, affordable pricing strategies, and practical marketing efforts are vital for long-term success.

The article discusses two successful private label brands on Amazon, Amazon Basics and Anker. Both brands focus on providing high-quality products at affordable prices while utilizing effective marketing strategies such as customer feedback, social media platforms, and sponsored ads to build trust among potential buyers.

Amazon Private Label Frequently Asked Questions

You probably have many questions if you want to start your own private label business on Amazon. Don’t worry; we’ve got answers! Here are some frequently asked questions about selling private label products on Amazon.

What Is A Private Label Product?

A private label product is an item manufactured by one company but sold under another company’s brand name. In the case of Amazon, this means creating your own branded products and listing them for sale on the platform.

Why should I sell private label products on Amazon?

• You can create your own unique brand and stand out from competitors
• You have more control over pricing and profit margins compared to reselling other brands’ products
• You can leverage Amazon’s massive customer base and infrastructure (e.g., warehouses, shipping) to grow your business quickly

How do I source my private label products?

You’ll need to find a manufacturer or supplier to produce the items according to your specifications. Alibaba.com is a popular website for sourcing manufacturers in China, but many domestic options are available if you prefer working with U.S.-based companies.

What categories of products work best for private labeling?

The most successful categories tend to be uncomplicated consumer goods that don’t require much design or engineering expertise. Famous examples include home goods (e.g., kitchen gadgets), beauty/personal care items (e.g., skin care), pet supplies, and fitness equipment.

Do I need professional product photography for my listings?

Absolutely! High-quality photos are essential when selling online since customers can’t physically touch or inspect the product. Amazon offers its own professional photography service, but you can hire a freelance photographer.

How do I get my products to rank higher in search results?

Optimizing your product title and description with relevant keywords is key. You should also consider running sponsored ads through Amazon’s advertising platform (formerly known as AMS) to increase the visibility for your products.

We hope these FAQs have helped you start selling private label products on Amazon! For more information, check out Amazon’s official guide  on the topic.

In conclusion, Amazon Private Label can be a lucrative opportunity for small business owners looking to grow their brands and increase profits. Despite potential challenges, such as rivalry and delivery fees, the advantages of having your own branded products on Amazon are greater than any risks.

Further Reading

• What Is Amazon Low-Price FBA? A Guide To The Small and Light Replacement
• Maximize Savings With Amazon Small And Light Program In 2023
• The Seller Journal Guide to Amazon Project Zero
• How to Sell Books on Amazon
• How to Start a Successful Amazon Wholesale Business From The Ground Up

Special Thanks – Some featured and stock photos courtesy of the generous folks at Depositphotos .

Founder of Seller Journal, Since 2019 Johnathan has shared insights from his small business journeys as an Amazon seller, candle maker, coffee roaster, blogger, and software developer.

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Amazon FBA Private Label: A Complete Guide for Sellers

Krishna vemulapali.

• December 6, 2023

If you’re looking for a way to sell products online with minimal overhead, becoming an Amazon FBA private label seller could be the way to go. Amazon FBA private label gives you access to a huge audience of potential customers and allows you to sell popular products under your own branding, so that you can build up a loyal customer base. In this guide, we’ll explore the private label business model and how Amazon FBA helps you sell products online with minimal risk and outlay.

Key takeaways

• Private label selling involves purchasing a base product from a manufacturer and making it your own with logos, packaging, and a unique customer experience.
• As a private label seller, you reap numerous advantages, such as increased profit margins, building brand credibility, and having complete control over the brand you present to shoppers.
• Getting started with Amazon FBA private label involves similar steps as building your own retail business on Amazon, including designing your brand, setting your price, and launching your product.

What is Amazon FBA private label?

Amazon FBA private label combines the concept of private label products with Amazon’s convenient “Fulfilled by Amazon” fulfillment process. This helps reduce two of the biggest challenges online retailers are faced with: 

• Finding products to sell,
• Managing stock and deliveries. 

What are considered Amazon private label products?

Private label products are made by one company and then branded and sold by others. A manufacturer may make identical products for several different clients. Their clients then print their brand and logo on the items, and make other small tweaks. Then the company will sell the product under their own brand.

Private labeling is not a new practice. Large supermarkets have been using private labeling for many years. You may have noticed how many grocers have own-branded products that look or taste a lot like premium products, but are in different packaging. Those products are often made in the same factories as the premium products, but undergo private labeling.

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Why sell Amazon FBA private label?

Selling these products on Amazon offers several potential benefits. Primarily, it’s relatively easy to get sales and fulfill those orders as an FBA seller . 

Increase profit margins

When you sell private label products, you work directly with the manufacturer. This means the price you get your products for is much lower than it would be if you were buying a unique product and reselling it. Even if working with a wholesaler, you have to pay a premium to them because they have their own overheads to deal with.

By going directly to the manufacturer, you avoid a markup. You can buy inventory for the lowest possible cost, potentially even negotiating bulk purchase discounts with them.

Have your own brand

Instead of selling another company’s brand and being at the mercy of their reputation and actions, you can simply build your own brand. You have full control over the brand image, the type of products you’re selling, and the price you sell them for.

You’ll always have control over your inventory, product range, and pricing, as well as the way the brand is portrayed in marketing, from campaigns to social media.

Product customization

If you’re selling another brand’s products, you can offer only the options they have available. When you opt for a private label product, you have more freedom to customize it. That could be something as simple as adding your logo, offering different sizes, changing the packaging, or tweaking the design.

For example, if you’re selling sports clothing, you might want to build an inclusive brand by offering sizing for different body types. If you can find a manufacturer that offers a wide variety of sizing options, you can make a trial run of those sizes to test demand. By doing this, it increases your chances of gaining loyal customers by being on-trend and shopper-focused

Win the Buy Box

When you’re selling a major brand’s products on Amazon, the site will put you in competition with other marketplace sellers to be shown in the Buy Box. If your listing doesn’t appear in the Buy Box, you won’t get the sale. It’s as simple as that.

As a private label seller, you don’t have to worry about winning that Buy Box appearance. You own the brand, so you’ll be the only seller who appears on the listing, and 100% of the sales will go to you.

Credibility

Consumers are conditioned to trust brands. Some consumers are nervous about buying major brands from unknown sellers because they aren’t sure whether the product they get will be genuine or not. If they see a brand-named product listing that’s from that brand’s Amazon marketplace account, they’ll feel more at ease because they know they’re getting “that brand.”

As the brand owner, you can invest in marketing campaigns, social media outreach, and building an online presence so that people become more familiar with your brand and the products you have to offer. After you’ve been selling products online for a while and have lots of positive reviews, you’ll have a credible presence on the Amazon marketplace.

Complete control

If you’re selling another brand’s products, it can be difficult to respond quickly to changing trends. When you own a brand, you have complete control over how the brand presents itself, who it markets to, and what sort of image you cultivate.

It’s also important to note that Amazon’s algorithm currently rewards private label products and ranks them favorably compared to reselling other products.

Cons of Amazon FBA private label

So, we’ve covered the benefits, but what about the downsides?

Upfront costs

You’ll need to purchase some inventory to get started, and this can come with a substantial upfront cost. However, it’s generally a reduced expense compared to selling other brands. That’s because you can get products quite inexpensively from the manufacturer of the items.

Time and effort

There’s plenty of time and effort required to identify the products you want to sell, find a manufacturer, come up with a brand, and start selling online. And the work doesn’t stop there, either. You’ll need to market the brand and do ongoing research to respond to any changes in the marketplace.

Most FBA brands aren’t an overnight success. It takes a while to build up positive reviews and make your products popular. If you want a business that will grow steadily and sustainably, with less overhead and complexities than running a traditional online store, you can be successful with FBA.

How To Start With Amazon FBA Private Label (Step-by-Step Guide)

Depending on the industry you’re looking to build your brand in, there are a few ways to get started with FBA private label. If you’re familiar with marketing, the 4Ps are an ideal jumping-off point that consider the future growth of your business. But if you’re on the ground level, here are some detailed steps to give you a hand: 

1. Product/Market Research

Start with a product in a niche you know well. It’s easier to market products if you’re familiar with the niche. In addition, look for items that sell well on Amazon, so you won’t end up having to wait a long time for products to sell to recoup your investment.

Some popular niches for private-label products include:

• Electronics,
• Small household items,
• Cleaning products,
• Clothing basics,

Many sellers don’t do the research when it comes to increased shipping costs or complex import restrictions. To keep things simple, avoid anything with batteries that might be subject to shipping restrictions and anything delicate or perishable. It’s also a good idea to stay away from seasonal products when you’re just getting started, especially if you have a limited budget and need to see a return on your investment quickly.

Look for products that will fit into a small flat-rate box and weigh less than two pounds. This will save you money on Amazon FBA fees.

After you have some ideas for products to sell, browse Amazon and look at who has the most popular products in those areas and what they cost. Can you identify a gap in the market? Is there a way you could differentiate your products from theirs? Make a note of the prices of those products, and consider how much margin you’d need to make it worth launching your own line.

2. Source manufacturers

Once you know what products you want to sell, you’ll need to find a supplier or manufacturer. You can buy one-off products from a site such as AliExpress, but these will be generic, Plus, you’ll be paying extra to deal with a supplier. In the long term, it makes more sense to buy a private-label product from a manufacturer directly.

• Choosing the right supplier is critical. Get quotes from several manufacturers.
• Negotiate between the ones that are the most reputable to ensure you get a good deal.
• Keep in mind that price is important, but you’ll need a manufacturer that is reliable and responsive . 
• If possible, visit their factory to see for yourself how the product is made. 
• Take the time to ask them for information about their quality control procedures , too.

It can be tempting to go with the lowest quote, but if you end up with electronic products that break after a couple of uses or a garment that falls apart after the first wash, you’ll end up harming your brand’s reputation.

It can be difficult to win consumers back after a bad experience, so err on the side of the better quality product. Target consumers who want quality rather than the cheapest option.

3. Get product samples

Always ask for a product sample before you settle on a supplier. You can save a lot of time by ordering samples early on in the vetting process. Only move forward with the companies that provide a sample you’re happy with.

4. Design your brand

When you’re a private label seller on Amazon, you become the only company that’s selling your products. You will still face competition when people search for the name of your product, but you’re going to be the only brand selling your product with your logo, packaging, and specific configuration.

It’s your job as the brand owner to take advantage of those benefits by making your brand eye-catching and appealing. Take some time to think about the different elements of your brand:

• Any tagline or slogan,
• Your mission, vision, and values,
• The back story,
• Your brand colors.

Consider how your brand will look and present itself not just on Amazon but also on social media, any off-Amazon web properties, and in communication with customers. 

• Are you a serious, luxurious brand? 
• Are you aiming yourself at young consumers and looking to appear slightly cheeky? 
• Or, is your target audience busy executives who want something efficient and reliable?

Your target demographic will likely inform much of your brand. It’s worth having a professional graphic designer come up with your logo and other elements of branding, such as social media headers, letterhead, etc. Ask them to provide you with a full brand package, so you can have a consistent appearance across all of your company’s online properties and marketing channels.

Consistency is vital for any brand. Even if you carry multiple items that cover a few categories, those products should all reflect the brand’s image and values. For example, you could have a brand that sells environmentally friendly cleaning products made from sustainable materials, it might make sense to eventually add household items. However, if your business sells high-fashion items, adding a line of low-cost children’s toys wouldn’t exactly line up with your brand.

5. Create your Amazon listing

So, now you’ve got a name, a logo, and some eye-catching products to sell. The next stage is to plan your Amazon listings .

Start with some keyword research. Look for long-tail keywords that see what shoppers are looking for but also what has low competition. These are the keywords that will have the highest conversion rates. 

Make sure your listing follows Amazon’s rules for titles. There are strict requirements for each product category, and if you get them wrong, you’ll be told to modify the listing before it goes live. In particular, take care not to include superlatives, subjective terms, or offensive terms in your title or your listing.

• A good product listing will explain what the product is and what it does well and will include your main keywords. 
• You’ll need some images of the product to include with the listing. These will be shown as thumbnails on the search results page, and when the customer opens the listing. Use professionally shot photos where possible. Include several photos of your product, taking care to follow Amazon’s rules about the size, what else is included in the shot, and if/how human models are used. 
• Include any relevant keywords in the photo’s file name and in the alt text.

6. Set your price point

As a good rule of thumb, you should try to set your prices to within about 20% of the average price for a similar product from a competitor. Go higher than that, and you might lose out on sales. Go lower than that, and your margins will be too thin.

When you’re deciding on a price for your products, try to keep your expected sales volume in mind. It’s fine to have thin margins if you’re confident you’ll move a lot of inventory every week. If you’re expecting slower sales, you’ll need to see higher returns on each product.

When you first launch your Amazon store, you may end up doing limited runs of each product. If a product sells well, you can go back to the manufacturer and try to negotiate volume discounts for a bigger order. Over time, you’ll know which manufacturers you can trust. You’ll also find it easier to scale up your operations not just in terms of inventory but by the number of products your business offers too.

7. Get set up with Amazon FBA

As an FBA merchant, you can send your goods to an Amazon warehouse, and they’ll take care of the storage, packaging, and shipping. They’ll even handle returns and refunds for you.

Amazon prioritizes FBA products in the search results, making it easier for you to get noticed on the platform. In addition, many shoppers prefer FBA products because they usually have faster shipping times, making them the most convenient option.

Amazon offers two different plans for sellers. 

• The individual plan is aimed at smaller merchants who have relatively low sales volumes.
• The professional plan is aimed at bigger merchants.

When you’re deciding between an individual or seller plan , consider your overall brand. Individual FBA accounts have no monthly fee but are limited in terms of which categories they can sell items in. Professional FBA accounts get access to advanced reporting tools, sponsored ads, and other useful features and can sell to gated categories.

8. Launch your product

Once you’re set up on the Amazon marketplace and have your listings ready to go, you can launch your product . In addition to making your listing live, it’s a good idea to do some external marketing.

• Run a giveaway or flash sale to generate some buzz,
• Run a PPC ad campaign on Amazon itself,
• Run some advertisements on social media or Google,
• Use blogger outreach and social media influencers to create interest in your brand.

Plan your marketing well in advance, and take advantage of busy periods such as the holiday season. Offering discounts around these times could greatly increase your sales. It’s also an affordable way to attract some positive reviews to help your brand build its reputation.

Don’t forget that in addition to individual product pages, you also have your own dedicated Amazon storefront . While many of your customers will find you through individual product listings, it’s worth taking some time to customize your online store. According to Amazon, stores with three or more pages hold the attention of visitors for longer and generate almost one-third more sales per visitor.

Even after launch, spend time tracking the performance of your products. Tweak your advertising efforts, your price, and your product descriptions to ensure you stay ahead of the curve.

Examples of Amazon private label products

There’s a huge number of private-label brands on Amazon. In fact, Amazon has an extensive list of private label brands that they promote on the platform, including:

• Amazon Elements : A line of health and household products.
• Amazon Essentials : The store’s own clothing range.
• Amfit Nutrition : Supplements and vitamins.
• Pinzon : Bedding and towels.
• Lifelong : Pet-related products.

The private-label products listed above are just a few of the ones sold by Amazon. They have other brands aimed specifically at various verticals, like fashion-conscious men or women, athletes, etc. Each brand serves a clear niche, and many of the higher-end ones omit Amazon from their name, making it less obvious that they’re a private label product.

In total, Amazon is thought to have more than 100 different private label brands. The list of brands it maintains has grown rapidly in the last few years, too. In 2019, it was reported that Amazon sold 158,000 private label products across just 45 brands. While it has shuttered some storefronts, Amazon continues to embrace the selling of private label items showing its effectiveness.

Amazon does a good job of marketing its own brands and highlighting how they’re different from their rivals. For example, Fire tablets run a variant of the Android operating system, but it’s locked down to the Amazon app store. The tablets are popular with parents, and with some older adults, in part because of this streamlined user experience. They’d rather have an affordable tablet that works well rather than worry about mistakenly installing malicious apps.

Final thoughts about Amazon FBA Private Label Selling

As a relatively new seller, you’re probably not going to want to go head-to-head with Amazon in selling Kindles or even kitchen appliances. However, if you can find a product that’s in high demand, such as phone charging cables, headphones, or consumables like stationary, you could carve out a competitive niche.

The beauty of selling products via FBA is that Amazon does much of the day-to-day work for you, freeing you to focus on the job of market research and advertising. That’s where Trellis comes in. Our software uses AI and automation to help bolster your listings in more ways than one. From dynamic pricing to uncovering promotions that drive conversions, we’re here to lend a hand. Reach out to us to book a demo today.

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Amazon FBA Private Label 101: A Complete Guide to Achieving Success

• Published: October 23, 2023
• Modified: January 26, 2024

Are you interested in starting an affordable online business of your own? Look no further! Many entrepreneurs have achieved great success by selling private label products on Amazon, and you can too.

This business model involves creating your own brand and selling products obtained from third-party manufacturers. It may sound straightforward, but it’s also incredibly lucrative.

The private label market has been booming, with a growth rate of 11.2% in 2022, resulting in $228.6 billion in sales across all channels, according to the private label Manufacturers Association report. In fact, nearly one out of every five grocery products sold in the US is a private label or store brand product.

Now, you might be wondering how to begin your Amazon FBA private label journey. In this comprehensive guide, we will provide you with all the information you need to find and source profitable products, create your brand, and successfully launch your products on Amazon.

By the time you finish reading this article, you’ll have a clear roadmap to kickstart and expand your own Amazon FBA private label business.

Let’s dive into the world of Amazon FBA private label and understand its significance before delving into the specifics of selling these products.

Private label businesses involve sellers offering products from third-party manufacturers under their own brand. This grants them complete control over the product, allowing customization of brand logos, packaging, labels, and even pricing. Moreover, they have autonomy over marketing and advertising efforts.

In the realm of e-commerce, Amazon FBA plays a crucial role. FBA stands for Fulfillment by Amazon, a service where Amazon handles the entire fulfillment process. Sellers can entrust Amazon with storage, packing, shipping, and customer service. By simply sending their products to Amazon’s warehouses, sellers can focus on other aspects of their business.

Combining Amazon FBA with private label offerings presents immense advantages for online sellers. They gain access to Amazon’s vast customer base, leveraging the trust and credibility the platform has garnered over the years. Additionally, Amazon FBA private label allows sellers to establish their own brand identity and stand out from competitors. In summary, Amazon FBA private label presents a low-risk, high-reward opportunity to kickstart an online business.

Discover the compelling reasons to sell private label products on Amazon and unlock a world of opportunities. Explore the benefits below:

1. Full Ownership of Your Brand: With a private label brand, you have complete control and decision-making power. Unlike arbitrage or wholesale models, where you resell other brands’ products, you can independently shape your business, focusing on marketing and exceptional customer service to strengthen your brand and foster loyalty.

2. No Brand Restrictions: Selling private label products eliminates the need for brand approval. Unlike reselling items from other brands, which may be limited by Amazon’s Brand Gating feature for counterfeit management, you have the freedom to sell products under your own brand name.

3. Enhanced Opportunities on Amazon: By selling private label products under your brand, you gain access to a multitude of valuable opportunities on Amazon. These include Brand Registry, Sponsored Brands, Amazon Storefront, Amazon Live, Virtual Bundles, Amazon Attribution, Amazon Brand Analytics, and more. Effectively leveraging these options enables efficient targeting of your desired audience, improved product performance assessment, and enhanced conversion rates.

4. Customization Potential: Analyzing customer reviews and frequently asked questions about your own and competitor products allows you to identify areas for improvement. By implementing modifications based on these insights, you can stay ahead of the competition and create exceptional products that resonate with your customers.

5. Increased Profit Margins: Sourcing products directly from manufacturers or suppliers grants you control over the Costs of Goods Sold (CoGS). You can negotiate favorable pricing and terms, avoiding middlemen fees or commissions. Additionally, you have the flexibility to set pricing strategies that reflect the perceived value and quality of your products, thereby boosting profit margins compared to retail arbitrage or wholesale models.

6. Utilize A+ Content for Conversions: Leverage A+ content or enhanced brand content to amplify your brand awareness and drive sales. Take advantage of this feature on Amazon to provide potential buyers with additional information about your products, influencing their purchase decisions. According to Amazon, A+ content can increase sales by an average of 5.6%.

7. Secure the Buy Box: The Buy Box, a prominent feature on the product page, significantly impacts sales and visibility on Amazon, with 82% of sales originating from it. While resellers often compete for the Buy Box, private label brand owners enjoy an advantage. As the sole seller of their brand’s products, they can instantly secure the Buy Box, elevating conversion rates and revenue.

8. Full Control over Listings: With a private label brand, you have complete control over your product listings. You can optimize various listing elements, including images, descriptions, keywords, pricing, and A+ content. Offering a diverse range of products tailored to different consumer demographics becomes feasible, empowering you to enhance your business’s overall performance.

By embracing the world of private label products on Amazon, you unlock immense potential for success that would be impossible when reselling others’ products.

While selling Amazon FBA private label products offers numerous benefits, it’s essential to be aware of the potential drawbacks. Here are some of the considerations to keep in mind:

1. Higher Initial Investment: Selling private label products requires a significant upfront investment compared to reselling. Manufacturers often require bulk orders, and you need to cover expenses such as branding, packaging, labeling, shipping, and marketing. Sufficient capital and cash flow are necessary to start and sustain your private label business.

2. Limited Quality Control: Since you source products from third-party manufacturers, you have limited control over quality and safety checks. In the event of a subpar product reaching customers, it can harm your brand reputation and diminish customer loyalty. Negative product reviews can also impact your product listing, leading to reduced sales.

3. Time and Effort Intensive: Selling private label products is not a shortcut to instant riches. It demands considerable time and effort to identify and source profitable products, create a brand, launch and market products, manage inventory and orders, and more. Ongoing monitoring of competitors and customer feedback is crucial, requiring adjustments to strategies accordingly.

It’s important to recognize that selling Amazon FBA private label products is not without challenges. However, it’s crucial not to be discouraged by these drawbacks.

When executed correctly, selling Amazon FBA private label products can be a highly rewarding and profitable business model.

In the following section, we will guide you on the right approach to maximize your success in this venture.

How to Create an Amazon Private Label: A Step-by-Step Guide

Meta Description: Learn how to create your own private label brand on Amazon with this comprehensive step-by-step guide. Discover product research tips, finding reliable manufacturers, optimizing your Amazon listing, building a brand, setting competitive prices, choosing a fulfillment method, preparing inventory, and launching your product successfully.

Introduction:

Discover the step-by-step process of creating your own private label brand on Amazon. This guide covers essential aspects such as product research, finding reliable manufacturers, optimizing your Amazon listing, building a brand identity, setting competitive prices, choosing a fulfillment method, preparing inventory, and launching your product successfully.

1. Product Research: Identifying Profitable Opportunities

Effective product research is crucial for a successful private label business. Focus on proven products with high sales potential rather than relying on assumptions. Consider product attributes such as small and lightweight, year-round demand, non-regulated items, and simplicity. Evaluate potential products based on price, monthly sales, ratings, reviews, and listing quality to determine their viability.

2. Finding a Reliable Manufacturer

Choosing the right manufacturer is key to ensuring quality and timely production. Utilize tools like SellerApp Product Sourcing to identify reputable manufacturers. Consider factors beyond price, such as supplier reviews, quality-to-price balance, and minimum order quantity. Request information from multiple manufacturers and assess their responsiveness and willingness to negotiate.

3. Creating an Optimized Amazon Listing

Crafting an exceptional Amazon product listing is crucial for attracting customers. Optimize your listing by investing in professional product photography, competitive pricing, compelling product descriptions, and obtaining a UPC. Conduct extensive keyword research using tools like SellerApp Keyword Research and Reverse ASIN to identify high-converting keywords. Incorporate these keywords strategically in your product title, description, and bullet points to improve visibility and drive sales.

4. Building a Strong Brand Identity

Differentiate your private label products by creating a unique brand identity. Develop a distinctive logo, select brand colors, fonts, and design elements, and ensure your product design stands out from the competition. A/B test different design options and gather feedback from a focus group to resonate with your target audience effectively.

5. Setting Competitive Prices

Avoid underpricing your products solely based on competitors. Instead, focus on delivering value through design, packaging, marketing communication, or exceptional customer service. Aim to keep your price within 20% of the average sales price of competitors in your category. Selling products within the $20 to $50 range is generally recommended to maintain profitability.

6. Choosing a Fulfillment Method

Selecting the right fulfillment method is crucial for timely and efficient product delivery. Amazon offers two options: Fulfillment by Merchant (FBM) and Fulfillment by Amazon (FBA). FBA is recommended for new sellers as it provides storage, packaging, shipping, customer service, and improved visibility on the Amazon search page.

7. Inventory Preparation for Amazon Fulfillment

Ensure compliance with Amazon’s inventory preparation requirements to avoid potential issues. Follow guidelines for unique FNSKU codes, scannable barcodes, package labeling, and secure packaging. Take care to meet specific requirements for loose products, boxed units, footwear, and scented items.

8. Launching and Promoting Your Product

Effectively launch your product by implementing a strategic promotion plan. Utilize Amazon’s PPC ads, run external ads on platforms like Instagram or Google, engage in influencer marketing, or offer giveaways and lightning deals to generate buzz and drive traffic and conversions.

Conclusion:

Follow these step-by-step instructions to create your own private label brand on Amazon. By conducting thorough product research, finding reliable manufacturers, optimizing your Amazon listing, building a strong brand identity, setting competitive prices, choosing the right fulfillment method, preparing inventory, and implementing an effective launch and promotion strategy, you can increase your chances of success and profitability in the competitive Amazon marketplace.

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How to start an amazon private label business.

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Investing in a private label brand takes time and research, from conceptualization to hands-on execution. Ensure you’re up for the challenge and learn the steps you need to get started as an Amazon Private Label seller. 

Continue reading, and we will explain how to start a private label business on Amazon and provide practical advice on how to ensure success.

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Table of Contents

What are Amazon Private Label Products?

• Advantages of Selling Amazon Private Label Products
• Getting Started as a Private Label on Amazon
• 3 Tips for Selling Private Label Products on Amazon

Private label products are manufactured by a third-party and then sold to another company to brand, market, and sell under their own brand name or label.

What is Amazon private label? Put simply, private label products are manufactured by a third-party manufacturer or company and then sold to another company to brand, market, and sell under their own brand name or label.  The manufacturer has no rights over the label or brand, and you get to decide on the product design, your brand logo, labeling, packaging, and all other creative elements. 

Private label products could be a generic Alibaba product with their brand label added, a product with custom additions or changes, or a unique product sold exclusively by that brand. 

Although it can take time and work to build your brand recognition, selling private label products on Amazon allows your business to grow long-term. 

White label products are generally less expensive, allowing you to achieve higher margins.

Advantages of Selling Private Label Products on Amazon

Amazon private label products have many benefits on Amazon, including:

• Increase in Credibility. By selling products under a private label, you can capitalize on in-demand products while contributing to your own brand’s credibility. 
• Higher Profit Margins. White label products are generally less expensive, allowing you to achieve higher margins.
• More Exposure. Amazon values private label products and will give more exposure to private label sellers on the platform.
• Option for Customization. You can stand out by customizing your products depending on customers’ needs and demands.

Amazon Private Label Requirements

Private label products have many benefits on Amazon, including:

• Business verification: All private labels have a registered business entity in their selling country. This includes legal structures like sole proprietorships, partnerships, or corporations. You must provide Amazon with business registration documents, such as a business license and tax ID, to verify its legitimacy.
• Compliance and regulations: Ensure products comply with Amazon’s policies and regulations, including safety standards and intellectual property rights.
• Product Listings : Optimize product listings with high-quality images, compelling descriptions, and relevant keywords.
• Supplier Selection : Find reliable suppliers who can provide quality products at competitive prices.
• Packaging: Each private label product must possess a unique identifier, such as a barcode or ASIN.

How to Start Your Private Label on Amazon

Many e-commerce businesses prefer to buy popular products already in high demand and brand them under their own private label. But to successfully launch an Amazon private label step-by-step, there is a process you must follow when starting, and that begins with adequate research.

Popular private label products to start with include household items, groceries, and electronics. 

1. Pick Your Products

It’s necessary to do your research to identify the right product to add to your catalog. When figuring out which products would make sense for you to white label, find a product that you stand behind and can realistically become a best seller. 

Brainstorm activities, services, or product categories that interest you, then list the associated products. 

Start with a broader list that you can gradually narrow down to help ensure you cover your bases. Popular private label products to start with include household items, groceries , and electronics. 

Picking your first Amazon private label products should take time, so be sure to consider the following:

• Small and lightweight items like supplements and cosmetics (saving your fulfillment and shipping costs)
• Easy to sell, and uncomplicated products (no paperwork, no customer service issues, and no batteries)
• Avoid seasonal products when you are just starting out

Be sure to take the existing or potential demand into consideration, including any sales fluctuations or seasonality. Moreover, ask yourself if you will be able to create recurring demand. 

Want more tips? Read our Amazon Private Label Checklist for choosing and sourcing your products.

Your supplier plays a significant role in the success of your private label products.

2. Partner With an Experienced Supplier or Manufacturer

There are two methods you can use when sourcing your products. You can go directly to a manufacturer to secure a private label product, or you can order one-offs of products on sites like AliExpress to avoid dealing directly with a manufacturer. 

We suggest dealing directly with a manufacturer, but be sure to take the time to compare supplies and negotiate prices. The best way to ensure you invest in quality products is by asking for a sample. Although not free, this may save you a lot of time and help you avoid bad reviews if the product is not up to snuff.

Your supplier plays a significant role in the success of your private label products. While cost will be critical in determining the right supplier, it cannot be the sole factor. You should consider labor and material costs, as well as currency appreciation, if sourcing from overseas when weighing your options. 

Isolate your search to only the experienced suppliers with products similar to the ones you want to produce to ensure they are credible and reliable. E stablish a rapport over the phone, and do a site visit to their manufacturing facility to gain a clear understanding of how and where your products will be created. 

Be sure to balance product quality and cost to ensure that you do not end up paying an extremely low price to receive a product of poor quality. Inquire about minimum order quantities and find out about their quality assurance (QA) process to mitigate the risk of any defects or quality issues. 

Want more tips? Learn how to find a manufacturer for your Amazon private label products.

Infuse unique and bold colors, fonts, and design elements into your logo and packaging

3. Select Your Brand’s Logo, Product Design, and Packaging

A key benefit of selling private label products on Amazon is the lack of direct competition , meaning that you automatically win the Buy Box on the ASIN. 

While you can face indirect competition, no one is selling your identical product — with your exact brand, packaging, value-added benefits, features, or competitive differentiators.

Aside from the physical components of a product, such as the product itself and the packaging, you can also set your brand apart from the competition with a compelling value proposition and engaging brand story. Both of these more intangible elements of your brand can help promote brand awareness, consumer engagement, and social proof. 

To entice prospective buyers, infuse unique and bold colors, fonts, and design elements into your logo and packaging and remain consistent across any additional products you add to your private label line to demonstrate brand consistency. 

When creating the brand concept and physical design, keep your target customer in mind and make sure your decision appeals to them.

4. Request Product Samples for Quality Control

After you have developed your product, be sure to ask your supplier for samples so you can make sure the quality and other specs are precisely what you are looking for before you go to market. 

Share the prototypes and packaging with various groups of people, including prospective buyers, to garner any feedback that should be addressed before placing your initial bulk order.

5. Decide on Your Amazon Fulfillment Strategy

Before you make your first sale, you need to find a way to fulfill your orders. You have a few options, including fulfilling your own product, finding an outside source to package and ship your product , or becoming an Amazon FBA seller . 

To decide if you will fulfill your Amazon orders via a merchant-fulfilled operation ( Fulfillment by Merchant or Seller Fulfilled Prime ) or through Fulfillment by Amazon , you need to understand which products have proven success with each fulfillment method. 

Ask yourself these questions:

• Do your products require special handling? 
• Are they easily prone to damage with extreme temperature fluctuations? 
• Do you want the Amazon Prime badge on every product you sell? 
• Do you have the bandwidth to take care of customer service and returns, or would you prefer that Amazon handles those logistics?

Discover which products are best suited for each fulfillment method, by reading our fulfillment playbook to help inform your decision . Whichever route you ultimately choose, consider the size of your operation, your product categories, and your business objectives for the year.

6. Create Your Listing on Amazon

Once you have sourced and decided upon your products, it is time to begin to research keywords for your product title and description and collect high-quality images of your product(s) to create a listing on Amazon . 

Take time to find the perfect listing title. If you aren’t sure where to start, look at your competition and decide what you want to replicate and how you want to stand out.

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How to sell private label products on amazon: top tips , 1. fulfill your orders with amazon fba private label.

Many sellers use Amazon FBA to sell private label products. You can fulfill orders yourself, but by using Amazon FBA , you can reduce your risk and pass the responsibility on to Amazon to handle your customer service . 

This shipping method allows you to send your inventory to one of Amazon’s warehouses, which will store, pack, and ship your orders to customers and take care of returns and refunds . If you want to save time, this is the best way to do it. You can consider a different fulfillment method if you want more control over your products.

Further Reading: FBA or FBM on Amazon

2. Optimize Your Amazon Pricing

As we discussed at the beginning of this article, it takes a bit more work to sell on Amazon than it used to. There is more competition, changes in demand, and low stock availability due to ongoing supply chain issues. 

Optimizing your price by understanding the competition and demand will help you increase your profit and stand out from the crowd.

3. Don’t Just Resell, Brand Your Amazon Private Label Products

Creating branded products gives you a much greater chance of success than brandless items or listings. One way to do so is by creating a logo and color scheme for your private label brand. 

Use your core product decisions to get a clear idea of your brand identity and invest in a graphic designer to help you make a logo and a brand vision that you are proud of. Incorporate the brand logo as a label on your products, packaging, and listing. Taking the time to do this will help you create brand recognition and foster trust with your customers.

About the Author Rachel Van Clepper is a content marketing writer for Feedvisor, where she contributes to the company’s content marketing initiatives. Before joining Feedvisor, she was a senior content marketing writer for a nonprofit software company.

Final Thoughts

There is now much greater importance on your Amazon selling and optimization strategy as a private label seller.

Amazon Private label products require time, research, effort, vetting, and cash flow . Still, if you maintain control and involvement throughout the entire process, you can increase your margins and generate incremental revenue on Amazon. 

Get a deeper look into Feedvisor’s ProductSphere and understand how you can use Feedvisor’s technology to get a competitive edge for your private label products on Amazon, including inventory and forecasting with machine-learning optimization algorithms. 

More Resources

Amazon FBA, FBM, SFP: Which Is Right for You?

Brands & Amazon: Insights, Opportunities, and Concerns in the Age of E-Commerce

6 Reasons Brand Management Is Critical to Your E-Commerce Business

Amazon Prime Day 2023 Analysis: Sales and Advertising Results and Insights

Feedvisor’s end-to-end platform helps sellers and brands drive growth on amazon.

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Amazon FBA Private Label

Amazon FBA Private Label brands are digitally native Direct-to-Consumer ( DTC ) brands, that have started using Amazon FBA as their main sales and distribution channel.

The Business Model

In the private label business model, the seller deals directly with manufacturers to create his products in bulk, and pays for designing, manufacturing, packaging and shipping the finished goods.

The products get sold on Amazon at a higher price, and when they sell, Amazon handles the fulfillment, and the seller gets the sales proceeds, after deducting Amazon’s commission, storage and fulfillment fees.

The proceeds from the sale of goods after selling and fulfillment costs pay for other business costs, such as employees, office, warehouse, admin fees.. etc. The remaining amount is the net profit of the business.

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Amazon FBA Private Label Step by Step

Step 1 : Research

Conduct market research to identify opportunities in the market for unfulfilled needs or low competition niches. The result of this process will be a list of specific needs and wants, and potential product ideas that can match them.

Read Also: Amazon Product Research

FOUNDATIONS OF MARKETING

• Learn the fundamentals of marketing
• See how they apply to buying, merchandising & pricing
• Real-life case studies and examples

Step 2: Product Concept

Define the concept of the product, based on your research findings. For example, your research led you to the finding that there are regular dog food products, but these products lack specific useful ingredients, such as vitamins or minerals that dogs need in their diet. So the concept could be to create food supplement products that provide those missing ingredients.

Step 3: Design & Branding

Now that you know what type of product to create, it’s time to think about the design of that product, which form it will be in, the package design, and all the different brand elements (logo, color, slogan, …etc)

BRANDING & POSITIONING

• Building & managing brand equity
• Positioning brands & products in consumers' minds
• Real-life cases from retail brands

Step 4: Manufacturing

Now that the product specifications and design is ready, it’s time to search for manufacturers and suppliers to make this product for you to your specified standards.

Step 5: Product Listing

At this step, you will add your products to the Amazon catalogue, by creating new, unique ASINs for them, and creating the product listing (sales page).

Step 6: Sending Inventory

Prepare and send your inventory to an Amazon Fulfillment Center, by following Amazon’s guidelines . Once your products are sent to the fulfillment center, they will be available for sale on the Amazon platform.

Step 7: Managing Inventory

As sales start coming in, it’s time to monitor your sales and inventory levels, to make sure your products always have adequate stock cover , so that you don’t run out of stock and lose sales opportunities. Based on the order lead time of your manufacturer and the sales velocity of your products on the platform, you will manage your inventory cover and ordering quantities each time.

Read Also: Open to Buy – Complete Guide

Step 8: Growing Your Business

Amazon gives you a lot of brand tools to help analyze and grow your business on the platform. This includes helping you grow your product assortment, by discovering more product opportunities from the insights of the platform, and also growing your sales using all the marketing & advertising tools provided to brands.

Another way to grow your business is to unlock more distribution channels outside of Amazon; i.e. getting into brick & mortar retail. Almost all the successful Amazon FBA private label brands that we studied have eventually gone this route. In the below video, we explain why consumer packaged goods (CPG) companies seek retail distribution and securing shelf space.

Benefits of Amazon FBA Private Label Model

There are many benefits to the seller when going for the private label model instead of the reselling model.

Lower Product Costs

When the seller manufactures their own products, the cost of the product will be much lower than sourcing the product from a wholesaler or distributor, or at a discount in a retail store. This results in higher gross margins.

However; there’s one caveat here, which is MOQs or minimum order quantities.

When you deal with manufactures directly, you need to order a minimum number of units, and this is typically higher than the required minimums when you buy in bulk from wholesalers. This requires a high capital to start with, especially if you are building an assortment of different SKUs, as each SKU and its variations will have its own minimums.

Controlled Supply

The Amazon FBA private label model allows the seller and brand owner to have more control over the supply & availability of their products on the platform. If you don’t sell in bulk to distributors or wholesalers, there will be minimal competition from other resellers.

For some brands and products that have a high risk of counterfeiting, you might even be able to request gating for your brand or certain ASINs ; i.e. prevent anyone from selling on them without authorization, although this usually applies to large brands with high sales volume.

Such control over supply leads to better control over prices, and consequently higher margins; especially if the products are unique, and not just copy cats or white labeled products with no differentiation.

No Competition Over The Buy Box

Amazon resellers are constantly competing over the Amazon Buy Box (Now called Featured Offer), where Amazon’s algorithms determines who wins this box and gets the sale from the order.

When you are the owner of the brand, and the only seller for your products on Amazon, there will be no competition for the buy box for your products, which allows you to control the pricing and margins on these products.

Read Also: Amazon Listing Hijacking

Amazon Brand Tools

Amazon provides a set of tools for brand owners to analyze and grow their business, as well as protect their intellectual properties.

These tools include:

• Experiments
• Brand Dashboard
• Amazon Stores
• Amazon Attribution
• Sponsored Brands
• Brand Analytics
• Amazon Live
• Brand Registry
• Transparency

More Growth Opportunities

Unlike resellers, Amazon private label brand owners have more opportunities to grow their business outside of Amazon, by securing brick & mortar retail distribution, and that’s what most successful FBA brands end up doing.

Using more distribution channels has a lot of benefits, including:

• Bringing products closer to consumers
• Increasing brand equity and recognition
• Mitigating the risk of relying on one platform or channel
• Achieving economies of scale through manufacturing higher quantities

Examples of Successful Amazon Private Label Brands

Lume deodorant.

Lume Deodorant (pronounced Loo-mee) is a top Amazon FBA private label in the beauty & personal care category

Lume Deodorant was invented by Shannon Klingman,M.D. , an OB/GYN resident who was looking to solve a specific problem a lot of her patients were facing, namely, bad odor in their private parts. After running clinical tests to find the real reason behind this problem, she went ahead and created a formula to solve this particular problem, as well as body odor in general.

After having a huge success with Lume, she then created a similar brand for men called “Mando”, with more masculine scents.

Lume products are now also available at big-box retailers such as Walmart & Target and other select local retailers.

Anker Innovations

Anker is a top seller in the electronics category.

Anker is a Chinese private label brand that was founded by Steven Yang. Before 2016 it only sold on Amazon and Newegg, and now it is available at big-box retailers such as Target, Kohl’s & Best Buy.

Is Amazon FBA Private Label Profitable?

Like any business, the Amazon FBA Private Label business can be profitable if the numbers will all workout at the end. By that we mean, good top line sales, high-enough margins and controlled costs.

You can start from the end, by creating a budget with realistic forecasts, and see if these numbers result in final profit.

Common reasons that can lead to FBA private label businesses not being profitable include:

• No enough demand for the products in the market, and hence no or low sales
• Pricing too low, leading to selling on very low margins
• Pricing too high, leading to reduced demand and low sales
• Having to spend too much on ads to get sales
• Having too much inventory , leading to excessive discounts and markdowns to clear it.
• Having high fixed costs at the business

Join us and learn how to start and manage a retail or ecommerce business end-to-end . Learn from our courses, guides, implementation frameworks, and use our ready-to-use templates that get you started quickly.

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One Membership = Access to All Resources

More resources.

• How Amazon FBA Works
• Open to Buy: How Much Inventory Do You Need?
• What is AmazonBasics?
• How to Create a Private Label Brand
• Understanding ASINs & The Amazon Catalogue
• Amazon ACoS: Calculation, Benchmark & Considerations
• The CPG Industry
• The Beauty Industry
• Category Management Courses

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CONNECT THE DOTS

Learn how to manage a retail business end-to-end.

We’ve put together a curriculum, specifically designed for retail owners or retail professionals who want to advance into senior management roles.

Learn how to connect the dots of the business and take the basic knowledge to the next level of application . 

The Ultimate Guide to Private Labeling on Amazon: Step-By-Step Process and Strategies

by Anthony | Aug 3, 2023 | amazon private label | 0 comments

Imagine being the captain of your own ship, sailing through the vast ocean of opportunity that is Amazon. You have the power to chart your own course, create your own brand, and reap the rewards of your hard work. Welcome to the world of private labeling on Amazon, where you can turn your dreams of entrepreneurship into a reality.

In this ultimate guide, we will take you by the hand and show you the step-by-step process and strategies to successfully navigate the world of private labeling on Amazon. You’ll learn how to select a profitable product, find reliable suppliers, and create a brand that stands out from the competition.

We’ll guide you through the process of creating a successful product listing, launching your private label product, and monitoring and improving its performance.

Whether you’re a seasoned entrepreneur looking to expand your business or a budding dreamer ready to take the plunge into the world of e-commerce, this guide is for you. Get ready to set sail on the Amazon seas and discover the incredible potential of private labeling.

Understanding Private Labeling on Amazon

Definition and concept of private labeling.

Imagine you’re walking through a bustling marketplace, filled with rows of unique products that bear your own brand name and logo – this is the world of private labeling on Amazon.

Private labeling refers to the practice of selling products under your own brand name, which are manufactured by a third-party supplier. It allows you to create a unique brand identity and differentiate yourself from competitors.

One of the key benefits of private labeling on Amazon is the ability to control the quality and design of your products. You have the freedom to choose what features and specifications your products should have, ensuring they meet the needs and preferences of your target audience.

Additionally, private labeling strategies involve conducting thorough market research to identify profitable product niches and leveraging Amazon’s vast customer base to increase your sales and revenue.

Benefits and Advantages of Private Labeling on Amazon

By private labeling on Amazon, you gain the advantage of controlling the quality, design, and specifications of your products, allowing you to create a unique brand identity and stand out from your competitors. This gives you the opportunity to build a strong reputation for your brand and establish trust with customers.

When you have control over the production process, you can ensure that your products meet the highest standards, leading to increased customer satisfaction and positive reviews. Private labeling also allows you to differentiate yourself from generic products and establish a loyal customer base. By creating a consistent and recognizable brand image, you can foster customer loyalty and encourage repeat purchases.

However, it’s important to note that private labeling on Amazon comes with its challenges, such as finding reliable suppliers and managing inventory effectively. To overcome these challenges, it’s crucial to thoroughly research and plan your private labeling strategy.

Selecting a Profitable Product

Conducting market research and identifying product opportunities.

Conducting market research techniques is crucial to understand the demand and competition for a particular product.

Start by analyzing best-selling products in different categories, looking for trends and customer reviews, and identifying gaps or underserved markets. Use tools like Jungle Scout or Helium 10 to gather data on sales volume, price, and competition. Additionally, pay attention to keyword research to optimize your product listings and increase visibility.

Once you have identified potential niches, evaluate their profitability by considering factors like production costs, shipping fees, and potential profit margins.

Evaluating Demand, Competition, and Profitability

Evaluating the demand, competition, and profitability of potential product opportunities can be a game-changer for your private label business, setting you up for success in the fiercely competitive world of Amazon.

To effectively evaluate market trends, start by analyzing the demand for a particular product. Look for products that are experiencing an upward trend in sales and have a high search volume on Amazon. This indicates a strong demand and a potential opportunity for your private label.

Next, assess the competition by analyzing the number of sellers and their sales performance. Consider the number of reviews and ratings for competing products, as this can give you an idea of their popularity and customer satisfaction.

Lastly, calculate the potential profitability by considering the cost of production, shipping, and fees, and compare it to the selling price.

Niche Selection and Targeting Specific Customer Segments

Customer segmentation strategies play a crucial role in this process. By identifying and targeting specific customer segments, you can tailor your products and marketing efforts to meet their unique needs and preferences.

This approach allows you to stand out from the competition and build a strong brand identity. Niche selection is equally important as it directly impacts your private labeling success. By choosing a niche that has high demand and low competition, you increase your chances of capturing a larger market share.

Additionally, focusing on a specific niche allows you to establish yourself as an expert in that area, further attracting customers who are interested in your products.

Finding Reliable Suppliers

Strategies for sourcing suppliers on amazon and beyond.

When it comes to sourcing alternatives, don’t limit yourself to just Amazon. Explore other online marketplaces, trade shows, and industry-specific directories to find potential suppliers. Additionally, consider reaching out to manufacturers directly, as they may offer better prices and more customization options.

Once you’ve found potential suppliers, negotiating contracts is crucial to ensure favorable terms and conditions. Be prepared to discuss minimum order quantities, pricing, payment terms, and quality control measures. Don’t be afraid to negotiate for better prices or request samples to assess the supplier’s product quality.

Evaluating Supplier Credibility, Quality, and Pricing

To ensure you make informed decisions about suppliers, it’s crucial to evaluate their credibility, quality, and pricing.

Supplier verification is an essential step in this process. Before finalizing any deal, conduct thorough research on the supplier’s background, reputation, and customer reviews. Look for any red flags or negative feedback that could indicate potential issues.

Once you have verified their credibility, focus on evaluating the quality of their products. Request samples to test their materials, craftsmanship, and overall durability. This will help you determine if their products meet your standards and customer expectations.

Lastly, negotiate the pricing to ensure you’re getting the best deal possible. Use effective negotiation strategies, such as comparing prices from different suppliers and leveraging your purchasing power.

Establishing Strong Relationships with Suppliers

Now that you’ve evaluated supplier credibility, quality, and pricing, it’s time to take the next step in your private labeling journey. Establishing strong relationships with your suppliers is crucial for long-term success.

This involves building trust and open communication channels with them. By doing so, you can ensure a steady supply of high-quality products and negotiate favorable terms.

To establish long-term partnerships with your suppliers, here are three key strategies to consider:

• Regular Communication: Maintain an open line of communication with your suppliers to address any concerns or changes in your business needs.
• Building Trust: Show your suppliers that you value their expertise and respect their opinions. This will help foster a strong and collaborative relationship.
• Negotiating Supplier Contracts: Negotiate contracts that outline terms and conditions, pricing structures, and product specifications. This will protect your interests and provide clarity for both parties.

Branding and Packaging

Importance of branding and creating a unique brand identity.

Branding is like giving your product a personality; it adds character and distinctive features that make it stand out from the crowd. Creating brand loyalty is crucial in today’s competitive market. When customers connect with your brand on an emotional level, they’re more likely to choose your product over the competition.

Establishing a brand identity is essential for building this loyalty. A unique brand identity helps consumers recognize and remember your product, creating a sense of trust and familiarity. By consistently delivering high-quality products and experiences, you can reinforce your brand’s identity and build a loyal customer base.

Your brand should reflect your values, mission, and vision, creating a strong connection with your target audience. So, invest time and effort in crafting a unique brand identity that resonates with your customers and sets you apart from the competition.

Designing Compelling Packaging that Reflects the Brand

Designing compelling packaging that reflects the brand is like creating a visual representation of your product’s personality and values. It’s crucial to design packaging that stands out and captures the attention of potential customers. The packaging should not only be visually appealing but also communicate the brand’s identity and values effectively.

To evoke emotion in your audience through packaging design, consider incorporating these elements:

• Colors: Choose colors that align with your brand’s personality and evoke the desired emotional response. For example, vibrant colors can create a sense of excitement and energy, while muted tones can convey sophistication and elegance.
• Typography: Select fonts that reflect the tone and style of your brand. Typography can evoke different emotions, so choose fonts that align with your brand’s personality.
• Imagery: Use images or illustrations that resonate with your target audience and convey the product’s benefits. High-quality visuals can create a strong emotional connection and help customers understand the value of your product.

Remember, the design of your packaging plays a significant role in creating a unique brand identity and attracting customers.

Incorporating Brand Messaging and Storytelling

Incorporating brand messaging and storytelling in your packaging design is like infusing the soul of your product into its physical representation, creating a captivating narrative that speaks directly to your customers.

By incorporating emotional storytelling elements, you can connect with your audience on a deeper level and create a memorable experience. Brand messaging allows you to communicate the values, mission, and vision of your brand, while storytelling helps to evoke emotions and create a personal connection.

When customers resonate with your brand story, they’re more likely to develop a sense of loyalty and trust. This emotional connection can lead to repeat purchases and word-of-mouth recommendations, ultimately building brand loyalty.

Creating a Successful Product Listing

Keyword research and optimization techniques.

To maximize your success on Amazon, start by diving into keyword research and optimization techniques that will help you stand out from the competition and drive more organic traffic to your private label products.

One effective strategy is to focus on long tail keywords. These are longer and more specific keyword phrases that potential customers are likely to use when searching for a product. By incorporating these long tail keywords into your product listing, you can increase your chances of appearing in relevant search results and attracting the right audience.

Another crucial aspect of keyword research is competitor analysis. By studying your competitors’ listings and identifying the keywords they’re targeting, you can gain valuable insights and discover new keyword opportunities to leverage in your own product listing.

Writing Persuasive and Informative Product Titles and Descriptions

Now that you’ve mastered the art of keyword research and optimization, it’s time to take your private labeling game to the next level.

In this section, we will delve into the crucial task of writing persuasive and informative product titles and descriptions. Crafting compelling titles and descriptions is essential for grabbing the attention of potential customers and convincing them to choose your product over the competition.

By employing effective writing persuasive techniques and optimizing your product descriptions, you can create a powerful selling proposition that resonates with your target audience. From using attention-grabbing headlines to highlighting the unique features and benefits of your product, we will guide you through the step-by-step process of creating product titles and descriptions that pack a punch.

Utilizing High-Quality Images and Other Media Elements

Immerse yourself in a visually captivating experience that’ll leave a lasting impression on your audience as you harness the power of high-quality images and other media elements to evoke emotions and increase customer engagement.

Here’s how you can create a visually appealing experience for your customers:

• Capture attention with stunning product images: Use professional photography techniques to highlight the unique features and qualities of your product. Show it from different angles and in various settings to give customers a clear understanding of what they can expect.
• Enhance product descriptions with informative videos: Create videos that demonstrate how your product works or showcase its benefits. This allows customers to visualize themselves using the product and helps them make informed purchasing decisions.
• Leverage social media influencers: Collaborate with popular influencers who align with your brand to promote your products. Their large following and credibility can significantly increase product visibility and generate trust among potential customers.
• Encourage user-generated content: Encourage customers to share their experiences with your products by featuring their photos or videos on your social media platforms. This builds social proof and creates a sense of community around your brand.

Leveraging Customer Reviews and Social Proof

Customer reviews are a powerful tool for private label sellers on Amazon. Positive reviews not only showcase the quality and value of your products but also provide social proof that others have had a positive experience with your brand. Encourage customers to leave reviews by offering incentives or reaching out to them directly.

Additionally, consider leveraging influencer partnerships to further enhance your brand’s credibility. Collaborating with influencers who have a strong following in your niche can help increase brand visibility and generate positive reviews.

Maximize your social media presence by actively engaging with your audience and sharing user-generated content. This will further validate your brand and create a community of loyal customers.

Launching Your Private Label Product

Setting up a seller account and creating a product listing.

Get ready to dive into the exciting world of private labeling on Amazon by setting up your seller account and creating an irresistible product listing that’ll have customers flocking to buy your product like hungry wolves on a hunt.

To ensure your success, follow these steps:

• Start by setting up your seller account. Provide all the necessary information, such as your business name, address, and contact details. Choose the right selling plan that suits your needs.
• Next, optimize your product listing. Use relevant keywords in your product title, bullet points, and product description to improve visibility. Include high-quality images that showcase your product from different angles.
• Craft a compelling product description that highlights the unique features and benefits of your product. Use persuasive language to engage and captivate potential customers.
• Finally, set competitive prices for your products. Research the market to determine the optimal price point that’ll attract customers while ensuring profitability.

Fulfillment Options: FBA (Fulfillment By Amazon) Vs. FBM (Fulfillment By Merchant)

When choosing between FBA and FBM, you’ll need to consider the pros and cons of each fulfillment option to determine which one is best for your business.

FBA, or Fulfillment by Amazon, is a popular choice for private labeling on Amazon. With FBA, Amazon takes care of all the logistics, including storage, packaging, and shipping. This can save you time and effort, allowing you to focus on other aspects of your business. Additionally, FBA offers Prime eligibility, which can increase your product visibility and attract more customers. However, FBA does come with fees, including storage and fulfillment costs.

On the other hand, FBM, or Fulfillment by Merchant, allows you to handle all aspects of fulfillment yourself. This gives you more control over the process, but it also means more work and responsibility.

Ultimately, the choice between FBA and FBM will depend on your specific needs and preferences for your private label business on Amazon.

Strategies for Product Promotion and Initial Sales Boost

In the previous subtopic, we explored the different fulfillment options on Amazon, weighing the pros and cons of FBA and FBM. Now, let’s dive into the exciting world of product promotion and initial sales boost strategies.

This is where you take your private label product and make it shine in the crowded Amazon marketplace. To help you navigate this crucial phase, here are four powerful strategies that will give your product launch the boost it deserves:

• Leverage social media: Utilize platforms like Instagram and Facebook to build anticipation and create a buzz around your product.
• Run targeted ads: Reach your potential customers by running well-crafted ads that highlight the unique features and benefits of your product.
• Collaborate with influencers: Partnering with influencers in your niche can provide valuable exposure and credibility for your brand.
• Offer limited-time promotions: Encourage customers to take action by offering exclusive discounts or limited-time deals on your product.

Monitoring and Improving Performance

Tracking sales, rankings, and customer feedback.

Surprisingly, keeping tabs on sales, rankings, and customer feedback is a piece of cake when you’re a private label seller on Amazon.

Tracking sales is crucial for understanding product performance and identifying trends. By monitoring sales data, you can make informed decisions to improve product visibility and increase sales.

Additionally, tracking rankings allows you to gauge your product’s visibility on Amazon’s search results. By optimizing keywords, product descriptions, and images, you can enhance your rankings and attract more potential buyers.

Moreover, analyzing competitor performance is essential for staying ahead in the game. By examining their sales, rankings, and customer feedback, you can identify areas for improvement and adjust your strategies accordingly.

Optimizing Product Listings Based on Data and Analytics

Now that you’ve learned how to track your sales, rankings, and customer feedback, it’s time to take your private labeling game to the next level. In this section, we’ll discuss the importance of optimizing your product listings based on data and analytics.

By using data analytics for product pricing, you can ensure that your prices are competitive and attractive to customers. Additionally, optimizing your product listings for better visibility and conversion is crucial for standing out in the crowded Amazon marketplace.

To help you get started, here are four key strategies to consider:

• Conduct keyword research to identify the most relevant and high-volume search terms.
• Craft compelling product titles and descriptions that incorporate these keywords.
• Use high-quality images and videos to showcase your product’s features.
• Continuously monitor and analyze your listing’s performance to make data-driven adjustments.

Handling Customer Service and Addressing Negative Feedback

Dealing with customer service and addressing negative feedback can be a challenging yet essential aspect of building a successful private label business on Amazon.

When it comes to handling customer complaints, it’s crucial to approach each situation with empathy and professionalism. Promptly address any concerns or issues raised by customers, and strive to find a satisfactory resolution. Remember, customer satisfaction is key to maintaining a positive reputation and attracting future buyers.

Additionally, managing negative reviews requires a proactive approach. Respond to negative feedback promptly and courteously, offering a solution or explanation if necessary.

Scaling and Growing Your Private Label Business

Expanding product variations and diversifying your product line.

To truly broaden your product range and attract a wider customer base, consider expanding product variations and diversifying your product line.

By expanding product variations, you can offer different options within the same product category. This allows customers to choose the variation that best meets their needs and preferences, increasing the likelihood of a purchase.

Additionally, diversifying your product portfolio involves introducing new products that are complementary to your existing line. This strategy not only attracts new customers but also encourages existing customers to explore and purchase more of your offerings.

By expanding product variations and diversifying your product line, you can stay ahead of the competition, cater to a broader range of customer preferences, and ultimately grow your private label business.

Don’t be afraid to innovate and experiment with new ideas to keep your product line fresh and exciting.

Exploring International Marketplaces and Expanding Globally

International expansion is an exciting opportunity for private label sellers on Amazon. It allows you to reach customers in different countries and increase your sales potential.

However, to succeed in international markets, cultural adaptation is crucial. Each country has its own unique customs, preferences, and buying habits. It’s important to research and understand the cultural nuances of your target markets to effectively adapt your products and marketing strategies.

This may include making changes to your packaging, product descriptions, and even your brand messaging.

Leveraging Amazon Advertising and Marketing Techniques

Advertising on Amazon is a powerful way to increase product visibility and drive sales, with statistics showing that sellers who use Amazon’s advertising platform see an average increase in sales of 50%.

To effectively leverage Amazon advertising and marketing techniques for private labeling, consider the following strategies:

Sponsored Products

• Optimize product listings: Use relevant keywords and compelling descriptions.
• Set competitive bids: Monitor and adjust bids to maximize visibility without overspending.

Sponsored Brands

• Create brand awareness: Showcase your brand and products in a visually appealing manner.
• Utilize custom headlines: Craft catchy headlines that grab attention and entice customers.

Exploring Other Sales Channels and Opportunities Beyond Amazon

Now that you’ve learned about leveraging Amazon’s advertising and marketing techniques, it’s time to delve into exploring other sales channels and opportunities beyond the e-commerce giant.

By doing so, you can expand your reach and increase your sales potential. One effective way to do this is by exploring alternative e-commerce platforms. Platforms like Shopify, eBay, and Walmart Marketplace offer a wide customer base and can help you tap into new markets.

Additionally, maximizing social media marketing is crucial in today’s digital landscape. Platforms such as Facebook, Instagram, and Pinterest provide excellent opportunities to showcase your brand, engage with customers, and drive traffic to your products.

Congratulations on completing the ultimate guide to private labeling on Amazon! You now have the knowledge and tools to navigate the step-by-step process and implement effective strategies for success.

Just like a skilled captain steering their ship through stormy seas, you have the power to steer your private label business towards great heights.

Remember, with dedication and perseverance, you can turn your business into a flourishing empire, like a vibrant garden blossoming with endless possibilities.

So set sail and watch your dreams come true!

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How to Sell on Amazon FBA – The Complete Guide to Starting a Private Label Brand

This page may contain links from our sponsors. Here’s how we make money .

Amazon is the world’s largest retailer, and it is only getting bigger . The good news for anyone looking to make money online is that Amazon allows third-party sellers to reach its massive audience by selling products on their site. That means there are endless possibilities and huge income potential .

Selling on Amazon means many different things to different people:

• You could sell used items that you buy at yard sales and thrift stores.
• You could buy products on sale at retail stores and re-sell them for higher prices on Amazon (known as retail arbitrage ).
• You could buy products wholesale and sell them on Amazon.
• You could write and sell e-books for Kindle.
• You could create your own custom products .
• You could find a manufacturer and hire them to create products for your own brand ( private label ).

Each approach has its own set of pros and cons, and there are people doing very well with each of these business models . My wife and I built a six-figure business selling private label products part-time on Amazon (more on that in a minute), and this article will show how to sell on Amazon.

Table of Contents

What is FBA?

As a third-party seller on Amazon, you can fulfill orders yourself, or you can join their FBA program. FBA stands for Fulfillment by Amazon , and essentially the program allows you to sell your products on Amazon without having all of the headaches associated with order fulfillment. You’ll send your products to one or more of Amazon’s warehouses and they’ll store the product for you. When someone orders your product Amazon will pack it up and ship it to the customer .

Of course, Amazon will take a cut of the sale as a fee for the service, but it’s well worth the cost. You’ll be able to free up your time for more important tasks related to running the business, and customer orders will be fulfilled and shipped quickly.

And possibly the best thing about selling your products FBA is that they will be eligible for free shipping . Amazon Prime members will be able to get free 2-day shipping when they buy your product. Those who aren’t Prime members will be able to get free shipping on your product if the order meets Amazon’s required minimum for free shipping.

Amazon FBA really is a game-changer. The number of Prime members keeps growing, and these people (I am one of them) buy more and more on Amazon. FBA also makes it possible to realistically run an Amazon business as a part-time venture. You won’t need to dedicate your time to order fulfillment, and you won’t need to be tied to your home or office.

Not only does Amazon handle order fulfillment, but they also handle customer returns and any customer service issues related to shipping.

Summary Highlights of Selling Through Amazon’s FBA Program:

• All of the order fulfillment and shipping is handled for you.
• All returns and customer service related to shipping is handled for you.
• No need to store inventory in your home or office.
• No need to run to the post office every day to ship orders.
• Your products will be eligible for free shipping (which means more sales for you).
• Makes it possible for sellers to run a legit ecommerce business part-time.

→ Related reading: 100 Amazing Resources for Amazon Sellers

What is Private Labeling?

I really had no interest in selling on Amazon, or selling physical products in general, until I realized the power of combining the FBA program with private labeling. I was aware of both, but never thought about how the two could work together to make such a great business opportunity.

First, let’s talk about private labeling and what it is.

Essentially, private labeling is when you have a manufacturer or supplier put your logo on a product and sell it under your own brand. You don’t need to own a manufacturing facility, you simply have someone else create the product for you.

Exactly what qualifies as private labeling is a matter of opinion. Many people who sell private label products on Amazon buy a standard, stock product from a manufacturer and simply slap their own logo on the product. If you’ve spent much time on Amazon you may have seen a few different companies selling what appears to be the same identical product, aside from the logo. Sometimes they may even be using the same photos.

This is the fastest , easiest approach to selling your own products on Amazon, but it also presents a lot of potential problems. If there are other established brands selling the same exact product as you (or at least, extremely similar), how are you going to get people to buy yours instead of theirs?

And even if you are successful, it’s very easy for someone else to have the same product created and directly compete with yours. On Amazon, this usually leads to price wars that cut profit margins down to the point that you aren’t making any money.

The other approach is to have a manufacturer create a custom product for you based on your design or specs.

Or, you can start with one of their stock products and ask them to make certain changes or customizations that will improve the product and make yours unique. Most manufacturers are very willing to make customizations for you. This is a realistic way for you to differentiate your product from competitors, so you’re not trying to sell the same exact thing as everyone else. This is the approach that we took.

When I refer to private labeling, really I am talking about having a manufacturer create a product for your brand with your logo on it. It could be a product the same as everyone else’s, it could be customized, or it could be completely your own design. Regardless, you’re finding someone else to make the product for you.

Why Private Label?

Despite the challenges that you may face by selling a private label product, there is also a significant upside. Here are some of the main reasons why you might want to consider taking the private label approach:

• You can completely outsource the manufacturing process , which makes it possible to run an e-commerce business with much lower overhead and risk.
• When you combine it with the FBA program, you can outsource two of the biggest aspects of an e-commerce business (manufacturing and fulfillment).
• With both manufacturing and fulfillment outsourced, you have the possibility for passive income .
• It’s easy and (relatively) inexpensive to get started, compared to other types of businesses.
• You can expand your product line quickly and easily.
• You won’t need to constantly source new products , which is a drawback of the retail arbitrage approach.

Of all the different ways you can sell on Amazon, private labeling is my favorite. Some people do very well selling used items or doing retail arbitrage, but that requires you to constantly find products that you can buy and sell at a profit. You’ll be on a never-ending quest to find products, and that sounds pretty miserable to me.

By having your own private label brand you can have a product created, and if you’re successful you can continue to sell that product for years to come . Once the product is selling, your main focus will be on:

• Providing customer service (which is pretty limited if you’re selling FBA)
• Monitoring some ad campaigns
• Making sure that you re-order in time to keep your inventory in stock.
• Researching new products, if you want to expand.

With the combination of essentially outsourcing the manufacturing and the order fulfillment, it is possible to have a fairly passive business. It won’t be completely passive, but it’s possible to run a profitable business with just a minimal time investment.

Of course, this is an ideal scenario and not every product you launch will be a huge money maker. But hopefully, you see why selling private label products on Amazon is a great opportunity.

Because you’re outsourcing the manufacturing and the order fulfillment, adding additional products and scaling your business is very realistic. The table below shows the impact of having just a few simple products that sell.

As you can see by the numbers from the table, with just 4 products that each make 10 sales per day and $10 in profit per sale, you can make $12,000 of profit per month! Reaching 10 sales per day is very realistic, although it may not be easy . My wife and I averaged more than 10 sales per day per product with our part-time business.

But this is also something that you could do on a small scale. If all you’re looking to do is make an extra $1,000 per month , that’s possible too.

Our Experience

My wife and I sold products on Amazon through a private label brand from 2015 – 2017. I’ve worked online full-time since 2008, and many times over the years we talked about the possibility of finding a business that we could work on together.

In 2014, I started reading more about people selling private label products through FBA, and I thought it would be a great opportunity for us to finally work together on something. I talked to my wife about it, and she was interested too.

We started doing some research into potential products, but we didn’t find anything that we really thought would work. We put the idea on hold for a while, and then in the spring of 2015, I came across someone promoting Amazing Selling Machine, an 8-week course that takes you through the process of setting up your own private label brand.

The course wasn’t cheap (we paid $5,000), but we felt like it was the right opportunity for us, so we went ahead and purchased it. By the time the 8-week course was over, we had selected a product and a supplier and we had placed our first order for 1,000 units of our product.

When our product went live we expected the sales would grow very slowly, and didn’t anticipate making sales before we had a decent number of positive reviews (at that time Amazon allowed you to give away products in exchange for a review).

But to our surprise, we started making sales almost immediately.

About a week after it went live I remember the two of us were out looking at some houses, and every time I checked my phone we had made another sale! I think we made about 20 sales that day, without any paid advertising.

We wound up running out of our first 1,000 units in less than 4 weeks, and then we were out of stock for several weeks while we waited for more of our products to be made.

For the first few months, our biggest challenge was that we kept running out of inventory.

Fortunately, we placed a much bigger order ahead of the holidays and we were back in stock in November, a few weeks ahead of Black Friday. For a 30-day period between Thanksgiving and Christmas we had over $50,000 in sales (that’s gross sales, not profit) and at that point we still only had one product that sold for between $15 and $20.

We made more than 3,000 sales of that one product in a 30 day span, with no advertising.

In early 2016 we added several other products. Each one of them was profitable. None of them matched the success of our first product, but the cumulative result of having seven different products was a nice increase in profit.

We did around $500,000 in sales in 2016, with around $165,000 in profit.

Remember, this was a part-time business and 2016 was our first full year of selling on Amazon.

The business had grown nicely, and the revenue was much higher than our original goals, but in 2017 we decided it was time to move on and we sold the business.

Here’s a quick summary of our results selling private label products on Amazon (part-time):

• We sold through our initial order of 1,000 units in less than 4 weeks.
• During a 30-day span before Christmas, we made more than $50,000 in sales with just a single product that had only been live for a few months.
• In 2016, our first full year selling on Amazon, we did about $500,000 in sales and $165,000 in profit.
• We made over $450,000 in less than two years running the business (the profit while we owned the business, plus the selling price).

→ Related reading: 10 Amazing Ways to Make Money with Amazon

How to Find a Product to Sell

Ok, so if you’ve decided that selling a private label product on Amazon might be a good fit for you, you’re probably wondering what you should sell.

That’s what I was wondering too.

And in fact, deciding on our first product was probably the hardest part of the entire business .

It was a stumbling block that held us up, and for a long time it looked like we’d never actually get started because we couldn’t find the right product.

There are a few different approaches you can use when you are trying to find the right product to private label. The main approach that most people take is to find an example product on Amazon that is selling well and, ideally, doesn’t have a ton of direct competition. Then you can have your own version of the product made and sell it.

Of course, you don’t want to copy or rip off the existing product, but create your own version of that product. You can use a tool like Jungle Scout to help with product research (more on that in a minute).

Another approach is to get your product ideas from places other than Amazon. Look around your house at the products you use and like, walk through retail stores for product ideas, and even look at websites other than Amazon. Then once you’ve got a few ideas, search for them on Amazon and see how many similar products are being sold.

The problem with the first approach is that you are basing your research on what other people are already selling. You could be missing some great opportunities to find holes in the market that aren’t being filled by sellers on Amazon.

That being said, we did use the first approach to find our initial product. It worked out pretty well for us, but we did evaluate many different products before we ultimately found the one that we wanted to sell.

As far as the type of product is concerned, there are a few different approaches here as well. Most of the private label training teaches you to find product that meets certain criteria:

• Small enough to fit into a shoebox
• Lightweight
• Simple to use with minimal instructions needed
• Selling price between $10 – $50
• No batteries or electronics
• Nothing that goes on your skin or in your mouth

Let’s take a look at why each of these are considered to be important:

Small enough to fit into a shoebox – Size will impact your shipping costs and storage fees from Amazon (part of the fees for using the FBA program), which in turn will impact your profit margin. Larger products may also create logistical challenges for you if you have the products shipped to your house before they get sent in to Amazon.

Lightweight – Weight will also impact shipping costs, as well as the fees from Amazon.

Simple to use with minimal instructions needed – Simple products will require less customer service and will typically have fewer returns.

Selling price between $10 – $50 – It’s hard to turn a profit on products that sell for less than $10, partly due to the FBA fees. You’ll also have lower earning potential with cheap products. Products in the $10 – $50 range tend to be impulse purchases. Also, more expensive products will require more capital to invest in inventory, which also means more risk.

No batteries or electronics – Batteries can cause issues with customs. Electronic products are also more prone to defects and breakage and can lead to increased customer service.

Nothing that goes on your skin or in your mouth – Supplements and beauty products can have great potential, but there is more risk involved, which is usually best to avoid if you are a new seller. If you are going to sell one of these products, it’s best if you use a manufacturer in the U.S.

All of our products met the criteria listed above. This made it possible for us to have our products shipped by air express (UPS, DHL, or FedEx) rather than by sea. Air express was more expensive (and reduced our profit margin a little), but it reduces the amount of inventory that you need to keep on hand because you can get new inventory faster.

The Problem with the Common Approach

The problem with limiting yourself to small, lightweight products is that the majority of people selling private label products will be doing the same thing . This, of course, means more competition.

The opposite approach is to look for oversized products , heavy products, higher priced products, or something else that bucks the trend. You’ll run into some additional obstacles, but you’ll have much less competition  because most Amazon sellers don’t want to deal with it.

If I were to start a new private label brand, I would consider going this route to avoid some competition.

Category Restrictions

You’ll also need to consider the category of the product that you want to sell. Amazon has restrictions in place for many categories. In some cases, you can easily get approved just by providing some basic information, and in other cases it can be a long, drawn-out process to get approval (if you’re able to get approved).

We sold in two restricted categories. One of those categories took about 30 seconds to get approved. The other took about a month of back-and-forth and many frustrating emails with Amazon seller support, but eventually, we did get approved.

The category that you choose is up to you, but for a first product, I would recommend keeping it simple. Something with low risk of liability, and something that won’t require much customer service.

Product Research

Ok, so now that we’ve talked about some of the factors related to the type of product you choose, now let’s move on and do some real research.

As I mentioned earlier, one effective way to come up with product ideas is simply to look around your house or walk through a retail store and see what might be a good fit. But for this section of the article, we’ll be looking at some tools that will help you to research online.

Amazon Best Sellers

Amazon provides a list of the best selling products . You can view the best sellers overall, or browse through the best sellers by category. When we researched products we would browse through the best sellers in a category or sub-category, and then if something looked like it met our criteria of size and weight (and was priced somewhere between $10 – $50), we would do a search to see how much competition it had.

This approach can work, but most of the products you find this way will have a lot of competition .

Amazon Search Suggestions

One good way to find products that Amazon users are searching for is to let Amazon show you what people are searching for. When you type in the Amazon search form it will provide search suggestions. Usually it’s adding a few words to your search phrase. These suggestions are based on what people are actually searching for, so it’s a great way to research potential products.

Related Products

On each Amazon product listing you can also find other related products. Clicking through these related products is a great way to find many possibilities and get ideas. You’ll see a list of “sponsored products related to this item.” These are ads, and the sellers of these products are paying each time one of their ads is clicked.

Directly below that you will see “customers who bought this item also bought”, and then a list of related products. This can be extremely helpful for finding hidden opportunities .

Unicorn Smasher

Unicorn Smasher is a free Google Chrome extension made by AMZ Tracker. Once you have the extension installed you can do an Amazon search and click on the little icon to run it.

For this example I searched for “silicon baking mat” and then ran Unicorn Smasher. It looks at the Best Seller Rank of each product and estimates the number of monthly sales based on the BSR and the category that it is in. You can then get a rough idea of how many sales and how much sales volume a product is doing per month.

Of course, these are rough estimates. But from testing it with our own products, I found the estimates to be in the ballpark of the real sales numbers.

Using this data you can gauge the demand and potential for a product that would be similar to the ones you are researching.

How much sales volume should you be looking for?

Well, that’s a personal decision. The higher the sales the more likely it is to have a lot of competition.

Some of my favorite products of ours were not the big sellers. I liked having products that made 5-10 sales per day, or 150 – 300 sales per month. That’s enough that it is worth your time, and if you have several different products selling in that range, it will add up to a nice business. That way you’re not overly dependent on one product that sells really well. Diversification is a good thing because many products on Amazon have a limited life cycle, whether it is due to demand that fades or increased competition.

Jungle Scout

Jungle Scout is really popular for researching products. I listed Unicorn Smasher first because I have more experience with it, and because it’s free. But the premium version of Jungle Scout does even more. For example, you’ll get an “opportunity score” for any product that you research. That score is determined by the amount of competition and the demand for the product. A product with high demand and low competition would have a high opportunity score, so you want to look for higher numbers here.

Factors that You Want to Consider

As you are looking at products on Amazon that you might want to compete with, here are some factors that you should consider.

How many reviews do they have , and how good are they? Getting reviews is harder than it used to be before Amazon changed its policy on reviews (you used to be able to give away free or discounted products in exchange for a review, but that is no longer allowed). If all of the main competitors have hundreds or thousands of reviews, it’s going to be very hard for you to match that. But if your potential competitors only have around 20 reviews, that is a lot more attainable.

Of course, it’s not just the number of reviews that matters. Are the reviews good or bad? If the main competitors have a 3-star rating it should be pretty easy for you to do better than that. But if that competitor that has hundreds of reviews has a 5-star rating average, it’s going to be an uphill battle competing against them.

Listing Optimization

Take a look at your competitor’s listing on Amazon and see how good it looks. Do they have an optimized product title that uses the most important keywords? Do they have enticing bullet points that use keywords and tell you why you should buy the product? Are the photos good? Do the photos show everything that you’d want to see?

Some listings are really well optimized, and others are terrible.

If your main competitors are using a title that doesn’t include the most important keywords, if the bullet points are brief and uninspiring, and if the photos are bad, or if they only have one photo that just shows the front of the product, you can do better! This is the type of competition you want to go up against, if possible.

Market Leader

Is there a brand that is the clear leader in the market? If not, the competition is probably wide open and you may be able to have a lot of success. It’s usually best to avoid situations where there is one really dominant brand that would be difficult to compete against.

Search Volume

Lastly, you can research the search volume for the main keywords that people will use to find your product. I used MerchantWords for this type of keyword research, but you could also use a free tool like Sonar . MerchantWords will give you the number of estimated monthly searches for any word or phrase. Sonar will give each keyword a rating of 1-5. A score of 1 means that the keyword doesn’t get much search volume, and a 5 means that it gets a lot of searches.

There is no exact number of monthly searches that you need, but it is one factor that you should evaluate. Also keep in mind that people will be searching for all different kinds of combinations of words, so don’t get too caught up in the number of searches for one specific keyword.

How to Find a Supplier or Manufacturer

Once you have identified a potential product, or a few potential products, you’ll need to find out how much it will cost you to manufacture. Based on the research you already did, you should have an idea of about what price you could charge for the product. You can use that target price and the pricing info you get from suppliers, plug that into Amazon’s FBA fee calculator (we’ll go over this more later), and you can estimate your potential profit margin .

If your product is any type of supplement, cosmetic, or grocery I highly suggest that you only consider manufacturers based in the United States. But with most other products you will probably be looking at manufacturers overseas, especially China.

The biggest resource for finding a supplier is Alibaba . On Alibaba you can search for just about any product you can think of, and you’ll find companies willing to manufacture the product for you or sell it at wholesale.

When you search on Alibaba you can filter the results based on certain criteria, if you want to. For example, you could filter to only show “gold suppliers”, which is a supplier pre-qualified by Alibaba. Or you can filter to only show “assessed suppliers”, which means they’ve been assessed by a third-party inspection company. Some people will tell you this is important, and other people will tell you that it’s meaningless because companies simply buy their status. Honestly, I don’t know how much it matters. We only ordered from about 5 different suppliers, so its not really a large enough sample size to know how much the gold or assessed status really matters.

Let’s go through the process for an example product – a jump rope.

I’ll search for “jump rope” and of course products from many different products will be shown. On the search results you’ll see minimum order quantities ( MOQ s) and price ranges. I found that the prices listed here were often not accurate, so I would suggest that you do not put too much weight in those listed prices. Browse and see which ones look good to you.

Through the product listing you can email the supplier. I recommend sending an email telling the supplier that you sell products on Amazon.com and that you are looking for a supplier for repeat orders and a long-term business relationship. If you know how many items you would want for your first order you can go ahead and tell them, and ask for their pricing. If you don’t know how many units you would want to order you can simply asking for their pricing info. The prices will almost always decrease the more you order.

Determine Your Cost Per Unit

Once you have their quote you can determine the cost per unit . You’ll want to include all of the costs related to getting the product to you (or the Amazon warehouse).

If you’re using air express shipping this is pretty simple. In that case it is just the cost of the order (the products and shipping) divided by the number of units. You may also have to pay customs depending on the value of the shipment, but for smaller shipments done by air with low values, this often isn’t an issue.

If you are shipping by sea it can be more complicated. I would suggested contacting a freight forwarder like FBA Forward to get help understanding all the costs that will be involved. Come up with the total cost and divide it by the number of units that you are ordering.

Working With Manufacturers

A few things here.

• The minimum order quantity is almost always negotiable . You can even tell them that you want to place a test order and they will often reduce the MOQ for your first order. For example, the product listing on Alibaba may state that the MOQ is 1,000 units, but you can ask for a test order of 250 units. From my experience, they are likely to accept those terms, or at least compromise.
• Price is also negotiable. These suppliers are used to competing against each other, and most of them are pretty aggressive to get your business, so they will often lower the price if needed. I know some sellers who would automatically ask for a lower price 3 times, regardless of what price they are getting. I didn’t go that far, but I did negotiate to get lower prices.

Another thing to remember is that you will be communicating with people in their 2nd language. Most of them communicate very well, but you want to be clear and concise . Lay out exactly what you expect, especially if you are customizing a product. Avoid using slang or sayings that won’t make sense to people from other cultures.

Since you will be new to Amazon, I think it is also helpful if you work with a supplier that has some experience with other Amazon sellers. I recommend asking them if they are familiar with Amazon’s packaging guidelines and if they can place your sticker or barcode on the product for you.

Estimating Profit Margin

After you have some quotes from suppliers, it is time to take a look at your potential for profit. Head over to Amazon’s FBA fee calculator .

To use the calculator you will need to base it on a product that is currently selling on Amazon. The FBA fees will be impacted by the size and weight of the packaged product, so find a competing product that is as close as possible to the weight and dimensions of your product (you can get the weight and dimensions from your supplier). Also, make sure that you are using a product in the same category that yours will be listed.

I’m going to use a baking mat as an example, so I’ll use this product currently selling on Amazon. Let’s assume that the dimensions and weight are very close to the product I will have manufactured. On the product listing, go to the “product details” and you’ll find the ASIN (the ASIN is also listed in the URL). In this case the ASIN is B00MM80ZLW. The ASIN is an ID number used for an Amazon product. Enter that ASIN, your target price, and the price that you would be paying for the product into the FBA calculator and it will spit out some numbers. Let’s say I’m using an item price of $14.95, and my cost per product will be $5.00. The calculator shows that Amazon will pay me $9.71 for each one that I sell at $14.95. It also shows a net profit of $4.71 per sale, or a profit margin of 31.51%. Obviously, the higher the profit margin the better.

There are some things to consider when you evaluate the profit margin.

First, this is an estimate. You don’t really know at what price you’ll be able to sell the product. With some products your selling price may fluctuate based on factors like seasonality, how much inventory you have, and what your competitors are doing. I recommend estimated the selling price conservatively, and then if you are able to sell it for more that will just be a bonus.

Second, the cost per product (what you pay to have it manufactured and shipped) is subject to change. At first, you are probably ordering in small quantities, so the cost per product is going to be high. You will likely be able to lower that cost per product by ordering larger quantities in the future once you know that you can sell the product. Also, you may be able to ship it by sea in the future to reduce the price you pay per product.

Some people will say you should look for a 40-50% profit margin, but those products are difficult to find these days with so much competition already on Amazon. Personally, I liked to see at least a 30% profit margin to start, and if it could get to 40% or higher in the future that is great.

So using the quotes that you get from suppliers and the info from the FBA calculator, you can determine if this product has the potential to be profitable. If it’s close but not quite there, I recommend going back to the supplier and explaining that you would like to order the product but you can only do it if they are able to lower the price. The worst that can happen is they say “no”.

If you have a profit margin that you are happy with, it’s on to the next step.

Getting Samples

Now you’ll need to order a sample product from the suppliers that you are considering. I suggest getting samples from a few different suppliers so you can compare and choose the best one. You’ll have to pay for the samples, but it is a necessary cost that you shouldn’t try to avoid. If the supplier has a sample just sitting around and doesn’t have to make it especially for you, you may be able to get the sample for a low price, something like $30. If the supplier has to make the sample custom for you, you’re going to have to pay more.

We paid as much as $100 for samples, plus shipping (of course, the amount will depend on the product). If you are customizing the product, I recommend getting the sample as close as possible to the exact product that you want to sell. That way there are no unpleasant surprises later.

It will usually take a few weeks for the sample to be made and shipped. Once you have samples from a few suppliers you can test them and see which one you like best. Once you have the product in your hands and you try using it, you may have some other ideas for changes that could be made to the product.

When it comes to choosing a supplier do not just pick the one with the lowest price. Ideally, this supplier will be essentially a long-term partner in your business. Do not go with a supplier that has shown poor communication up to this point. I always preferred dealing with suppliers that communicated well and got back to me quickly, even if the price was a little higher.

Also, the quality of the product is extremely important. The goal here is to create a product that will sell for a long time. If the product is garbage you may be able to make some quick sales, but inevitably you’ll get bad reviews and sales will die off.

If the product is good, you will get positive reviews that will lead to more sales. And customers will wind up buying the product for friends, or buying your other products when you have multiple products to offer. Quality is extremely important to your long-term success on Amazon.

Placing Your First Order

Once you’ve decided on a supplier, you can go ahead and order the product. Most suppliers will charge about 30% up front and the final 70% when the product is completed . I would recommend asking the supplier to send you photos of the finished product and packaging before making the final payment. There are also inspection companies you can hire to check the product before making the final payment.

There are a few different ways to make payments. Most suppliers will not accept PayPal because PayPal is very buyer-friendly. That means that buyers can dispute charges and PayPal is likely to side with the buyer, and in that case the supplier would be screwed. Most of them will accept wire transfers from your bank, and some accept payment through Alibaba.

With a wire transfer, you will have a fee from your bank, but the fee will vary, so check with your bank. We paid a fee of $45 for each international wire transfer. To pay directly through Alibaba you will link it to your bank account by providing the routing number and account number. We paid a fee of $15 per payment through Alibaba. Check with the supplier to see what type of payment they accept and go from there.

Once your order has been placed it will take at least a few weeks, in most cases, until the production is completed. Most of our orders were completed in about 4 weeks, but that varies by supplier, the product, and the size of the order. During this waiting time, you can work on getting your Amazon seller account set up and create your listing so it is ready to go.

If the sample you received is exactly the same as the product you will be selling, you can go ahead and take photos of the product for your listing. I’ll cover more about product photos in the next section.

Creating Your Amazon Seller Account

You’ll need to create a seller account in order to be able to list products on Amazon. Go to this page to create the account. I won’t go through all of the details of setting up the account, because you are mostly just entering basic personal or business information that Amazon will ask for.

The thing you need to consider at this point is if you want a personal or business account. With a personal account, you’ll pay an extra $0.99 fee for each sale. With a business plan you’ll pay $39.99 monthly, but no fee per sale. So basically, if you’re making at least 40 sales per month you’ll want the business account. You can upgrade from a personal account to a business account, so if you’d like you can wait until you need to upgrade.

Creating Your Amazon Listing

Once you have your seller account set up, it’s now time to create the listing for your product. This is a really big topic. I’ll cover the basics here, but if you want to go more in-depth and learn to create a listing that converts, I recommend the Amazon Conversion Maximizer course by Karyn Thomas.

The product listing is very important, so take the time to write the best listing possible. Write everything in Word, or some other program, and when you’re done enter it into Amazon Seller Central.

Product Category

The first thing you’ll have to determine is what category your product should fall under. Amazon has sub-categories for almost every type of product, so you shouldn’t have much trouble finding the appropriate category and sub-category.

Product Title

The product title is one of the most important elements of your listing. You already did some keyword research when you were deciding which product to create and sell, so you probably already have a good idea of the main keywords for your product. Your title is the most important place to include keywords in your listing, so be sure that your most important keywords are in your title.

Remember that titles are important for human visitors too, not just for the Amazon search engine. Don’t stuff your title with keywords to the point that it makes no sense to read. Be sure that your title is reader-friendly and makes sense, while still including the most important keywords. Don’t just quickly throw a title together. Take some time to write an effective title that works for both human visitors and search engines.

The title in the screenshot below is long and has plenty of keywords in it, but it still makes sense to read.

Another tip is to use the most important keyword near the beginning of your title . In some cases the full title will not be shown (like on mobile search results pages), and the visitor may need to click through to your listing to see the full title. Use the most important keywords at the beginning of the title so they don’t get cut off. Plus, some people say the words at the beginning of the title carry more weight for search rankings.

Product Features

Amazon gives you a place to list the main product features, which show up as bullet points on your listing. This is another very important part of your listing. You’ll come across some listings with very short bullet points that give very little information. You’ll also come across listings with really long bullet points that are stuffed with every keyword possible. Just like with the title, your goal with the bullet points should be to create something that catches the attention of human visitors, is easy to read and makes sense, but still incorporates as many keywords as possible.

One of the best approaches is to focus on how customers will benefit from your product. You can also tie those benefits back to the specific features of your product that make the benefit possible.

Look at the bullet points of your competitors and see what stands out to you. You can also check totally unrelated products and just see how they approach the bullet points, and get ideas that you can incorporate into your own listing.

Like the example below, you can use capital letters to grab attention.

Description

The product description is not as important as the title or bullet points, but still should get your attention. Here you have more space to elaborate on the features and benefits that you mentioned in the bullet points. You can also touch on things that you weren’t able to mention in the bullet points.

Search Terms

Amazon also gives you the option to enter keywords in the back end of your product listing. These search terms are not visible to visitors who are seeing your product listing, but they can be used by Amazon’s search engine to determine what search phrases your product should rank for.

Amazon gives you a lot of space for keywords here, and I recommend using as much of it as possible. This is a good place to list the names of your competitors. People often search for a specific brand. You may not want to put other brand names in your listing, but you can put them here where visitors will not see it.

Product Photos

Product photos are as important to the success of your product as any other element in your listing, and maybe more important. Some customers will buy based on photos without even reading any of the text.

Amazon allows you to use 9 photos, and I suggest that you use all 9 of those spots. A lot of bad listings only use one or two photos. Your main photo needs to be just your product on an all white background . You can’t include text or other things in the main image.

You’ll have more flexibility with your secondary images. You can include text to point out the main features of the product, and take lifestyle photos to show the product in use. You should include photos of the product from different angles, include other objects for size comparison, and show the packaging. With most products you can easily come up with ideas for 9 different photos.

If you’re taking the photos yourself, I recommend using the best camera you have. You don’t need a professional camera, but having a DSLR will usually give you a clearer picture than a cell phone camera. You can buy a light box or small studio if you want, but personally I like to photograph products in natural light.

My typical process was to take the product outside on a cloudy, overcast day. You want to avoid harsh sunlight and shadows. Overcast days give a even light that won’t result in any ugly shadows on your product. I usually photographed products on a solid background by placing them on a concrete patio or a plain piece of brown cardboard. I’d take photos from a bunch of different angles and then send the best ones to this guy to have the background removed. He would place them on a white background and they would be ready for use on Amazon.

Another option is to hire a professional to take photos for you. Personally, I would try to avoid this expense until I know the product can sell, but you can invest the money right away if you want to.

Launching Your New Product

Once your first inventory order is done and it is in Amazon’s warehouse, you’re ready to start selling! You’ll need to give your new product a push so that it gets some sales and Amazon starts to move it up the search rankings for your main keywords.

At this point, you should have already put in the effort to create a quality listing, including good photos of the product. Over time you will tweak your listing as you come across other keywords that you may want to include, but for now your listing should be good enough to launch.

So now the question is how do you get exposure for your product and start to make some sales? Let’s look at a few possibilities.

Leverage Your Own Audience (if You Have One)

If you have an existing audience from a website, email list, or social media profiles, you can promote your product to that audience, assuming it’s relevant. Since we’re talking about getting started with a new product and new brand you probably won’t have the luxury of an existing audience. But if you do, be sure to use it. And if you don’t, you can start building an audience now so that when you launch your next product you’ll have a head start.

During the month or more that you are waiting for your product to be produced you could work on starting to build an audience if you want to. You could create a Facebook fan page and start posting things that would appeal to your target audience. You can use Facebook ads to get more likes for your page, and then by the time you’re ready to launch your product you may have an audience already built up. If so, create a coupon code and give your followers a special discount at launch.

You could do the same thing with an email list. Run ads or use social media profiles to send people to a landing page where they can join your email list (give them something for free or some incentive for them to join your list). Then send an email at launch and offer them a discount.

Amazon Sponsored Ads

Paying for Amazon’s pay-per-click (PPC) ads is one of the best ways to get exposure for your product. You can wait till you get a few reviews, or start running ads right away.

Amazon gives you the option to run an auto campaign or a manual campaign . With an auto campaign your ad will be shown whenever Amazon determines it is relevant, and with a manual campaign you will choose the specific keywords that you want to target. It’s usually best to start with an automatic campaign because you’ll generally get the most exposure quickly. You can then get some data from Amazon in terms of the keywords that get results for you. If you know the main keywords that customers would use to find your product, you could also set up a separate manual campaign and target those keywords.

You can get great exposure, right at the top of the search results, if you’re willing to pay for it. Some conversions here will help your product to rank organically.

Ads on Other Websites

A lot of Amazon sellers use Facebook ads to drive customers to their product listings. You can offer a deep discount through a coupon code, and promote that discount and code with your Facebook ad. The deep discount should help to get more sales and start to gain some momentum. You may also want to ask for an email address in order to get the coupon code for that deep discount.

If you get creative, you may even be able to find a website or Facebook group that has a targeted audience that would be a great fit for your product. Contact the owner of the website or Facebook group and introduce them to your product and how it can benefit their audience. Then give them an exclusive coupon code created especially for their audience and ask them to consider sharing it with their subscribers or fans. Some will, some won’t. But you won’t know if you don’t ask. To have the best results with this approach you should 1) make the discount as significant as possible, 2)  select audiences that are a very good match for your product, and 3) have a quality, unique product that they don’t already have, or something that is always in demand.

Use a Launch Service

There are a number of websites that will allow you to sell your product at a deep discount to their audience of deal seekers. With these sites you will most likely lose money with each product that you sell (because of the deep discount), plus you’ll also have to pay for their service to promote your deal. But they can deliver a number of sales in a short period of time, which can help to get some momentum and sales velocity for your product.

Some of the sites you can use include:

• Vipon by AMZ Tracker
• Viral Launch

Follow Up Email Sequence

As you start to get some sales, even if they are sold at deep discounts, it’s important that you work to get some product reviews . Reviews will be critical to your success on Amazon, so you need to get them as quickly as possible. One of the best ways to get reviews without violating Amazon’s terms is to use an automated email follow up sequence.

You can use a service like Salesbacker to automatically email customers after they buy your product. You can set the emails to go out a certain number of days after the product shipped, and you can even set up multiple emails. In these emails you can ask customers to leave an honest product review. You can’t ask for a positive review or do anything else to imply or suggest that they should leave a positive review, but you can ask for the review.

I highly suggest that you have this email sequence set up and ready to go as soon as your product launches. If you are doing any type of promotion for your launch you will want to make sure that every customer falls into your follow up sequence to give you the best chance of getting reviews. Amazon allows buyers to opt out of emails from third-party sellers, so unfortunately your emails won’t reach everyone. But all can do is focus on what you are able to control. If you have a good quality product and you follow up with a polite email asking for a review, some people will go ahead and leave a review for you.

We used Salesbacker and had very good results. It’s really user-friendly and easy to set up. They have a free trial, and you won’t need to upgrade to a paid plan until you are making enough sales to exceed the limits of their free plan.

Building a Brand

After your first product starts to make some sales and you get more comfortable with the process of selling on Amazon, it’s time to start thinking about potential products that you could add to build out your brand.

Some people will ask how you should know when it is time to add a second product. In my opinion there is no specific milestone that you should hit before adding a second. Your first product could be a complete dud and if you are waiting to hit a certain level of sales, you may never get there. As long as working on a second product won’t take away valuable time from things you need to do on your first product, I think it is good to at least start researching and sourcing your next product. Adding more products is one of the biggest keys to growing your business and increasing sales.

When you’re deciding what product to add, take a look at leading brands in your industry. What types of products do they sell? What types of products would be complimentary to your first product and would be a logical next step?

If you are building this business for the long-term you’ll want to focus on building a strong brand that resonates with your target audience. Focus on having several different products that appeal to the same audience rather than several different random products that don’t have much in common.

Decreasing Dependence on Amazon

Another good long-term approach is to work towards reducing your dependency on Amazon. If you’re only selling on Amazon you are really at their mercy . They could suspend your account, change their policies, increase FBA fees, or do any number of things that will have a huge impact on your business.

You can reduce your dependency on Amazon by selling on your own website and slowly working to build up that part of your business. Of course, it will take time. But over the long run you can add stability and reduce risk by selling on your own site. You can use a platform like Shopify to easily set up your own e-commerce site.

In addition to selling on your own site you can also look to sell on other platforms, like Wal-Mart, eBay, Jet.com, and others.

These aren’t things that you need to do right away. First, I would suggest focusing on Amazon and having success there. But once you’ve had some success it pays to think about the long-term plan for your business.

Other Considerations

To end this article I want to also mention a few topics that often get overlooked. Many courses totally ignore these subjects as if they won’t exist if we simply don’t talk about them. But since I’m writing about the subject of selling on Amazon I feel the need to mention them so you are aware of the issues. The two issues are sales tax and liability insurance . I am not an expert in either area and not qualified to give advice, so I won’t attempt to, but I will give you a few facts.

When it comes to sales tax, Amazon collects sales tax on products that it sells, when relevant (according to the laws of the state where the buyer lives). The key here is that this applies to products where Amazon is listed as the seller. When a product is sold by a third-party seller Amazon will not collect sales tax unless the seller instructs them to. When you set up your seller account you can go to the tax settings and tell Amazon which states they should collect sales tax for. By default, Amazon will not collect sales tax for products sold by you, so you’ll need to tell them if you want them to collect.

As a business owner you are responsible to collect and file sales tax for whatever states you have a business nexus in. If you’re located in the U.S. you’ll have a nexus in your home state. States generally consider you to have a nexus if you have inventory stored in their state, and Amazon now has warehouses just about everywhere. This means that as an FBA seller you could have nexus in many different states.

Sales tax laws are also changing quickly. Some states have forced Amazon to start collecting sales taxes on items sold by thrid-party sellers, but the sellers are still responsible for filing and paying the taxes.

My only advice when it comes to sales tax is to seek the advice of a tax professional , ideally one that specializes in sales tax.

There are also some resources and tools that can make your life a whole lot easier when it comes to sales tax. We used TaxJar to help with organizing and filing sales taxes.

The other issue here is liability insurance. As a private label brand, you are assuming some risk and liability for your product. You can protect your personal assets (mostly) by operating your business as an LLC, but having insurance is still recommended. The tricky thing can be finding a policy that will cover an e-commerce business. Many insurance companies don’t have policies that will cover businesses selling on Amazon. After contacting many different companies we were able to get coverage through a local agent.

If you have a US-based supplier you can also check with them to see if your business can be covered under their existing policy. One of our products was made by a US-based manufacturer and we got a document that listed our business as additionally insured under their policy. We still had our own policy, but it seemed like the extra protection couldn’t hurt.

Get Started

As I mentioned earlier in this article, my wife and I talked about selling on Amazon for a long time before we actually got started. We didn’t make progress until we committed to moving forward. Selling on Amazon is a learning process, and the best thing you can do to learn is to get started. If you’re interested in this opportunity, I would encourage you to get started.

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Marc has been self-employed in internet marketing since 2008. He's built successful businesses in a few different industries including graphic design, photography, and travel. Marc has been featured on sites like Forbes and Business Insider. His writing has been published on Yahoo Finance, MSN, MarketWatch, and many others. You can connect with Marc at LinkedIn .

Disclosure: Information presented on Vital Dollar and through related email marketing is intended for informational purposes only and is not meant to be taken as financial advice. Please see our Disclosure for further information.

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Amazon private label business model: from idea to success, starting an online business has never been more accessible, and one lucrative avenue that many entrepreneurs are exploring is the amazon private label business model. , private labeling on amazon allows you to create your own brand, source products from manufacturers, and sell them under your unique label on the world's largest online marketplace.  .

This comprehensive guide will take you through every step of the process, from understanding the basics of private labeling to scaling your business for long-term success. Whether you are a seasoned e-commerce seller or a newcomer to the online business world, this guide will provide you with valuable insights and strategies to thrive in the competitive landscape of the Amazon Private Label business.

Understanding the Basics of Private Labeling

So you've heard about this thing called private labeling on Amazon, but what does it actually mean? 

Well, in a nutshell, private labeling is when you take an existing product, put your own brand name on it, and sell it as your own. It's like having your own store, but without the hassle of manufacturing or creating a product from scratch.

The Rise of Private Label Brands on Amazon

Private label brands have exploded in popularity on Amazon in recent years. Gone are the days when people would only buy products from well-known brands. Now, consumers are more open to trying new and lesser-known brands, as long  as they offer quality and value for money. 

This shift in consumer behavior has created a major opportunity for sellers like you to establish your own brand and make a name for yourself on Amazon.

Why Choose Amazon as Your Private Label Platform?

With its vast customer base and global reach, Amazon has become the go-to platform for sellers worldwide. But why should you choose Amazon for your private label business? 

Here are a few compelling reasons:

Unmatched Customer Base: 

• Amazon boasts millions of active users, giving you access to a massive pool of potential customers. This means increased visibility and higher sales potential for your private-label products.

Fulfillment by Amazon (FBA) Advantage: 

• By leveraging Amazon's FBA program, you can tap into their extensive logistics network, allowing for hassle-free storage, packaging, and shipping of your products. This enables you to focus on growing your business while Amazon takes care of the rest.

Trust and Credibility: 

• Amazon has built a reputation as a trusted online marketplace, providing customers with secure transactions and reliable customer service. By associating your brand with Amazon, you automatically gain credibility and trust from consumers.

The Step-by-Step Process of Establishing a Private Label on Amazon

Now that you understand the benefits of choosing Amazon as your private label platform, let's dive into the step-by-step process of establishing your own private label brand:

Step 1: Product Research

• The first step in building a successful private label business is conducting thorough product research. Identify profitable niches, analyze market trends, and assess competition to find a product that aligns with your target audience's needs and preferences.
• Utilize Amazon's tools and resources, such as Jungle Scout or Helium 10 , to gather valuable insights and data.

Step 2: Product Design and Branding

• Once you've selected a product, it's time to focus on product design and branding. Create a unique and compelling brand identity that resonates with your target market.
• This includes designing eye-catching packaging, creating a memorable logo, and crafting persuasive product descriptions highlighting your private label's key benefits.

Step 3: Manufacturing Options

• Next, you'll need to decide on the manufacturing options for your private label products. You can choose between sourcing products from manufacturers domestically or exploring overseas suppliers.
• Conduct due diligence, negotiate pricing, and ensure quality control measures are in place to maintain the highest standards for your products.

Step 4: Setting Up Your Product Listing on Amazon

• With your products ready, it's time to set up your product listing on Amazon. Optimize your listing by incorporating relevant keywords, writing compelling product titles, and providing detailed and accurate product descriptions.
• High-quality product images are also crucial to attract potential customers and stand out from the competition.                                

Step 5: Implementing Effective Pricing Strategies

• Pricing plays a vital role in the success of your private label business. Conduct thorough market research to determine competitive pricing points while maintaining profitability.
• Consider factors such as production costs, competitor prices, and customer expectations when setting your pricing strategy. Regularly reassess and adjust your prices to stay competitive in the ever-changing marketplace.

Step 6: Marketing Your Private Label on Amazon and Other Online Channels

• To drive sales and increase brand visibility, you'll need to implement effective marketing strategies. Leverage Amazon's advertising platform , Sponsored Products, to promote your private label products within the Amazon ecosystem.
• Additionally, explore other online channels such as social media marketing, influencer collaborations, and content marketing to reach a wider audience and build brand awareness.

Benefits and Opportunities of Private Labeling on Amazon

Establishing a private label on Amazon offers several benefits that can propel your business to success:

Higher Profit Margins and Control

• One of the biggest advantages of private labeling on Amazon is the potential for higher profit margins. Since you are the one in control of the product, you can set the price and determine your profit margin.
• This means you have the opportunity to make more money compared to simply reselling someone else's product.

Building a Brand and Customer Loyalty

• By creating your own private label brand, you have the chance to build a loyal customer base. When people become familiar with your brand and trust its quality, they are more likely to buy from you again and recommend your products to others.
• Building a strong brand can give you a competitive edge and help your business thrive in the long run.

Leveraging Amazon's Marketplace and Fulfillment Services

• Selling on Amazon comes with many perks, such as access to a massive customer base and the convenience of Amazon's fulfillment services.
• When you opt for private labeling, you can take advantage of Amazon's FBA (Fulfillment by Amazon) program. This means Amazon will handle the storage, packaging, and shipping of your products, allowing you to focus on growing your business.

Challenges to Consider When Starting a Private Label on Amazon

While the Amazon private label business model offers numerous advantages, it's essential to be aware of the challenges you may encounter along the way:

Dealing with price wars and undercutting competitors

• Price competition can be fierce, especially in the private label space. However, constantly slashing prices may not be the best strategy for long-term success. Instead, focus on differentiating your brand through quality, customer service, and unique selling propositions. Build a loyal customer base that values what you offer beyond just the lowest price.
• Remember, there will always be someone willing to undercut you, so prioritize adding value rather than engaging in a race to the bottom.

Listing Optimization and SEO

• Optimizing your product listings and utilizing SEO strategies can be time-consuming and require continuous monitoring and updates. However, investing in these areas is crucial to improve visibility and drive organic traffic to your listings.

Managing inventory and supply chain challenges

• As your private label business grows, so does the complexity of managing inventory and the supply chain. Keep a close eye on inventory levels to avoid stockouts that can negatively impact sales. Consider utilizing inventory management software and working closely with suppliers to ensure a smooth flow of products.
• Diversify your supplier network to mitigate risks and have backup options when needed. Stay organized and proactive to prevent inventory nightmares from derailing your business.

Staying ahead of counterfeit products and unauthorized sellers

• The unfortunate reality of success on Amazon is the presence of counterfeit products and unauthorized sellers. Protect your brand by registering for Amazon's Brand Registry program , which provides tools to report and remove counterfeit listings.
• Regularly monitor your listings and take swift action against unauthorized sellers through Amazon's seller support. Educate your customers about what to look for to identify genuine products and make it clear that your brand is committed to quality and authenticity.

Target Audience for Private Labeling on Amazon

Private labeling on Amazon appeals to a wide range of entrepreneurs and businesses, including:

• Aspiring Entrepreneurs:   Individuals looking to start their own e-commerce business without the need for extensive product development or manufacturing
• Existing Brands: Established brands seeking to expand their product offerings and tap into Amazon's vast customer base.
• Retail Arbitrage Sellers: Retail arbitrage sellers looking to transition to a more scalable and profitable business model by creating their own private-label products.

Conclusion: Taking Your Private Label from Idea to Success on Amazon

The Amazon private label business model provides aspiring entrepreneurs with a lucrative opportunity to build their brands and achieve success in the competitive e-commerce landscape. By following the step-by-step process outlined in this article, conducting thorough research, and implementing effective marketing strategies, you can turn your private label idea into a thriving business on Amazon.

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Amazon FBA Private Label: The Detail Guide 

Do you feel exhausted from accepting meager profits on wholesale products, which offer little control over your business? It’s time to break away from these constraints and get great success through the establishment of your own Amazon FBA private label business . However, you need to understand every aspect of this label to truly be successful with it.

In this article, LitCommerce will provide useful information about Amazon FBA private label through the following sections:

• What is Amazon private label?
• Why should you sell Amazon private label FBA?
• Some disadvantages of FBA private label
• How to start an Amazon FBA private label?

What Is Amazon Private Label?

First of all, let’s discover what is private label Amazon as well as what is Amazon FBA private label with us. 

Private labeling products refer to goods that are manufactured by one company but are branded and sold by another company . These products already exist in the market, and as a private label retailer, you simply add your own branding to them. It’s likely that the manufacturer is producing the same product for other brands as well. 

This means that you don’t need to come up with a completely new product or concept to sell under your own brand. With private labels, you have full control over the product. You can customize it with unique brand logos, packaging, and labels. Moreover, you have the power to determine the product’s pricing, and you can also take charge of its marketing and advertising activities. 

Meanwhile, Amazon FBA, which stands for Fulfillment by Amazon, is a service where Amazon manages the entire fulfillment process for sellers . This eliminates the need for sellers to handle tasks such as storing, packing, shipping, and customer service. To start an Amazon FBA business, sellers simply send their products to Amazon’s warehouses, and Amazon handles all the remaining aspects of fulfillment.

So, the combination of Amazon FBA and private labeling , called Amazon FBA private label,  creates a business model where sellers sell on Amazon under their own brand or label. Amazon seller private label have control over the product. They source existing products from third-party manufacturers and customize them with their own branding elements. The products are then sent to Amazon’s fulfillment centers, where best-selling platform takes care of the storage, packaging, shipping, and customer service aspects.

Why You Should Sell Amazon Private Label FBA?

Is Amazon FBA worth it ? Definitely it is. Selling on Amazon and making use of Amazon FBA can reduce lots of effort and time. Using Amazon private label FBA brings many benefits to sellers, most notably the following benefits:

Gain higher profit

As mentioned, private label Amazon FBA lets you source products directly from manufacturers and create your brand. This way, your costs will be much lower than when you resell products from other brands. If you’re selling wholesale products, you’ll buy from a brand owner or distributor who has raised the product’s price, leaving you with a smaller profit margin.

Meanwhile, with FBA private label, you can negotiate the best prices and terms and avoid paying any intermediary fees or commissions.

Read more: How to Make Money on Amazon: 19 Practical Ways in 2024

How to Make Money on Amazon: 16+ Practical Tactics to Try in 2024 

Customize your items

With this Amazon FBA private label sales method, you have full rights to customize the product however you want. You can work with suppliers or design units to make your products unique and more impressive than competitors appearing on Amazon.

Not only that, as an Amazon FBA private label seller, you can review customer reviews of your products and competing products, and pay attention to the problems that other shoppers encounter. Then, you can customize your product to be even better than the best-selling brands.

Have no brand restrictions

Even the name Amazon FBA private label shows that you can own your private label brand 100%. That means you can make all brand decisions independently. If you intend to resell items from other brands, Amazon may limit you under its Brand Gating feature for counterfeit management. You must have explicit approval from these brands to sell their products.

Simply put, since you sell items under your own brand name, you don’t have to get approval from anyone. You just focus on marketing and providing excellent customer service to strengthen your brand and customer loyalty.

It gives long-term momentum to your profits and ensures business stability.

Manage creatively your listing

Additionally, if you sell with Amazon FBA private label, you establish a completely new entry in the Amazon marketplace. This allows you to conveniently modify images, pricing, listing descriptions, and keywords to your benefit whenever you desire. Also , you can take full advantage of Amazon A+ content or enhanced brand content to improve your brand awareness and grow sales. A+ content allows you to provide additional information about your product to potential buyers and persuade them to make a purchase.

In contrast, suppose you’re engaged in reselling on an already existing Amazon product detail page. In that case, it can be challenging to make changes to the images or description if necessary, as you are not the original seller who listed the product.

Compete a little for the Buy Box

The Buy Box is located on the right side of the product page, where customers can click on it to buy the product. Now, resellers usually have to compete with other sellers to win the buy due to their ability to increase sales and visibility on Amazon.

But private labels on Amazon FBA owners don’t need to worry about that. They can win the Buy Box right since they are the only seller of this product . It can boost conversion rate and revenue. To put it differently, by utilizing a private label, you will have exclusive ownership of the listing and complete control over the Buy Box.

Increase in credibility

As you build your private label brand on Amazon, you establish credibility and trust among customers. When customers recognize your brand and consistently receive quality products, they are more likely to become repeat buyers and recommend your products to others. This increased credibility boosts sales and paves the way for long-term success and brand loyalty. 

By selling products under Amazon FBA private label, you can maximize in-demand products while contributing to your own brand’s credibility. 

Some Disadvantages of FBA Private Label

Although it brings many advantages to sellers, Amazon FBA private label still has some limitations, including:                                                           

Require high investment

Unlike reselling products, where you can buy low and sell high, selling Amazon private label products requires investing a significant amount of capital into sourcing and manufacturing their own products. This often involves working with manufacturers overseas, which can incur product development, packaging design, and shipping costs. Sellers must also allocate funds for marketing and advertising efforts to gain visibility within the competitive Amazon marketplace.

In general, when starting an FBA business, the financial commitment required to launch an FBA private label business can be a deterrent for those with limited resources or risk-averse mindsets.

Take a lot of time and effort

 Another drawback of FBA private label is the substantial amount of time and effort it demands. Creating a private label brand can be time-consuming and labor-intensive, from product research and development to sourcing suppliers and negotiating deals. You must also invest time in optimizing product listings, managing inventory, and handling customer inquiries . 

Moreover, continuously monitoring market trends and adjusting product offerings is crucial for long-term success in the ever-evolving eCommerce landscape. The significant problem of time and effort required for FBA private labels may pose challenges for individuals with limited availability or those seeking a more hands-off approach to business ownership.

Monitor quality loosely

Furthermore, one area that FBA private label sellers need to be cautious about is the potential for quality control issues. Since you source products from a third-party manufacturer, it’s impossible to check the quality and safety of the products . However, customers don’t know that. If they receive a bad product, it hurts your brand reputation and reduces customer loyalty. Bad product reviews also affect the product listing, further reducing sales. 

Therefore, FBA private label sellers need to establish strong relationships with reliable suppliers and implement robust quality control measures such as establishing clear quality standards, performing pre-shipment inspections,… to mitigate these risks.

How to Start an Amazon FBA Private Label?

Although there are both advantages and disadvantages, in general, Amazon FBA private label is still a selling method worth trying for many people. However, how to start an Amazon FBA private label? Here are Amazon FBA private label step-by-step guide:

Research items

The first step to starting your private label Amazon business is conducting thorough research on potential products. You can begin by: 

• Explore different product categories and niches that interest you. 
• Consider factors such as demand, competition, profitability, and market trends.  
• Utilize Amazon’s search tools , such as the Best Sellers Rank and Product Research Tools, to identify popular and profitable products.
• Dig deeper into their sales history, customer reviews, and pricing trends when you have shortlisted a few product ideas. 
• Evaluate the potential for differentiation and improvement of your item s.
• Look for opportunities to add value to existing products or identify gaps in the market that you can fill. 

By conducting comprehensive research, you can make informed decisions about which products to pursue.

Looking for suppliers

After identifying your potential products, the next step in the process of how to start Amazon FBA private label is looking for reliable suppliers. You need to:

• Search for manufacturers or wholesalers that specialize in the products you have chosen. Some online platforms like Alibaba, Global Sources, and Thomasne t are excellent resources for finding suppliers.
• When evaluating suppliers, look at factors such as their production capabilities, quality control measures, pricing, and delivery times . 
• Request samples to assess the quality of their products firsthand. 
• Verify their credentials and reputation by checking references and customer reviews.
• Negotiate pricing and terms that align with your business goals while ensuring a win-win situation for both parties.

It is noted that you need to create a strong relationship with your suppliers.  Effective communication, mutual trust, and clear expectations are essential for long-term success.

Customize your brand & items

Now that you have found a product and a supplier for your Amazon FBA private label business, your next step is to customize your brand & items. It is the best way to help your business stand out in the competitive Amazon marketplace. 

You should: 

• Generate a unique brand identity that reflects your target audience and values. 
• Design a compelling logo, packaging, and product labeling that resonates with your customers.
• Collaborate with your suppliers to customize the product features, materials, and packaging. 
• Innovate and differentiate your products to offer something unique and valuable to customers. 
• Focus on providing an exceptional customer experience , whether it’s through product functionality, design, or additional features.

Create Amazon listing

Creating an effective Amazon listing is key to showcasing your products and driving sales for your Amazon private label business. Here are some tips for you: 

Start by optimizing your product titles, bullet points, and descriptions with relevant keywords that customers are likely to search for.

• Use product images of superior quality that faithfully depict your merchandise.
• Utilize Amazon’s Enhanced Brand Content (EBC) or A+ Content features to provide additional information, images, and videos that enhance your product listing. These features improve the customer’s understanding of your product and help build trust and credibility.
• Motivate customers to share their experiences through reviews by offering incentives, sending follow-up emails,… Positive feedback not only enhances the visibility of your product but also builds trust in your brand among potential customers.

Launch your items

Now that you have prepared everything, it’s time to start selling your products on Amazon FBA private label. In this step, to attract customer’s attention, you can refer to some of the following tips:

• Run a focused advertising campaign . You can use Amazon’s Sponsored Products or Brand Advertising features to make your product more visible and increase sales.
• Adjust your marketing strategies and optimize your product listing based on customer feedback and market trends.

Significantly, remember that increasing sales on Amazon with a private label business on Amazon requires continuous effort, flexibility, and dedication to providing great value to your customers.

Difference between Amazon FBA Wholesale vs Private Label

Along with Amazon retrail arbitrage, many sellers are still confused between Amazon FBA wholesale and private label. In fact, these two forms are completely different. Amazon FBA wholesale involves selling established brands’ products on Amazon . You buy products in bulk from a wholesaler or manufacturer at a discounted price, and then sell them on Amazon for a profit. Amazon FBA takes care of the shipping and storage of your products for you.

Meanwhile, Amazon FBA private label involves selling your own branded products on Amazon . You find a product that you think will sell well, and then you design your own packaging and logo for it. You then work with a manufacturer to produce the product for you. Once the product is manufactured, you ship it to Amazon’s fulfillment centers, and they take care of the shipping and storage of your products for you.

Overall, here are some key differences between Amazon FBA wholesale vs private label

Amazon FBA Private Label: FAQs

The viability of Amazon FBA private label depends on various factors, including product selection, competition, marketing, and operational efficiency . While it can still be profitable for some sellers, the market has become more competitive, and success requires thorough research, quality products, and effective marketing strategies.

Yes, Amazon FBA private label can still be worth it . While it requires significant work and effort, it can be a profitable business model. According to a survey by JungleScout, most Amazon sellers make at least $1,000 a month, with some super sellers making over $100,000. However, it’s important to identify your niche and ensure the viability of your business model before becoming a seller. With FBA, Amazon takes care of fulfillment, making it easier for sellers.

No, Amazon FBA (Fulfillment by Amazon) and private label are not the same thing . Amazon FBA is a service provided by Amazon that allows sellers to store their products in Amazon’s fulfillment centers. Amazon takes care of packaging, shipping, and customer service on behalf of the seller. 

Private label, on the other hand, refers to a business model where sellers source generic or unbranded products from manufacturers and then create their own brand and label for those products. While private label sellers often use Amazon FBA for fulfillment, it is not exclusive to private label sellers.

Learning the Amazon FBA Private Label for Beginners Now! 

In short, while competition is intense, the potential for global reach and substantial sales on Amazon FBA private label is undeniable. With careful planning and execution on how to start Amazon FBA private label, you can build profitable and sustainable businesses in this exciting era of eCommerce.

Besides, if you want to expand your eCommerce business by selling cross-platforms, LitCommerce is the great tool you need. To know more about this tool, contact us now!

Finally, don’t forget to follow our retailer’s blog to receive the most interesting and latest information about your field.

David Do is an  E-Commerce Writer at LitCommerce . He has over 3 years of experience writing online content for small business owners and the marketing industry. David specializes in evaluating eCommerce platforms, plugins, and tools that help businesses grow.

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Amazon FBA Private Label: What You Need to Know

Ecommerce and online businesses are transforming the way we buy and sell products, and nowhere is this more apparent than on Amazon. With over 2 million private label sellers worldwide, Amazon has become a haven for entrepreneurs aiming to establish their own online business.

The concept of 'Amazon private label' is catching on fast, offering a unique opportunity for sellers to brand their own products and sell on Amazon's vast marketplace.

As a private label seller, you control the branding, pricing, and marketing of your products, thereby creating a distinct presence in the crowded online retail space. If you're planning to launch a private label on Amazon, you're on the verge of entering a dynamic and potentially lucrative world of ecommerce.

Stay tuned as we delve deeper into the intricacies of Amazon's private label business.

What is a Private Label Product?

Let's start by understanding what a private label product is.

In the realm of ecommerce, particularly as an Amazon seller, private label selling is a business model where you sell products under your own Amazon brand. These aren't just any products; they're specifically sourced products directly from a third-party manufacturer, but sold under your distinct brand name. 

The key to this business model is in the sourcing of your products. You're not merely reselling someone else's branded products. Instead, you're establishing your own brand within Amazon's marketplace. This gives you more control over product details, pricing, and branding strategy, setting your business apart in the bustling Amazon scene.

So, when you're selling on Amazon as a private label seller, you're not just selling products; you're selling your unique brand. This approach allows the flexibility of selling a diverse range of products from various manufacturers, all under your own brand name. It's an exciting and profitable avenue for entrepreneurs looking to carve their own space in the ecommerce landscape.

What is Amazon FBA?

Moving forward, let's delve into Amazon FBA, or Fulfillment by Amazon, a program that lets you outsource order fulfillment to Amazon .

This service is critical for those operating an Amazon private label brand as it manages the storage, packaging, and shipping of your products. Essentially, once you've sent your products to Amazon's Fulfillment Centers, they take care of the rest.

When a customer places an order for one of your items, Amazon handles the picking, packing, and shipping. They also manage customer service and returns for these orders. This allows you to focus on other crucial aspects of your Amazon business, such as expanding your Amazon listing, enhancing product quality, and driving customer engagement.

With Amazon FBA, your Amazon private label products are stored safely, handled professionally, and shipped promptly, enhancing overall customer satisfaction and aiding in the growth of your brand.

Advantages of Selling Private Label Products on Amazon

There are many reasons why millions of sellers worldwide have chosen to adopt the private label business model on Amazon. This approach offers a range of advantages that can potentially lead to incredible success.

Let's dive into these benefits and see why setting up a private label line could be the best decision for your online business.

Perhaps the most significant advantage is the opportunity to establish and grow your own brand. As your brand gains recognition and trust among Amazon customers, your potential for growth and profitability increases. Take, for example, the success of Anker , a private label brand on Amazon that has become synonymous with high-quality electronics.

Higher Profit Margins

With a private label line, you can enjoy higher profit margins. You control your private label product's price, freeing you from price wars with other sellers offering similar products. This paves the way for a profitable Amazon seller account.

Customization

Private label selling lets you customize your product according to market demands and your unique vision. This flexibility allows you to satisfy customer needs better and establish your brand identity.

Full Control of Your Amazon Listing

With an Amazon private label, you gain complete control over your product listings. From the product title and images to the description and customer reviews, you can craft a narrative that best represents your brand and products.

No Brand Competition

As a private label seller, you don’t have to compete with other brands selling the same product. Once you’ve registered your brand with the Amazon Brand Registry, you’re the only vendor offering that specific product on the Amazon marketplace.

To make the most out of your Amazon private label, it's recommended to use tools like Amazon PPC (Pay-Per-Click) to promote your products and boost visibility. Also, remember to leverage Amazon FBA, sending your products to Amazon's warehouse to ensure efficient fulfillment and customer satisfaction.

To sum up, the private label business model on Amazon offers a pathway to success with its potential for high profits, complete control, and the ability to build a loyal customer base. Whether you're an established seller looking to diversify or a newbie wanting to venture into ecommerce, private labeling on Amazon could open up new avenues for growth.

How to Start a Private Label Business on Amazon

Now, let us help you start by providing essential steps to launch your private label Amazon FBA:

Do Your Research

Before diving into your Amazon private label business, thorough market research is crucial. Look at the price, sales, reviews, and ratings of existing products similar to the one you plan to launch. This will give you insight into what a successful private label does and doesn't do.

For instance, a high-rated product with many reviews might indicate a profitable product, while low ratings and negative reviews might present an opportunity for improvement with your private-label products.

Find a Supplier

Once you've chosen a unique product to sell, the next step is sourcing your products. Platforms like Alibaba or Jungle Scout can help you find a reliable supplier.

Make sure to request samples before making a bulk order, ensuring the product meets your quality standards. Don't forget that a successful Amazon private label business relies heavily on the quality of products you offer.

Create Your Amazon Listing

Creating your Amazon listing is more than just uploading the product. You need to optimize your product description and features to attract potential customers.

Include keywords relevant to your product and pay attention to the product images, they should be high-quality and show the product from various angles. Remember, a successful listing is a blend of informative and enticing content that leads a customer to make a purchase.

Choose Your Fulfillment Method

You can choose between FBM (Fulfillment by Merchant) or FBA (Fulfillment by Amazon) for your private label Amazon FBA.

While FBM gives you more control, FBA can save you a lot of time as Amazon takes care of storage, packaging, and shipping. For most sellers, Amazon FBA is a preferable choice due to its efficiency and convenience.

After creating your listing and choosing your fulfillment method, it's time to launch your product. Monitor your sales and reviews closely in the first few weeks. Respond promptly and professionally to any customer queries or complaints. Also, consider using Amazon PPC to boost your product visibility.

Remember, launching a successful private label on Amazon requires ongoing effort. You might need to introduce a new product from time to time, adjust your pricing strategy, or enhance your marketing efforts based on market trends. The key is to keep evolving and improving your approach to stay competitive.

There are plenty of examples of private label success stories on Amazon. Anker, as mentioned earlier, is one of them. They started as a small private label selling USB cables and now are a globally recognized brand.

There's no shortcut to launching successful products in 2023 for your FBA business. It will require meticulous planning, market analysis, and innovative strategies. The products based on market demands, consumer reviews, and current trends will have the highest potential for success.

To create an Amazon private label, it is crucial to understand your target audience, their needs, and preferences, and craft your products and strategies accordingly. Just as you would in any other business, focus on delivering quality, value, and excellent customer service to build trust and loyalty among your customers.

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How to Start an Amazon Private Label Business: 9 Proven Steps

So, have you heard about the latest trend among entrepreneurs looking to make money? It’s all about private labeling on Amazon! With e-commerce giants like Amazon taking over the market, private labeling has become a popular way for individual sellers to create their unique brand and make some profit. The idea is simple – take generic products and put your own brand name on them.

But don’t be fooled, my friend. While it may sound like a piece of cake, creating a successful private label on Amazon takes a lot more than just slapping your name on a product. Luckily, I’m here to help. 

In this article, I’m going to give you some tips and tricks on how to create a successful private label on Amazon. Let’s dive in!

Table of Contents

What is an Amazon Private Label?

Pros of selling amazon private label products, cons of selling amazon private label products, getting started with private label on amazon in 2023, 3 tips for selling private label products on amazon, final thoughts.

Private labeling is a simple concept where you purchase products from a manufacturer and sell them under your own brand.

Amazon Basics is a great example of a successful private label brand. They don’t manufacture the products themselves, but instead source them from other manufacturers and sell them under the Amazon Basics name. The private label business has been growing fast and in 2018 alone it reached a profit of $5.5 billion, a 4.4% increase from the previous year.

Did you know that nearly one out of every four products sold in the US is a private label or store brand product? With that kind of growth, private labeling gives Fulfilled by Amazon (FBA) sellers an amazing opportunity to create a trusted brand. You won’t have to worry about manufacturing and Amazon takes care of most of the logistics and customer service for you. All you need to do is find a great generic product and a reliable supplier!

So if you’re ready to start your own brand and make your mark on the e-commerce world, private labeling is definitely something to consider.

Selling private label products on Amazon can be a challenge, but it’s definitely worth considering for anyone looking to start their own brand. Here are three good reasons why you should consider selling Amazon private label products:

1. No More Restriction Worries

When you sell products from other brands, you have to worry about any restrictions that brand has on Amazon. This can be frustrating and time-consuming, and it can limit what you’re able to do with your business. 

However, when you sell your own private label products, you don’t have to worry about these kinds of restrictions. You have the freedom to create and sell what you want without limitations!

2. Less Competition, More Sales

As a private label seller, you won’t have to worry about other sellers undercutting your prices, and you won’t have to compete with other sellers of the same brand. 

This gives you a significant advantage in the marketplace, allowing you to sell your products without the fear of being overshadowed by other competitors. With less competition, you can attract more customers and generate more sales!

3. Enhance Your Listings

Amazon A+ Content, also known as Enhanced Brand Content, is a premium content feature only available to brands registered on Amazon. With Amazon EBC, you can customize your listings with multimedia content, including videos, images, and detailed descriptions. This can enhance the user experience and improve your chances of converting shoppers into customers. With EBC, you can take your listings to the next level and stand out from the crowd!

While selling private label products on Amazon can be a lucrative business, it’s not without its drawbacks. Here are some of the cons you should consider before embarking on this journey.

1. Upfront Capital Investment

One of the biggest challenges you’ll face as a private label seller is the upfront capital investment required to get started. Manufacturers often require bulk orders, and in order to be competitive, you’ll need to keep your product costs low. 

This means you’ll need to invest a significant amount of money upfront, often several thousand dollars, to get your private label off the ground. So, before you start, make sure you have the financial resources to make this long-term investment.

2. Standing Out from the Competition

Creating a private label brand that stands out from the competition is easier said than done. Branding your product and building a customer base takes a lot of hard work and dedication. With so many other private label products on Amazon, it’s not easy to make your brand stand out. You’ll need to put in the time and effort to create a unique selling proposition and market your product effectively.

3. Risk of Failure

When you invest a significant amount of money in product purchases and branding, there’s always a risk that your private label won’t take off. Unlike an established brand, there’s no guarantee that customers will be drawn to your product. 

In these cases, you may end up losing more money than if you were a regular seller. So, before you start selling private label products, it’s important to weigh the risks and rewards carefully.

If you’re looking to start your own online business, Amazon’s Fulfilled-by-Amazon (FBA) program is a great way to sell private label products. Here are the important steps to get started.

Step 1. Make a list of product ideas

When it comes to generating ideas for private label products, inspiration can come from anywhere. Here are a few ways to come up with new ideas:

• Look for trending products: Keep an eye out for hot new products in stores, especially those that haven’t made it to larger retailers like Walmart and Target. For example, you might see a unique set of measuring cups in a store like Anthropologie and realize it could be a great product to sell.
• Check out Amazon: Take a look at Amazon’s categories and subcategories to find new products. Pay attention to the “Hot New Releases” column and look at what other sellers are offering on their storefronts and product listings.
• Browse the web: Social media is a great source for finding new and viral products. You can also check out crowdfunding platforms like Kickstarter and IndieGoGo for innovative product ideas.

Step 2. Choose the right product

Choosing the right product is crucial when it comes to selling private label products. The product should meet specific criteria to ensure that it’s profitable and easy to sell. Here are a few things to keep in mind:

• Small and Lightweight: Choose products that are small and lightweight so that they fit into a small, flat-rate box and weigh no more than one or two pounds. This will help you save on shipping costs.
• Non-Seasonal: Avoid seasonal products like Christmas lights or winter clothing because their sales are dependent on the time of year.
• Unregulated: Certain products like food, toys, and batteries come with “red tape” that can make selling that product difficult. So, stick to items that don’t require a lot of legal paperwork and/or certifications.
• Uncomplicated: Avoid products like electronics or clothing, which may require you to have multiple colors and sizes for a single SKU. These products can lead to headaches and customer service issues.

To learn more, you can check out our guide “ 10 Tips to Find Best Selling Products on Amazon ”. 

Step 3. Do market research

Market research is essential when it comes to selling private label products. You need to know whether there is demand for the product you want to sell, and whether the competition is too high. Here’s how you can do it:

• Use Jungle Scout’s Chrome Extension: Jungle Scout’s Chrome Extension can help you research products for you instantly. You can search for your product idea on Amazon.com, and the extension will show you the average monthly sales and reviews for the search’s results.
• Check the Criteria: Personally, I prefer products that sell an average of 250 – 400 units per month. Also, make sure that the average number of reviews for a product is less than 100. This will give you an idea of the competition and whether there is demand for the product.

Step 4. Find a supplier

Once you have a product idea in mind, it’s time to find a supplier who can manufacture it for you. Alibaba is a great resource for this, as it allows you to purchase wholesale and bulk products directly from overseas manufacturers. 

To get started, create a buyer account on Alibaba.com and search for your product. When you find a product listing that matches your private label idea, send a message to the supplier requesting more information. I recommend reaching out to 3-5 suppliers and ordering a sample from each one. This will help you compare quality and pricing before making a final decision.

Learn more about how to find wholesale suppliers for Amazon FBA . 

Step 5. Customize your product

Since you’ll be selling a private label product, you’ll want to make it stand out from the competition. 

One way to do this is by customizing the product design, such as adding your own logo or changing the color. If you’re not skilled in graphic design, you can find affordable designers on freelance sites like Jungle Market. 

Additionally, consider improving the packaging to create a better customer experience. You can even use the packaging to market your brand by including your website URL or other helpful information.

Step 6. Decide your fulfillment strategy

Once your products are manufactured and ready to sell, it’s time to think about fulfillment and shipping. Many sellers use Amazon’s Fulfillment by Amazon (FBA) service, which handles storage, picking, packing, and shipping of your products. FBA also provides customer service for your customers, making it a convenient option for many sellers. 

However, you can also fulfill orders yourself if you prefer. This might involve storing inventory in your own garage or warehouse, or using a third-party fulfillment center to ship your goods.

Step 7. Choose a manufacturer

Now that you have done your market research, designed your logo and packaging, and have an understanding of Amazon’s fulfillment process, it’s time to select a manufacturer.

It’s crucial to reach out to multiple manufacturers, around 3-5, and request product samples. This process will help you assess the quality of the product, the supplier’s communication skills, and shipping times. Quality and communication are more important than the cost of the product. Remember not to select a manufacturer just because they have the lowest cost.

Once you’ve decided on a manufacturer, you can arrange payment through PayPal or Alibaba’s Trade Assurance to ensure safe and secure transactions.

Step 8. Create an Amazon listing

The manufacturer typically takes 4-6 weeks to create your product and deliver it to you or the nearest Amazon fulfillment center. This period is perfect for creating your Amazon listing.

When creating an Amazon listing, make sure everything is ready to publish and launch in advance. High-quality product photos are a must, and if you don’t have the photography skills, consider hiring a professional. You can find quality photographers on Jungle Market.

Your Amazon listing’s title is one of the most important elements of the listing. It’s what helps Amazon determine where to display your product in its database. Therefore, ensure that you use relevant keywords in your title. If you’re selling “copper measuring cups” and want to rank for that keyword, be sure to include “copper measuring cups” at the front of the title. After that, use your secondary and tertiary keywords that you want to rank for.

Incorporate your product’s strongest features and benefits in the product description field and bullet points. These features and benefits will help customers make purchasing decisions when they visit your page. The more your private label product meets their wants and needs, the more likely they are to buy.

To learn more, you can read our guide “ How To List Products for Sale on Amazon ”. 

Step 9. Boost your Amazon sales with Amazon PPC and A/B testing

So, you’ve got your private label product listed. But, are you doing everything you can to boost your sales? Even if you’re using the “set it and forget it” method, it’s worth checking that your product listing is performing its best.

Thankfully, Amazon’s internal advertising system, Amazon PPC, is here to help. With Amazon PPC, you can bid on “sponsored ads” that can get your product listed on the first page of search results, on remarketing ads outside of Amazon, and even on your competitors’ product pages.

To make the most of this system, you can run reports on Amazon Seller Central to find out the best selling and converting keywords to bid on via PPC. Plus, Jungle Scout’s Keyword Scout tool can give you an insight into your competitors’ keywords that are driving sales.

It may take a bit of tweaking and adjusting your bids, but after a few weeks, you can potentially double or triple your Amazon sales! Once you’ve got the hang of Amazon PPC, you can use other tools to test and refine your product listing.

A/B testing (or split testing) is a great way to see what works and what doesn’t. With split testing, you can run two concurrent tests featuring small changes to your product listing, such as the main image or price point. Then, tools like Splitly can help you analyze and determine what’s working and what’s not.

You might be surprised to learn that images and titles that you thought were bringing in sales were actually hurting your sales. So, take the time to test and refine your Amazon FBA private label product listing, and you’ll be sure to see better results!

Selling private label products on Amazon can be a profitable business venture if you know how to do it right. Here are three tips that can help you maximize your profits and stand out from the competition.

1. Use Amazon FBA

If you’re selling private label products, using Amazon FBA (Fulfillment by Amazon) can save you time and reduce your risk. Amazon FBA will handle your inventory, shipping, customer service, and returns, allowing you to focus on growing your business. 

While you can fulfill orders yourself, using Amazon FBA is a better option if you want to streamline your business operations.

2. Optimize your price

Setting the right price for your private label products can be a challenge. Pricing too low can hurt your profit margins, while pricing too high can lead to slower sales and negative customer reviews. To set an effective price point, research your competitors and understand the demand for your product. 

Aim to keep your price point within 20% of your competitors’ average sales price. Instead of pricing your product lower than your competitors, find ways to make it stand out through better design, packaging, and customer service.

3. Create a branded product

Creating a branded product can increase your chances of success on Amazon. One way to do this is by creating a logo and color scheme for your private label brand. When choosing your brand elements, avoid blindly following trends and aim for a unique design. Identify two or three main brand colors and stick to them. Keep your logo and font simple and minimalistic. 

Additionally, customize your packaging to include your branding elements, such as your brand name, product name, photograph, manufacturing details, and legal information. Creating a branded product can help you stand out from the competition and build customer loyalty.

• Learn more about how to build a brand on Amazon . 

Running a successful private label requires a lot of hard work, innovation, and dedication. But if you do it right, you could end up becoming your own boss and creating a massive e-commerce empire!

One great way to kickstart your brand is by running PPC (pay-per-click) campaigns early on. By marketing your private label from the get-go, you can draw in organic traffic and start building a loyal customer base for the future.

Remember, building a private label is not a get-rich-quick scheme. It’s a long-term investment that requires patience, persistence, and a willingness to take risks. But with the right mindset and marketing strategies, you can turn your private label into a thriving e-commerce business.

For more guidance, sign up for my online business coaching .  

Jeff Smith, Founder of High Income Source, is an online business coach with a BBA in Marketing and Entrepreneurship from the University of Pennsylvania. His online business coaching program is so popular that more than 100 students have benefited and started successful online businesses under his guidance.

Jeff started dabbling in online business while he was in college, where he began with dropshipping. After college, Jeff worked at a marketing agency and freelanced as a writer. His breakthrough came when he realized the potential of blogging, leading to a $100,000 sale of a dog-focused website. His expertise includes SEO, affiliate marketing, Amazon FBA, blogging and dropshipping.

Related Posts:

• How To Sell On Amazon: 10 Proven Steps For Beginners
• 7 Ways to Source Products to Sell on Amazon
• How to Build a Brand on Amazon: Complete Beginner's Guide
• Beginner’s Guide to Advertising on Amazon

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How to Start an Amazon Private Label Business for Beginners

Thinking about starting your own business creating an amazon private label may be an opportunity for you to supplement or even replace your existing income. what, exactly is an amazon private label it entails locating generic products already in demand on amazon, developing your own packaging and logo for them, and selling them in a way that beats your competition. sounds interesting let’s go through exactly what it takes and the steps necessary to create an amazon private label business, things to be wary of, and legal concerns and considerations to think about during your journey.   do you have what it takes before looking at the specific steps involved with starting your own amazon private label, let’s briefly look at what it takes to become a successful entrepreneur, regardless of what your business turns out to be. all entrepreneurs have certain traits in common : analytical: entrepreneurs notice where there is a want or need in the current marketplace and create a solution in the form of a product or a service. adaptable: entrepreneurs are usually able to perform numerous tasks well. not only can they produce a product or service, but they can carry the idea to fruition. passionate: an entrepreneur believes in his idea well enough that he can conquer obstacles in his path and inspire others to do the same. disciplined and self-motivated: entrepreneurs must be self-starters and be able to complete tasks, even if they are mundane.   do you have what it takes to be an entrepreneur if so, let’s explore, more specifically, how to create a private label amazon business.   steps to create your private label business there are various steps you can take to develop your own amazon business: brainstorm product possibilities. you can search social media, “hot new releases” on amazon, kickstarter, and indiegogo for inspiration. things to keep in mind about your product : keep the price range between $20-50, make it something you can sell year-round, is lightweight (to avoid higher shipping costs), and make sure it’s not restricted or requires amazon approval. perform market research to determine if the item you’re considering is worth selling. bqool’s product research tool can give you information on average sales, the number of reviews, and amazon fees. it even provides a profit calculator. look into possible suppliers and manufacturers of the product and decide on one. alibaba is a good place to look for suppliers because they allow you to purchase items in bulk from overseas manufacturers. purchase sample products before committing. create your individualized logo and packaging. this is what makes the product yours; you can put your logo right on the product if you want. supply nice packaging that will improve your customers’ experience and include your website url inside the packaging. decide how you will fill the orders. the easiest way is to use fulfillment by amazon (fba) . you just send your products to amazon, and they pack and ship the items for you as well as handle customer service. build your amazon listing. make sure you take a high-quality photo of the product and create a title that will be picked up when customers search for the item. then, use bullet points in the product’s description to point out your product’s features. increase your product’s sales by optimizing its listing. use amazon ppc, their in-house advertising system, to place high in the search results, and tweak your keywords by examining what keywords your competitors are using . by refining these techniques and making them your own, you’ll be well on your way to success.   considerations for a successful amazon business businesses don’t just fail without reason. now that you know the ins-and-outs of starting your own amazon private label, let’s look at reasons why you may struggle , and things you can do to prevent that from happening. poor research. make sure there is a high demand for your product, and that there isn’t too much competition. broad keywords. use very targeted keywords. once again, be thorough with your research. lack of brand identity. differentiate yourself from all of the “me-too” sellers. what makes your brand special and unique poor work ethic. work hard, particularly in the planning stages. many people are sold on the myth that they can make a fortune with very little effort. by avoiding the pitfalls and myths, you can increase your chances of a rewarding, lucrative business.   legal hurdles  with the pitfalls of owning your own amazon business, there are also legal issues that you need to be concerned with. intellectual property (ip) is one of them.  ip relates to any creation of your mind including such things as names, designs, and images that are utilized in business. therefore, your logo, trademark, and packaging are intellectual property, and like material property, should not be stolen. this applies who people who counterfeit or impinge on your product listings. luckily, however, you can register your intellectual property rights with the world intellectual property organization (wipo) , who will fight for your rights if they have ever impinged. when you’re self-employed, there are also additional tax considerations. if you have a business license, you have to file a schedule c, and don’t forget about keeping track of sales tax, which can be the most stressful part of owning a business. if you process more than $20,000 of orders per year and have 200 or more transactions, you will also receive a form 1099-k from amazon. there are also many deductibles you qualify for as a self-employed individual that can save you money: amazon fees cost of your home office software purchased for taxes or inventory cost of advertising shipping supplies and fees. taxes can be very confusing. luckily there is very good tax software you can purchase that will assist you with this not-so-fun part of owning a business.   you’ve always dreamed of being your own boss, and maybe creating your own amazon private label is just the right fit for you. use these suggestions and do further research and you may just become the successful entrepreneur you’ve always dreamed of becoming   author bio jori hamilton is an experienced writer from the northwestern u.s. she covers a wide range of subjects but takes a particular interest in covering topics related to business, marketing, and technolo gy that benefits both of those endeavors. to learn more about jori, you can follow her on twitter . please share this post:.

September 15, 2020

Tag: amazon private label, other stories.

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Home » Blog » How To Start an Amazon FBA Private Label Business?

How To Start an Amazon FBA Private Label Business?

• Rohit Mishra

If you are a budding entrepreneur stepping into the world of online selling then Amazon FBA private label business is one of the most lucrative options that you have in hand. In this overview, we share with you some important guidelines on how you can start an Amazon FBA private label business from scratch and create a market presence that recognizes your brand and gives you growth throughout your business career.

What Is Private Label Amazon FBA?

In recent years private label business model has seen tremendous growth because of its vast potential to help entrepreneurs grow with minimum risk. Private label brands are products that are manufactured by someone else and sold by retailers and suppliers under their private label or brand.

Amazon FBA private label business is a business model where sellers first identify products on Amazon that have a high demand and then work in association with manufacturers to create similar products with better customization and sell them under their unique brand and private label.

The Amazon FBA offers the service of storage and fulfillment of orders on behalf of the seller. Here suppliers or sellers have complete control and legal ownership over the brand.

Why Choose Amazon FBA Private Label?

The Amazon FBA Private Label business model is garnering popularity because of various advantages that it brings along. Some of the major attractions of this business model are:

Low Entry Barrier: The Amazon FBA Private label business model allows sellers to easily enter the market without spending time and resources on market research or innovating new products. Sellers can easily trace high-demand products and sell customized versions of these products under their private label.

Global Reach: Online selling through the Amazon FBA as a private label business launching platform Model is one of the finest ways to tap a huge global market with millions of customers from different demographics, ages, and cultures. It helps sellers connect with their target consumers through an online platform through easy display and listing of their products.

Fulfilment Efficiency: The Amazon FBA private label business model offers the greatest efficiency as sellers can focus on sales generation. At the same time, Amazon takes care of your logistic needs, warehouse stocking, and shipping of orders. It requires zero investments from sellers for maintaining stocks and fulfills orders easily without any hassle.

Branding Opportunities: When selling online through the Amazon FBA private label model, the sellers have complete ownership and control over their brands. From logo designing to packaging and promoting the brand through its assisted services like product listing and Amazon A+ content, sellers can use a well-defined marketing strategy to build and promote their brands.

Selling products online through the Amazon FBA private label platform is one of the safest and surest ways to harness the potential of online selling.

Starting Your Amazon FBA Private Label Business (Step-by-Step Guide)

Selling private label products through the Amazon FBA program requires considerable research and understanding of the online business and how it functions. Here we navigate you through the various steps that can help you establish your brand on Amazon and promise growth.

1. Product/Market Research

Before selecting a product for starting amazon private label business you need to carry out thorough research and track the best-selling products and those with the highest demand.

Considering your interest and business inclination towards a particular category search for the best-selling products in that section and track the top labels or brands making the highest sales. See what drives sales of that product and understand its strategic pricing policy. Choose products that have evergreen sales and a holistic market.

2. Source Manufacturers

Sourcing products from reputed and reliable manufacturers and suppliers ensures that your products are manufactured using quality ingredients and adhere to quality standards.

Some of the top manufacturers of cosmetic and skin care products and raw materials like Bo International support new entrepreneurs by strengthening their product line through an efficient supply of quality goods. Comparing products, obtaining product samples, and negotiating on prices can help you build your brand and ensure sustained growth through smooth functioning.

3. Get Product Samples

Once you finalize your products and shortlist the suppliers always ask them to send you samples of the product that you intend to sell.

Evaluating samples can help you check for quality control and also all the specifications with which you hope to improve the product for amazon private label business. Share samples of your products with prospective buyers and target consumers to obtain feedback and suggestions. This will help you to make changes to the products before you place any bulk orders.

4. Create Your Brand

Owning a brand and selling it on Amazon gives you the benefit of winning over direct competition, as no other seller is selling a similar brand or offering a similar story.

Therefore, create a brand with a unique selling proposition through exceptional branding, packaging, and promotional activities that create an instant connection with your consumers. Use design elements, attractive colours, and an eye-catching logo that translates your business vision and resonates with customer expectations.

5. List Your Product on Amazon

Once you decide on your products and the suppliers to start an amazon private label business, it is time to display your product list on Amazon and engage your customers. For this open a seller account on Amazon and create a product listing title.

Research for keywords that are trending in the market and SEO-optimized product descriptions that best describe your products. Collect high-quality images of your products for display that define all the major specifications of your products. Analyze the product listings of your competitors and see how you can create an Amazon listing that stands out from others.

6. Set Your Price Point

Selling private label products through Amazon FBA gives you the liberty to set your competitive prices and compete in the open market.

After evaluating competitor’s price strategy and considering your cost of production, you can set prices that offer the best quality products to your customers at the most budgeted price. Introducing combo offers and discounts can further lure customers and help you drive sales based on a strategic price point.

7. Utilize FBA Services

After finalizing your product and manufacturer to start a private label business on amazon, it is time to ship and deliver your products to the customers. For establishing a smooth supply chain, you can avail the FBA services of Amazon.

This service allows you just to obtain orders from the customers and leave the logistics to Amazon. Your products are stocked at Amazon warehouses from where they ship your orders to the customers, charging some additional fees to your seller account. From packaging to customer service, returns and refunds are all managed by Amazon.

8. Launch Your Product

Though selling products on Amazon looks easy, it isn’t. After listing your products on Amazon, you need to organize a product launch and introduce some promotional activities to apprise customers about your products.

This awareness and promotion leads to sales conversions and can set your amazon private label business going. Alternatively, you can use Amazon’s advertising policy for the promotion and display of your products. You can also use the social media platform and influencer collaboration strategy to spread awareness about your products.

Navigating through the above steps, you can successfully set up a seller account on Amazon and start your private label business with a sound understanding of how products are sold and delivered through the Amazon FBA scheme.

Drawbacks of Amazon FBA Private Label Business

All good things come with their share of flaws and so does the Amazon FBA Private label business, which you should be aware of before stepping into this field.

Higher Investment: Selling private label products through the Amazon FBA program requires considerable capital and a constant cash flow to order bulk products from the manufacturers and pay for brand creation, labelling, packaging, shipping, marketing, and delivering your orders. This reduces profit margins as you need to pay at every step, unlike reselling products where you can pick up stock at low prices and sell at higher prices.

Limited Control: Since all operational control is with the manufacturer and fulfilment partner, therefore you have limited control over the quality of the products. In case of bad quality or a defective product, the customer blames your brand and negative feedback can badly dent your business.

Time & Effort: When engaging in Amazon FBA Private label business, do not expect to generate results overnight. It takes considerable time to source products from reputed suppliers, build a brand, frame a marketing strategy, launch a product, and garner customer support and loyalty, which finally yields results.

Competition: Selling products online on Amazon requires you to keep a close watch on your competitors, their marketing strategy, and their pricing policy. See how they respond to trends and changing demands in the market and innovate your product line and customer services accordingly.

However, do not let the above drawbacks of Amazon FBA private label selling deter you from your plan of online business, because the opportunities and benefits of the same far outweigh the drawbacks.

Like any other business, selling private label products through the Amazon FBA model requires the utmost determination to excel and a decent understanding of the online business.

Right from selecting a product niche, to selecting your manufacturer and listing products to launch your products and availing the FBA services to set your business in motion, you need to exercise prudence and good decision-making at each step. Remember, patience is the key to success and it takes days or even months to build a reputable brand that brings business and keeps the ball rolling.

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