amazon private label business plan

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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Lori Ballen

Digital Marketing Strategies

Launching an Amazon Private Label Business: A Step-by-Step Guide

Monetization Strategies / November 28, 2023 by Lori Ballen / Leave a Comment

This website contains affiliate links and offers that benefit Lori Ballen with no additional cost to you.

Have you ever dreamed of starting your own online business with your own unique brand and products? Enter the world of Amazon Private Label, a lucrative business model that empowers you to take control of your brand and product offerings on the world’s largest online marketplace. Imagine having the freedom to design, source, and sell products under your own brand name while leveraging the incredible reach and customer base of Amazon.

Table of Contents

In this comprehensive guide, we’ll walk you through everything you need to know about launching a successful Amazon Private Label business. From understanding the concept and advantages to identifying profitable product opportunities, sourcing and manufacturing products, creating a strong brand identity, and much more – we’ve got you covered! So buckle up and let’s embark on this exciting journey towards your very own private label empire.

Short Summary

• Launch a successful Amazon Private Label business by understanding market demand, sourcing products and optimizing listings.
• Reap the rewards of selling private label products on Amazon with higher profit margins, creative control and exclusive access to the Buy Box.
• Leverage customer feedback to identify profitable product opportunities and create a strong brand identity for optimal operations & profitability.

Understanding Amazon Private Label

At the heart of the Amazon Private Label business model lies the concept of selling private label products, which are essentially products manufactured by another company but sold under your own brand name. This enables you to tap into the enormous potential of the Amazon marketplace, while establishing your own private label brand and reaping the rewards of owning and controlling your product offerings.

Creating an Amazon private label business is an exciting and rewarding venture that entails several crucial steps, such as researching market demand and competition, sourcing products from reliable manufacturers, designing appealing packaging, marketing your products effectively, and handling logistics to ensure seamless delivery to your customers. With the right strategy and execution, you can build a thriving online business that stands out from the competition and generates sustainable profits.

Advantages of Selling Private Label Products on Amazon

Selling private label products on Amazon comes with a plethora of benefits that make it an attractive business model for aspiring entrepreneurs. For starters, you get to own the brand, which allows you to take control of your product’s marketing, growth, and pricing, ultimately maximizing your profits and sales.

Moreover, you can enjoy higher profit margins (typically between $20 and $50), customize your products to cater to your target audience’s needs and preferences, and exercise creative control over your listings, including images, pricing, and product descriptions. Plus, you get exclusive control over the coveted Amazon Buy Box, which is a powerful tool for driving conversions and boosting sales on the platform.

Identifying Profitable Private Label Product Opportunities

The first step towards building a successful Amazon Private Label business is identifying profitable product opportunities that align with your brand vision and target audience. This involves carefully analyzing market demand and competition, assessing profit margins and improvement potential, and leveraging customer feedback and reviews to uncover hidden gems in the vast Amazon marketplace.

Analyzing Market Demand and Competition

To get a better understanding of the market and identify potential opportunities, it’s essential to carefully review each product listing and assess the competition. By examining what similar products are selling for, you can ensure that your pricing strategy is competitive and in line with market demand.

Utilize tools like Helium 10 to gain insights into the market and get a competitive edge. Studying customer reviews on similar products can provide invaluable insights into market demand and competition, as well as highlight any issues people have had with their purchases, which you can address in your product offering.

Assessing Profit Margins and Improvement Potential

Profit margin is a key measure of how successful a company is at making money on its products or services after accounting for all associated costs. To assess your profit margins and improvement potential, you should analyze your current costs, pricing, and sales volume to identify areas of improvement. Additionally, you should look at the competition to gain insights into their pricing strategies and sales tactics.

To maximize your profit margins, focus on reducing costs, boosting sales volume, and optimizing pricing. You can reduce costs by sourcing from dependable suppliers, negotiating better terms, and streamlining your production process. Increase sales volume by optimizing your Amazon listing, leveraging customer feedback and reviews, and launching promotions. Finally, optimize pricing by researching the competition and understanding customer demand.

Leveraging Customer Feedback and Reviews

Customer feedback and reviews are invaluable resources for identifying profitable private label product opportunities. By leveraging customer feedback, you can uncover areas for improvement and potential new product ideas that resonate with your target audience. Additionally, customer feedback and reviews can help you optimize your Amazon listings and craft content that can be used to promote your products, such as customer testimonials, case studies, and product reviews .

Making the best use of customer feedback and reviews involves responding to customer feedback, leveraging it to improve your product, and using it to create content for promotion. By doing so, you can ensure that your private label products are tailored to meet the needs of your target audience and stay ahead of the competition.

Sourcing and Manufacturing Private Label Products

Once you’ve identified a profitable private label product opportunity, the next step is to source and manufacture your products. This process involves searching for suppliers on platforms like Alibaba, evaluating their reliability and quality, and requesting samples to ensure that the product meets your expectations.

Once you’re satisfied with the sample, you can finalize the order and kickstart your Amazon private label journey.

Searching on Platforms like Alibaba

Alibaba is a platform that links suppliers and manufacturers to buyers from across the globe. It has the power to bring augmented benefits of trade to all involved stakeholders. It provides a great opportunity for private label sellers to easily search for potential suppliers and manufacturers, making it an excellent starting point for sourcing your private label products.

In addition to Alibaba, you can explore other B2B platforms and attend trade shows and exhibitions to meet suppliers in person and evaluate their products. This hands-on approach can help you build strong relationships with suppliers and ensure that you’re sourcing from reputable and reliable manufacturers, ultimately setting the foundation for a successful Amazon private label business.

Evaluating Supplier Reliability and Quality

Evaluating supplier reliability and quality is a crucial step in the sourcing process. To assess a supplier’s performance, you should measure their on-time delivery performance and track record for any past issues with product quality or delivery times. Additionally, supplier KPIs such as defect rate, lead time, availability, order accuracy, competitiveness, and customer service can be used to evaluate their performance against agreed-upon standards or benchmarks.

When sourcing from Alibaba, be sure to contact several manufacturers to find the most competitive prices and ensure that suppliers allow for Amazon private labeling. Only use reliable payment methods and source from reputable manufacturers or vendors with at least two years of experience and trade insurance. This will help mitigate risks and ensure that you’re working with a trustworthy and dependable supplier.

Requesting Samples and Finalizing Orders

Before committing to a supplier, it’s crucial to request a product sample to evaluate its quality and design. This ensures that you’re getting exactly what you need and helps you make an informed decision before placing a large order. On Alibaba, you can check the box on the product page to see if the supplier is open to sending samples or contact the supplier directly to request a sample.

Once you’ve found a supplier that meets your needs, you can confidently begin negotiations and secure the best agreement possible. Be sure to confirm the order with the supplier, pay for the order, and ensure timely delivery for a successful order finalization process. This will set the stage for a smooth and efficient Amazon private label business operation.

Creating a Strong Private Label Brand Identity

Establishing a strong private label brand identity is instrumental in setting your products apart from the competition and making a lasting impression on your target audience. This involves designing a logo, product design, and packaging that resonates with your target audience and reflects the unique value proposition of your brand.

To create a powerful brand identity, consider hiring a designer from sites like Upwork, Fiverr , and 99Designs. These platforms offer professional-looking branding services at a reasonable price, helping you achieve a visually appealing and consistent brand image across all your product listings and marketing materials.

Remember that a well-crafted brand identity can significantly impact your customers’ perception of your products and ultimately drive sales and growth.

Building and Optimizing Amazon Listings

Creating an effective Amazon listing is a crucial component of a successful private label business. To build and optimize your listing, you should start by researching relevant keywords using tools like the Reverse ASIN Lookup and AMZScout Keyword Search. Strategically place these keywords in your product title and description to improve visibility and conversions.

Next, collect high-quality images that showcase your product’s features and benefits. Professional product photography can make a world of difference in attracting potential buyers.

Finally, craft a captivating product description that highlights your product’s unique selling points and addresses any potential customer concerns. By following these steps, you can create an optimized Amazon listing that drives sales and boosts your private label business.

Choosing the Right Fulfillment Method

Selecting the right fulfillment method for your Amazon private label business is a crucial decision that can significantly impact your operations and profitability. There are three main types of fulfillment for Amazon private label: self-fulfillment, outsourced fulfillment, and Amazon FBA (Fulfillment by Amazon). Each method comes with its own unique advantages, so it’s important to carefully consider which one best aligns with your business goals and resources.

Amazon FBA is a popular choice for many private label sellers, as it offers a convenient, hands-off fulfillment process where Amazon handles storage, packaging, fulfillment, and customer service on your behalf. This allows you to focus on growing your business while leveraging the credibility and visibility that Amazon FBA provides, including eligibility for Amazon Prime.

Evaluate each fulfillment method carefully and choose the one that best suits your needs and objectives.

Launching and Promoting Your Private Label Products

Once you’ve set up your Amazon private label business and created an optimized product listing, it’s time to launch and promote your products. Utilize Amazon’s advertising tools, such as Sponsored Products, Sponsored Brands, and Sponsored Display ads, to increase visibility and drive sales. These tools can help you target relevant keywords and reach potential customers who are actively searching for products like yours.

In addition to Amazon advertising, monitor your sales and customer feedback to optimize your launch and promotion strategy. This will help you identify areas for improvement and make necessary adjustments to maximize your sales and profits. With the right promotion strategy in place, you can successfully launch your private label products and carve out a niche in the highly competitive Amazon marketplace.

Avoiding Common Mistakes in Amazon Private Label Business

As you embark on your Amazon private label journey, it’s essential to be aware of common mistakes and pitfalls that can hinder your success. Some key mistakes to avoid include not basing your price solely on competitors, obtaining a UPC code, getting a manufacturer part number, filing a patent, and using ungating services to unlock restricted categories.

By steering clear of these common mistakes, you’ll be better positioned to build a thriving Amazon private label business that stands the test of time. Always remember to conduct thorough research, source from reliable suppliers, create a strong brand identity, and optimize your listings to maximize your chances of success in the competitive world of Amazon private label.

Successful Amazon Private Label Examples

Learning from successful Amazon private label examples can provide valuable insights and inspiration for your own business. Some shining examples of successful Amazon private label products include Amazon Basics Batteries, Jungle Creations Washable Pee Pads, and Anker products. These brands have demonstrated exceptional product quality, effective marketing strategies, and optimized Amazon listings that drive sales and growth.

Take note of the strategies and tactics employed by these successful private label brands, and consider how you can apply their lessons to your own business. With determination, hard work, and a commitment to continuous improvement, you too can join the ranks of successful Amazon private label sellers and build a thriving online business.

In conclusion, launching a successful Amazon private label business in 2023 is an exciting and rewarding venture that can unlock immense growth potential for aspiring entrepreneurs. By understanding the concept, identifying profitable product opportunities, sourcing and manufacturing high-quality products, creating a strong brand identity, and optimizing your Amazon listings, you can build a flourishing online business that stands out from the competition.

As you embark on this journey, remember to learn from successful private label examples, avoid common mistakes, and choose the right fulfillment method to maximize your chances of success. With the right strategy, execution, and perseverance, you can create a thriving Amazon private label business and achieve the financial freedom and success you’ve always dreamed of. So get started today and embrace the exciting world of Amazon private label!

Frequently Asked Questions

What is private label on amazon.

Private labeling on Amazon is a great way for companies to stand out in the competitive eCommerce marketplace. With private label products, a company can create their own unique branded product and have it sold on the Amazon Marketplace under their own brand name.

Private labeling on Amazon involves selling a product made by another company as your own brand. It is a popular way to gain visibility on the Amazon Marketplace, as it requires minimal effort during production. This gives companies an opportunity to create their own unique products and build their own brands on the platform.

What is Amazon wholesale vs private label?

When it comes to selling on Amazon, there’s the option of buying wholesale and reselling branded products at a higher price or creating your own private label brand. Wholesale typically involves purchasing items from suppliers and manufacturers, whereas private labeling means you design your own product, control pricing and create your own unique brand identity.

Either way, Amazon offers powerful tools to help you succeed.

Does Amazon allow private sellers?

Yes, Amazon allows private sellers! As an individual seller on the platform, you can list your products for sale on Amazon. It’s easy to get started and open up your business to millions of potential customers.

You can create a seller account and start listing your products in no time. Amazon provides a range of tools and resources to help you.

What is amazon private label?

Amazon private label products are goods created by a third-party manufacturer that are sold to another company, who then brands and markets the product under their own brand. Private label products offer customers a unique way to purchase quality products with personalized branding.

Nov 25, 2023.

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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 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.

Looking for one topic in particular? Use the table of contents below to navigate to the section of your choice, or continue scrolling to read the whole guide.

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.

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.

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.

Getting Started With 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 be done successfully, 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.

Sign up for our newsletter to be the first to know insider tips on Amazon updates, strategies, and more.

1. fulfill your orders with amazon fba.

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 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.

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

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Amazon Private Label: The Ultimate Guide [2023 Updated]

• 2023 Jun 14
• Robert Runyon
• 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.

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.

• #Amazon Brands
• #Private Labeling on Amazon

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Sell Private Label Products on Amazon FBA: The Ultimate Playbook

Arishekar N

Are you willing to start your own online business without breaking the bank?

It’s could be easier than you think. Many entrepreneurs like you have created successful online businesses by selling private label products on Amazon.

In this business model, sellers usually create their own brands and sell products sourced from third-party manufacturers. 

Sounds simple, right?

Well, it is. And it’s also highly profitable.

According to the private label Manufacturers Association report, the private label market grew by 11.2% in 2022 , reaching $228.6 billion in sales across all channels. And nearly one out of every five grocery products sold in the US is a private label or store brand product. 

But how do you get started with Amazon FBA private label?

In this ultimate guide, you’ll learn everything about finding and sourcing profitable products , creating your brand, and launching products on Amazon.

By the end of this post, you’ll have a clear roadmap to start and grow your own Amazon FBA private label business.

Ready? Let’s dive in.

Here is a quick peek into the article:

What is Amazon FBA private label?

• Why should you sell private label products on Amazon
• Drawbacks for Amazon FBA private label 

Do product research

Find a reliable manufacturer, create an amazon listing, focus on creating a brand, set competitive price, choose a fulfillment method, launch your product.

• Final Thought

Before we get into the details of how to sell Amazon FBA private label products, let’s first understand what it means.

In a private label business, sellers usually sell products sourced from third-party manufacturers under their own brand. 

With private labels, sellers have complete control of the product. They can customize it with unique brand logos , packaging, and labels. Additionally, they can control the products’ pricing, marketing, and advertising activities.

On the other hand, Amazon FBA stands for Fulfillment by Amazon. In this solution, Amazon handles the entire fulfillment process. This means sellers don’t have to worry about storing, packing, shipping, or customer service. They just send products to Amazon’s warehouses , and Amazon takes care of the rest.

The combination of Amazon FBA and private labels offers significant advantages for online sellers. They can access millions of customers and benefit from the trust and credibility that Amazon has built over the years. 

Along with that, Amazon FBA private label also enables them to build their brand and differentiate themselves from competitors. In short, Amazon FBA private label is a great way to start an online business with low risk and high reward .

Why should you sell private label products on Amazon?

Now, you may wonder, is it even worth going through so much hassle to create a private label brand? 

However, if you do, some excellent benefits await you. Given below are some of them:

You own your brand

You own your private label brand 100%. That means you can make all business decisions independently, unlike in arbitrage or wholesale , where you would have to make decisions based on the brands’ product you resell. 

Once you find a reliable supplier for your private label product, 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.

There are no brand restrictions

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.

On the other hand, selling private label products is simple. Since you sell items under your own brand name, you don’t have to get approval from anybody.

You get more opportunities on Amazon.

If you sell private label products under your own brand on Amazon, many opportunities open up for you. These include access to Brand Registry , Sponsored Brands , Amazon Storefront , Amazon Live , Virtual Bundles, Amazon Attribution , Amazon Brand Analytics , and more.

Leveraging these options effectively helps you reach your target audience more efficiently, gauge product performance, and enhance the conversion rates of your products.

You can customize your products

You can pinpoint areas of potential improvement by analyzing frequently asked questions and reviews on your and your competitor’s products and implementing modifications to your products based on these opportunities.

It puts you ahead of your competition and helps you create an excellent product.

Related Post: Why are reviews important for your business ?

Boost profit margins

Since you’re sourcing your products directly from a manufacturer or supplier, you have control over the CoGS (Costs of Goods Sold). You can negotiate the best prices and terms and avoid paying any middlemen fees or commissions. 

Also, you can choose to control your pricing strategy and charge higher prices for your products based on their perceived value and quality.

All of this helps you boost the profit margin compared to retail arbitrage or whole selling. 

Get more conversions using A+ content.

If you sell private label products on Amazon, take full advantage of 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 fact, Amazon acknowledges that it can boost sales by an average of 5.6% ( source ).

Learn more about it from this Amazon A+ Content detailed guide. 

Easily win 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. 

And it is crucial for increasing sales and visibility on Amazon, as 82% of sales are made from the Buy Box.

Now, resellers usually have to compete with other sellers to win the buy box. 

But private label brand owners don’t need to worry about that. They can right away win the Buy Box since they are the only seller. It can boost conversion rate and revenue.

Control your listing

You have complete control over your product listing with your private label brand. You can also offer a diverse range of products that cater to varying consumer demographics and improve your business’s bottom line.

In addition, optimizing the listing content, including images, description, keywords, A+ content, and prices, becomes easy.

If you were to resell someone else’s product, all of these would have been impossible. 

Some drawbacks of Amazon FBA private label products

While selling Amazon FBA private label products has many benefits, it also has some flaws you should be aware of. Here are some of them:

It needs higher investment

Unlike reselling products, where you can buy low and sell high, selling private label products requires a more upfront investment. Most manufacturers need you to order products in bulk to start working with you. You must also pay for branding, packaging, labeling, shipping, marketing, and more. 

It means you need enough capital and cash flow to start and run your private label business.

Unmonitored quality control

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. The product listing also gets affected by bad product reviews, further reducing sales. 

Related Post: Websites for Amazon sellers to Find Private Label Product Ideas

It takes more time and effort

Selling private-label products is not a get-rich-quick scheme. 

It takes time and effort to find and source profitable products, create a brand, launch, and market products, manage inventory and orders, and much more. 

You also have to constantly monitor the competitors and customer feedback and adjust strategies accordingly. 

As you can see, selling Amazon FBA private label products is not a walk in the park. It has its own challenges and drawbacks that you need to consider before jumping in.

But don’t let that discourage you.

If you do it right, selling Amazon FBA private label products can be a rewarding and profitable business model.

In the next section, we’ll show you how to do it right.

How to create an Amazon private label?

Now that you know what Amazon FBA private label is and why you should sell it, let’s get into the details of how to create your own private label brand on Amazon.

Here’s a step-by-step guide to creating Amazon private label products:

The success of a private label business hinges on selecting the right product. 

While numerous products in a category hold promise, opt for those that are ‘proven to sell well’ instead of what you ‘think’ will sell. There’s a difference.

Try to identify a few potential products based on the following attributes:

• Small and lightweight: The product should fit into a small, flat-rate box (8 11/16″ x 5 7/16″ x 1 3/4″) and weigh no more than one or two pounds. This saves you shipping costs from the manufacturer and Amazon FBA.
• Non-seasonal: The product should have year-round demand to avoid accumulating dead inventory. Steer clear of seasonal products such as Christmas lights, Valentine’s Day gifts, and winter clothing.
• Unregulated products: Avoid difficult-to-get-approval-for items such as foods, toys, and batteries. Focus on easy-to-manufacture products that don’t require multiple quality checks and paperwork.
• Uncomplicated products: Choose products with fewer complications. For example, if you sell electronics products, it comes with the headache of customer service. Similarly, fashion products require you to source multiple variations, including different colors, materials, and sizes.

Once you identify a few potential products, do a little bit of research to determine whether these are worth selling or not. Here are some criteria to consider:

• The price ranges from $20 to $50
• A minimum of 300 monthly sales
• Low ratings of four stars or less room for product improvement
• The top ten products have fewer than 500 reviews
• A relatively low listing quality score reveals that competitors’ listings need improvement.

You can quickly check the listing quality of any product with SellerApp’s Listing Quality Checker tool.

Once you have finalized the perfect product idea, the next step is to find a suitable manufacturer.

SellerApp Product Sourcing is a great tool for this. 

Keep in mind that the cheapest manufacturer may not always be the best. Look at supplier reviews and focus on a price-to-quality balance to select the ideal manufacturer for your needs. 

Additionally, check the supplier’s minimum order quantity and factor in the exchange rate if the manufacturer is located in a different country.

Lastly, identify 3-5 manufacturers, and email them requesting more information. Here are some questions you can ask:

• What’s the price per unit for the product if I order x number of units?
• Can I have a sample product shipped to my location? What will be the cost?
• What payment methods do you accept?
• Can you manufacture customized products, and what’s the cost of that?

Notice how your communication is going on. If the manufacturer replies promptly and is ready to meet halfway during the negotiation, go ahead with that manufacturer.

Note: Always ask for a product sample to examine product quality and design before ordering in bulk. 

Once you select the manufacturer and place your initial order, it typically takes 4-6 weeks for the product to arrive. This window presents the ideal opportunity to craft a stellar Amazon product listing.

This involves arranging for professional product photography , devising a competitive pricing strategy, writing product descriptions, purchasing a UPC , and more.

The quality of your product listing can make or break your private label business. 

Therefore, optimizing listing by conducting extensive keyword research to identify relevant high-volume and high-converting keywords is crucial. 

Use the SellerApp Keyword Research tool to identify high-performing keywords from a seed and the SellerApp Reverse ASIN tool to identify relevant keywords from your competitors’ listings.

Incorporate these keywords into your product title, description, and bullet points to enhance the product’s visibility when shoppers search with related keywords.

Optimizing the product listing and strategically using relevant keywords can increase your chances of attracting potential customers and driving more sales.

Learn more about it from this Amazon product listing optimization guide .

When it comes to private label products, branding takes center stage in setting your product apart from the competition.

To build a robust and memorable brand identity, do the following:

• Create a unique logo, 
• Select brand colors , fonts, and design elements to accompany your products, listing, and product packaging,
• Make the product design a little different from the products existing in the market to stand out from the crowd. 
• Finally, A/B tests several design options in a focus group and gathers feedback. 

No matter how good the design is to you, it must resonate with the target audience.

Most new sellers instinctually set a very low (or even the lowest) price point for their product to compete with established brands. But that’s a big mistake. Don’t set your private label product’s price based on your competitors’ pricing. 

Instead, try to make the product stand out in other ways, either through better design, packaging, excellent marketing communication, or even through killer customer service. 

Still, as a rule of thumb, try to keep your price point within 20% of your competitors’ average sales price.

For example, if you discover that “aluminum water bottles” are selling for around $20.00 on Amazon, try to keep your pricing within the range of $15 to $25.

Note : Always try to sell products between  $20 and $50. Because if you sell something below $20, it can be challenging to turn a profit after adjusting the CoGS and advertising expenses.

On the other hand, if you go above $50, it becomes difficult to convert shoppers because of their value-based scrutiny.

Knowing what to sell and how to source from a manufacturer is only half the battle. You still need to figure out how to deliver your product to your customers.

Amazon offers two fulfillment methods: 

• Fulfillment by Merchant (FBM) 
• Fulfillment by Amazon (FBA)

With FBM , you are responsible for shipping, returns, refunds, and customer service on your own or with the assistance of a third-party logistics company.

On the other hand, with FBA, you can send your goods to Amazon warehouses, and for an additional FBA fee, Amazon takes care of storage, packaging, shipping, customer service, returns, and refunds.

Furthermore, Amazon prioritizes FBA products on the Amazon search page over FBM. So clearly, choosing FBA when launching your first private label product is always preferable.

Learn more about the advantages and disadvantages of FBA and FBM from the detailed guide .

Prepare your inventory

When shipping units to Amazon’s fulfillment centers, preparing your inventory in compliance with the general requirements is essential. 

Failure to comply may result in Amazon returning or repackaging your products at your expense.

One key requirement is that any FNSKU (Fulfillment Network Stock Keeping Unit) used on a unit must be unique and correspond to only one product. 

Additionally, each unit must have an exterior scannable barcode or label that is easily accessible. Following are some of the barcode types for Amazon products.

• Manufacturer barcode: UPC, EAN, JAN, or ISBN;
• Amazon barcodes: For products without a manufacturer’s barcode or expiry date, along with dangerous products, children’s products, and other categories;
• Transparency authenticity codes: It’s to protect brand owners from counterfeiting.

Any pre-existing scannable barcodes on the outside of shipping boxes must be removed, covered, or rendered unscannable to prevent the incorrect barcode from being scanned during the receiving process.

Loose products or products without packaging, such as book sets, must be contained within a single, secure package. Sets must be clearly labeled, “Sold as set,” “Ready to ship,” or “This is a set. Do not separate.” 

Poly-bagged units must meet specific requirements, such as a scannable barcode or label and a suffocation warning if the opening is more significant than 5 inches.

Boxed units must have six sides and openings or a lid that won’t easily open on its own. If the box can easily open, tape, glue, or staples must be used to keep it closed. Perforated boxes must pass a 3-foot drop test or be placed in a poly bag with a suffocation warning.

Finally, footwear must be packaged with no shoe material exposed, either in shoe boxes or in poly bags, with a suffocation warning. Highly scented products must be sealed or bagged to prevent the absorption of the scent into other products.

At last, the final step is to launch your product on Amazon and start selling. 

However, it’s not as simple as creating a listing and waiting for sales. You need to have a product launch and promotion strategy to generate initial awareness about the product and get traffic and conversion. 

Some of the product promotion strategies are:

• Run PPC ads on Amazon: Use Amazon’s advertising solution to display your product ads in relevant places. 
• Run external ads on Instagram or Google: Since Gen-Z shops primarily on social media platforms like Instagram, run paid ads on these platforms to drive external traffic to your Amazon listing.
• Do Influencer Marketing:   Collaborate with micro-influencers to promote products to their audiences. It yields the most ROI for building brand awareness and conversion.
• Launch a giveaway or lightning deal: Offer your product for free or at a reduced price for a limited time to generate more buzz and conversion.

Read more about product launches from this detailed Product Launch Checklist .

Final Thoughts

In conclusion, launching a successful private-label product on Amazon requires much effort, research, and planning. Ultimately it all comes down to marketing – creating a brand and positioning it correctly with proper messaging and pricing. 

But don’t worry! You don’t have to do it alone. 

At SellerApp , we understand the importance of a comprehensive advertising strategy that delivers long-term growth and ROI. Our team of experienced PPC experts and AI-powered PPC management tool has helped over 20,000 brands, including big enterprises like Philips and Samsung, achieve significant profit growth.

Also, join our exclusive group of small business owners and sellers to support each other in reaching new heights within the businesses.

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Related posts:.

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10 comments on “sell private label products on amazon fba: the ultimate playbook”.

Everything about Towels

Very Informative article. Thanks again

Glad you liked it.

Pretty! This has been an extremely wonderful article. Many thanks for providing this information.

Wonderful information.

I just started private labeling on Amazon a few months ago and this guide is very helpful. I like the way you explain how to sell the products using different channels, thank you

We are glad to know. Thank you

Joel Nienaber

Great guide! I’ve been thinking about starting a private label business on Amazon and this post covered all the important points. Thanks for sharing this valuable information.

Thank you for sharing your thoughts. Your comments always add to the conversation.

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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.

22 Rules To Increase Amazon Sales Up To 450%

Find out the proven framework we used to increase Amazon sales by 450%.

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 Business Plan Template

Written by Dave Lavinsky

Amazon FBA Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their Amazon FBA businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through an Amazon FBA (Fulfillment by Amazon) business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your Amazon FBA business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes target market research to support your plans.

Why You Need a Business Plan

If you’re looking to start an Amazon FBA business, or grow your established business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your Amazon FBA business in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Amazon FBA Businesses

With regards to funding, the main sources of funding for an Amazon FBA business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

Personal savings is the other most common form of funding for an Amazon FBA business. Venture capitalists will usually not fund an Amazon FBA business. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual Amazon FBA could never achieve such results.  With that said, personal savings and bank loans are the most common funding paths for Amazon FBA businesses.

Finish Your Business Plan Today!

How to write a business plan for an amazon fba business.

If you want to start an Amazon FBA business or expand your current one, you need a business plan. In the following Amazon business plan template, we detail what should be included in each section of your own business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of Amazon FBA business you are operating and the status. For example, are you a startup, do you have an Amazon FBA business that you would like to grow, or are you operating multiple Amazon FBA businesses or storefronts?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the Amazon FBA industry. Discuss the type of Amazon FBA business you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of business you are operating.

For example, you might operate one of the following types of Amazon FBA businesses:

• Reseller : this type of business finds products from other businesses to resell on Amazon.
• Private Label: this type of business buys existing products and rebrands them to sell on Amazon.
• Proprietary: this type of business is where a business creates a unique product to sell on Amazon.

In addition to explaining the type of Amazon FBA business you will operate, the Company Analysis section of your Amazon FBA business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, growth in product line, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the Amazon FBA industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section:

• How big is the Amazon FBA industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your Amazon FBA business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: Millennials, Generation X, and Baby Boomers.

As you can imagine, the customer segments you choose will have a great impact on the type of Amazon FBA business you operate. Clearly, Baby Boomers would respond to different marketing promotions than Millennials, for example.

Try to break out your target market in terms of their demographic and psychographic profiles. With regards to demographics, the customer segments may include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other Amazon sellers.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes traditional brick and mortar stores, branded websites, or people who make their own product at home. You need to mention such competition as well.

• What types of customers do they serve?
• What types of products do they sell?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide a broader range or higher quality product line?
• Will you provide services that your competitors don’t offer?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For an Amazon FBA business, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of Amazon FBA company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to your core product line, will you provide customization, or warranties, or any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the products or services you offer and their prices.

Place : Place refers to the location of your Amazon FBA company. Document your location and mention how the location will impact your success. For example, if you are offering a proprietary product, is your production facility located near an Amazon distribution facility, or near suppliers of the inputs needed to make the product, etc. Discuss how your location might be the ideal location to minimize order fulfillment time.

Promotions : The final part of your marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Digital Advertising
• Partnering with applicable websites
• Social media marketing
• Amazon PPC ads

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your business, including managing, tracking, and restocking inventory, and customer service.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your 1,000 th product, or when you hope to reach $X in revenue. It could also be when you expect to expand your business to a new product line.  

Management Team

To demonstrate your Amazon FBA business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in supply chain management or managing Amazon FBA businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing ecommerce shops or successfully running small businesses.  

Financial Plan

Your financial model should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your Amazon FBA business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key fixed and variable expenses needed in starting or growing an Amazon FBA business:

• Production facility build-out including design fees, construction, etc.
• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your product line description or your branding portfolio.

Putting together a business plan for your Amazon FBA business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the Amazon FBA industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful Amazon FBA business.  

Amazon FBA Business Plan FAQs

What is the easiest way to complete my amazon fba business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Amazon Business Plan.

How Do You Start an Amazon FBA Business?

Starting an Amazon FBA business is easy with these 13 steps:

• Choose the Name for Your Amazon FBA Business
• Create Your Amazon FBA Business Plan pdf or doc
• Choose the Legal Structure for Your Amazon FBA Business
• Secure Startup Funding for Your Amazon FBA Business (If Needed)
• Register Your Amazon FBA Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Amazon FBA Business
• Buy or Lease the Right Amazon FBA Business Equipment
• Develop Your Amazon FBA Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Amazon FBA Business
• Open for Business

Learn more about how to start an Amazon FBA business .

Don’t you wish there was a faster, easier way to finish your Amazon FBA business plan?

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Other Helpful Business Plan Articles & Templates

Free Amazon FBA Business Plan PDF [2024 Template + Sample Plan]

Anthony St. Clair

12 min. read

Updated February 7, 2024

Free Download:  Sample Amazon FBA Business Plan Template

When figuring out how to turn eCommerce into your side hustle or primary business, Amazon FBA can be your ticket to starting a small business on Amazon . With over 4.1 billion products sold by independent sellers on Amazon in 2022 alone, Amazon’s marketplace for online sellers is growing, competitive, and full of opportunity .

In order to take full advantage of everything Amazon’s ecosystem has to offer your business, you should create an Amazon FBA business plan . Your Amazon business plan can help you think through your vision, understand the competition, identify opportunities, and foresee challenges. The better your plan, the better your chance at success as an Amazon FBA merchant.

What is Amazon FBA? 

When your business sells products to a customer online, those orders go through a fulfillment process, such as:

• Secure payment processing
• Selection and packing of the correct item or items in the order
• Package labeling
• Shipment and delivery of orders to customers
• Customer service throughout all steps of the process

A business can manage this on its own. On a small business or solopreneur scale though, that can mean figuring out logistical steps that take up a lot of time. For example, where will you store the products you sell? Warehouse space can be costly—and there’s only so much room in your apartment or garage.

Plus, once you have the products ready to go, they need to be securely packaged, including padding to protect during bumps and drops during shipping. You’ll have to figure out how the order gets on its way to the customer. Do you schedule regular pickups from UPS or FedEx? Are you making lots of trips to the post office, waiting in line, or setting up the customer’s shipping address and shipping options to generate labels?

Or, Amazon can do it all for you. The “FBA” in Amazon FBA is short for “Fulfillment by Amazon.” Instead of you taking care of the fulfillment steps above, you can pay a fee to Amazon , typically a flat monthly fee plus a per-order fee. Instead of managing orders, you can focus on sales strategy, suppliers, marketing, and the nitty-gritty of building, expanding, and profiting from your Amazon FBA eCommerce store .

As you develop your business plan, you can review Amazon’s FBA program , see how it fits your business goals, and evaluate the program’s costs and opportunities in your planning.

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• How do you write an Amazon FBA business plan?

For starters, focus overall on your business. Amazon FBA is a way to solve a problem and fulfill a need in your business, but it isn’t the entirety of your business. As you start working on your Amazon FBA business plan , think through what sort of business you are building. Amazon FBA can have a role, but so might other sales and distribution channels. Here are five things to keep in mind as you write your Amazon FBA business plan.

1. Determine what kind of Amazon seller you’ll be

Your business will be selling products online. So, what products will you be selling—and what sort of seller will you be? Depending on the types of products you want to sell, you’ll make different decisions about choices such as product sourcing and your overall business model. Here are three models to consider : Reseller, Private Label, or Proprietary.

A reseller sources products from other companies and then sells them to customers on Amazon. Being a reseller can be the easiest and cheapest way to get started in Amazon FBA. Startup costs can be as low as $500, depending on the products you are purchasing for reselling.

However, the downside is that other companies can just as easily follow the same model (and sometimes Amazon itself sources or creates products that may be the same as yours). It may also be challenging to figure out how to stand out in the market. If focusing on a reseller model in your Amazon business plan, examine competitors, similar products currently on the market, and what sort of marketing and promotional strategies can help you build sales and a customer base.

Private Label

If your focus is on building a recognized product brand and growing customer loyalty, while primarily sourcing pre-made products you can resell, a private label Amazon business model could be a good fit for your business. Manufacturers worldwide specialize in creating unbranded products that other companies can brand and sell. Also known as a “white label” product, building your business around private label sourcing can help you develop a distinctive product brand that customers look for.

Consider focusing your business plan around the characteristics you want your brand to embody. That can help you identify white label products that are a good fit. A private label Amazon FBA business model may also require more capital, for investing in labeling, packaging, brand development, and marketing.

Proprietary

For the Amazon seller who wants to go all-in on business, marketing, product development, and commerce on Amazon and beyond, developing and selling your own proprietary products can have both the most work and investment, but also the best chance to stand out and profit in the market.

Developing your own product will require the most up-front investment and capital. Your business plan can discuss the risks and challenges your business might face during product development and getting products to market, and how you are prepared to meet those challenges.

Creating your own product also opens up opportunities to patent that product. Plus, it can be easier to sell your product in other stores or channels beyond Amazon.

Different business models have different impacts on your value proposition as an Amazon seller

As you make your business plan, examine each type of seller and its impact on your value proposition. How can you use a seller type to offer value to the customer and win sales? What problem will you be solving in the market, and how will one model help you more than another

2. Conduct market research and solidify your brand position

Between Amazon and its third-party sellers, combined Amazon carries over 353 million products . In 2018 alone, Amazon sales accounted for 49.1% of all US online retail spending, and over 20 million people visited the site each month.

While being an Amazon FBA seller can be an easy way to get your eCommerce business underway, it is also extremely competitive. As you develop your business plan, examine:

• Understand the needs and wants your product can fulfill.
• Who will want to buy your product, and for what reasons?
• Who might your competitors be, what sort of marketing tactics do they use, and where are there opportunities for your brand to perform better?
• How will you brand your business on Amazon and beyond? Figuring out your business’s branding can help build the customer base that will buy from you on Amazon and other platforms where you sell your products.

Key to your business plan and your chances for success are figuring out a certain sweet spot of what products you can sell that will make you the right amount of profit. When evaluating products to offer, also take a look at how much that product is searched on Amazon , how much competition there is for it or similar products, how easy it is to source your products from suppliers, and the right price point.

3. Sales and marketing strategy

Inside Amazon FBA, you can estimate the fees Amazon will charge you, but there will be other costs to account for in your business plan too. From social media to paid advertising, there are many ways to get the word out about your products. Your business can pay for keyword-based advertising on Google and Amazon. You can also work on posting to social media, as well as advertising or paying for influencer content creation on platforms such as Facebook, Instagram, TikTok, and Pinterest.

As you develop and implement an ads strategy, keep an eye on your average cost of sale (ACOS): Aim to keep it low enough to preserve profits, usually with an ACOS of 10% or less.

Also consider your overall sales strategy not just for Amazon, but beyond. What other retailers would be a good fit for your product? Will you have your own in-house eCommerce store on your business’s website? Having multiple sales channels can make your business more durable and help your operation weather ups, downs, competition, or other problems.

Another part of your sales strategy is sourcing. Many Amazon FBA sellers source products from other countries, such as China. Understanding your suppliers and the cost to acquire your products can help you make out your business’s costs, revenues, and financial forecasts.

4. Startup costs and financial projections

Depending on factors such as your business model, startup capital, and what products you plan to sell, you can then use your business plan to understand the financial path your business can take. As you develop the financials portion of your plan, try to find good estimates for costs such as:

• Supply and sourcing

Combined with an understanding of your profit margins and product costs, you can map out realistic financial projections as you start the business and begin operating it day in and day out. Running the numbers in your business plan can help you determine if your Amazon FBA business could be financially profitable. It can also help you evaluate if you need to take a fresh look at your idea to see what you need to change to make the business more viable.

5. Milestones and partners

You’ll need to consider sales and fulfillment milestones that help ensure that you are appropriately anticipating demand and not overspending or overestimating need. Outlining who you’ll be partnering with (vendors/3rd party fulfillment and quality assurance providers) will also be necessary here.

Succeeding in your Amazon FBA business also depends on knowing what goals you want to meet, and who you will be working with. Some of those milestones might be quantitative, such as an amount of gross revenue achieved or an overall number of sales.

Other milestones can speak to factors that can help you optimize your Amazon business. For example, if your business increases sales to a specified level, you might be able to reduce your unit costs by ordering more products at a time. Those volume discounts can add up quickly to significant additional net revenue on your bottom line.

Your overall business decisions throughout the year also depend on understanding market conditions, supply chain pressures, upcoming trends, and more. The key is to figure out how to best estimate demand, stock levels, pricing, and other costs, while overspending on inventory or advertising, and also not overestimating the market’s need or desire for your products.

Along with Amazon, your business will also rely on other stakeholders or third parties. If you are running the business with partners, or if you have employees or work with independent contractors, you’ll need to take into account their costs, compensation, and expectations. Noting your partners, such as suppliers, quality assurance providers, retail partners (in addition to Amazon FBA), and other service providers such as attorneys and accountants in your business plan helps keep those relationships top of mind.

• Amazon FBA development tips for startup growth

As you work on your business plan and get your startup off the ground, there will be other questions to answer, challenges to meet, and opportunities to evaluate. Here are a few Amazon FBA tips that can help you get more out of your business and your Amazon business plan.

Build an audience outside of Amazon

Amazon is a powerful retail channel, but they are not the only game. Plus, having only one sales channel makes your entire operation dependent on only one company, which can put your profits or business at risk. Amazon can be a vital part of your eCommerce strategy. You can better weather business ups and downs, and potentially draw on more revenue streams, by having sales and marketing channels outside of Amazon. Develop active social media presences, partner with other retailers, and also look at selling directly through your own website. When you diversify your sales channels, you can spread risks and potentially grow sales more than with Amazon alone.

Optimize your Amazon product listings

Just like online content can be optimized for search engines such as Google, your Amazon product listings can be optimized to better fit customer expectations and Amazon’s own algorithms:

• Display multiple photos, including product images from various angles as well as in-use photos
• Make a simple introduction video, less than one minute, that talks about the product and shows the customer how it works and some of its key features
• Examine Amazon for search terms, or keywords, that customers will be using to find products like yours. Incorporate those terms throughout your product headings and text.
• Speaking of text, good product copy gets across not only what the product does and what it is, but how it fills the customer’s need or want.
• Add product FAQ to draw in more keywords and discuss other aspects of the product that customers want to know more about.

Get customer reviews

In your packaging and online correspondence, ask customers to leave an honest review about your products. You can learn a lot about how your product is or is not meeting their expectations. Plus, customer reviews can be gold mines for other product features or benefits to include in your Amazon description.

Leverage Amazon features

From Amazon Ads to enhanced A+ content , Amazon has a diverse range of features that sellers like you can put to work for your business. As part of your business planning, estimate a budget for advertising on Amazon, and also for creating visual and text content that can be incorporated into your product page’s A+ content. These are just a few of the many features that can help your Amazon FBA business sell more . Also check out Amazon’s global selling , multi-channel fulfillment , FBA customer service .

• Download your free Amazon FBA business plan pdf

Get started by downloading our free Amazon FBA business plan PDF can give you the template you need to start setting up your Amazon FBA business—and start building sales and customers around the world. This Amazon business plan is just one of hundreds of free sample plans that have been time-tested by our team and by thousands of entrepreneurs all over the world.

Amazon is a competitive marketplace used by hundreds of thousands of sellers around the world. However, barriers to entry are low, and there is an opportunity for new sellers to find their niche in this market as well. Your Amazon FBA business plan can help you think through the challenges and opportunities that you’ll face in today’s eCommerce environment. You’ll also be able to identify potential business challenges—as well as milestones and opportunities that can help you both monitor your business’s progress and see where you can grow.

Whatever you want to sell on Amazon, get going: Get your free Amazon FBA business plan today .

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Anthony St. Clair is a business copywriter, author of the Rucksack Universe travel fantasy series, and a craft beer writer specializing in Oregon. Learn more at anthonystclair.com.

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• What is Amazon FBA? 

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How to start an amazon private label business

An Amazon Private Label Business is a popular option for starting your own business. In this type of business, you create a shop/store and sell your products on Amazon. This can be a great way to start entrepreneurship because it’s relatively low-cost and low-risk.

Keep reading if you’re interested in starting an Amazon Private Label Business. This article will give you an overview of what you need to do to start.

1. Research Your Niche

When it comes to Amazon’s private label, research is everything. You need to know your niche inside and out before getting started. This means understanding the needs and wants of your target market and the competition.

The research will help you source a product that meets the needs of your target market and gives you a competitive advantage. It will also help you price your product correctly and choose the keywords for your listing.

Without proper research, it won’t be easy to succeed with Amazon’s private label.

However, if you want to avoid getting into the hectic process of researching, a quick and easy way is to take help from experts who are providing their services.

One such example is apical ecommerce which gives a helping hand to start, scale and automate your Amazon business.

2. Pick Your Products

After selecting your niche, it’s time to pick some products you will sell. While doing so, consider your customers’ needs and wants. What will make their lives easier or better?

Many sellers choose a product they think is great without considering whether there is a market for it. They create a listing and start selling, but they don’t get any sales because no one searches for their product.

The key to Amazon’s success is prioritizing your customers over your product. Find a product or products that have a lot of demand and build your brand around that.

Don’t force a product into a market that doesn’t want it. If you can do that, you’ll be well on your way to success as a private-label seller on Amazon.

3. Find an Experienced Supplier

The next step is to find a reliable manufacturer or supplier for your product. It can be challenging, but there are a few ways to do it. You can attend trade shows, or even reach out to potential suppliers directly.

So, it’s important to research and ensure you are working with a reputable supplier. You can read online reviews, ask other businesses for recommendations, or visit the manufacturer’s facility to get a feel for the company.

When selling on Amazon, two aspects can make or break your product: packaging and branding. These two elements can help you differentiate your products from the competition and make them more appealing to customers.

Packaging is important because it is the first thing customers will see when they see your product. It is important to make sure that your packaging is well-designed and eye-catching.

Branding is also important because it can help customers to remember your product and to associate it with a certain image or feeling.

If you want to be successful in selling products on Amazon, make sure to focus on packaging and branding. These two elements can make a big difference in how customers perceive your product and help you stand out from the competition .

5. Choose the Fulfillment Strategy

When it comes to Amazon fulfillment, there are a few different options to choose from. You can opt for Amazon to fulfill your orders, which can be a great option if you don’t have the time or resources to handle fulfillment yourself. However, it’s important to note that Amazon will take a cut of your profits in exchange for their services.

If you have the time and resources to handle fulfillment, go that route. This can be a great way to save on costs, but it requires more work.

Regardless of your choice, it’s important to plan ahead and ensure you have a fulfillment strategy in place before you start selling on Amazon.

6. Create Product Listing

When creating a product listing for your private-label products, be sure to include the following:

• A brief description of the product
• A photo or image of the product
• The price of the product
• The benefits of the product
• A call-to-action (CTA)

Your product listing should be clear, concise, and compelling. Remember to highlight your product’s unique selling points (USPs) and why customers should buy it. Include a CTA so that customers know what to do next.

If you follow these tips, you will be well on your way to creating a successful product listing for your private-label products.

7. Run Amazon PPC Ads

Well, this is when things start getting tougher as now you have to sell your products. And everyone knows that getting the first sale on Amazon is very complicated. But did you know that you can use Amazon PPC ads to help you get that first sale?

Amazon PPC is a form of advertising that allows you to pay for placement on the Amazon marketplace. When customers search for products on Amazon, your ad will appear in the search results, allowing you to reach more shoppers.

To summarize, starting an Amazon private label business is a great way to get started in ecommerce.

The process is relatively simple and doesn’t require a lot of upfront investment. The key is finding a niche product, sourcing it from a reliable supplier, listing your product on Amazon, driving traffic to your listing, and getting sales.

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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.

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

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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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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 . 

How to Build and Grow your Private Label Business on Amazon

Written by Catherine Schwartz

$26.6 million.

That’s an approximate amount of money Amazon has made during the past hour . 

On average, its income per second is $7,300.

Aren’t you surprised to see such numbers? But who am I kidding? This isn’t a mind-blowing fact at all. These are already widespread stats about the world’s largest online retailer.

We all know that if Amazon were a celebrity, it would be the most famous celebrity in the world. How does it make itself so recognizable and, more importantly, profitable? What if I told you that there are no gimmicks here, and Amazon is simply using the private labeling strategy quite successfully to boost sales? Can you guess how many private labels it has got already?

Definitely less than 10,000. But more than 100.

A little-known fact about Amazon is that it owns over 400 exclusive and private label brands.

But let’s not talk (much) about Amazon’s income or that the brand has grown into an e-commerce behemoth with 5.2 billion visitors per month and that over 1.7 million small- and medium-sized businesses sell in its stores, and blah-blah-blah. Instead, we’ll discuss how your business may benefit from branding and labeling your products on Amazon. For example, how to get a head start and promote considerable growth in your private label sales.

Why bother with private label products

Let's remind you what privately labeled products are and whether the private labeling strategy is indeed high-performing and efficient. Just to refresh: a retailer buys products from a supplier/manufacturer, creates a unique brand, and sells these items under your logo and name. That’s how private label products appear on the market. Everything is as simple as 1-2-3:

Buy items or goods → create a private label → sell your products under your brand name.

But is this beneficial?

Conquering Amazon’s space isn’t a piece of cake. That’s true.

But branding your products gives you a push forward with the following benefits:

• A high-profit margin: unbranded items tend to sell at comparatively lower prices. You may boost profit margins with an optimal repricing approach , for example
• Higher credibility to your products: a trustworthy brand builds customer loyalty. Brand awareness and brand trust go hand in hand here
• Better identification: your clients are more likely to remember who you are if you make your business more visible with a private label
• More customizable selling solutions: you may personalize your brand as much as you want and customize a product to achieve a better functioning Amazon business

Now that you’ve grasped the advantages, let’s move on and get down to business. Let’s find out how to start your private label business, promote its development and win the competition. 

Tips for an effective Amazon private label creation

Follow these proven tips on how to make a good start in your Amazon private label business:

1. Choose a profitable product

Start with ideation:

Brainstorming ideas always helps. What are you going to sell? Enumerate at least ten products for each category in the chosen niche. But keep in mind that you might have to deal with trademarks, copyrights, and patents. It’s better to be prepared and know the legal background.

Finished brainstorming? That’s enough for now. You will have to do some math as well. Math and analysis. Yeah, you can’t do without it if you aim at finding a good product-market fit.

Research the market and do competitor analysis: 

Discover how Amazon’s ranking algorithm works and do some research to identify the trending products. Where to check:

• “Best Seller”
• “New Releases” 
• “Movers & Shakers”

Shoes, clothing, and jewelry took the largest share of the private label products owned by Amazon ( over 47% ). Remarkably, electronic goods accounted for 58% of Amazon’s private label sales. The growth was also notable in such categories as diapers, paper products, and vitamins.

So what products should you sell? Those that cover unmet market needs. For instance, Buttoned Down, one of Amazon’s private labels, gives its customers 72 sizes of dress shirts.

Pretty impressive, isn’t it?

2. Make a deal with the proper manufacturer or supplier

A proper manufacturer.

How do you know a person is a proper and reliable supplier or manufacturer?

They all will tell you things like: “I’m the best” or “You won’t find anything cheaper.”

Here’s what to look for:

• Recommendations and feedback
• Experience in manufacturing and supply management
• Possibility of quality control (check product samples)
• Clear and definite terms and conditions of cooperation

“Negotiate and bargain hard with your supplier. Not harsh, but with severe persistence. Just don’t be shy. But mind, you both need to find a win-win solution,” recommends Roy Morejon, President & Co-Founder of EnventysPartners . “You also need to determine the most adequate quality-price ratio,” he adds. Well, ok, let’s suppose you’re not shy and know how to negotiate.

You’ve made a good deal. What now?

3. Create a “wow” brand

Have you ever wondered why some brands win more target audiences than others? That’s because of the “wow” brand they managed to launch on Amazon working properly on their:

• Brand name and story
• Logo and design

Create an interesting name, but don’t go too far. Tell your honest story, and don’t underestimate shape and color psychology in design. For example, red and yellow stimulate appetite. Also, take care of adequate packaging. It impacts the first impression your clients get.

4. Make a “wow” listing

Your listing should produce a “wow” effect too. Don’t forget about product information management and the tricks it can offer to ensure an interactive product catalog.

More than 80% of the total sales on Amazon take place on Page 1. Optimize your product listing , make it channel-specific and automate content sharing to all sales channels.

5. Pick the best Amazon fulfillment method

You’ve got these three:

Fulfillment by Amazon (FBA), Seller Fulfilled Prime (SFP), and Fulfillment by Merchant (FBM). Don’t hurry to pick the first one, even though it’s the most commonly used variant. Consider the pros and cons of Amazon’s FBA model and then compare it with other methods. 

6. Boost your products’ potential with Amazon SEO

One of the foremost things to do is to try Amazon keyword research . Additionally, use some extra SEO tools to analyze and measure your success. A couple more to try:

• Keyword Inspector
• Scientific Seller
• Feedback Genius
• Sales Backer

Aaron Gray, the Managing Partner of NO-BS , suggests that "a good private label seller should combine the best Amazon SEO & PPC strategies. Amazon SEO helps your items rank higher in the search results. With Amazon pay-per-click, you get your product ads listed in your chosen placement." So, now you’re ready to build a strong Amazon campaign and make the best use of your constructive private labeling strategy. You might still need more recommendations on how to maintain your business development and growth once you’ve built a brand.

How to get the most from private label selling – extra hacks

Grab these must-do hacks to expand your business perspectives and multiply sales:

1. Go multi-channel

Consider the best e-commerce platforms that are “on good terms” with Amazon.

2. Use powerful promotional strategies

Amazon sellers often don’t give due importance to some winning marketing strategies.

Here’s what you might want to do to promote your brand on Amazon:

• Keep your business social on Amazon and outside it (Instagram, TikTok, Reddit, Facebook, etc.)
• Look for partnerships
• Cooperate with influencers
• Use paid ads
• Encourage clients to write reviews

Note: 79% of shoppers always read reviews before purchasing a product.

You may do everything by yourself or, instead, outsource the promotion of your brand to a reliable agency. Due to the increasing competition and high demand for online advertising, the companies that provide Amazon marketing services are appearing like mushrooms after heavy rain. As an alternative, get an in-house Amazon marketing expert to do the job for you.

3. Take advantage of the best-seller’s tools

“It’s not enough just to sit and wait for Amazon shoppers to stop by and choose your product. Make the most of the tools and software for Amazon sellers, starting with product catalogs and inventory management,” says Chelsea Cohen, Co-Founder of SoStocked. Start with these two:

• Product sheet template builder – a tool for product sheets that close deals
• Brand Portals – a product catalog software to customize your brand portal

4. Test the market and re-check your product-market fit regularly

One of the ways to see how people react to your product is to showcase it on social media.

You may also collect client feedback from reviews, emails, DMs, or surveys.

Armed with hands-on tips and even more! What to do next?

With Amazon private labeling, you can emphasize your uniqueness, become more recognizable and adaptable and, mostly, make a considerable profit. In this article, you’ve got some useful tips and hacks on how to build your private label business on Amazon and grow it successfully. Such a strategy can help you increase Amazon sales and achieve revenue optimization.

Do you have what it takes to optimize your business processes on Amazon? Whatever stage you’re at, Plytix is your best bet to try multi-channel commerce and bring your product listings to the next level. So, if this is what you’re looking for, book a demo and gain more insights on how the best product optimization provider can help you win Amazon customers over.

Related posts

How to Sell Products on Amazon: A Handbook for Brands & Manufacturers

The Ultimate Guide to Amazon Keyword Research for Brands

The Pros and Cons of an Amazon FBA Model For Small Businesses

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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.

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 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 label 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. The product listing also gets affected by bad product reviews, 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 – QuickStart Guide to Earning $10,000/Month+

by Nate McCallister  

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September 4, 2023 in  Amazon FBA , Amazon Tools , Private Label

Have you ever wanted to sell your own product? Who wouldn't want something that can make money 24/7 and scale to 7, 8, or even 9 figures in sales? Creating a private label brand is one of the best paths to making this a reality. If we use Amazon's FBA program, we can go even further with our product and scale tremendously without needing a warehouse, manufacturing plant, or any of our own traffic . 

In this article, I'm going to share everything that you need to know about getting started with a private label product business on Amazo n . 

These are things that I've learned over a decade of selling on Amazon, bumping elbows with the biggest names in the business, and learning by making every mistake possible.

First, let's cover what Amazon FBA is, since it's a critical part of making private label work at the highest level, and then we'll dive into everything you need to know about using it for building your private label business.

What Is Amazon FBA?

Amazon allows 3rd party sellers to sell products on their platforms. These can be their own products or the products of other brands (this is done through  retail arbitrage , online arbitrage , direct from supplier, liquidation , and wholesale sourcing models).

Sellers can ship the items to Amazon fulfillment centers where the products are stored until a customer orders them. When an item is purchased, Amazon preps and ships the product to the customer. They charge fees for this service that are deducted automatically.

Yes, Amazon fees can feel relatively high, but the benefits far offset them for most sellers. (You can check out the different  Amazon FBA calculators to work out fees in more detail).

We get to leverage Amazon's massive user base, their positive customer relationships, and their shipping and processing infrastructure to grow our businesses bigger and faster than would have ever been possible without them.

To say I'm a fan of Amazon FBA is a massive understatement. 

Moving on...

What Is Amazon Private Label

Private label selling allows people like you and me to create our own branded items without needing to do any of the manufacturing. This is because the items are purchased from large manufacturers overseas. Typically, this manufacturing happens in China. 

These items are not branded, so we can take them and apply our own brand to them. Unlike the other Amazon selling models, you aren't selling a brand; you're creating one for an existing product.

Keep in mind, with private label, we are not launching invented products. Many people think that to have a product to sell it needs to be completely original and ground-breaking. That isn't the case at all. 

We are going to create products that are most likely already on Amazon or have a very close alternative on Amazon. This is good because we can know for certain that people are interested in the item, and its risk of totally flopping are lower. 

Private Label vs. White Label Goods

White label goods are similar to private label goods, and the terms are often used interchangeably, but they are not the same. Private label goods are customized by the buyer. This gives them a unique product that others cannot copy exactly. White label products are goods that are unbranded and unaltered.  Anyone can put their brand on these and sell them. Many brands can sell them, and the only true difference is the brand name. In fact, Dollar Shave Club started out by white labeling razors that anyone else could buy. Private label is a better model in most cases because it's more difficult for other brands to compete. 

The items are shipped either to the Amazon seller, to an Amazon fulfillment center, or to a 3rd party prep and ship center .

The items are then prepared and packaged for individual sale.

The items are listed on Amazon, and the inventory is sent to Amazon fulfillment centers. When a customer orders an item, Amazon prepares and ships the item to them on our behalf. We pay them a fee for this service. 

Private label sellers then do ongoing work to ensure sales growth, such as regularly monitoring their listings, managing shipments, negotiating better prices with manufacturers, gathering reviews, optimizing their listings, answering customer support questions, and other admin tasks. 

Is Amazon FBA Private Label a Scam?

Let me start by saying that the online gurus have absolutely given Amazon selling a bad reputation. There are many courses sold by 20 somethings in Lamborghinis that cost 1,000s of dollars that promise huge, passive income gains with Amazon private label but don't share the risks (more on those shortly).

There are also companies that sell "done for you Amazon storefronts" that have regularly made the news for ripping off their customers. The list of these gurus facing lawsuits seems to grow daily.  

•  Seth Kniep of JustOneDime has filed for bankruptcy after collecting over $30,000,000 in profits from sellers buying his automated storefronts that failed to deliver. 
• KTS and Kevin David were hit with a 2.6 million dollar lawsuit by the FTC for various claims against their Amazon and crypto courses. 
• Brett Bartlett (bible quoting protege of fellow prosperity gospel-esque guru Jim Cockrum) suckered millions of dollars from sellers who wanted a piece of his Dynasty Toys brand that turned into a pyramid scheme. 
• Alpha bro Jeremiah "The Bull" Evans, a regular front runner for douche of the year, and his failed Amazon automation systems have, as of March 2022, over 51 complaints submitted against them to the Utah Department of Commerce’s Division of Consumer Protection. (But can you really feel bad for people who bought something from someone who calls themselves an alpha and nicknamed themselves "bull?" It was like he was trying to tell everyone from the beginning to run).

With that being said, Amazon FBA private label is absolutely a legitimate business model with high earning potential for those who are willing to put in the work required.

So, no, although there are scammy courses and done for you programs, Amazon private label selling is absolutely not a scam. 

It is not a get rich quick or get rich for sure business model, and no $2,000+ course is going to buy your way out of doing the work. 

How Much Money Do I Need to Start Amazon Private Label?

One big difference between private label selling and other Amazon selling models is the startup costs are typically higher with private label. 

Let's break down the costs a bit, and then I'll tell you how much I suggest you set aside before getting started.

• All Amazon sellers will pay $39.99/month for their professional selling account, but that is one of the smallest costs.
• You'll also pay Amazon fees that will vary depending on the type of item you sell, its price, and how large it is. This expense will not be fixed and will only occur when an item is sold. 

Although you can do most things on the cheap, various expenses that you might have will include...

• Product sample orders
• Product shipping fees and customs
• Logos and brand assets
• Quality product photos
• PPC ads (pay per click)
• Review generations campaigns (you cannot buy reviews, but you can spend money on campaigns to get them organically through methods like giveaways and promotions.) 
• Dead inventory and unfulfillable returns 
• Amazon storage fees
• (Optional) Chinese Sourcing Agent 
• Software like Helium10 ,  Jungle Scout  or  some alternative that help in product research and optimization. These are technically optional, but it's silly and borderline wreckless to source without using the powerful tech we have available to us. The same goes for inventory management software , but only once your Amazon business is big enough.

Although the number varies depending on who you ask,  I recommend that you should have at least $10,000 that you can afford to lose  before starting a private label business. 

Although the average number from a survey by Jungle Scout was much lower (most spent under $5,000 to start), I think $10,000 is the sweet spot for private label. It gives you the money you need to really do it right.  

This money will be used to purchase your first bulk orders and cover other costs that will add up in building your brand and launching your first marketing campaigns to sell your new product. 

Here's an example cost breakdown for an Amazon FBA Private label product from my friends over at Jungle Scout. 

Note : These costs were from 2016, so I updated some of them to better fit the present fees. 

How Much Can You Make with an Amazon Private Label Business

Not to be dramatic, but you can really earn as much as you want. 

Here are some interesting Amazon sellers statistics , once again, from my friends at Jungle Scout . Here are the reported lifetime earnings (not just revenue) of 

Profit margins will vary, but most sellers report earning at least 10% on their items. 

10% is pretty low for a successful private label item, and I believe this number might be skewed by many reporting 0% or below because of failure to launch. 

I've known sellers like Steve Chou who have margins over 90% and others who are well over 50% across many different products. 

You can crunch the numbers yourself to see how much you can earn. 

How Much Work Is Required to Run a Private Label Business?

Private label is not a hands off business model. Although it can be low maintenance once it's been launched, and the tasks involved can be outsourced relatively easily, there is still quite a bit of ongoing work involved and a large amount of work upfront . 

76% of Amazon sellers polled stated that they spend less than 20 hours per week on their business. Anticipate at least that much before you get started. 

How Risky Is Amazon Private Label Selling?

Selling on Amazon is a double-edged sword. On one hand, you get access to the world's largest online shopping platform. You get to leverage the trust of the Amazon brand and capitalize on the Amazon Prime program that boosts sales tremendously. But it isn't without its risks.

Here are some of the private label risks that Amazon gurus selling expensive courses might not tell you. 

• Account suspension
• Competition
• Supplier issues
• Complete failure to launch

Let's break down each of them further. 

Risk #1 Account Suspension

When you sell on Amazon, you are at the mercy of Amazon. They can choose to suspend your account if you violate their terms of service. Although you might think, "I'll just be sure to not violate their terms of service," you'd be surprised how many sellers get suspended who thought the same. 

Amazon can suspend you for several reasons. If a seller claims your product injured them, for example, you can become suspended immediately. This seems avoidable, but we can't always control what customers say or do. Some buyers will make claims like this in order to get a refund. 

Although a suspension isn't a death sentence, and Amazon works with sellers in most cases to reinstate their accounts successfully, it can be an expensive holdup. 

Risk #2 Competition

Amazon private label is brutally competitive. It's easy for other sellers to see which items are doing well and reverse engineer how to jump on the opportunity. Private label goods are generally easy to find, and most suppliers don't make exclusive deals with their buyers. 

This is why having the manufacturer do something different with your items is so important. 

Risk #3 Supplier Issues

Suppliers can change their prices, go out of business, or start to slack on the product quality that you expected. Since you don't own the warehouse and manufacturing infrastructure, you are beholden to them to remain consistent. 

If a supplier raises their prices, it's not the end of the world. You can always raise the price on your listing, but it's far from ideal. 

Risk #4 Complete Failure to Launch

Don't let the success stories blind you to the reality that many sellers fail at private label. Since the startup cost is high, so is the cost of failure. If you purchase thousands of dollars in inventory, and your listing doesn't sell, you can be stock with some serious sunk costs. 

Pros and Cons of Private Label

• Higher profit margins than other models
• Own your brand
• No buy box competition
• Investors love to buy these businesses
• Can sell goods wholesale to other sellers
• Higher initial investment required than other Amazon models
• Higher risk than other Amazon selling models
• Requires some knowledge of branding, Amazon SEO, PPC advertising, sales and marketing
• Logistical headaches

Are you still interested in starting a private label business?

If so, let's get into how to actually get started. 

Creating Your Amazon Storefront

You need to create an Amazon professional seller account before moving forward. The process is straightforward, so I won't go into step-by-step detail. 

Set up your storefront here . Remember, you will need a Pro Seller plan that will cost $39.99/month. 

Finding Your Private Label Product and Niche

Now, the fun part, finding your product!

Instead of jumping straight into your product idea, I highly suggest that you start with a niche you're going to target. Although we will start with launching one item, we want to find a niche that has the potential to be a full  product-line, not just a one off product .

A product line will allow you to scale more easily. You can sell more products to your existing customers. Existing customers are your best future customers. Someone who has purchased from you once will be more likely to purchase from you again.

Companies have a 60-70% chance of selling to an existing customer vs. a 5-20% chance of selling to a new customer. [ Source ]

Also, when you grow your brand off Amazon, having a line of products makes creating a viable online store easier. Customers will load up their virtual carts with other related goods, since they're in the market and clearly in a spending mood. 

Let's start with some tips. 

Brainstorming 

The most basic form of product and niche research is as simple as taking a piece of paper and a pen and mind mapping different product ideas.

Write down niche ideas, and then consider some product ideas that would work well in that space.  

This is NOT a method that should be used on its own. You need to use tools to research competition, demand, and pricing.

Trend Research

Using a free tool like Google Trends or a paid tool like ExplodingTopics.com , research what is trending. Start considering what types of items you could sell to the trending niches. 

Here's an example I found from ExplodingTopics

Padel is a trending sport (it's basically miniature tennis), and creating products for that niche could be profitable. 

However, just because something is trending doesn't mean that it's worth pursuing, but it's a good place to start. 

Amazon Specific Product Research

Head over to Amazon and browse around. Dig deeper into Amazon categories and sub categories for inspiration. You can do this manually, or you can use a website that most experienced sellers are familiar with, Keepa.com . 

Keepa shows us something called a " Category Tree " that allows you to see every Amazon category and sub-category as well as how many items are in each of them. You'll find categories you might have never considered before. 

Use Amazon's suggested search recommendations as inspiration as well. Type in a keyword like "English bulldog" and see what other phrases it suggests.

These auto fill results are far more meaningful than they appear on the surface. Amazon is smart, and they employ some of the brightest minds in tech and advertising to optimize conversions on every facet of their website. 

These auto fills are most likely generated with terms that are most likely to lead to sales. If it appears in the auto fill, it's likely making sales. 

Using the Helium10 Chrome Extension

Helium10 offers a free Google Chrome Extension that will help you see important details about products on Amazon.com (or any Amazon marketplace). 

This can help us reverse engineer what is already working on Amazon. Most private label products already have some sort of competitor or close competitor on Amazon, and by spying on them, we can get a better idea about how much we can make with our own products. 

Here's how to use the Chrome extension to do this. 

Step #1 Install the Free Extension Here

Step #2 Navigate to an Amazon Product Page of Any Kind

Step #3 Click on Chrome Extension Icon to See Statistics

Step #4 Repeat for Different Niches and Products

Step #5 Create a List of Potential Items

We'll then use this list to find potential suppliers and calculate costs.

Spend a great deal of time on this part of the process. Make your list of potential products as long as possible, and you can narrow it down later.

Build a list of potential products that is as long as you can make it.

Product Sourcing Tips and Considerations

Here are some quick product sourcing tips.

Tip #1 Do NOT Simply Follow Your Gut

Follow the data. It is highly unlikely that your first product idea will be a winner. Remember, just because it interests you, doesn't mean it will be profitable. 

Tip #2 Safety First

Avoid selling products that have a high risk of causing injury or illness. Even if these are commonly sold goods, they are risky. 

Tip #3 Less Is More

The fewer pieces an item has, the less risk you'll have of product quality issues. The smaller and lighter the item is, the less it will cost to ship. 

Think small and simple vs. big and complex. 

Good vs. Bad Private Label Products

• Fewer parts
• Small and Lightweight
• Non-Perishable
• Sells year round
• Can sell between $19 and $49
• Can sell at least 10 units per day
• Competing listings aren't optimized
• No competitor with over 500 reviews
• Many pieces
• Large/Oversized
• Seasonal sales
• Many different sizes (returns)
• Can sell under $19 or over $49
• Sells fewer than 10 units per day
• Competing listings are excellent
• Competitors with over 500 reviews

Software for Private Label Sellers

Although it is another expense, you are crazy if you don't invest in the 3rd party tools available to help with your private label business. 

Here are the top tools you should check out. 

• Helium10 [Top Recommendation].  Read more about Helium10 here.  
• SellZone [Helium10 Alternative] .  Read more about Sellzone here . 
• Jungle Scout[Helium10 Alternative].  Read more about Jungle Scout .
• Keepa . Read more about Keepa here.
• Exploding Topics . Read more about exploding topics here .
• FeebackWhiz . A powerful software built to help you get more reviews (which means more sales).
• Rebaid . A deal website that helps sellers get early sales to their products through Amazon compliant discount offers. Read more about rebaid here.

There are many others, but these are the big names to check out. 

Finding Your Private Label Supplier

You can find product manufacturers in a number of ways. Here's a list of manufacturers that you could consider looking into to start. Obviously, I haven't worked with all of these, so do your own due-diligence. 

Method #1 Reverse Engineer Suppliers with Jungle Scout

Whenever a shipment is imported into the United States, it is documented and available via public record. Tools like Jungle Scout have databases of these shipments, so we can reverse engineer where our competitors are getting their goods from. 

Remember when I said that private label was brutally competitive? Well, here's one example why!

Jungle Scout outperforms Helium10 when it comes to supplier searching. Their supplier database lets us see things like competitor's suppliers and suppliers who might offer an item we're considering.

Jungle Scout will cost you about $49/month for a basic plan, but it's well worth it when you're searching for your first product and manufacturer.

Method #2 Chinese Sourcing Agent

Chinese sourcing agents are 3rd party intermediaries who can help connect US based Amazon sellers with Chinese manufacturers. They understand the language and culture and are often well versed in which companies are worth working with and which are not. 

These agents can help screen suppliers, help with quality control, and negotiate prices with suppliers. 

Here is a list of the top Chinese sourcing agents from my good friend at MyWifeQuitHerJob.com, Steve Chou.

• Imex Sourcing: https://www.imexsourcing.com/
• Foshan Sourcing: http://www.foshansourcing.com/
• Sourcify: https://www.sourcify.com/
• China2West: https://china2west.com/
• LeelineSourcing: https://leelinesourcing.com/
• SupplyIA: https://www.supplyia.com/
• Dragon Sourcing: https://www.dragonsourcing.com/
• Lazpanda: https://www.lazpanda.com/
• Guided Imports: https://www.guidedimports.com/
• Maple Sourcing: https://maplesourcing.com/
• Baysource Global: https://www.baysourceglobal.com/
• Jingsourcing: https://jingsourcing.com/
• Meeno Group: https://www.meenogroup.com/
• Sourcing Bro: https://sourcingbro.com/
• B2C Sourcing: https://b2csourcing.com/
• Linc Sourcing:  https://www.lincsourcing.com/

The only downside is the cost. These agents typically charge 5% of the total cost of your goods purchased, and you cannot cut them out of the deal once it's complete.  This is good and bad. It's good because they don't get paid (usually) unless they help you land a deal. It's bad because the cost can add up, and it will come directly out of your profits. 

Method #3 Google Search

Yep, a good ol' fashioned Google search can be quite effective. Type in something like product type + supplier.

You'll get a lot of results. Alibaba will dominate the search engines if they have the product available. If you want, you can do a Google search exclusion and add "-alibaba" to the search. 

Looking into Your Potential Supplier

Here are the key points to review when researching a supplier. 

• Verify delivery time and product condition standards.
• Calculate total manufacturing costs and ensure there are no hidden fees.
• Review policies for quality control and guarantees.
• Read reviews from past customers. 

Once you feel that all of the above meet your expectations, you can create a sample order. Ensure that you get more than a couple of units. 

How to Create Your Private Label Brand Assets

Your private label brand will need the following.

• Packaging design
• Product photos for your listing

You can do these in house if you have some design and/or photography skills, or you can outsource them to a company like  99Designs ,  Upwork ,  ThriveProductStudio , or even  Fiverr . 

Listing Your New Amazon Product

Once you've opened your Pro sellers account, found your product, created your branding, and finalized all the logistics, you can list your item. 

Here’s how to list a brand new product on Amazon

Step 1: In Seller Central, navigate to  “Add a product”

Step 2: Click “I’m adding a product not sold on Amazon.”

Step 3:: Select your product category

Step 4: Enter your product information 

Next you’ll enter the key information about your new product. This will be things like your product name, it’s price, your brand name, who the manufacturer is, images, fulfillment type, UPC, and more. Don't worry about optimizing the listing, price etc. at this point. We will cover that in more detail, and you shouldn't rush this part of the process. 

Note : All barcodes for Amazon products must be purchased from GS1. Amazon will check with GS1 to verify the UPC you enter. Read this article to learn more about obtaining your first UPC codes.

Once you complete the processes above, click on “Save and finish.” Congrats, your item is now listed on Amazon (although it is still pending approval).

Pricing Your Product 

Like I mentioned at the beginning, I suggest sourcing goods that you can sell for between $19 and $49 dollars.

When deciding on pricing between that, let the market guide you in deciding what to price your product at . There is no perfect answer to what you should price your goods at, but just be sure that they will be able to sell at your desired price before you invest in your first shipments.

See what the current market is for similar goods, especially on Amazon. 

Give yourself some wiggle room in case you need to reduce your price. I highly recommend that you avoid products that have slim net profits because they limit your ability to adjust price downward if need be without losing all profitability. 

Read this article for more information about pricing your Amazon listing accurately . 

Creating an Optimized Amazon Listing

A great listing is critically important to the success of your Amazon private label product. 

Amazon SEO (search engine optimization) is the process of creating a product listing that ranks well for search terms in Amazon. A great listing will ensure that your product has a better chance of appearing organically at the top of search results and therefore, drives more organic sales. 

I highly recommend that you either higher someone to create your Amazon listing for you, or that you use a premium tool like Helium10 to ensure your listing is as optimized as possible. 

This includes, but is not limited to:

• Relevant keywords
• Multiple, high quality product photos
• A descriptive title 
• Bullet points that explain and sell the product 
• Product pricing 
• Detailed description
• Backend search keywords
• The use of A+ content 

Here's an article from Amazon themselves about Amazon SEO for your product listings.

Running Paid Ads to Your Private Label Products

I couldn't write an article about Amazon private label without talking about PPC (pay per click). It seems to be often overlooked, but almost every successful private label seller I've met leverages Amazon's PPC program. I don't understand why someone wouldn't. 

With Amazon PPC, we can pay to have our product show up at the top of search results for terms that could sell our product. 

There are 3 types of Amazon PPC ads: sponsored product ads, sponsored brand ads, and sponsored display ads.

The cost per click varies depending on many factors. Amazon has an ad dashboard that will show you things like ACOS (Average Cost of Sale) and ROI so you can tell if your ads are converting and are profitable. 

The rule of thumb is to keep your PPC spend around 10%-15% of your sales revenue. Some sellers will spend much more than that if they have good profit margins and the ads are converting well for them. 

This topic deserves much more than one heading in this blog post, but for brevity, we will not go any deeper. You can learn more about Amazon PPC here though. Be sure to educate yourself thoroughly before spending big money on clicks. 

About Amazon Private Label Reviews 

Product reviews are a snowball effect. If you don’t have any reviews or very few reviews, buyers browsing listings are likely to pass over your product for another.

Getting off the ground is hard, but reviews have a snowball effect. Once you gather some, you gain momentum that continuously builds off itself. Build a few reviews, and more people will take a chance on your product, meaning more sales. More sales means more reviews, which means more sales, which means more reviews… you get the idea!

People naturally gravitate toward items that already have reviews–the more the better. Several reviews mean several people have already purchased the item and taken the risk that the potential buyer doesn’t have to take.

The overall star average, while decided by Amazon’s complex algorithms, also has a profound effect on the buyer’s mind. In seconds, a buyer consciously or subconsciously can decide if they’re interested or not just by glancing at the image of how many stars are in your listing.

Product Reviews vs. Seller Feedback

Seller feedback is the rating that your buyers leave on your seller profile. It’s supposed to be for your buyers’ satisfaction with your customer service and communication, how long it took you to ship the product (if FBM), etc. as a seller. It’s NOT supposed to be for anything related to a product review, such as their thoughts on the features of the product they bought. All of your seller feedback contributes to your overall seller rating, which will say, for example, “99% positive rating in the last 30 days” when buyers see you in the “available sellers” pane.

Product reviews are reviews specifically about the product’s features, design, functionality–anything the buyer would consider if they saw it in a physical store. They’re not worried about the reputation of the seller, just about the item itself. This is what we’re focusing on today.

How to Get Reviews on Your Amazon Products (Compliantly)

Two of our favorite techniques for building remarketing lists and encouraging reviews are using ManyChat and product inserts directly inside your product packaging. The two can work wonderfully together, but we’ll break them down separately.

Create an Amazing Product

None of the other methods for collecting positive reviews will work if your product stinks. You don't need to change the world with your product, but it should do exactly what you say it does and leave customers satisfied.

Offer Fantastic Support

Although seller feedback and product reviews are not the same, customer support can increase the likelihood of an overall positive experience and positive product review. If a buyer leaves seller feedback on an Amazon product, you can have it removed easily. 

Read my article about offering world class  customer support here.

Amazon Vine

Amazon does not allow incentivized reviews, but their built in Vine program is about as close as you can get to that. It costs $200/Parent  ASIN .

To qualify for the program, you must be brand registered, sell only new products, and have a listing with fewer than 30 reviews. 

The intent of the program is to give brand new products the boost that they need. Amazon understands that it's difficult to get your first reviews, so this program helped combat that. 

Use ManyChat

ManyChat is an automated service that works through Facebook Messenger. With ManyChat , you set up a bot that sends auto responses and prompts to customers. It’s a handy initial contact tool that helps you engage customers without you having to write individual messages to each one.

ManyChat is also great for encouraging customer reviews, and product inserts (which add a human touch) can be a “tangible” way to direct customers to the ManyChat funnel. Many sellers use product inserts (with or without ManyChat) to engage their customers and assure them that their satisfaction is important to them (well, to you, as the seller).

The human touch is always a good way to establish that desired emotional connection; your customers will feel less like they’re ordering from a gigantic consumer goods aggregate and more like they’re purchasing from an actual human. This naturally makes them feel more inclined to leave a review.

REMEMBER: Never use language that explicitly asks for positive reviews. Amazon considers this review manipulation and is very strict in enforcing it. Violation of review manipulation policies may cause consequences as severe as seller account suspension.

Use FeedbackWhiz

FeedbackWhiz is a tool that helps Amazon sellers get more positive reviews and remove negative ones.

Although positive reviews are great, negative reviews can be devastating to a new brand . This is where tools like FeedbackWhiz come in handy. 

FeedbackWhiz allows sellers to control the entire feedback and review process from one clean dashboard. 

• Stay on top of incoming customer feedback. Get instant notifications for neutral and negative feedback.
• Respond quickly, satisfy frustrated customers, and receive alerts whenever negative feedback is removed.
• Use the feedback management tools to create email campaigns that maximize your chances of customers removing negative reviews without violating Amazon’s Terms of Service.
• Create automated, personalized email campaigns that help boost positive reviews and avoid negative ones. 

You can try FeedbackWhiz for free for 30 days here.

Scaling Beyond Amazon

Do you know one of the most beautiful parts of having your own brand? You can sell your products anywhere. 

Branching beyond Amazon will also give you more security in the event that they suspend your account at a given point. 

This means you can create your own website, typically with Shopify , and then drive your own traffic to it. You can still use Amazon to fulfill your orders if you'd like, or you can fulfill them yourself or through another 3rd party to save on costs. 

You can crosslist your items on up and coming  3rd party marketplaces like WalMart or established ones like eBay, 

You can run ads to your products via Instagram, YouTube, Facebook, TikTok ads , and anywhere else you want.

You'll find that you're able to better track conversions and retarget your customers when you work outside of Amazon.

You can create an affiliate program and pay influencers to promote your products on their channels. 

Adding your own off-Amazon-presence to your brand will also make it more valuable in the eyes of investors.

Which brings me to our next topic!

Selling Your Amazon Private Label Business

Maybe I should have led with this, but you can sell your private label business for millions of dollars. 

Don't believe me? Go check out a site like Empire Flippers and see how much the Amazon storefronts are selling for. Click here for a shortcut . 

Storefronts sell at multipliers around 30x to 48x the monthly profits. A storefront making $10,000/month in profit can sell for $300,000 to $480,000. 

I wrote more about selling Amazon businesses here.

Final Word and Suggestions

There you have it, Amazon private label in a nutshell. Of course, there are small pieces that you'll have to learn as you go. Here's what I recommend to improve your chances of private label success. 

#1 Join seller communities (free or paid)

#2 Read, watch, and listen to as much content on the topic of Amazon selling as possible

#3 Take serious action and don't look back!

Here's to your success.

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Amazon Private Label – What You Need To Know

• April 16, 2019
• No Comments

Amazon private label is now one of the most popular ways to start an amazon business…

My name is Nick (That’s me above) and i started selling on amazon about four years ago.

Around two years ago the private label business got to a point where my two friends and I were able to quit our jobs and take the business full time.

Today i want to explain exactly how the private label business model works and how we have used it to create our very own seven figure business.

Make sure you hang around to the end as i’m going to show you how you can  find hot selling – low competition products that are suitable for private label.

The amazon private label business model is simple…

You create your own brand of products that you sell exclusively on amazon. It’s that simple.

Let me explain it all in a little more detail.

Amazon Private Label – How It Works

Before you get started you need to make sure that the private label business model is right for you.

I’ve put together a short video to explain exactly how the amazon private label business model works.

The private label model isn’t your only option. There are two different types of amazon sellers…

• Private Label Sellers
• Amazon Resellers

Before we dive into private label any further it i think it’s useful for us to establish the difference between these two types of amazon sellers.

It’s very straight forward, if you are a private label amazon seller you will be creating and selling your own range of products.

If you are a reseller, you will be selling other peoples products.

Here is a bit of amazon seller lingo for you…

OA Seller – Online Arbitrage Seller

This is where you source products online to sell on amazon (Maybe either Walmart in the US or Tesco’s in the UK) 

Normally OA sellers will use software to scan stores and find products to purchase and re-sell on amazon.

Don’t confuse this business model with drop shipping, they are completely different…

Drop shippers never actually handle goods, they just connect online buyers to online sellers and make a cut in between.

OA sellers purchase and receive goods.

Once received an OA seller you will then need to prepare and package the products before sending them into amazon.

Due to amazon’s barcode requirements you will need to label each product to ensure they correspond to a relevant amazon listing.

Amazon also have pretty strict packaging rules, before you jump in it’s always worth reading through amazon’s terms of service.

We actually have two amazon seller accounts , we do both online arbitrage and private label.

Our core business is private label but we do enjoy online arbitrage, it’s just a slightly different ball game.

RA Seller – Retail Arbitrage Seller

This follows the same arbitrage model as above.

You find and purchase products, prepare and package them up before then sending them into Amazon to re-sell for a profit.

But retail arbitrage is different…

RA Sellers travel to different physical stores to purchase their products, a lot of their time will be spent out on the road sourcing and purchasing stock to re-sell.

They will spend a lot of time trawling the clearance section of stores, scanning products to find the ones they can resell on for a profit.

Usually RA sellers will rely on scanning apps to make their sourcing process more straight forward.

You will usually have to pay for the apps but they make life so much easy.

One scan of an items barcode and the app will tell you the profit you’ll make after amazon fees and how many you could expect to sell on a monthly basis.

We have done a little bit of RA but not too much…

I have huge respect for retail arbitrage sellers and it’s fair to say some of them are doing incredibly well for themselves.

If you are interested in retail arbitrage i’d recommend you check out the Reezy Resells Blog

His YouTube videos are also well worth checking out too. He really is a natural born hustler.

Reezy if for some reason you are reading this, thanks very much for the content! 

Although we don’t do too much retail arbitrage the way you have honestly shared your journey has been incredibly useful.

Anyway, onto private label!

PL Seller – Private Label Seller

Ok so the product you can see me holding in the picture above is actually the first EVER product we sold under our private label business.

Th private label business is my favorite amazon business model because you as the seller own the asset.

It also goes beyond selling on amazon, you can sell your own brand of products ANYWHERE on the internet.

As a private label seller the margins are much better and you have the potential to scale your business pretty quickly…

It is NOT a get rich quick scheme. It really does take hard work and effort.

The PL business model also come with A LOT more responsibility… Let me explain what i mean.

What Is Private Labelling?

Here is how the process works for a typical private label amazon seller.

First you will need to identify a product opportunity, you need to find a product that has good demand on the amazon marketplace of your choice.

Next up you need to do everything possible to check that the product you have found is safe for you to private label.

A lot of sellers seem to think that if a product is being sold on sites like alibaba or global sources it’s ok to sell. This is not the case.

Ultimately it’s your responsibility to make sure that the product you intend to sell does not infringe on anybodies intellectual property rights.

It isn’t always completely obvious either, the product you intend on selling may have a very small feature that has been patented by somebody else.

Let me give you an example of a design patent.

Let’s say you want to private label your own brand of these nit/lice combs…

You come up with a clever brand name and design your packaging…

(I’d also recommend that you register your brands word-mark in the relevant country, as early as possible – This is referred to as a trademark)

I’d always recommend talking to a professional before you do anything with trademarks, i can only talk from my own experiences.

Ok, back to the nit comb.

You’ve looked on amazon and you are excited about this product, there is hot demand and very few competing listing…

For me the last point “very few competing listings” is a giant red flag.

I’ll explain why…

If there is only one or two sellers there is a good chance that the product holds a design or utility patent.

Look out for unique product features, if there are only one or two sellers i’d suggest looking into their company information to see if they hold a patent.

I won’t rule these products out, i just need to carry out research to ensure that my intended private label product isn’t going to infringe on anyone’s rights.

If you do try and sell a product with a patent, as soon as your product is visible it’s likely that the rights holder will raise a case with amazon.

It usually won’t be long before your ASIN is blocked and in some cases your account will be suspended (this depends on the history of your account health).

Anyway, let’s get back to this nit/lice comb example…

Here is the top selling product in the nit comb category, do you notice any similarities?

I think if you were to private label this product you could face BIG issues.

The comb looks almost identical and upon further investigation they look to have the same micro-spiral grooves.

You’ll see the red arrow i have added into the image above, it points to the words “Patented micro-spiral grooves”.

We looked at this product a few years back, “Nitty Gritty’s” superior product dominates the market with this patented design feature.

This is the sort of thing you need to look out for, patents and trademarks pose one of the biggest risks when it comes to the amazon private label business model.

I do understand that you can’t always be 100% sure…

But you must realize that the responsibility is completely on your shoulders.

Take it from somebody that has experienced it for themselves.

Let’s take a look at some private label brand examples.

Private Label Products Examples

I thought it would be useful for us to have a look at some of the best performing private label brands on amazon.

I have no affiliation with these brands, i have simple chosen them because i like the look of them.

Zhou Nutrition

These guys are a UTAH based private label brand that have grown their supplements business to dizzy heights.

Their amazon numbers are astonishing.

I love how they tell their brand story across their amazon store and their product listings.

Their listings are well thought out with clever marketing principles in mind.

They include cross selling images in most of their listings to ensure their average cart value is as high as possible (amazon will like this a lot).

Their parent company “Neutraceutical International” was actually sold for $446 million in 2017 , amazon private label is big business isn’t it.

The supplements game is highly competitive…

If you are new to selling online, i’d approach the market with caution.

There are plenty of other untapped niches that you could build a private label amazon business on, don’t worry i’ll show you how to find these product opportunities shortly.

Old School Labs

These guys understand branding, in my opinion they do it very well.

Ok so they are another supplements company, but their angle is slightly different.

These guys target the muscle building market – unlike Zhou nutrition with their health and wellness supplements.

You see the supplements market has a lot of different sub niches and this is the same with most niches.

If you want to succeed it’s important for you to think outside of the box.

If a market is saturated you will need to find your own unique angle, otherwise there will be no reason for customers to choose you over the competition.

Amazon’s Own Products

Unsurprisingly Amazon have a lot of their own private label brands.

Here is a few of them:

• AmazonBasics
• Amazon Elements
• Happy Belly

I could go on…

A lot of people say to me; “Aren’t you scared of amazon taking over? In years to come they will own ALL the brands on amazon!”.

I just can’t see that happening.

Firstly, Amazon will be being watched very closely by the various anti-competition agencies. They are already seen as a monopoly.

Secondly, i think Jeff Bezos knows this is just bad business.

Third party sellers make up a huge percentage of amazon’s revenue, Amazon make more money from their third party sellers and arguably with less risk.

In Jeff Bezos’s recent letter to amazon’s shareholders he states…

“Third-party sellers on amazon are kicking our butt”

He openly states that amazon’s third party business has grown much faster than it’s first-party business.

Over two decades Amazon’s third party sales have grown from $100 million to $160 billion, not bad huh?

Third party sellers are incredibly important for amazon…

Anyway, as promised let me show you how you can find hot selling products with low levels of competition.

Finding Hot Selling Products To Sell On Amazon

Over the past few years we have sold A LOT of products on amazon, our product research method has evolved as the years have gone by.

The following video is a tutorial to show you exactly how we find our winning products.

I really would recommend you taking the time to watch the above tutorial through to the end, the current amazon opportunity won’t last forever.

If you are interested in learning more about amazon FBA i’d recommend subscribing to our YouTube channel.

The channel is updated with useful content every week.

The software i used in the above video is called Helium 10 , it’s a tool i use every single day.

I’ve actually written a pretty lengthy article explaining how i used each of their tools.

If you are interested you can read the article here.

Within the above article you’ll find discount codes to help you save you some money…

If you decide to use them, i will make a small affiliate commission. This won’t make it more expensive for you but i feel it’s only right that i mention it.

I really hope this article has brought you value, i want you to understand exactly how the amazon private label business model works.

Hopefully I’ve achieved that.

I’d love to hear what you think, and if you have any questions please leave a comment below! I’ll get to it ASAP!

Thanks for taking the time to read this article.

More from me soon…

eBusiness Boss

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What is Amazon Private Label? Definition, Tactics, & Startup Strategy

December 5, 2023

What is Amazon private label?

Amazon private label is a common business model sellers use on the Amazon marketplace. With Amazon private label, sellers put custom branding on an exclusive product from a third-party manufacturer and sell it as their own on Amazon. An Amazon private label product is an item that carries the logo of an Amazon seller's brand, but is actually produced by another company specifically for that Amazon seller. There are two types of private label products on Amazon: private label products by Amazon itself and private label products by third-party sellers.

What is Amazon private label by Amazon?

Amazon private label by Amazon is the Ecommerce company's own private label brands and products. Amazon owns and operates over 118 private label brands across many categories, according to CNBC. The company creates its private label brands by analyzing its own platform data to discover selling opportunities. According to Bloomberg, approximately 1% of Amazon’s Ecommerce sales, nearly $5 billion dollars, come from its private label brands. A private label Amazon example is Amazon Basics , Amazon Essentials , Amazon Collection , or Amazon Elements . 

What is third-party seller Amazon private label?

Third-party seller Amazon private label is any business that sells private label on Amazon besides Amazon itself. That includes all sellers of private label products, from small-scale businesses that make only a few sales each month to major corporations like Macy’s that generate millions in revenue. In fact, Amazon third-party sellers prefer private label over any other business model on Amazon. There are approximately 1,080,000 private label sellers on Amazon, considering that there are about 2 million active sellers on Amazon and 54% of them use private label according to JungleScout.

How does Amazon private label work?

Amazon private label works by creating a brand and finding a manufacturer to produce a unique product for the brand to sell on Amazon. A manufacturer can either produce a completely new product concept for the private label brand, or make a custom variation of a product they already produce. The manufacturer then labels and packages the product with the branding materials provided by the private label brand. The branded product is then posted on the Amazon marketplace so Amazon’s approximately 300 million active customers can view and purchase it. 

Pros of Amazon private label for third-party sellers

Higher profit margins.

Private label has the highest profit margins of any Amazon business model. According to private label health and wellness product supplier Evora Worldwide, private label product margins can reach upwards of 40%! This is because products are bought in bulk to get a lower unit cost and product pricing isn’t constrained by the brand’s production costs and Amazon market price.

Customer loyalty

A private label brand allows you to build customer loyalty for your product. Loyal customers are likely to repeatedly purchase from your brand and can provide free marketing by recommending your private label products to others.

Control over Amazon product listing

As a private label brand, you have complete control over setting up and optimizing your Amazon product listing. You can choose the images and copy you think is best to sell the product. You can also engage in your own Amazon SEO strategy to boost your ranking in Amazon’s organic search. With other Amazon business models, you are forced to share the product listing with all the sellers of the product and you have little control over the contents of the listing.

No competing for the Amazon Buy Box

For sellers that share a product listing with other sellers, winning the Buy Box is the most important determining factor of success. In fact, 82% of all Amazon sales go through the Buy Box, according to Ecommerce platform Bigcommerce. Because private label sellers have an exclusive product listing, there is no competition for the Buy Box. 

The Amazon FBA program

One of the biggest benefits of selling a private label brand on Amazon is the Amazon FBA program. Amazon FBA, or Fulfillment by Amazon, is a program that lets you outsource a large portion of your business operations to Amazon. If you run your business through the Amazon FBA program, Amazon handles inventory storage, rapid order shipping, customer service, and even returns processing. Although there’s a cost, Amazon FBA alleviates much of the headaches that come with Ecommerce and makes running your business much easier.

Opportunity to sell the business

Unlike other Amazon business models that just provide income, a private label business can become a valuable asset that you can sell. According to Marketplace Pulse, Amazon private label businesses are getting acquired for 4x to 8x their adjusted annual earnings. If you grow tired of running your Amazon private label business or just want a large amount of cash, you can post your business for sale in an online business marketplace like Flippa .

Cons of Amazon private label for third-party sellers

High startup costs.

Amazon private label cost is around $10,000 or more. This high cost is primarily because manufacturers require you to order a minimum amount of product, called a minimum order quantity (MOQ). Also, private label products are typically manufactured in China because of the country’s affordable and advanced manufacturing capabilities. However, the shipping costs to get your products from China to the United States can be substantial. These are just a few of the private label costs when selling on Amazon .

Amazon fees

If you sell on Amazon, especially if you use the FBA program, a considerable portion of your revenue goes to Amazon fees. In fact, Amazon takes a 50% cut on average from each seller's earnings, according to Entrepreneur. Even worse, Amazon has a tendency to increase its seller fees, so that number is expected to rise higher.

Extreme competition

With around 2 million sellers and upwards of 350 million products listed in Amazon’s product catalog, Amazon is a highly saturated marketplace. When selling on Amazon, you’re not just competing against other small scale third-party sellers. You go up against major players like wealthy companies, Chinese manufacturers, and Amazon itself.

Minimal control over sourcing and production practices

Another drawback of private labeling is the lack of control you have in the production process. Because you can’t directly oversee your manufacturer's operations, you can’t guarantee their sourcing practices fit your moral standards and legal obligations.

For example, Nike is technically a private label brand because it uses third-party manufacturers to produce all of its shoes. For years, this sourcing practice caused Nike to have a bad reputation because many of Nike’s suppliers were producing shoes in unethical sweatshops with poor working conditions in East Asia. 

Marketing expenses

When you sell your own Amazon private label brand, you need to put resources into marketing it if you want to make sales and grow your brand. Fortunately, Amazon offers an excellent on-platform advertising opportunity in Amazon PPC. Unfortunately, the high volume of sellers on Amazon have pushed Amazon PPC costs sky high.

According to JungleScout, Amazon PPC costs anywhere from $0.05/click for low competition keywords up to $10/click for keywords in popular niches with extreme competition. As a new private label brand looking to establish market share on Amazon, expect to put 10% to 30% of your revenue into your Amazon PPC budget. 

Stale inventory and Amazon FBA inventory constraints

Although sourcing products in bulk allows you to optimize your profit margins, it can also leave you thousands of dollars in the hole if your product doesn’t sell. If inventory sits around for too long without selling, it becomes stale inventory. You may have to lower the price or even try selling your products at a loss to recover some of your investment. If you use Amazon FBA, Amazon will even start charging your stale inventory additional long-term storage fees if kept in the Amazon warehouse for longer than 180 days. 

Amazon FBA private label sellers are also limited to the amount of products they can store in the Amazon fulfillment center. You may not even be able to store the entire MOQ your private label manufacturer requires you to produce, depending on your seller status and the size of your products.

How to start Amazon private label?

1. create an amazon private label business plan.

An Amazon private label business plan guides your business operations and can help you avoid missing important steps. It also forces you to thoroughly think through every aspect of your business, so you start on the right footing with realistic expectations and your goals clearly in mind.

2. Do Amazon private label product research

As a third party seller in Amazon’s highly competitive marketplace, comprehensive product research is essential. To give yourself the best opportunity, leverage a product research tool like JungleScout or Viral Launch to discover a private label product idea. Product research tools enable you to efficiently analyze private label selling opportunities by aggregating data and showing you advanced insights. Use the product research tool to find a product idea that has lower competition on the Amazon marketplace but that has indications of high customer demand.

3. Find a private label manufacturer

Once you have a product idea, research and contact manufacturers who have a good reputation for producing similar products in your niche. You can find manufacturers in an online supplier marketplace like Alibaba or from in-person trade shows. When vetting manufacturers, collect any relevant information needed to make your decision, like the per unit price of each product for your intended order quantity, estimated dimensions and weight for the product and its packaging, and the production timeline. 

4. Create private label branding materials

In order to private label a product, you need a brand. The basic branding materials you need for a private label product include a logo, branding colors, and private label product packaging. Freelance websites like Fiverr and Upwork are great places to find talented marketing professionals to create your private label branding materials.

5. Order private label product samples

Before committing thousands of dollars to a bulk order of products, verify the manufacturer’s capabilities and product quality by ordering samples. Provide the manufacturer with the branding materials so you can see the final product your customer would receive, complete with your logo and packaging. If the product samples are acceptable, sign a private label agreement with the manufacturer and place your product order.

6. Set up the private label product listing

A good Amazon product listing provides potential customers important details about your private label product and convinces them to buy it. The contents of the product listing also helps Amazon’s algorithm to determine who should see the product listing and how visible to make your product on the Amazon marketplace. Therefore, it’s important to optimize your private label product listing in Amazon Seller Central with high-quality product images and copywriting. 

7. Choose your Amazon fulfillment method

While setting up your product listing in Seller Central, you’ll also need to decide on a fulfillment method. When selling on Amazon, you can either choose Fulfilled by Merchant (FBM) if you want to store and ship your own orders, or Fulfilled by Amazon (FBA) if you want Amazon to handle it for you. The majority 73% of Amazon sellers use Amazon FBA because of the platform and operational benefits it provides, according to SellerApp.

8. Run a marketing campaign for your Amazon private label product

If you want to make sales and get Amazon’s algorithm to move your product up in Amazon search rankings, you need to do marketing. There are many options for marketing your private label brand, like running a social media campaign on Instagram. However, many Amazon private label sellers find Amazon PPC is most effective for generating sales.

9. Gather Amazon customer reviews

Positive product reviews are one of the most important factors for Amazon private label success. You can manually “Request a Review” on each order in Amazon Seller Central or use product inserts to request reviews. Of course, you won’t get positive product reviews unless you provide a high-quality product that adds value to your customers' lives.

If you want to start your private label business on Amazon and you're willing to invest in a beginner's course for Amazon FBA private label, you can check my article review about Learn with Abby Savvy Seller FBA program .  

Why are fewer sellers doing Amazon private label now?

According the JungleScout’s State of the Amazon Seller series, the percent of private label sellers on Amazon has fallen from 67% in 2021 to 54% in 2023. Fewer sellers are doing Amazon private label now because:

• Chinese manufacturers are cutting out the private label brand middleman and selling their products directly on Amazon themselves
• Supply chain disruptions and volatile shipping costs as a result of Covid19 have made it more difficult to source products
• There is less opportunity to differentiate products on Amazon than before

Amazon private label FAQs

Do you need an llc for amazon private label.

You do not need an LLC for Amazon private label. You can sell private label on Amazon without any formal business set up as a sole proprietor. However, running your business through an LLC or other legal business entity can improve your business operations. With an LLC, you:

• Can open a business bank account to separate your personal and business finances

Appear more professional to manufacturers you’re looking to do business with

Protects you from personal liability if your business faces legal action

Take advantage of tax benefits like saving on self-employment taxes

Can you do private label on Amazon without brand registry?

Yes, you can do private label on Amazon without brand registry. To do so, you’ll need to contact Selling Partner Support for error code 5665. You need to explain to them that you require an exemption and then submit a selling application for catalog authorization, including images of the private label product with the brand name permanently affixed to it and its product packaging. 

However, most sellers will find it’s actually better to enroll in the Amazon Brand Registry because it allows you:

• Complete control over your brand’s Amazon listing
• Access to product listing enhancements in Amazon A content
• Improved brand protections
• The ability to set up an Amazon Store to showcase your brand's products
• To run a special type of Amazon PPC ad in Amazon Brand Ads

Do you need a trademark to sell private label on Amazon?

You do not need a trademark to sell private label on Amazon. However, you do need a trademark to enroll in the Amazon Brand Registry. You can apply for your brand's trademark directly through the United States Patent and Trademark Office (USPTO) website . 

What is the difference between Amazon private label and other Ecommerce business models?

Amazon private label vs white label.

An Amazon private label product is created exclusively for the Amazon brand selling it. No other seller can sell that exact variation of the product. In contrast, multiple businesses can sell the same white label product, with the only difference being the branding. Whereas a private label product is unique to a single Amazon brand, a white label product is a generic product available to many sellers.

Amazon private label vs wholesale

Both Amazon private label and Amazon wholesale products are obtained in bulk. However, Amazon private label sellers sell products with their own custom branding, while Amazon wholesalers sell products from popular brands like Dove and Nike. 

Amazon private label vs dropshipping

Amazon private label products are obtained ahead of selling. Therefore, private label sellers need to determine where and how to store the products until they sell. On the other hand, dropshipping entails listing generic products from suppliers on Amazon without actually owning them upfront. The dropshipper only buys the product from the supplier once it sells.

Amazon private label vs retail arbitrage 

An Amazon private label seller gets their products from a manufacturer, while retail arbitrage sellers find products to sell on Amazon from retail chains like Target and Home Depot. Private labelling is selling your own brand, while retail arbitrage is selling products from other companies that you find are selling at a discount in a retail store compared to the market price on Amazon.

How does Amazon private label compare to local lead generation?

Amazon private label and local lead generation are both online business models where you earn money by connecting businesses with customers through your own brand. In the case of Amazon private label, you connect customers with the product of your private label manufacturer through your brand. With local lead generation, you use a branded website to connect customers with businesses who can perform a service they need. 

However, Amazon private label is more competitive than local lead generation. Amazon already has so many private label sellers, and more continue to sign up on the platform every day. Getting market share on Amazon at this stage is incredibly difficult because nearly every product imaginable is already selling there. 

On the other hand, local lead generation is a service that is only going up in value in a relatively untapped market. A local lead generation agency uses local SEO to rank niche business websites for specific locations to attract customers for small and medium-size businesses (SMBs). Once a website ranks on Google, it attracts potential customers who are searching for the service the website targets. The local lead generation agency then sells those leads to a local business who makes money by performing that service for hundreds to thousands of dollars a month. 

With increasing data protection laws and costs, paid advertising is becoming more difficult. Therefore, free traffic like local lead generation relies on is becoming more valuable to the approximately 32 million SMBs in the United States. 

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Selling on Amazon

Is amazon private label a convenient business model.

• July 27, 2021
• AMZ Advisers

Get the Latest Amazon Content Each Week

Amazon features different business model options for sellers to choose from. One of the most popular is Private Label. The concept is quite simple – take an existing product, revamp it with your own brand, and start selling it. Think of Walmart’s Great Value and Costco’s Kirkland Signature. These are private label brands. Another great example is AmazonBasics .

The retail giant sources items from third-party manufacturers. Amazon then sells the rebranded products for low value and high profits.

Therefore, we believe that Private Label is a great model to boost profit. But it’s also time-consuming, and it’s not without risks.

In this post, we’ll break down the pros and cons of Amazon Private Label to make it work in your favor.

Why Choose Private Label?

Private Label allows you to build a brand, launch many product lines, and take control of your prices.

But there are some flipsides to this business model , especially the starting costs. For example, you must buy stock in bulk orders from manufacturers.

You’ll also have to start selling at low prices. This is crucial to set a solid food in Amazon, until you build your customer base.

Plus, branding is no easy task. You must be willing to invest in research and marketing campaigns to carve a place amongst Amazon shoppers.

It takes a lot of hard work to build a successful private label store. But if done right, the benefits outweigh the setbacks:

• Lesser Brand Restrictions. Private label requires you to enroll in Amazon Brand Registry.  The program gives sellers the right to oversee their stock. But they can also control their brand. So, you won’t deal with the usual Amazon restrictions to sell in the marketplace.
• Visibility. You’ll have the chance to create a unique image and rep, which customers will remember. Tie it up with great products, and users will come back for more.
• Reduced Competition. Your brand will be unique. So, no other seller can compete against your products. Customers will recognize you, and sellers won’t undercut your listings.
• Enhanced Content. Private Label stores can feature A+ Content on their Amazon listings. This means you can customize your listings with multimedia content. Thus A+ Content is an opportunity to boost search ranks, and increase customer experience.

How to Set Up Private Label

Private Label is not an easy or fast way to make a profit. But if you want to set up a long-term Amazon store, then Private Label is the model to build upon.

Now, let’s go through the requisites you need to start a Private Label store on Amazon.

Create an Amazon Seller Account

There are two options: Individual and Professional accounts. The first option is free, but sellers are restricted to selling 40 products. They must pay Amazon a $0.99 fee per item sold.

Professional accounts are the second choice. There’s a $39.99 monthly fee. You’ll also pay some referral fees, but there’s no limit to your sellable products.  you can sell.

A good strategy is to start as an individual seller. Once you build up your private label store, upgrade to a professional account.

Product Selection

Go for products with high demand but low competition. And for great results, zero in the most profitable niche markets.

Niche products may have less visibility than well-known items. But they make up for it with a targeted customer base and fewer competition.

When you’ve settled on a niche, it’s time to find the best items to sell. Here are some guidelines to help you out:

• Study your choices. Track your preferred items for a few weeks. Check for seasonal spikes, or inflated prices. You want to go for products that sell throughout the year.
• Go Simple and Light. It’s best to start up with small items at first, especially for individual seller accounts. This will reduce shipping times and boost manufacturing.
• Check for IP concerns. Trademark infringement claims could get your Amazon account suspended. So, make sure you acquire the rights to produce and sell. You don’t want to
• Set the right value. Price your items between $15-50 for a healthy revenue. Lower prices will eat your revenue, but going high may scare customers away.

Partner Up with a Supplier

Finding the products is just the first half of the process. Sellers also need to find a supplier.

You can start your quest on sites like Alibaba. As the largest B2B platform, Alibaba features many products sold below retail value by the manufactures.

Narrow your options to suppliers that meet the following checkmarks:

• High-quality Items. Request some samples beforehand to review the specs and quality of the products.
• Experience . Go for a supplier that permits private labeling. Also, check that it has manufactured and imported your specific products for at least 3 years.
• Rapport. Evaluate response times and feedback quality. A great seller-supplier communication will be crucial to your Amazon success.
• Capabilities. Make sure the supplier can produce items in bulks, and ship to your preferred location.
• Fair price. Your final choices should share similar price ranges. Much higher or lower prices could be a red flag.

Work Out Your Private Label Brand

The way you introduce your brand to the world is everything. Take the time to work on your brand’s details. Write and publish a compelling value proposition, and tell customers about your story.

Create a unique logo and image. This entails choosing the colors and font that best define who you are, and what you can offer.

To take things further, consider creating an Amazon Store. This is a customized landing page to showcase your brand to consumers.

Stores let you set up a unique Amazon URL. You can also share your story and value proposition through personalized content. The goal is to engage emotionally with customers and to remain consistent. Ensure your brand is easily recognized in the packaging and on each Amazon listing.

Make sure customers remember who you are.

Select Your Fulfillment Strategy

As with your Amazon account, there are two options for Amazon Shipping. The first is Fulfillment by Amazon, or FBA. 

FBA allows brands to delegate logistics. You just pack and deliver inventory to the warehouse.

From then on, Amazon handles stock management, shipping and deliveries.

This is quite an opportunity for private label brands. FBA lets sellers focus on selling and generating revenue. Plus, FBA items are eligible for Prime delivery.

The drawback to FBA may be the storage and fulfillment fees.

Storage and Fulfillment Fees

Here’s a quick rundown for you:

But there is a second option. Fulfillment By Merchant (FBM) allows brands to control all logistics. The plus side is they don’t have to deal with FBA fees.

FBM sellers manage customer orders, packing, shipping, and delivery. But how can it be a better choice to some sellers? Let’s see:

• FBM is especially good when dealing with heavy and bulky items. You won’t have to deal with FBA oversize fees, which would save some profit.
• SFP sellers also enjoy direct brand and stock protection. No more risks of shipping the wrong items, or even dealing with FBA fees.
• Besides, you can add a personal touch to customer service. As the direct supplier, you’ll be able to deliver unique shopping experiences.
• FBM sellers may enroll in Seller-Fulfilled Prime (SFP). This means you can access Prime deliveries, and still control the fulfillment process.

However, FBM means a lot more work. For example, SFP eligibility requires a 99% distribution track record. Plus, your cancellation rate must fall below 1%.

Create Your Product Listings

It’s time to upload your products to the marketplace. Make sure you cover these components:

• Title. Go for simplicity and detail. First off, always mention your brand name. Then, add 100-150 characters, pointing out the item’s key features.
• Bullets and description. This is your chance to turn traffic into sales. Be as informative as you can. Make sure you fully explain why and how the product will benefit customers.
• High-quality visuals. Upload  at least 1280 pixel-images with concise copy. Let users see what the product does in full. Take advantage of A+ story to create a visual story for each item.
• SEO Optimization. Find the most relevanthead phrases and long-tail keywords. Place these in the title, bullets and description. This is crucial to boost your search ranks.

That’s it, you’re set up! But it’s always good to give your private label a boost when starting out. That’s what Amazon Sponsored Campaigns are for.

• Sponsored Products highlight individual listings.
• Sponsored Displays advertise your catalog on many channels.
• Sponsored Brand promotes your brand and your best three items.

Once you start making sales, reach out for customer ratings and reviews. After all, positive feedback is what will establish your private label store as a trustworthy business. 

Final Thoughts

Private Label is a solid model to build a solid eCommerce store. To recap, here’s how the business model works in a nutshell:

• Select high-demand/low-competition items.
• Buy from a product manufacturer.
• Revamp the item with your own design.
• Ship the rebranded products to Amazon.
• Upload and optimize your listings.
• Set up a marketing campaign.
• Start selling.

It’s not easy to build a private label store, especially at the start. It takes time, effort and attention.

Go for niche products you can refurbish at low cost per unit. Also, establish a trustful relationship with your chosen manufacturer from the start. And work out a solid marketing plan to draw organic traffic and customers.

If you do it right, you’ll have the potential to attract a loyal customer base. Not only that, but you’ll generate long-term profits.

Esteban Muñoz is an SEO copywriter at AMZ Advisers , with several years’ experience in digital marketing and e-commerce. Esteban and the AMZ Advisers team have been able to achieve incredible growth on the Amazon platform for their clients by optimizing and managing their accounts and creating in-depth content marketing strategies.

Looking To Launch, Grow Or Profit On Amazon?

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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 .  

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

Interested in receiving one-on-one mentorship for building an online business? Join my online business coaching program .

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