Have you ever thought about starting your brand on Amazon? But confused about how to do it? It’s not difficult; 50% of sales come from third-party sellers. This means that tons of people on Amazon started their brand and made a huge profit.
So, if you are planning to start your brand on Amazon, you might have heard about Amazon private label that helps millions of sellers to sell products on Amazon using their private label.
So, if you are curious about how to start an Amazon private label business, you have come to the place. Below is our guide including some tips and tricks on selling private label products on Amazon.
What is Amazon Private label?
Amazon’s private label is all about finding a profitable product with high sales and low competition, labeling, and selling it with your brand. You can say that it represents an existing product with a new brand name and packaging
How does Private labeling work?
Private labeling allows sellers to outsource products from different brands and sell them after modification with their own brand name. Or you can manufacturer an existing product from your own specific supplier and designed it using your own private label.
What are private label products?
Private label products are those products that are manufactured by one company and branded by another company.
Or in other words, making some modification to a generic product and selling it under your brand or name is known as private label products.
Now, moving back to our topic,
How to Start an Amazon Private Label Business?
Private labeling allows sellers to outsource products from different brands and sell them after modifying their brand names. Or you can manufacture an existing product from your specific supplier and design it using your private label.
Source Product Ideas
Product Idea is the main foundation of your private label business. So, your idea should be unique and new to the customers. But if your product idea is the same that many sellers are already selling with different brands, try to make it unique by adding some unique physical feature or using different branding, advertising, or pricing strategies.
You can also find many cool product ideas while shopping in the mall, or you can check other marketplaces like Walmart, eBay, or Shopify and check their hot trending products. Or else you can check Amazon itself and see which Amazon niche is high in demand and low in competition.
Specific Product Attributes
If you are new and want to start your Amazon private label business, these are some specific product attributes that you should consider before starting:
Your product should be small enough that it is easy to ship from the manufacturer and can easily fit into a small flat box so you can make more profit from the markup.
Your product should not weigh more than 2 pounds, so you can save shipping costs even if you are fulfilling it by yourself or by Amazon FBA.
Your product should not be seasonal like Christmas decorations, valentine’s day gifts, etc.
Your product should not be complicated and difficult to sell and require legal paperwork or certification.
After you source the product idea for your private label business, it’s time to do market research to check whether your idea is worth selling or not.
Now to do market research, there are many tools available like Jungle scout, helium 10, etc. That helps you to do competitive market research. Now which gives more accurate data, helium 10 or jungle scout? Well, I have written a separate blog that checks that.
Moving back to our topic, Amazon has also launched its tool, “Product opportunity explorer,” that helps you explore customer demands and allows you to see actual data coming from Amazon.
Finding Product Suppliers and Manufacturers
Now that you have your product idea and your market research, it’s time to find a supplier or manufacturer for your product idea.
Many sourcing websites like Alibaba, DHGate, Made in China, OF week, AliExpress, 1688.com, DIY trade, etc. that allow you to purchase wholesale products in bulk directly from China.
But the most popular of all of them is Alibaba which is easy to use and has verified trade insurance suppliers. Select 3 to 5 suppliers and ask them to send you a sample. After you get the samples, check the quality of each sample carefully because quality is the key to success.
Finalize your Packaging
After deciding your manufacturer, it’s time to work on your design, logo, and packaging.
Try to offer the best packaging because it’s the first thing a customer notices, so try to make sit simple, unique, and thoughtful. You can also add your website URL on the packaging to be more informational.
Define your fulfillment strategy
After finalizing the packaging, the next thing you need to do is to define your fulfillment strategy, like how you will deliver your private label products to your customers.
This is the most important factor on which your whole business success is dependent. Now, there are tons of ways to fulfill your orders, but the most convenient option is Fulfillment by Amazon (FBM). All you have to do is send your inventory to Amazon. They will pick, pack and ship for you. But if you have your garage or warehouse, you can fulfill your order yourself.
Listing Creation & Optimization
Another important step is listing creation and optimization. I recommend hiring a professional photographer to upload high-quality photos on the listing.
Optimize your listing content title and description using ranking keywords and always highlight strong features in bullet points.
Always highlight the customer need in the content because the more they find it useful, the more they can buy the product.
The last step is advertising your private label product. Ensuring that your product listing appears on the first search result and earning sales advertising is necessary.
With Amazon PPC, you can better target your audience by placing ads inside/outside of Amazon. Even you can place your product ad on your competitor’s product pages.
So, if you are looking for a fun and easy way to sell products online with your brand name, then Amazon FBA private label is the best option for you.
If you need any help with Amazon private label, you can consult with us, and we provide complete consulting services for Amazon sellers from product sourcing to manufacturing to launching. You can contact us at email@example.com or call us at +1(323) 746-2485 to book your appointment now