5 Steps of Selling Private Label Products on Amazon

If you want to expand your online business and generate at least six-figure income monthly, you should consider selling on Amazon. Amazon is undoubtedly amongst the largest marketplaces to sell and buy quality products online. Thousands of sellers are selling quality products on this platform and generating handsome income for themselves.

If you want to build your eCommerce business fast, you should consider selling on Amazon. As the marketplace is expanding, it is offering more and more ways for the sellers to expand their business. You should consider selling private Label products on Amazon. Let’s find out what Private label is, its advantages, and how it can be beneficial for Amazon sellers.

What is a Private Label?

Private label is an important concept. What happens is, you buy products from a manufacturer but label and market that product using your own brand. One such example is Amazon Basics. Amazon does not manufacture these products. Instead, Amazon just sources it from other manufacturers and then sells them under the Amazon Basics brand.

The manufacturer usually makes different variations of the same product for your competitors. You as a seller don’t own the patent, rather, just the brand. Your private label is on the generic product.

Private label manufacturers will take the product into circulation and customize it according to the buyer’s requirements. Finally, the buyer designs a package for that product and sells it under their branding.

What are the Advantages of Private Label?

The following are some of the unique benefits of private labels.

  • You don’t have to create a new product. Your job is to design your custom packaging and make a few tweaks to stand out from others.
  • There is no need to convert your garage into a production line. You don’t have to hire an inventor to manufacture something new.
  • You have no restrictions from brand owners.
  • You don’t have to experience competition from sellers of the same brand
  • Private label allows you to generate massive profits through the products that you are selling

How to Start Selling Private Label on Amazon? 5 Easy Steps

Having understood the benefits of private labels, you might be searching for the methodologies to implement before starting a private label on Amazon. Search no more. Here is a complete guide on selling private labels on Amazon.

1.    Conduct Research to Find the Best Product

The first and foremost thing to do for selling private labels on Amazon is to look for the right product to sell. Try your level best to find a product that can really sell faster on Amazon. Conduct research to find categories that are most in-demand and offer low competition. You can start with a wider list and gradually narrow it down to make sure you cover your bases.

2.    Get In Touch with an Experienced Supplier

Once you have succeeded in finding the right product to sell on Amazon, the second thing you need to do is to partner with the best suppliers to source your product. These suppliers play a crucial role in the success of your product.

Although cost is a critical factor to consider while choosing the best supplier; however, it should not be the sole factor to consider. You should consider all the factors such as labor costs and material costs and consider currency appreciation if you are sourcing from overseas.

You can get in touch with Sourcing Nova as they are experienced in handling all such issues and have gained a significant reputation for providing quality services to their clients.

3.    Get Your Branding Ready

One of the key benefits of selling private label on Amazon is, you don’t have to face direct competition, which means you will automatically win the buy box on the ASIN. So, once you have selected the product and chosen the supplier, it’s now time to get your branding ready.

Apart from maintaining the quality of the product, you must set your brand with an attractive value proposition and engaging brand story. Paying significant importance to branding is essential as it plays a vital role in promoting your brand, building brand awareness, and engaging more and more customers.

While finalizing the branding, make sure you choose vibrant colors, attractive fonts, and classy design elements. Also, ensure to maintain consistency across additional products. Paying importance to these factors will make you stand out from your competitors.

4.    Order Samples for Quality Control

Once you have developed the product, you must ask your supplier to send samples. This step is necessary because it allows you to ensure that quality and other specs are maintained. In this way, you will get to know about the exact quality of the product reaching your buyers.

You can share these samples with various people, including prospective buyers, and record their feedback. Address this feedback before placing the order in bulk for your online store.

5.    Choose Your Fulfilment Strategy

Once everything is ready, it’s now the right time to decide which shipping or fulfillment option you will choose for your clients. There are two options, i.e., Fulfilled by Merchant (FBM) and Fulfillment by Amazon (FBA). You can research which product has succeeded through which fulfillment method and choose the same for your products.

You have to consider a lot of factors before finalizing the fulfillment method. Consider the following things before finalizing the fulfillment method you choose;

  • Does your product require special handling?
  • Is the product prone to damage?
  • Do you want the Amazon Prime Badge on your products?
  • Can you handle fulfillment yourself?
  • Do you have the capability to handle customer care and support?

The answers to all these questions will help you choose the fulfillment method for your products. So, do proper homework on selecting the fulfillment method for your product.

Final Words

Starting a private label on Amazon might be risky; however, it is associated with seemingly unlimited income potential. The private label requires proper research, demands time and effort, and cash flow. However, suppose you succeed in achieving all these and stay consistent throughout your journey. In that case, you will certainly succeed in building a successful e-commerce store and generate passive income from it.