Amazon offers endless opportunities to sell unique creations, popular branded items, and private label on Amazon products. New to private labeling? You might wonder what they are, how to sell them on Amazon, and which products work best. FBA Brigade has all the answers you need.
Defining Private Label Products
A private label on Amazon product is manufactured by another company but sold under your brand name. You can choose to modify an existing product or create a new one from scratch.
While developing a new product can be exciting, it carries significant risk due to uncertain market demand. Many successful sellers prefer to enhance popular products. By addressing common issues or complaints, you can create a version that resolves these problems.
For example, if customers often criticize a product’s specific feature, you can design a version that fixes this issue. This approach helps position your brand as a solution to common problems, strengthening the association between your brand and quality improvements.
This is the advantage of Amazon private label. By making strategic improvements and branding effectively, you can quickly grow your online business and gain a competitive edge.
Strategies for Generating Private Label Product Ideas on Amazon
As previously mentioned, the most effective strategy for private-label products is to identify items that are already top sellers on Amazon and enhance them. To develop a successful private label on Amazon product, start by researching popular items on Amazon to find those with potential for improvement.
Here’s what to look for in a product:
📌High Demand: Choose an item with a proven track record of strong sales. This indicates a solid demand for the product.
📌Low Competition: Creating your own product can reduce competition, but it’s still important to base it on an item with limited availability from other sellers. This approach will make it easier for you to enter the market successfully.
📌Good Profit Margins: The volume of items sold is irrelevant if you’re not making a profit on each sale. Aim to choose a product that you can price at least three times your cost to ensure profitability.
📌Potential for Improvement: There’s little value in creating your own version of a product that is already perfect. For instance, books are generally not amenable to improvement. Instead, focus on popular items that have room for enhancement. Look for products that can be refined or modified to offer added value.
Avoid complex items such as beauty products, beard oil, supplements, and electronics. These categories can pose health risks or safety concerns, and managing potential issues may require extensive insurance coverage. Unless you have substantial insurance, it’s advisable to steer clear of these products.
To identify promising products on Amazon, utilize specialized tools designed to help you efficiently assess and narrow down options with the highest potential.
How about: “Advantages of Selling Private Label Products”?
You may be wondering whether it’s worth it going through the trouble of creating your own products and brand. However, if you do it right you’ll enjoy a number of great benefits that will help you improve your income.
📌Customize Your Products: When you sell other people’s items, you have no control over their appearance or features. However, this changes when you have your own products. You can customize them to your liking and add new features that will set you apart from other brands. This level of control allows you to create unique offerings that resonate with your customers and distinguish your brand in the market.
📌You Get to Build Your Own Brand: Creating your own brand isn’t just cool; it’s incredibly beneficial for your business. A strong brand with great products leads to increased customer loyalty. When customers start to associate your brand with products they love, they’re more likely to purchase new offerings from your inventory. Building a recognizable and trustworthy brand can significantly enhance your business’s success and growth.
📌Less Competition: If you’ve sold products on Amazon, you’re familiar with the challenge of competing for the Buy Box. However, with your own private label on Amazon product, you’re the sole seller, eliminating that competition. Moreover, by offering a unique product that isn’t available elsewhere, you ensure that customers must come to you to make a purchase.
📌Higher Revenue Potential: The cumulative effect of these benefits is an increase in profitability. By developing unique products that distinguish your brand and reducing competition, you can drive higher sales. Additionally, there is potential to expand your product range under your brand, further accelerating business growth.
So, while selling private label products may require a larger time and monetary investment in the beginning, the long-term benefits are more than worth it.
Sourcing Your Products
Developing your own Amazon FBA private-label items can often feel like hitting a roadblock. Many people have great ideas for new products but struggle when it comes to getting them manufactured.
However, the process of sourcing your products and getting them made is actually quite straightforward. By following the plan below, you’ll have your own private label on Amazon product ready to list on Amazon in no time.
📌Search for Your Product on Alibaba: After determining what you want to sell, visit Alibaba.com and search for your desired product. Alibaba offers access to thousands of suppliers capable of providing private label items, making it the most convenient platform to find a manufacturer.
📌Contact Suppliers: Once you identify suppliers on Alibaba that produce the type of products you wish to sell, reach out to them. Clearly communicate your requirements, including any modifications you envision for their existing products, and inquire about the feasibility of your concept.
📌Get Samples: When you identify a manufacturer capable of bringing your product idea to life, request a sample and have it shipped to you. While there is a cost associated with this, it is a worthwhile investment to inspect the quality and ensure it meets your standards. If any adjustments are needed, communicate these changes to the manufacturer before commencing mass production.
📌Agree on a Price: Similar to wholesaling, purchasing from a manufacturer requires buying in bulk. This approach, however, results in a lower price per unit. Most suppliers are open to negotiation, so if the initial quote does not meet your expectations, you can make a counteroffer to reach a price that aligns with your budget.
📌Shipping: Once your products are ready, the next step is to arrange for their shipment. You have the option of shipping by sea or by air. Ocean freight is more cost-effective but has a longer transit time, while air freight is quicker but comes at a higher cost, unless your products are small and lightweight.
As you can see, when you break it down finding a manufacturer and getting your products made really isn’t that difficult. Just make sure to take your time, try out a few different suppliers and samples, and negotiate a good price for yourself.
Fulfilling Your Orders
The final step is to decide how you will fulfill your orders. A reliable system is essential to ensure timely shipping to customers.
While some sellers manage storage and shipping themselves, this method is often impractical due to space and time constraints. Instead, we recommend the Fulfillment by Amazon (FBA) program. By shipping your inventory to Amazon, they handle storage, packing, and shipping for you.
Though FBA involves an additional cost, the convenience is worth it, allowing you to run a more hands-off business. You can sign up for FBA and get your FNSKU (FBA identifying number) in your Amazon Seller Central account.
How to Sell Private Label Products on Amazon
The process of selling on Amazon is the same for the most part. However, when you’re selling a private label on Amazon product there are a few extra steps you have to take.
Once your set up your Amazon account here’s what you need to do to list your item on the platform and start selling:
📌Create Your Amazon Listing: Creating your Amazon listing is a crucial step in selling private label products. Start by crafting a compelling title that includes relevant keywords. Write a detailed product description highlighting the unique features and benefits. Use high-quality images that showcase your product from different angles. Set competitive pricing and ensure accurate inventory levels. A well-optimized listing enhances visibility and attracts potential customers, setting the foundation for successful sales.
📌Amazon Brand Registry Program: While it’s not mandatory, enrolling in Amazon’s Brand Registry Program is highly recommended. This program provides access to a variety of marketing tools designed to help you promote your brand effectively. Additionally, it offers protection against trademark infringement, ensuring your brand’s integrity and reputation remain intact.
📌Marketing: Once your listing is live, leveraging advertising can significantly boost its visibility. Amazon PPC ads are an excellent strategy to increase awareness of new products and drive sales as you establish your brand. Additionally, Amazon Live offers a powerful platform to promote your products through trusted influencers. Utilizing Rebaid, an Amazon Launch platform, can help you connect with and book influencers for Amazon Live placements, further enhancing your product’s exposure and credibility.
Tips and Tricks
The above information will provide you with the basic steps you need to take in order to start selling private label products on Amazon. To help you out even more, here are a few more additional tips and tricks to get you started on your journey.
📌Getting a UPC Code: To sell your product on Amazon, it must have a UPC code. Obtaining barcodes is straightforward; you can purchase them directly from GS1, the global standard for barcodes. Be cautious of barcode resellers, as purchasing UPC codes from them is not legitimate and may lead to complications. Ensure you acquire your barcodes through official channels to avoid any issues with your product listings.
📌Manufacturer Part Number: Additionally, obtaining a manufacturer part number (MPN) from your supplier is advisable. While not mandatory, an MPN can enhance the visibility of your listing in Amazon searches. Including this number helps potential customers find your product more easily, potentially increasing your sales and improving your overall listing performance.
📌Designing a Logo and Packaging: When selling your own private label on Amazon product, developing unique branding and packaging is essential. If you lack the expertise to do this yourself, consider hiring a professional designer from platforms like Upwork, Fiverr, or 99Designs. These sites offer access to talented designers who can create professional, high-quality branding at a reasonable price, ensuring your product stands out in the competitive Amazon marketplace.
📌Ungating Services: Certain items, like clothing and fashion, are restricted and require Amazon’s approval before you can sell them. If you want to sell these products, consider using ungating services. These services help you obtain the necessary approvals to access and sell in these restricted categories.
📌Patents: If your product is unique, consider filing a patent. A patent protects your design from being copied, giving you exclusive rights to market and sell your product. This legal safeguard provides a competitive advantage and reinforces your brand’s uniqueness.
Conclusion
If you’ve always dreamed of having your own unique brand and products, now is the time to make it happen. Selling private label items on Amazon is an excellent business strategy, and anyone can do it. Once you establish your brand, you can create multiple products to sell with it, growing your business even further.
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