Amazon Private Label : Ultimate Guide 2020
When it comes to earning online, the only thing you need is a computer with a running internet connection. You can work from wherever you want, either sitting in a coffee shop or kitchen table.
Amazon Private Label is one of those businesses that can earn you a decent income with even basic knowledge of it. So that is why we are going through a detailed review of Amazon Private Label services.
This article explains whatever you must know to get started. We can ensure one thing that, you will not only have enough knowledge about Amazon Private Label, but also you will be able to start your own Amazon Private Label Service.
So, let’s start discussing the key aspects of this in detail.
What is Amazon’s Private Label ?
Well, there a lot of information on the internet about this particular thing, but finding the right information is a daunting task.
That is why decoded the info for you guys in the most natural way so you can follow each of the steps easily. To begin, you need to get an idea about Amazon Private Label
If disclosed, private labeling in most straightforward manners, then it is a way to sell an existing product as of your private brand (called a label) on Amazon. We know there are lots of questions rising in your mind, so let’s make it clear for you guys.
Private labeling is studying a product or market that genuinely then finds its worth. If you find a product a good and easy sell, then you can contact the actual manufacturers/suppliers. So they can manufacture a particular product of your choice under the label of your brand.
Once you are done with the order, the manufacturer or suppliers ship the product, and you are all set to sell that particular product on Amazon.
Other than physical products, you can also sell intangible services under a private label such as freelance work, web domains, eBooks, insurance products, and many more.
Now here comes an important part that is making diligent research and a polishing strategy that can sell your product in no time as compared to competitors. You can do all of the work, as mentioned earlier.
Do I Need To Private Label To Sell On Amazon?
You can sell products on Amazon without even utilizing private label services. Other than Amazon Private Label strategy
So, you don’t need a private label to sell on Amazon, but it is always an excellent approach to tick all the boxes to get the best out of your efforts.
How To Find And Sell Amazon Private Label Products?
You may have a passion for selling products on Amazon, and vast experience in retail, but Private Label can pose a challenge.
You may have an excellent idea for an innovative product, and there is a big market for that particular product. But still, you need to make sure your Amazon Private Labelling
There isn’t a better thing than starting your own Amazon Private Label
The biggest advantage is that this program lets you start from scratch but still has a lot of tools in place that make it a pretty job to do and help you a lot in succeeding. We cover some necessary but essential steps that can help you in the best way possible to achieve.
1. Brainstorm Product Ideas
When it comes to ideas, it can come from anywhere, by spending a lot of time in the market. First, you need to evaluate where and what product you want to sell.
Like usually as a person, I stroll a lot into the markets and malls where I keep look at trending and hot products not only on existing but also on upcoming products. You may realize for once that most of the stores usually not stock the newer products.
Once you got an idea or product to private label, then the next big thing is to look for purposes about that particular product on Amazon well. This is the shop or online store where you would sell your Amazon Private Label product ideas or products.
Dig through the different aspects of the products, including their department and subcategories as well and try to find newer products related to your choose product as well.
The best approach is to check what other sellers are offering under Amazon Private Label policy or what kind of best Amazon Private Label products they are selling. You can check their Amazon storefronts and product listings.
Then, you can also stroll on the web after visiting stores physically, as the internet is the hub of fresh product ideas.
For instance, social media is the king in this aspect where you can grab wild new product ideas to start. Also, don’t forget to check out relevant stuff on digital media because these platforms are none less than a heaven for inventors, and definitely must have places to pitch new product ideas to start with.
2. Consider Specific Product Attributes
Whether you want to start with one particular product or launch a complete line, you will need to follow some key product attributes that can help you to stand your business from the crowd in no time. If you take our consideration, then a product must have following qualities like
· Small and Lightweight
Better the product size, better its selling chances. If you wish to make the best out of any product, then it must be able to fit into a small, flat rate box.
Product size with dimensions of 8 11/16″ x 5 7/16″ x 1 3/4″ is preferable. Small and lightweight boxes not only save your customers from extra shipping costs but also exclude manufacturing costs.
To build a strong brand, you would have to invest time and resources in multiple non-seasonal products. It can be challenging in the beginning, but it will be easier for you with time.
So always think about the different options carefully and don’t rely on seasonal products for private labeling.
To sell a product more, you need to make the process easier for the end-users. Many products come with certain things like toys with red tapes that make the selling private label on amazon quite tricky.
So, it would be better to opt for the stuff that is not only easy to make but also easy to sell. Less documentation and legal paperwork also make your product a hot and easy sell.
Although electronics are fun to sell, electronics products come with a lot of headaches and customer service issues that are non-less than a nightmare to tackle.
And this same goes for clothing products where you need to track each nit bits of product from size to colors even for a single SKU. So, always choose less complicated products that require minimum customer support efforts.
3. Conduct Market Search
Once you have decided to private label the products of your choice to sell as Amazon Private Labelling, then you need to conduct research.
Your research should be around the worth of the product. It is necessary to determine whether your selected product is worth of private labeling or not. Our experience of selling our private label products on Amazon FBA also based on these strategies.
So we recommend you to put all the products on listing with spreadsheets. This would prove significant to keep track of your researched products.
But in this technological era, many applications are out there in the market that can help you best in this regard. These applications and tools can do product research for you, instantly saving your time and resources.
Jungle Scout’s s one of that extension or applications that you can add in your web browsers to accommodate all features, as mentioned earlier on the go.
Lastly, but most importantly, you should always keep an eye on the competition. We love to go for the private label products that have less competition. For you, it would be best to private label those products that have reviews less than 100.
4. Research Product Suppliers and Manufacturers
Once you are finished with market research, then the next big thing is to select a supplier or a manufacturer. In our consideration, this is the most challenging job to do in an entire Amazon Private Labeling or Amazon FBA process. And you need an excellent Amazon Private Label policy to follow up on this step.
Whether you need to start with one product or with an entire lineup, you will need to get in contact with different private label manufacturers or suppliers of your specific product to find one that is best for your business on an initial stage.
Make sure to consider if they supply packaging ad labels or if you need to find a separate supplier for these.
Alibaba is one of the best to start in this regard to follow, and we are pretty sure you are familiar with Alibaba. If not, then you can say that Alibaba is the Amazon of China. Still, unlike Amazon, it allows you to order any product in wholesale price or bulk quantity directly from manufacturers.
As a beginner, you may find Alibaba a little hard to follow, but it is way safe and easy to use. Also, Alibaba keeps track of all their suppliers. You can find potential suppliers on Alibaba for your private label product by performing the following steps.
- First, sign up and create a buyer account on Alibaba
- Perform a search of your desired product
- Find the product listing that you want to private label
- Ask the manufacturer or supplier to send more information by sending them a message
- Ask about price per unit of the product
- Ask for a sample to ship on your location
- Ask about the payment terms or methods they accept
- How much customization they allowed or can do in your desired product later on
Typically, we prefer to reach out to 5 or 6 suppliers for a particular product and order the same thing from all of the suppliers. Then we make our mind that what product we need to carry and which supplier is more reliable and promising.
5. Design Your Private Label Brand Logo and Packaging
Developing a strong brand demands time as well as resources. It is essential to consider how the buyers perceive your products.
To this point, you would have figured out whether you want to offer a low-cost product or a premium cost product. Your product, including the logo and packaging, needs to reflect this choice.
6. Choose the right manufacturer
You may be thinking that all of your ducks are in a row, might not be as of now. So what is next? As of this step, you have an idea about a product that you are going to private label or sell on Amazon FBA after proper market research.
We also have evaluated logo, design, and packaging importance in detail. So the next right thing is to do to decide on a manufacturer.
You might remember, in an earlier step, we recommended you to reach out to 5 to 6 potential suppliers or manufacturers. And ask for your private label product alongside a sample of each.
Now it comes to making the final decision about a manufacturer. It isn’t an easy job to do as you might be thinking. Part of the decision-making process is one of the essential steps in this entire process. And you need to get it done right.
You can take some key points to make your final decision about a manufacturer by seeing the sample product. You can consider things like how quickly a manufacturer ships a sample to you—also, the condition of the sample when it arrives.
Alongside the communication between you and the manufacturer when placing the order and tracking the status of the sample.
For us, the entire process, as mentioned above, is even more important than the actual cost of the product. It helps in understanding the nature of manufacture and merchandise as well and tells you how promising the product and manufacturer are.
Here we also want to help you with a major and a common mistake that people do when going for private labeling. Don’t always go for the manufacturer that has a lower cost. Your communication with the supplier and the quality of your product is the key factor that you must put forward.
This might seem a bit horrendous to you because every one of us wants our costs to stay low. But not every time going for the cheapest products is a good idea. You can’t find the best product at the lowest price always.
Instead, we recommend you to keep the price of your quote low because it allows you to negotiate prices with the supplier in a better way. Lower the quote means lower the actual product cost, and it purely depends on your communication, negotiation, and fulfillment skills.
Once you have made your mind about a manufacturer or a supplier, then you will need to arrange payment via a secured method.
Always go for trusted and refundable payment methods that ensure a safe and secure process of payments between you and the supplier.
7. Create an Attractive and Optimized Amazon Product Listing
Well, most of the manufacturer takes 2 to 3 weeks to create a product in best-case scenarios and 4 to 5 weeks in worst-case scenarios.
And it takes another 1 or 2 weeks to ship a manufactured product to the seller or at the nearest Amazon fulfillment center. So what should you do in that 4 to 7 weeks of spare time?
This time is great to create Amazon listings of your products. Creating an Amazon listing of your product is as essential as of all other steps. So you need to follow the proper guidelines that we are going to give you.
· Create Listing:
First, make sure that you have everything ready to publish while creating an Amazon listing. So, you don’t rush anything all of sudden at the time of burdens.
The 2nd most important thing is visualizing your products. To do this, you need some great photos of your products. We recommend you go for professional photographers to this job for you.
Now the title, the title is one of the essential elements to consider in any of your Amazon Private Label policies of the product listing.
It is the only thing that helps Amazon to keep track of your product. And this also makes able Amazon decide where it needs to keep a product in its database.
A good description of your product guarantees that your product will sell better and vice versa. Easy to follow and a more readable and fluent description of any product allows a customer to make a purchasing decision.
The more your private label product descriptions meet the needs and want of a buyer, the more they have a chance to sell.
Bullets and set description fields alongside product benefits help a lot to the user to make a final decision about your product.
· Keyword Guidelines
Keywords are a crucial factor to rank your private label product in Amazon search. So always make sure to keep keywords relevant that you use in your product’s title.
For instance, if you are selling a “gaming laptop” and want to rank your product for gaming laptop keyword, then make sure to include “gaming laptop” at the front of the title in each of your gaming laptop products.
Then find secondary keywords related to your primary keyword as well and rank your product against secondary keywords as well to generate more business leads.
8. Utilize Amazon FBA for Your Advantage
Knowing all that earlier stuff is only half the battle. You also need to find a way to deliver your products to your customers.
There are quite a few options to explore. Many people do all of this hustle as of their own, and some even rely on the fulfillment centers to ship their products. We mostly prefer you guys to always go for Amazon FBA fulfillment service.
Amazon is the one that does all the hustle for and handles your product till delivering it to the right customer.
To utilize Amazon FBA for your private label products advantage, all you have to provide your inventory to Amazon. From there, Amazon FBA will do all the hustle to store, pick, and pack and ship your products for you.
If you are worried about customer service, then take a natural breath, Amazon FBA also handles customer services for you.
9. Launch and Generate Sales
This is your awaited moment. Your product is all set, and you can now advertise it. If you don’t know, rely on the right marketing agency to promote your product.
Always remember, no matter how excellent or economical your product is, it is a brand-new product, and everyone should know about it. If you have strategized your marketing pitch well enough, your first sale should be around the corner.
How to Price Amazon FBA Private Label Products?
This is the question; we often come across that how to effectively price Amazon FBA Private Label products on Amazon.
Well, most of the new sellers think that setting a low price can help him to sell their products quickly, but this is a big mistake.
Always set your private label product price by seeing your competitors. If your private label product is unique enough and having a great logo and packaging, then it already has a higher ratio of selling in itself.
So, always consider taking a reasonable profit on your products. You are running a brand new, not selling one or two products.
How Much Does It Cost to Start an Amazon Private Label Business?
Curious to know how much money do you need to start an Amazon Private Label business?
This is great because you don’t need a ton of money, and you can start your Amazon FBA private label business just under $1000. Yes, you heard it right; starting an Amazon Private Label business from only $1000 is possible.
This may be the most significant plus point of the Amazon that you don’t have to spend a lot of money on it. You can go for as many Amazon Private Label Business Opportunities as you want that fall under the budget segment.
How Much Can You Earn With an Amazon FBA Private Label Business?
There isn’t any exact answer to this question. You can earn $500 or 5 million dollars in an Amazon FBA private label business.
Or there are chances you can make a loss or nothing in break even. The most significant factor involved in Amazon FBA private label earing is an investment. More significant the investment, the more excellent will be the chances of more profitable turnovers.
Amazon Private Label Policy and Risks of Suspension
When it comes to the risks, Amazon Private Label sellers can face several types of hazards. We have manipulated some key areas where your private label products must be able to survive. Failing in these key areas could lead to suspension of your Amazon FBA account.
· Retail-Ready Packaging
This is foremost one of the most significant factors to consider. Complaints from a customer about your product authenticity and originality can result in suspension just because of non-retail packaging.
· Ecommerce Ready Packaging
Your Amazon FBA private label packaging must be robust enough to bear all the ups and downs of trips while shipping. As it is necessary to keep your product in a pristine condition so it can satisfy a customer in the best way possible.
· Unsafe Or Improperly Labeled Items
If you take on your Amazon Private Label is dangerous, or somehow you sell a wrongly labeled product, then it can result in an Amazon warning or a product takedown.
· Insufficient Quality Planning
Selling on Amazon means selling your brand internationally; it must be good in quality standards. Your product should be tested to ensure quality standards.
If somehow, you fail to meet the quality standards, there are high chances that you will see an impactful fall in your desired ratings lately in your entire brand.
How to find profitable private label products on Amazon?
Many people have already discovered tremendous opportunities and earned a handsome amount in return by utilizing private label selling on Amazon FBA market place.
If you are also looking forward to starting Amazon Private Label business and getting a hard time to find profitable private products. Then you are in the right place. We have enlisted here some tips on how to find profitable private label Amazon products.
1) Use Amazon as Your Starting Point
Always look for what people do want on the Amazon to purchase. To find this, you need to look at the following sections first
· Amazon Hot New Releases
Amazon’s hot new release is great to explore all the categories of the products that just have been published on Amazon. It is great to get an idea of what is in demand.
· Amazon Best Sellers
Amazon lists the top 100 products in each product category. It is great to find the consistency and sales velocity of certain groups of the products.
· Amazon Movers and Shakers
Amazon movers and shakers track the real-time performance of a product. It shows trending products as well as bestselling products. It shows a product by green arrows to show the percentage increase in any product.
· Amazon Most Wished For
Amazon’s wish items algorithm is brilliant, and it can benefit you a lot like an Amazon Private Label seller. It keeps track of the products that people want.
So, by seeing that product, you can get an idea of what product you can go to start your Amazon FBA private label business.
2) Use Amazon Tools to conduct your final Analysis
If you find the procedure as mentioned earlier hand, then you can use multiple tools to cut down efforts drastically. So now, let’s have a look into the tools that can make you a real winner on Amazon FBA private label business.
This tool is best to determine the selling price and the average number of reviews of a product. If you go for its Pro version, then you can also check the average feedback score alongside estimated net profit on a product after paying all the taxes and FBA fees.
This tool helps to find the best sellers rank over time for a particular product from any manufacturer you want.
· Google Trends
Google trends are significant to find the season or market demand of a product in a current period.
· Helium 10
This tool allows you to check the popularity of the keywords that you can associate with your product. This also informs you about the monthly traffic volume of a specific product on Amazon.
Best 10 Amazon Private Label Products for Amazon FBA 2020
The idea behind this section to give you guys an idea of what product you can go to start Amazon Private Label business.
All the products that we are going to mention based on their impressive packaging, great user reviews, and efficient build quality.
Given here is a list of a few very common private labels and Amazon FBA products for 2020. And starting with these products, ideas can help you to earn a lot from your Amazon Private Label business in no time.
- LED Lanterns
- Water bottles
- Knife sharpeners
- Camera bags
- Alarm clocks
- Photo frames
- Waterproof speakers
- Portable or Bluetooth speakers
- Bike lights
Top 5 Amazon Private Label brand
So far, in this article, you already know about what private labeling is, and you have an idea of how private labeling business works on Amazon.
If not, go through this article again. Here we are going to mention now the top 5 Amazon Private Label brands. After looking into these brands, you can get an idea to start your brand with the proper strategical approach.
This would also allow your private label companies to design your Amazon Private Label policy. So, let’s have a look into the top 5 Amazon Private Label brands to get an idea about their approach to Amazon Private labeling.
· Pinzon – Bedding And Towels
Pinzon is the word of luxury in the world luxury towels and bedding. This brand is known for manufacturing luxury towels, bedding sheets, blankets, pillows, and more.
· Solimo – Household Goods
Solimo is one of the best private label brands on Amazon. The thing which makes Solimo different from the rest in household manufacturing is its economical prices and best quality.
· Simple Joys By Carter’s – Children’s Clothing
Well, Simple Joys by Carter is an Amazon Prime exclusive brand that offers onesies, pajamas, bibs blankets, and other baby and children’s clothing.
· Goodthreads – Men’s Clothing
Goodthreads is started and owned by Sarah Jacobs. You may find some of the clothing of this Amazon Branded or with Amazon Essential. But the real fame it got under its private labels, and it offers a ton of men’s clothing and accessories.
· Lark & Ro – Women’s Clothing
Lark and RO is the brand choice for many women for its women’s clothing range. This brand offers elegant style and effortless fits in an attractive price point that makes this brand a good sell.
Best 5 Amazon Private Label course Recommended
Finally, you have made your mind to start your own Amazon FBA private label business by going through this article.
But still, there are many hidden aspects and terminologies that can lead your private labeling business into a failure.
That is why we are going to recommend you the best 5 Amazon Private Label courses that can help you to succeed in this business. Now let’s have a look into our recommended courses without wasting any further time.
· Amazon FBA Ninja By Kevin David
This is one of the best courses easily on Amazon GBA private labeling business. The best thing about this course is that it taught by a real amazon seller. It includes some expert level of FB ads and product launch methods to learn.
· Amazing Selling Machine (Asmx)
This course is nothing less than a blessing for the people who are in private labeling business as fresher. This course has a lot to teach you.
Even many successfully used this course to start their Amazon FBA Private Label business. You can also find a private seller forum dedicated to sellers on their website as well.
Private Label Masters By Tim Sanders
The best chunk about this course is that an actual private label seller creates it on Amazon. The author of this course has almost 60-some private label products on Amazon FBA.
The content is entirely holistic of this course and great for brainstorming minds with its updated content.
· Amazon Private Label Course By Brandon Young
This course is all about launching successful and highly profitable products. This course allows you to create multiple 7-figure private label Amazon FBA businesses.
· Adam Fisher Mastering Amazon Fba
In this course, you will find many ways to earn double the amount of your investment in the private label products for small business.
This course gives you enough tips and tricks by implementing them to your Amazon FBA Private Business Strategy and private label products; you can double your income in no time.
How Panda Help You Launch Amazon FBA Private Label Products?
Most of the manufacturers of any products reside in China. China is one of the biggest markets of private label products and their manufacturers and suppliers in the world. And that is the reason for the existence of Panda.
Either you are looking for product sourcing or a manufacturer or supplier of a particular product, Panda can help you in the best possible way.
The sourcing agent of Panda is free from service and helps you a lot in many processes. They also help you to get your tailored jobs done, such as OEM ODM, packaging and design, logo printing, product development negotiation, factory audit, and many more.
If you are entirely focused on selling your products under your brand at wholesale or in a retail store, there is a considerable chance that you are losing potential buyers.
The Amazon Private Label trend is a new way of business. That is why we covered all the relevant aspects of the Amazon Private Label Process.
So, you can easily make Amazon Private Label strategy for private label products to sell on Amazon without any hassle.