Amazon Private Label concept is widely used by professional Amazon sellers who want to offer high-ranking products under their own brand.
What does private labeling mean?
Selling private label products is very simple: you sell your inventory, using your packaging, while the products are being manufactured by someone else.
Thus, you’re selling a great product on Amazon with no need to handle such issues as brand name marketing costs.
So, let’s discuss all these in detail:
– Pros and cons of private labeling
– Business risks
– How to start your Private Label business
Pros and cons of private labeling
Amazon gives sellers the opportunity to develop a brand using their own website, which is an advantage as this is not possible while dropshipping.
However, there are some risks as private labeling requires an initial investment. But the good news is that the product mark-up will be pretty tempting.
Plus, don’t forget that with Private Label, sellers can choose a profitable niche that has almost no competitors.
This point is also quite risky for many inexperienced sellers, as they need a thorough analysis of the product that we talked about earlier in our blog.
How to launch a Private Label?
Let’s start by choosing a niche – low competition and high demand.
You should choose a niche that has very few competitors.
The ideal plan would be to have a list of products that you could handle in a simple and fast manner.
Well, in fact, you have two options: either turn your hobby into a business or choose products that are in demand but with fewer sellers on the market.
Analyze your competitors
– Start studying and analyzing competitors: their offers, prices, product line, listings, reviews.
But remember, that at the beginning there is no need to compete with huge brands.
Believe us, it will be very difficult to sell products similar to those of a popular company at the price of original products.
– Let’s start looking for manufacturers in China and order the production of the first samples. It is best to order at several places to compare the product quality and prices.
– After you find your manufacturer – order the first batch of goods.
– Simultaneously, form the appearance of goods, assortment, and a number of items, while considering such nuances as the seasonality of the goods.
For example, if you decide to sell mugs, then you need to make sure that by the New Year and Christmas you will have a New Year-themed delivery.
– After production is over, your goods are being sent to the Amazon warehouse to head to your happy customers.
How to find a non-competitive niche?
So, in order to find a non-competitive, in-demand product, you need to do a little analysis and find a product that will cost not less than 14 dollars and has:
– Up to 100 reviews from competitors
– Review rating up to 4
– Minimum 300 sales per month
– 7 photos in the listing
– 2 selling variations
– Open categories – Arts, Crafts & Sewing, Home & Kitchen, Industrial & Scientific, Kitchen & Dining, Musical Instruments, Office Products, Patio, Lawn & Garden, Pet Supplies, Sports & Outdoors, Tools & Home Improvement, Toys & Games
Amaz.Markets are ready to help you
Our team is ready to help you launch your Private Label business and help you with:
– Packing
– Printing services
– Product photography
– Product description
– Graphic design
– Web design an development
We want to share our experience with you.
0