Thursday, November 24, 2022

What Is Amazon Private Label Selling

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Choosing The Right Manufacturer

How To Find Private Label Products To Sell On Amazon

Avoid the mistake of choosing the cheapest manufacturer, even if you have a great communication with them. The cheapest product is not the best in all cases. A better way to go is using the lower price quotes to help negotiate prices down with the manufacturers.

Usually, manufacturers willing to negotiate have better communication and fulfillment skills. It is better to choose a supplier with excellent services in all areas. Remember any time youre negotiating you are free to walk away from a deal.

Once youre set on a supplier, arrange payment via your preferred method. Most suppliers will accept PayPal or Alibabas Trade Assurance for safe and secure payment processing.

At this point you should mention to your supplier about working with private label products. It could be as simple as having labels produced for you by a print shop and them add them to your product packaging and continue to be a private label. Talk to your manufacturer to figure out the best options.

Get Your Logo Design And Packaging

To save time and streamline the process, you can often work on step three alongside step two.

Once youve found a supplier whos willing to let you private label the product, you have to choose your marketing materials. Dont worry, though you dont have to create them yourself!

Use a website like Fiverr or Upwork to hire professional designers at competitive prices.

On Fiverr, you simply search for designers and then send them your job proposal. On Upwork , youll actually create a project proposal and have designers bid for your project. Ive used both sites, but prefer Upwork for packaging and logo design.

Assuming youve had time to develop a brand name during this process, youll want your designer to create a logo that represents your brand and vibrant packaging that sets it apart from your competitors the ones listed in your spreadsheet from step one.

Once you have your design files, send them over to your supplier and tell them to proceed with your order.

How Do You Determine The Price Of Private Labels

Price your things at least two and a half times their cost. When purchasing directly from manufacturers, the standard markup is two times the cost. Currently, the majority of merchants mark up private label items by at least three times their cost. You are still delivering a premium option at such a lower price tag with this markup.

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Leverage Your Sales Using Fba

An online shopping experience consists of two parts. The first is the product itself and the second part is the shipping. Both contribute to the overall experience.

This is where FBA prove as a valuable option for private label sellers. Enrolling for FBA allows you to take advantage of the brilliant supply chain set up by Amazon.

No need to pack or ship the order. The FBA fee that you pay for the service includes the shipping costs. Another benefit with FBA is the automatic eligibility to prime shipping. Once you are shipping through prime, expect an increase in sales for your private label.

Many times, online merchants sell their private label across multiple channels. Apart from Amazon, they may have a Shopify store as well and fulfillment done with the help of Amazon MCF. This is where you need an automation tool to get a real-time view of stock levels and automate non-Amazon orders into FBA. Orderhive fits right into this. Orderhive brings this together into a single interface.

Orderhive Amazon FBA and MCF. Sign up for free to see how it works.

In retrospect, if your product does not fit one of the five product factors we mentioned above, you may think of shipping the product yourself. This may happen if the size of the product is large and incurs more FBA charges on shipping and storage.

How To Source Private Label Products On Amazon

Amazon FBA Private Label Strategies for 2017

Theres no shortage of product research tools. AmzChart is a good example. Its a versatile piece of tech that analyses sales rankThe sales rank of products on Amazon indMore and reveals profitable niches and suitable keywords. It also tracks the performance of competing products and alerts you when youve been hijacked.

But first things first. You should read up on restricted products, gated categories, and categories with special requirements. We touch on all three of these issues in our Expert Interview, where we share printable visuals like the one below.

Fig. 2. Gating on Amazon US in 2021

Bear in mind that these restrictions change over time and theyre not the same across all marketplaces. Some can be lifted with very little effort, while others are a total no-go for Private Label sellers who dont use a professional .

When it comes to procuring a PL item, we brought up the topic of manufacturing budgets for Private Label products in last years How To series. Just to recap, most sellers spend 1/5 of the selling price on landed cost .

Other costs you might want to factor into your budget are:

  • Branding and trademarking .

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Why Private Label Brand Registry

Amazon is a marketplace where you will find millions of sellers. So, no doubt there is a huge competition. Your product niche may have thousands of sellers. Like us, they keep a close eye on our business. So, there are chances that they can apply for your private label name trade mark and get it.

SO, acquiring the brand name trade mark will protect your business and do not let you compromise against competition.

What Is Private Label Since Everyone May Not Be Familiar With That Term

True, most people are familiar with the term Retail Arbitrage which is buying products locally from major retailers and then flipping them on Amazon. But with Private Label, you are actually buying products direct from the manufacturer and then placing your own logo and/or branding on the package.

Since the manufacturer is already making these products, you don’t have to do any designing or inventing. You can pay someone to come up with a logo and label for you, then you are set to go! It’s pretty cool when you think about it. This business model is a bit different from what you do with your Amazon business.

Jessica: Right, we mostly buy FBA. We aren’t branding these products. They are already brand name so we just use their credibility and the discount to provide a great margin. We are throwing around the idea of doing some Private Label ourselves, but we won’t get into that right now

That model is working fabulously for you guys, but I just didn’t think it was the right model for me. I really like the private label route as it seems like less work to me :).

Jessica: That’s so funny because I feel the exact opposite. But, that is what is so amazing with online businesses! There are so many different opportunities, and we can all find something to fit our needs.

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So Why Is This A Popular Trend And What Are Some Things To Look Out For

Private Label products often boast higher profit margins, zero direct competitors, possible high demand, and the ability to fully control pricing and brand integrity. As great as this all sounds, there are some trade-offs to consider before taking the plunge. Sourcing and product costs are more complicated. If you havent done your due diligence research, there is the potential for trademark and patent infringements. And its all up to you to protect your brand on Amazon from copycat sellers.

In the past few months and at SCOE in Seattle, weve had a lot of conversations with many Amazon sellers about Private Label products, how to price them effectively, and how to find opportunities to increase the number of sales and profit margins.

One of the most common questions we hear is:

Should I be pricing my item against similar brands on different ASINs?

Our response to this is to ask the seller why did they choose to start selling Private Label products? They always answer that they sell Private Label to get away from competition! Its usually at this point that they realize they answered their own question. Why go through the extra effort to establish a Private Label to control your own pricing if youre just going to resort back to old habits?

If we arent setting our prices against competition, how should we approach Private Label repricing?

What can we do to maximize the number of sales and profit margins?

Pro Tip #: Source Your Product Sensibly

How To Sell On Amazon FBA With Private Label Products – The Definitive Guide

Once youve identified your dream product to sell, its time to start finding suppliers. Do you see what I mean about this part onwards being cookie-cutter in scope? No matter what your product, youre going to need to find it in quantity, quality and variety.

For all purposes, the best place to find stuff is in China. Its not the worlds manufacturing hub for a reason. You might want to check out other regional manufacturing hubs if youre doing clothing or leather goods and shoes .

Weve written a comprehensive guide, Five Tips on Sourcing Products From China, and the same tips apply here. Youll want to attend the relevant phase of The Canton Fair in double-quick time, printing business cards along the way.

Also, youll want to meet manufacturers. Do remember that not all fair attendees are suppliers, some are trading companies or middlemen. You can usually tell if their company names have Import & Export or Trading appended to them. Otherwise, dont be afraid to ask what their company actually does. If they act cagey, just move on to the next one.

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Best Practices To Sell Private Label On Amazon

If we look at the numbers, in 2018, private label businesses reached a profit of $5.5 billion by growing 4.4% . Just in the US, in 4 products sold, nearly one product is a private label or store brand product. This shows us that this is a market on the rise.

Once youve done your research, you might want to follow these important steps to ensure a smooth sailing:

Recent Controversy From Amazon’s Private Brands

Amazon has been the subject of several antitrust investigations in the past year. Historically, theyve denied using sellers data to unfairly skew the market in their favor, but in a recent Congressional hearing, chief executive Jeff Bezos testified that he could not confirm Amazon didnt use data it collects about products sales in its marketplace to launch its own private-label goods.

What I can tell you is we have a policy against using seller-specific data to aid our private-label business, Bezos said. But I cant guarantee you that policy has never been violated.

In the hearing, Bezos was questioned about a seller who claimed Amazon created an identical product to their own and sold it at a far lower price, causing their sales to plummet overnight. It isnt the first time Amazons been accused of copycat behavior that causes brands to CRaP out.

In November 2019, Allbirds co-CEO Joey Zwillinger for selling shoes under its 206 Collective label that look exactly like Allbirds Wool Runner shoes. The listing price for Amazons copycat product was $45, half the price of Allbirds shoes.

Despite the ongoing controversy and concern from brands, there seems to be limited legal basis for complaints against Amazons private labels, besides cases of copyright infringement.

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How To Find Private Label Manufacturers/suppliers

Private label manufacturers are usually the ones who supply the product in wholesale and for dropshipping. The platforms are same you have to contact the manufacturer on these platforms and tell them your concern.

The manufacturers are very cool to supply the product for private label. You can even send the manufacturer the design of your tags and packaging so that you receive the product in your branding.

I recommend to let the manufacturer do the branding of your product. It would cost much cheaper then receive the product and do branding yourself. Well, it is your call!

Now coming to the burning question

How To Sell Private Label Products On Amazon

Why Private Label Brands Could Be Amazon

by Tara Johnson | Feb 27, 2019 |

There are three ways to sell on Amazon.

Obviously, you can sell products that youve manufactured and built yourself, and you can also sell other brands products , in what is, essentially, a form of online resale. This is sometimes called retail arbitrage.

Finally, you can sell what is referred to as private label items made by other manufacturers but sold under your own brand name.

This third option is one of the most lucrative and popular ways Amazon retailers do business but its not the easiest way to make money by any means.

On top of sourcing your white label products , theres branding, marketing, promotion and fulfillment that needs to be worked out.

Are you considering selling private label products on Amazon? This guide can help.

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Look Product Demand Jungle Scout

To learn more, check out this comprehensive

So, to make my product idea research impeccable, I went on to Jungle Scout to find out how much people are looking for this product on Amazon.

If a product is sold at an average of 250+ item per month, then it a good to go product.

Now, I can say that this product is a sure shot hit in my niche.

But still, I would recommend performing one more step to find out how much profits you can earn from this product.

Step 4 Check the Products Manufacturer

I have made up my mind to sell this product, but I want to know on what rate can I get this product from the manufacturer.

For that, I went to Alibaba and searched for this product.

Finally, I found a manufacturer, to get this a whole carton of puppy in just $12.80 .

Now I can customize this product as per the demand and sell it as my brand.

Find The Right Suppliers And Manufacturers

There are lots of places you can look for possible private label products. Discount online marketplaces like Alibaba and IndiaMart are both good options that offer access to millions of manufacturers across the world. You can even filter by minimum order requirements, materials, price and more to get an accurate feel for costs and potential mark-up.

You can also just use Google. If you know what type of products youre aiming for, just type in something like closet organizer private label suppliers into the search bar. You should see a full range of private label options for the products youre considering.

Finally, you can also look to wholesale markets, like Americas Mart in Atlanta, Dallas Market Center in Dallas or NY NOW in New York City. These offer a wide array of white label products in all categories and price ranges.

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Begin With A Winning Mindset

Making the decision to start an Amazon business is a feat unto itself. If you are reading this, chances are youve already or have almost mustered the courage to become an online seller for that, we congratulate you. Your next step, concocting the right product idea and choosing a profitable product to sell on Amazon, is perhaps your most important. So, if you dont know what to sell on Amazon, we are here to help.

Nike says Just do it. Helium 10 says, Just do it right.

Below are some of our top tips on finding the best things to sell on Amazon and taking those first few steps to own the Buy Box.

Protect Your Brand And Product On Amazon

private label selling on amazon – What is private label selling?

Your brand name and logo aren’t enough to stop third-party sellers from stealing your product. These crooks have “creative” ways to jeopardize your Amazon business.

For example: After listing hijackers get control of your listing, they will sell fake products at a lower price using your listing. Meanwhile, counterfeiters copy your brand name and logo, then put it on their products.

Luckily, you can avoid this by doing the following:

  • Get a trademark for your brand.
  • Register at Amazon Brand Registry.
  • Sign up for Amazon Project Zero.
  • Take note that trademark registration takes a year. While you’re at the sixth step of this Amazon product launch checklist, you can start filing your application first.

    The Takeaways

    The crucial part of launching a private label product is how to make it stand out from the millions of products on Amazon and provide the best service to your valued customers. This Amazon product launch checklist only serves as a guide. Its up to you how to make it happen.

    Interested in launching an Amazon private label product? Don’t have an idea of ? Seller Interactive has a team of expert Amazon consultants willing to help and guide you. For inquiries, email .

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    Is Your Product Actually Selling

    My listing went live the night of December 9th. December 10th was the first full day. I had my first sale on December 11th. No ads, no emailing anyone, no nothin’.

    and boom I was getting sales off the bat. Less than 30 days into this business as of today and my gross sales are already $2,489.63.

    I’ve been timid about getting reviews and doing much advertising because I don’t have a lot of inventory and would hate to run out! It happens, but I’m trying to prevent that.

    My inventory is down to about 60 units now, so I just placed another order for 500 more units. Those 500 units will net me around $4500. I plan for my next order to be even bigger. My goal is to be selling at least 1,000 units per month by April or May.

    Jessica: I don’t know of any other businesses that you can start selling products in less than 30 days! Gosh I love selling on Amazon!

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