What is Amazon Private Label?
The term Of Amazon Private Label (PL) means to launch a product with your own brand name. In PL, you buy products from manufacturers, label them with your store or brand name, and sell them on amazon by keeping all terms of amazon on board. Most investors are afraid of launching Private label products or investing in private label due to fear of loss. Don’t go with PL without any experience.
We need bulk order with manufacture. Also, the competition needs to set Affordable budgets for products. We need dollars in thousands. It’s your investment.
Procedure of Private Label:
- Need Good budget.
- Need Patience.
- Firstly need to find the best products, and also, at the start, avoid seasonal products. Later you can go with seasonal after 3 to 4 successful launches.
- Deeply analyze the market of products to find the best and most affordable supplier. Negotiate with supplier.
- Check the Patent if the product already has a Patent, and change the product's design.
- Place initial order with the supplier (In PL, mostly Chinese suppliers preferred).
- Create best listings for products on amazon.
- After shipping the product, rank the product by a different method (PPC, Rebates, Advertising, Affiliate marketing, and many more).
- And manage the inventory, and try to keep it in stock always. In PL, Analyse products in detail, and keep an eye on manufacturing.
Pros & Cons of PL:
Pros:
- No Brand restrictions. When you are creating your own brands, No worries at all.
- You have an excellent chance to display your idea of a product by the graphic in the form of A+ Content that attracts more customers and defines your product in a good way.
- You have better control over pricing. Have no restrictions of any type.
- You have independent to market products which allow you to choose your customers.
Cons:
- You have no absolute control over quality because you are not the original manufacturer of that product and can see everything.
- Constraints in inventory control. You need to manage MOQs, Re-stock, dead stock, and inventory turnover ratio.
- You can face top competition among the sellers.
How to start OA:
- No fear of loss
- Create a professional amazon account for selling on amazon.
- Find a good team for product search, and analyze the market by yourself as well.
- Go with a good manufacturer.
- Create killer listings
- Stay calm.
- Register Trademark as well.
- Register patent as well if necessary.
- Do work on the development of the product.
- Work on the branding of your product.
- Decide your fulfillment strategy.
- Launch your product.
Personal care, beverages, cosmetics, dairy items, and frozen food are usually the most popular for PL. In PL, just follow a simple technique: less expensive, most demanding, and easy to ship.
Further recommendations to sell PL on Amazon:
Features of the product should be easy to explain. Electronics, clothing, and shoes have lots of customer issues. So, you should think before choosing any products among these categories.
Avoid seasonal products. Seasonal products decision for Amazon Private Label can be costly for you. For example, Christmas products, or basically any holiday products, winter clothing, etc.
Make sure your product fits into a small, flat-rate box and that it is no heavier than one or two pounds.
Avoid paperwork. Some items like food, toys, and batteries can be difficult to sell if they have any sort of “red tape.” Choose products that are easy to manufacture and that don’t need legal paperwork and/or certifications.
Most Common tools used for PL are:
- FBA Calculator
- Jungle scout
- Helium 10
