Amazon is not just the largest online marketplace in the world. It also presents multiple opportunities for entrepreneurs to make a living online. Selling private label products on Amazon is one of the many ways to make money on the website. If you are an individual seller who wants to make your own name and brand, private labeling is the way to go.
What is a private label product?
Do you want to sell a generic product, but put your own logo, name, and brand on it? If your answer is yes, then you are doing private labeling.
Private labeling is simply building your brand without having to manufacture your own products. Using private label products on Amazon involves sourcing out products from other manufacturers. Once you find a manufacturer, you ask them to create products for you and label these products under your own name. This means putting your logo and brand on these generic products.
Pros and Cons of Selling Private Label Products on Amazon
Selling private label products on Amazon is a great way to build your own customer base. However, it also takes quite a bit of work to make money from selling private label products on Amazon. To see if private labeling is the one for you, here are some pros and cons that you need to know about:
You don’t have to worry about brand restrictions
If you are selling other brands’ products, then you already know that there are restrictions you need to pay attention to. However, if you decide to build your own brand by selling a private label product, you have more freedom to do as you wish. You no longer have to worry about these restrictions, which is a huge plus.
Selling private label products distinguishes you from competitors who are selling products similar to yours. It is every business owner’s goal to outrank competitors and build a successful business. It is a lot easier to outrank others when you’re building your own brand.
Higher Profit margin and Return Customers
In general, white label products have a higher profit margin than branded ones. Not only do you stand a chance to make more money, but it is also easier for you to get customers to come back. You just need to create your brand and sell quality items to get customers to trust you.
Bigger Capital Investment
If you want to start selling private label products on Amazon, you have to prepare yourself. Because you need to do your own research, development, and marketing, the starting cost is slightly on the higher side. It can be cost-intensive at the start because you have to create your branding, logos, and packaging.
Investing in your own branding comes with its risks. Private labels cannot be bought from an established brand and there is always the risk that they don’t sell well. Unlike selling a product from a well-known brand, these situations can lead to greater losses for you. Private labeling sometimes takes time to gain traction and show results.
You also have to depend on your supplier for your product quality and specifications. Trying to build trust with a private label business also takes time although it is not impossible.
Now that you know what the pros and cons of selling private label products on Amazon are, you can start making an informed choice. Let’s get into the main part of this post on how to set up a private label business on Amazon.
How To Start Selling Private Label Products on Amazon
If you consider private labeling as a way to make some quick cash, you probably need to rethink your plan. Considering the capital and risks involved in selling private label products on Amazon, you need to be patient before you start seeing results.
However, whether you decide to run a private label business or not, the first step to selling is to create a seller account.
Amazon offers two options for creating a seller account: Individual seller plans and Professional plans.
You can create an AMZ account for free, but each sale is subject to a commission of $0.99. Additionally, there is a 15% consolidated fee. Individual sellers are limited to selling 40 items.
You should get a professional account if your sales volume exceeds 40 items per month. But if you plan on selling fewer units per month (i.e. less than 50) then you should choose the individual plan. This also applies if you don’t want to sell restricted items.
Next step? Follow these steps to start selling private label products.
Find the best-selling products in your niche
AMZ is one of the most popular eCommerce platforms with over 2.5 million active sellers. The platform poses fierce competition, especially if you are trying to build your brand from scratch. So how do you beat this intense struggle to make sales on AMZ?
You have to find the most profitable products in your niche. Your success is largely dependent on your ability to find the hottest products. You have to conduct market research to see what items are in demand and determine if the market is saturated or not.
Using a product search tool is the most effective way to find the hottest in-demand items. If you read to the end of this post, you will find out more about the best Amazon FBA software we use. This keyword and product search tool should help you run an effective AMZ store.
Leveraging The Bestseller List
But for a start, the bestseller list (BSL) is your best bet. No one knows the best-selling products on Amazon better than them. They have compiled a list of these products for sellers to check out. So if you are stuck, the BSL which can be found on their website is a great place to start.
Start by browsing the Best Sellers page to see what items are most popular. Bestseller lists are compiled based on sales volume and are updated hourly based on the most recent sales figures. You can see the most popular products broken down by category.
Here are a few things to keep in mind when you are researching a private label product:
- Choose lightweight products, preferably those that can easily be handled and do not cost much. This will help you cut down on shipping costs and some other expenses.
- Selling generic products is often the best choice. There are restricted categories on AMZ and you need permission before listing some products here. It is more advisable to choose products that do not carry any restrictions for your private label.
- Consider durability and demand. Choosing seasonal products or perishable products can increase your chances of running at a loss.
- Choose high-ranking products that can be advertised with AMZ’s Pay-per-click service.
Private Label Product Ideas
Choosing products is easier when you have an idea of what categories to target. A Product search tool such as Zonbase is the most reliable way to find the most profitable products in each category. It can even narrow your options to only the best sellers.
However, we are here to give you a helping hand. So here’s a list of some items in the most profitable product categories for a private label business.
- Apparel and Accessories
- Water Bottles
- Essential Oils
- Party Games
- Phone Accessories
- Tracking Devices
- Reusable Bags
- Smart Backpacks
- LED Lights
- Yoga and Sports Accessories
- Rain Ponchos
- Keto Snacks
- Shaving Equipment
- Food Supplements
- Detox Products
- Vegan Products
- Hair Products
- Beauty Products
You can explore any of these categories. However, it is best to make use of FBA software to find the best products in each category. You will find out more about ZonBase, the best FBA software if you read to the end of this post.
Carry out competitive analysis
It is almost impossible to run a successful business if you do not constantly check out your competitors. Starting a business without adequate information about the market is a big risk that you shouldn’t make. By doing data-driven decisions, analyzing the potential of your product is much easier.
Here’s how to carry out effective competitive analysis:
- Take note of the keywords of each product you selected.
- Take advantage of software or tools to analyze the sales and income of your competitors based on each keyword.
- Review all the customer reviews and feedback for each product. You can use these customer reviews to improve your products and outrank your competitors.
ZonBase is an FBA software that allows you to spy on your competitors, giving you an edge over your competitors.
Find a genuine supplier
Once you have found the best products and checked out your competitors, the next thing to do is to find genuine manufacturers. This can be a hurdle to scale, so we recommend that you check out several suppliers before making a decision.
Here are a few things to consider when choosing a supplier:
- Product price
- Minimum quantity required
- Length of order
- Reviews and experiences
- Variety of product options and Styles
- Allows private labeling
Wondering where you can find good suppliers? In most countries, wholesale companies are the best way to locate suppliers. Nonetheless, you can search for cheaper suppliers on sites such as Alibaba or AliExpress.
Some third-party FBA software like ZonBase also has tools to help you locate genuine product suppliers. You can take advantage of these tools and find the best suppliers that offer the lowest prices.
Logos make brand recognition easier. Brands also associate themselves with certain colors. Customers’ purchasing decisions are affected by small details such as colors, visuals, design, and overall brand aesthetics. Start your brand with that in mind. The logo and colors of your company tell the story of your brand! This is the way to get your private label products on Amazon to sell a lot.
Choosing a name for the business is the first step. You must come up with a unique idea. After choosing a name, you should design your logo, packaging, and other marketing materials. You can learn or hire someone to do it for you.
When choosing a logo or brand color, consider these things:
- Unique logo designs are always preferable.
- Choose a few colors for your brand and stick to them.
- Simple things like fonts matter.
- Don’t overdo it with your logo
- Create and Optimize your product listings
Once you already have your private label products on Amazon picked and you have already found the supplier, what comes next? Usually, the next thing to do is to create your product listings and optimize them.
Product Listing Optimization
Optimizing your product listings is the best way to ensure that you show up on AMZ’s search results.
Put together a list of target keywords for your products and use them in the title, images, and descriptions.
Titles should be brief but descriptive. Your description should also contain relevant long-tail keywords.
Product listings consist of four main components:
- Product title: Ideally, you want to keep your product title short and sweet while also describing how your product works. Your brand name should be noticeable if you are selling private labels.
- Product Images: Selling a product involves making sure the customer knows what exactly you’re offering. Your customers can understand your product better with high-quality images and videos.
- Product price: AMZ has tens of thousands of sellers selling generic products. Competitive prices are the key to standing out. Ensure that your business is profitable as well. If your brand is just starting, you might consider starting with a low price.
- Product Description: Your product description should give all the details about your product. If your customers are considering buying your product description, there is a good chance they will make a purchase.
While these tips may be helpful, it is best to use an FBA software to create and optimize your product listings. We will share the best listing optimization tool with you at the end of this article.
Amazon FBA saves you a lot of stress, you no longer have to worry about shipping, packaging, and customer service. This gives you more time to focus on doing other things to scale your business.
Are you just starting out? Here’s all you need to know about FBA.
Launch your Product
Immediately following a product launch, how to get authentic reviews is something to consider. Asking for reviews is the key to getting them, but the right way of asking is important. Sellers cannot reward customers for reviews, so be cautious how you contact them. Requesting honest feedback once a purchase happens is natural, but don’t offer discounts in return.
Free Quickstart Amazon Cheatsheet
How to Use An FBA Software to Scale your Private Label Business on Amazon
Setting up private label products on Amazon can definitely be a lot of work. If you read through all these processes, you must have wondered at some point if it is really worth it. The answer to this is YES.
Selling private label products on Amazon can indeed be worth all the work you have to put in. It might take time to see results, but all the investment and hardword is worth it once you see sales rolling.
If you want to build a brand, there are processes you will have to carry out all the time. Some of these are product research, competitive analysis, product photography, and listing optimization. However, Amazon FBA software is the best way to reduce time spent on all these processes. With a third-party software to automate these tasks, you can focus on the important parts of your business.
There are a plethora of FBA software options available in the market today. However, the best FBA software is usually one that contains all the tools needed to carry out these processes effectively.
Using an all-inclusive FBA software means easy access to product search tools, listing optimization tools, and market research tools in one place. Many sellers often struggle to find the best FBA software to meet their business needs. But with Zonbase, everything you need is right there in one suite.
ZonBase is the best FBA software to help you scale your online business. This FBA software contains 13+ seller tools designed to take care of your product research, keyword research, market research, and listing optimization needs. Let’s take a look at the amazing tools that ZonBase has to offer:
Product Research Tools
ZonBase has 3 product search tools, designed to work together to give you your desired results.
- ZonResearch is the perfect product search tool for finding the hottest products that are also trending up. It has a deep search feature that allows you to find the most profitable products in your niche in only a few seconds. This tool also boasts a preset feature that allows you to search for products using default specifications for each niche or your preferred specification.
Before choosing products for your store, it is crucial to find out all the hidden details about the product. There’s no better tool to help you access detailed information about any product. This tool works with the ZonBase Reverse ASIN tool to give accurate results in your market research.
Is there a specific product you want to sell, but you’re unsure of its demand? ZonBase Product Validator is the most effective tool for verifying your product options on Amazon FBA and reducing risk.
With this product search tool, you get access to a team of experts who will review your product options. This will help you make the best choice.
With this product search tool, you not only get access to product suggestions. You also gain access to a list of authentic suppliers that you can source your products.
Remember that choosing genuine suppliers and quality products is a major part of building a brand. If you leverage this tool, you are one step closer to getting the best products for your store.
Checking out your competitors can indeed be a herculean task especially if you have to manually search for details and observe each competitor. Not to worry, the ZonBase Reverse ASIN tool will take care of your competitive analysis.
ZonBase Reverse ASIN lets you find out what keywords competitors are targeting, and based on this information, you can outrank them and increase sales.
Pricing your products right is a big deal and if you get it wrong, you may be harming your business. ZonBase Sales estimator will help you come up with a perfect pricing strategy using competitive analysis.
This tool provides accurate sales data for any product within seconds. You can see every ASIN terms of how it has performed over time, as well as how many units it sells per month.
ZonBase comes with a photo enhancer tool to help you make the most of your product images. You don’t have to struggle to get the perfect shot for your images. With this tool, you can convince buyers about the quality of your products without even saying a word.
Selling private label products on Amazon is a great way to build an online brand. Yes, it comes with many back-breaking processes and may take time for your hard work to convert into sales. However, it can be a worthy investment if you take the risk.
You can minimize risks and save time when you use trusted FBA software such as ZonBase for all your business processes. Not only will it make keyword research, product research, and listing optimization easier. It will also give you more time to focus on selling your private label products on Amazon.
Now that you have all the information you need, Sign up for a free trial.