If you sell your own branded product on Amazon, it’s the most lucrative way to sell within an online shopping environment. For this reason, Amazon sellers prefer a private label business model.
According to the 2022 State of Amazon Seller Report, nearly 59 percent of Amazon sellers use the private business model for their brand and products.
This article will go through all the necessary information that you need to know about Amazon FBA private label.
What is Amazon FBA Private Label?
Amazon Private label products are those you sell on Amazon under your own private brand (label). After studying a specific market, you reach different suppliers or manufacturers directly, and they make products in bulk for you at a certain cost under your brand name.
Afterward, they ship the ready to sell product to Amazon. Your products will sell exceptionally if you have done a brilliant job in strategic polishing and conducting research.
Private labeling is a common concept among the world’s biggest retailers, including Amazon sellers. You might be visiting any grocery store frequently; most of them have their own private label products for sale.
Why Selling Private Label Products on Amazon?
There are different methods to sell products on Amazon, but there are many reasons why private label Amazon FBA is mostly preferred.
You own brand
Private labeling means that you own the product, and it belongs to your company. It’s different from arbitrage or wholesale, where you have to resell the products from other brands. Private label modeling allows you to grow, market, and price products according to your convenience.
You don’t have to be involved in taking brand approval or finding discounted products to resell at high prices.
You directly source your products from suppliers or manufacturers within private labeling at much lower costs than reselling products by other brands. In selling wholesale products, you buy them from a brand owner or distributor who has already marked up product price, resulting in low-profit margins.
No middle person is involved within the Amazon FBA private label business model. You purchase bulk inventory at the lowest possible cost.
Customizing your product
You can completely customize your product within the private label. You can look at customer reviews of your competitors offering the same product and then analyze issues people face regarding these products.
Afterward, you can analyze how to make your product better than other top-selling brands. These are the best indications for your product development.
If you sell similar products on Amazon like other sellers, it will be hard for you to compete. You have to work with a supplier and graphic designer to construct a perfect logo for your product and look at other possible features to make your product stand out.
This sales method enables you to become strategic, knowing how to improve products and beat your competitors by offering innovation.
Control over Amazon listing
You can create a brand-new listing in the private label business model whenever you launch a product in the Amazon marketplace. This means you can easily edit your listing information like price, images, and keywords to your advantage.
However, if you are reselling the product on an existing Amazon product detail page, it’s not easy to edit any listing information as you are not the product owner.
No competition for Buy Box
In reselling other brands’ products on Amazon, you compete for Buy Box with other sellers. If your listed offer doesn’t appear on the Buy Box and the customer makes a purchase, that sale will not go into your Buy box.
You are the only seller on listing within the private label business model, and you receive 100 percent of your Buy Box win.
How to Sell Amazon FBA Private Label products?
Do you want to sell your private label product on Amazon? Let’s go through what you need to know before the product launch.
You must conduct research for the product that you want to launch. If you rush through it and don’t analyze the data, you will choose the product with no demand.
I know it sounds harsh, but that’s how much its important to conduct product research. Always choose a product based on data analysis. Please don’t choose a product only because you like it.
Analyze the product competition you want to launch in the Amazon marketplace and consider what difference you can add to outperform your competitors.
Finding a supplier
After when you have found a perfect product to be sold on Amazon, search for suitable suppliers. Many suppliers, like Alibaba, provide you with bulk products at a low cost.
Contact suppliers that can offer you the best quality product at a relatively low price. After when you agree on certain terms and conditions, place your order and manage to ship it to the Amazon FBA center.
Creating your Amazon Listing
After finding a suitable supplier, creating and optimizing Amazon product listing is the next step. It includes the arrangement of the professional photographer, formulating pricing strategy, purchasing universal product code, and writing compelling copy.
You have to take this step seriously after going through all the efforts of product research and finding suppliers. Creating an optimized product listing will positively impact your marketing and branding of products.
If your listing doesn’t include relevant keywords, how will it be visible to consumers? If your product images and infographics are not of high quality, you can’t be confident about making a purchase.
Choosing your fulfillment method
You have two options to choose from while selecting your fulfillment method. You can either go for Amazon Fulfillment by Merchant or can use Fulfillment by Amazon.
For your convenience, Fulfillment by Amazon is best for your business. Within this, Amazon handles packaging, storing, fulfillment, and customer service for you.
Launch your product
Now you are ready to launch your product. Advertising includes launching different ads that make you visible in consumers’ eyeballs during their purchase journey. It would help if you created a productive advertising strategy for your business to target your desired audience.
We hope that this guide gives you a better understanding of the Amazon FBA private label business. Starting your own private label business on Amazon isn’t easy as it requires a lot of research and effort to come up with something potentially effective to take market share.
By going through this guide, you will have a better idea of how you can start your private label business to generate success.