Amazon has become a major online retailer that many customers come to when they want to find items online. However, with the lower prices of private labels that you get in the grocery store, you want to ensure that you have the competitive options to provide to your customers so that they continue to buy from your Amazon store.
So, to do this, you can choose to be a private label seller on Amazon and sell only Amazon Essentials products. This will make your competitive in the market of household and business essentials that can help boost your overall profit and ensure that you have repeat customers.
But how do you get started doing this, and how can you start making a good amount of money in a short time? We took a look at these questions and will go in-depth with the answer so that you can choose to become an Amazon private label seller and begin making extra money.
What is Private Label Selling on Amazon?
To be a private label seller on Amazon, you need to sell specific private label products. These are goods that are made by a certain company so that another company will sell and brand the products.
To simplify this process, if you have been to any large-scale department store that has its brand of items, then you have seen private label products already. For example, if you go to Walmart, you will see their Great Value items on the shelves.
Other places that have these types of products:
These products are private label items because they are made by another company but branded and sold by another. For Amazon, this is their line of Amazon Essentials, which includes several different products that can be found on the website through different sellers.
Although this is focused mainly on products, this can also be done with services. However, this is most popular with sellable items. If you have an inventory of goods that you want to sell under your brand name, then you can do so through Amazon and make a good amount of money.
What Is Amazon Private Label Product?
So, what exactly is an Amazon private label product? Well, these products on Amazon are the same anywhere else. This means that you are branding and selling the products that are made by someone else.
These products are ones that you have researched and picked out for your brand, then you create the packaging and branding for them to sell. When you choose to sell through Amazon, this simplifies that process of selling because you get to use their online retail platform and their shipping techniques.
These products can be any type of item including:
- Phone protectors
- Furniture, etc...
This makes it easier than to create and sell your products through your website and enables you to have all of Amazon's customer base able to access your store and find your products easily.
Find Private Label Products
When you have decided to start your private label business through Amazon, you need to fill your business with items that you can sell. This is done by doing your research on products that are new or popular on the market.
There are a few steps you want to take to find these products, and these are listed below.
Step 1: Find New Products
First, you will want to look at new product ideas that you believe will sell. A product idea can be simple, but it can take some time to figure out too. Seeing something in a store and then selling it online doesn’t mean that it will be popular.
So, you want to search out interesting items that you don’t see everywhere. New items that you think will be the start of a new trend will work the best.
No matter where you look, whether it is in a department store, online stores, or social media, you will focus on items that are new and on the rise.
Step 2: Decide What You Want to Sell
When you are searching for products, you want to narrow down the types of products that your brand will sell. You can tend to focus on several different things, including:
- Premium products
If you want your brand to be about selling affordable products, then looking for items that would be out into that category would work the best for you. This means that seeing a high-end item that might sell won’t necessarily be good for your brand.
If you want to have premium products, then stay away from terms like budget-friendly and low-cost, because these will hint that there have been shortcuts in production to cut costs. Instead, use these terms:
Whatever words you use, just try to be consistent.
Step 3: Do Your Market Research
Finding an item that you like is one thing, but finding a product that will sell well is another. Not everything that seems fun or interesting will be a good product to sell, so you want to do market research to see if it will be a good choice for you to sell.
Market research will tell you:
- Market trends
- Sales of a particular item
- Rate of purchases of that item
You might find that a common product will sell better, or you could see that an unusual product will sell better than you’d expect.
If this seems like someone you don’t have time for, or wouldn’t be particularly good at doing, you can use a system that will help by doing much of the work for you.
Options like the JS Chrome Extension will enable you to find out the sales for whatever product you search for. This will make the research easier for you to do and will end up making it faster and easier to find your products.
To get the extension for this system, use these steps:
- Download the JS Chrome Extension onto your computer or laptop. Just a quick internet search will allow you to find it online and start the download.
- Once you have it downloaded, when you search for a product, click the button that says JS on the right of the screen.
- Review the data to find out how many units sold per month and other useful information to help you make your final decision.
Step 4: Find the Best Manufacturer
Once you have your product, you can begin to reach out to manufacturers to see who will make your product. You want to have a reasonable price so that your profit margin will be good, and you need to make sure that the manufacturer is well-reviewed and used by others.
It is fairly easy to look up reviews for companies online, so take the time to see what other buyers have thought about their service. Skip them if there are many negative reviews, but ask for a sample of the product if you think you’d like to work with them.
You also want to ensure that you look into multiple manufacturers to make your decision. Don't just go with the first one you find.
Step 5: Design a Logo and Create Your Brand Packaging
This is the fun part of having your label; you can create your design and logo. This is something that you can even do yourself if you know a bit about graphic design or artistry. However, if you aren't up to that, then you can get someone for a low price to handle the work for you.
You want to make something that is a specific style that you want to be associated with your brand and stand out from others on the market. You can always take a look at others making similar products and see what is already out there.
Then, when you have an idea of what you want to do, just work with your graphic designer to create a look and logo for your brand.
Step 6: Start Your Amazon Account (Use Amazon FBA)
Now that you have our products and your manufacturer, you can set up your Amazon store online. You will also want to sing up for FBA, which stands for Fulfillment By Amazon. This will allow you to pay a fee to have Amazon store and ship the products for you.
To sign up, do the following:
- Sign in to your Amazon account, or create one if you haven't yet.
- Sign up for your Amazon store or business account.
- Enter your information and interest in the FBA program.
This is a great way to make selling products and getting them to your customers much easier. Amazon will handle much of the work, so you can spend more time keeping up with your products and deciding which new ones you would like to add, or which ones have become outdated and remove them.
Step 7: Use Amazon SEO to Optimize Your Listings
The use of SEO is everywhere on the internet because it assures that your webpage gets ranked high on the search results of a customer. This will help Amazon customers find your particular items and boost your overall sales.
SEO can help you with the following:
- Boosting sales
- Reaching new customers
- Getting seen by more visitors
So, it is worth learning about Amazon SEO and how optimizing your product title, description, and images can help you gain more visitors and therefore more customers.
Using relevant keywords found from keyword research will make your listing more relevant and visible to customers, and it will help you come up on the first page of results.
Sell Private Label Products
Once you have your products all chosen, you then need to work on your sales of those items and how to sell private label on Amazon. This is the easy part when you use Amazon since you have a customer base that is so large. However, you still want to make your sales as high as possible.
So, follow these steps to be able to sell the highest number of private-label items on Amazon.
Step 1: Know Everything About Your Product
The best way to get people to buy your product is by knowing all the benefits and how it can help make a customer’s life easier. When you know all there is to know about a product, you can highlight the best points to help a customer see why they will want to purchase it.
If you don’t know your product, it will show. Especially when it comes to product descriptions and bullet points, which are meant to showcase the best features of the product, customers will see that you don’t know as much as you should.
So, get to know the product and be able to talk about the greatest features or functions so that you can tell that to your customers.
Step 2: Understand Your Customers
When you are selling products, you need to have a customer base in mind. You can sell to everyone, but knowing your customer will help you sell to that person and get higher sales.
If you have low-price items, then you will want to sell to low-income individuals who need the cheapest option available. Using terms like affordable, or budget-friendly will make a bigger difference to them than the look or design of the item.
So, know who you are trying to sell to, and what they will be looking for in your products.
Step 3: Market Properly
When you sell on Amazon, you don’t have to worry about marketing in the traditional sense because you have all the customers you could need on the platform already. However, you want to make the potential customers who will like your products see them and check out your product page.
To do this, you can use Amazon PPC, which is their marketing system. This will allow you to make bids for sponsored ads that will help you gain higher results on the first page of the results.
This can even be used for advertisements outside of the Amazon site as well, to help you gain new customers from off the website itself.
How to Price Private Label Products on Amazon
To get a good profit off of the products that you sell means that you need the find the right pricing for them. You might feel like opting for the lowest price possible is the obvious choice, but that isn’t necessarily true.
Instead, you want to find the right price for the product you’re selling. So, to do this, you want to follow these pricing rules:
- Determine what your customer service and packaging is worth. If you offer great customer service and know it, then paying a dollar or two more is worth the cost. Customers will see that if they contact you, so don’t be afraid to raise the price.
- Stay without 20-percent from the other competitor’s pricing. This will allow you to remain competitive even if you are just below or above the average price.
- Think about the value of the product. If you value a certain product because you like it, that doesn’t mean that others will pay that price. So, be realistic.
If you stick to these guidelines, then you will likely see a good profit while still selling a lot of products each month.
Examples of Private Label Products to Sell in 2020
If you want an idea of some good ideas and why they will sell at a high rate on Amazon, then do your research. However, to give you some examples of what can sell, we have a few options below.
- Reusable Bottles
This is an option that can be different from many other options on the market but is a product that comes with daily use that allows both adults and children to purchase it. This will work for buyers young and old, and even though they are already popular, they are selling in high numbers.
Just make sure that your product is a bit different and offers at least a unique feature than what you've seen before. Then, you will be able to show why this product is different from the others.
Even if you just make the bottle a specific style that will offer a new look, you will be surprised at how well small items like this can sell.
This product is something that is simple, useful and tends to get lost or broken with heavy use. This is an ideal option because of how often people use it. Every household likely has at least one in case of a blackout, so you will have a large customer base for it.
There are many basic options, but not as many that have unique designs or patterns. So, make yours stand out, and you will have a great profit from them.
- Alarm Clocks
This is another product that many people use, but not that many sellers think about. This can be a great purchase, but since the invention of the alarm on a smartphone, fewer people use them. However, if yours is fun and exciting, you can get people to see how they can be useful. Also, many of the regular models come in simple colors and designs, so a unique look will grab a shopper’s attention.
- Phone Covers
This is an item that has become extremely popular and has stayed that way. This is because people change phones more often, and have to change their phone cover too. There are many out there, but making a fresh option for people to look at will give you a great item to sell.
- Bluetooth Speakers
These speakers have become a hot commodity because of the easy way you can connect your phone to it. This allows you to take the speaker anywhere you want like to the beach, friend's house, or on a road trip. There are many colored and patterns options, but with a new idea or feature to add, you can set your product apart from the others and make a splash in the online retail business.
Creating a private label product to sell on Amazon can be a great way to make money online, but there is a right and wrong way to do it, and if you don’t take the time to ensure that you have the best chance of success, you might not make as much as you’d like.
However, if you do the research needed to manufacture good products that customers look forward to purchasing, then you will have a good business going. Just listen to the guidelines and tips laid out above and you will have the information to turn a few private label items into a legitimate business on Amazon.
After telling you all about how to make and sell private label products, you will likely have some questions still. So, here are the most common questions about the subject.
Can I Make a Profit Selling Private-Label on Amazon?
Yes. This is becoming a very large business model for many sellers through the website so that they can know what they're selling. You can sell several items at once, if you like, and have a large inventory of products for Amazon customers to buy, which will allow you to continually make good money over time.
What is Amazon FBA Private Label?
Amazon FBA private label is when you use Amazon to sell your private label products. The FBA system means that Amazon handles the fulfillment of items as they are sold, but you handle the type of items you sell and how they are manufactured, branded, and packaged.