If you are thinking of starting a lucrative and efficient business, you should really think about starting a private label product business on Amazon. While learning to do private label product business on Amazon could be somewhat difficult at first, it could still be quite lucrative in the long run.
By setting up a private label product business, you could grow your own brand that could make you a lot of money in the long run. Before you get started on this endeavor though, you will need a set strategy.
The more well thought out your strategy, the more success you will gain in the long run.
So before you worry about how to increase sales on Amazon, you first need to perfect your Amazon private label product.
What is Amazon FBA private label
Amazon FBA private label is a business model wherein the seller identifies a lucrative product with high demand and low competition and branding, producing and eventually selling it online.
After finding the right product the seller has a manufacturer replicate the product and mass produce it. The seller then brands and ultimately sells it through Amazon.
What other Business models could you adopt through Amazon?
Aside from setting up an Amazon private label product business, you could also try out other Amazon business models such as the following:
Wholesale: This model has the seller buy products directly from distributors and brands with extra stock to sell on Amazon.
Retail Arbitrage: This model has the seller buy discounted products through retailers and sell the products on Amazon.
Online Arbitrage: This model involves buying discounted products online, and then selling them on Amazon.
Dropshipping: This process includes buying products directly from a manufacturer who fulfills the order and have the shipped to the customer.
Handmade: The products are created by the seller to be sold on Amazon.
How to Start Amazon FBA Private Label Business
You should know that it will be a multifaceted endeavor, and will require you to do a great deal of research and testing before you actually set up your business. Here are the key steps to setting up your very own Amazon FBA private label business.
Step 1: Amazon FBA Private Label Product Research
The very first step to setting up this kind of business, is to conduct research on what products you should label and manufacture.
Before you do get started on this type of business, you should be very aware of your financial state. You should ask check your finances, and be sure that you could sustain this kind of business. Remember that you will be financing this endeavor, so you should be financially ready to invest.
Now lets’s get started. The first step is to identify a product worth replicating and manufacturing. There are various ways to do research on these products:
- Amazon product research tools
There are various research tools that will help you to find the best products for your business. Some of the best examples of these research tools are AMZBase, Keepa, Junglescout, and FBA Wizard pro to name just a few.
- Social media
Aside from Amazon product research tools, you could also check out social media platforms such as Facebook, Instagram, and TikTok to find out what products are trending.
Apart from these great sources of product inspiration, you could always check out Amazon. It is easy to check out which Amazon products are popular.
All you need to do is open Amazon and check out the bestsellers list. This is a list that shows which products are bought the most. You could base your product choice according to the results.
When you choose the products that you will manufacture and sell, you should make sure that the products have these key attributes.
- Don’t infringe
When it comes to choosing what products to mass-produce, it is important that you don’t infringe on other companies.
Remember that some companies often patent their products, and if you mass produce their products you may be stepping on some toes. As a rule you should check if the product you chose is legal to mass produce.
- Weight and volume (light and small product)
Aside from being able to legally mass-produce a product, you should also choose a product that could be delivered easily. You should choose a product that is light and small.
- Low seasonality and low replacement product
You should choose a product that had steady sales all year, and could not be replaced fast.
- Product price and profit
The product should also be cheap enough to produce and you should at least be able to get a profit for every unit that you sell.
- Level of competition
The product that you choose should be popular to sell. However, the market should not be too competitive that you will have a hard time actually marketing the product.
Step 2: Find and Contact the Suitable Product Supplier
Apart from doing research on the best private label products, it is imperative that you know the best product suppliers possible.
Find a trustworthy product supplier
If you are mass produce various products, it is important that you choose a trustworthy product supplier.
Remember that once you start working with these suppliers, they will be responsible for the quality of your private label products. Here are some options that you should try out.
Platforms
When it comes to getting the right suppliers, you should check out some e-commerce platforms first. These e-commerce platforms are very efficient and usually have access to some great suppliers and manufacturers.
If you are going to look for suppliers and manufacturers, you should check out Alibaba to find Amazon FBA private label products. It is one of the largest multinational technology companies in the world, and will be able to give you access to the best suppliers in the world. Some other great examples of platforms Global source, and 1688.
Third-party procurement
Third party procurement involves a third party doing the large scale purchasing of goods and services for a business. By using this method, you could cut back on costs and effort.
Exhibition
Aside from checking out various commercial platforms, you should also check out some supplier exhibitions. These exhibitions are meant to act as events wherein suppliers will show off their products and services to potential customers. Here are some great examples of supplier exhibitions.
- Canton fair: This trade fair is considered the oldest and largest trade fair in China. It is usually held in the spring and autumn season, and has been ongoing since 1957.
- Nurember International Toy Factory: This trade fair specializes in the toy and games industry and was founded on 1949.
- Drupa: The Drupa trade fair specaizes in printing equipment, and is held every four years.
- E3: This trade fair specializes in video gaming and is a place for many game developers, publishers, hardwares, and manufacturers to introduce new products.
- EuroShop: This trade fair specializes in retail and was founded in 1966.
Recommended by friends
If you are going to look for a supplier, recommendations from friends are also very important. Remember that your friends will usually look out for your best interests, so if they do offer information on a product supplier, you could at least try it out. However, you should not hesitate to do your own research as well.
Key factors in choosing a suitable product supplier
If you are going to choose a product supplier, it is important that your choice is the best. Here are key factors in choosing a suitable product supplier.
- Company Size
The company that you choose should be of a respectable size. While it should not be a huge conglomerate, it should still be large enough to fulfill all your needs.
- Factory production capacity
Your choice of company should have a large production capacity. Remember that you want a company that can effectively handle any orders that you ask for. If your product supplier is not capable of handling your production needs, your own business may suffer as well.
- Certified product
Your chosen supplier must also produce certified products. This means that they could meet the needs of importing countries.
- Patent
When it comes to choosing a production company, you should make sure that the company is legally able to manufacture a specific product.
- Non-infringement
This means that the company should be able to get the patent for the product that will be mass produced.
- Product quality
The company should be able to mass-produce products of the best quality. This means that the company should follow quality control measures to ensure that all their products are free of damage or production mistakes.
- Price
Your chosen supplier should be able to offer good quality products at an affordable rate. Their products should not be too expensive that you cannot make a profit out of them at your end.
- Production cycle
The supplier should be able to mass-produce your products at top-speeds. Remember that any delay on their ends, will cost you money in the long run.
- Payment method
Another factor for choosing a supplier is their payment methods. You don’t wnat to choose a supplier that does not have their payment scheme calibrated. If their payment methods are not well-organized, your own company’s finances may also get delayed.
- Payment time
Aside from the paymet method, your supplier should also be efficient with their payment time. This will ensure that your payments to the supplier are always on time.
Step 3: Build Your Version of the Product, Design & Product Packaging
After finding the right product, you should strive to build your own version of the product.
The design should not only be unique, it should also be pleasing enough to your potential buyers that they will actually want to invest in your product. There are two facts that you will have to take into account.
- Customize product
When it comes to building your own version of your chosen product, you should customize it in a way, that it could be considered unique and won’t be confused with another product.
- Product packaging tips
Aside from customizing your product effectively, it is important that your packaging should be beautiful to attract the attention of consumers. You should also minimize the size and weight of packaging while ensuring safe transportation.
Step 4: Create a Logo & Trademark for Your Product
Apart from the quality of your products, it is important that your company has a logo and trademark. The logo will act as a sort of emblem for your company. Every time a potential customer sees your logo, they should be able to recognize it. As a rule, your logo must be unique and professionally made.
Creating a truly unique logo may seem tricky at first, however, there are effective and cost-efficient ways to design a logo for your company.
You could hire a designer however, this could be a bit expensive. If you want to save up on hiring a full-time designer, you could hire a freelance designer from freelance services such as Fiverr for quick and cheap logo design.
After creating your logo, it is important to have your logo trademarked. In order to have your logo trademarked you will need to have it meet specific logo guidelines, and you will need to pay some legal fees. However, having your logo trademarked is totally worth it, because this will ensure that your logo can never be used by another company.
Step 5: Choose Fulfillment Strategy
You should also make sure that your company has the right fulfillment strategy. A fulfillment strategy is the best way to ensure that your customers get their products on time and in perfect condition. The two best options at your disposal are FBA and FBM.
The key difference between FBA and FBM is that FBA is a sellers relying on Amazon to fulfill orders. FBM on the other hand has the seller lists their products on Amazon, but they fulfill their own orders.
Both options are efficient, and could really help your company thrive in the long run. Here are the pros and cons of the two options.
|
Fullfillment Strategy |
Pros |
Cos |
|
FBA |
FBA makes the fulfillment process a lot easier, because Amazon handles the overall logistics of the process. FBA has a very wide range and gives access to prime customers. |
Strict receiving guidelines: While Amazon is one of the top platforms in the world, you will still need to follow strict guidelines. Expensive |
|
FBM |
FBM sellers tend to have more control and direct access to the packages. It could also cost less to use FBM. |
The sellers will need to fulfill all the orders for their product, which could be a bit difficult if there are a lot of buyers. |
Step 6: List Your Product on Amazon
Now that you know the best options for your fulfillment plan, you should now list your product on Amazon. By listing your product effectively on Amazon, you will be able to market your products and attract even more customers.
When it comes to listing your product through Amazon it is important that you write a complete title for your product first. This should include the brand, model, quantity and other features. The write-up should be concise and enticing for potential customers. It should also make your private label product stand out from the competition.
Step 7: Begin Your Amazon Seller Travel
After you have finished preparing the logistics part of your business, it is now time to market your products. This includes optimizing your Amazon listing. This listing should have everything ready to publish and launch in advance.
If you want your Amazon list to be as aesthetic as possible, you should make sure that your listing should have good quality pictures. This will show potential buyers the true quality of your products.
Aside from the pictures you should choose keywords for your Amazon listing carefully. Remember that your choice of keywords will determine whether your listing is ranked on search engine optimization.
Your listing should be as well-written as possible. The write-up should show the best features of your product, and showcase how it stands out from the competition. This will help ensure that your products are as well marketed as possible, and increase your sales on Amazon.
Conclusion
Now that we have discussed how to run an Amazon FBA private label business, you will be expected to know how to set it up yourself.
This will include knowing how to conduct FBA private label research, contacting the right FBA suppliers, and design and build a version of your own label. You also learned how to create a logo and trademark your label.
Setting up this kind of product could be a bit tricky at first because there are a lot of steps. However, with great tips, you’ll be able to effectively set up a great Amazon private label product of your very own.