The 2022 Guide for Your Private Label on Amazon to Be Successful
As the saying goes, “the only constant changes.” The retail market is constantly evolving with new and innovative ideas. In order to stay ahead of the competition, Amazon Sellers need to be aware of the latest changes in the market and adapt their businesses accordingly. In this blog post, we will be discussing the 2022 Guide For your Private Label on Amazon to be Successful. We will outline some key points that Sellers should keep in mind if they want to succeed in this competitive landscape. So without further ado, let’s get started!
Creating a Private Label on Amazon gives FBA sellers an incredible opportunity to create their own brand. That combines the benefits of Amazon’s logistics services while allowing sellers to profit more from their unique brand.
Table of Contents
- 1 What is Amazon Private Label?
- 2 How to Get Started with Private Labeling on Amazon?
- 3 How to Sell Private Label Products?
- 4 Best Products to Sell as a Private Label on Amazon
- 5 Selling Private Label Products on Amazon
- 6 Create Your Unique Brand
- 7 Final Thoughts
- 8 Beat the Private Label Competition
What is Amazon Private Label?
Private-label goods are created by a manufacturer that does not sell its products. Another company sells such products by putting its own brands and packaging designs on them. It is allowed to do only by agreeing with the manufacturer.
Private label products do not only contain physical products. They can also include intangible products and services such as insurance or medical plans. Yet, most of the time, those who want to start their own business with private label products often turn to physical products as it is easy to enter such a market, and there is a physically greater demand.
How to Get Started with Private Labeling on Amazon?
Private Labeling on Amazon is an excellent business plan to boost profits. However, to avoid unnecessary costs and mistakes, a few things are worth considering.
Play the Long Game
The significant difference is that you create a brand, not just sell products. The brand brings excellent value, and most likely, you will receive more profits eventually. However, building the brand requires consistent effort, and the results are not immediate.
Create a Financial Plan
Establishing your own brand takes time but also money. It’s essential to consider your financial situation and organize the funding for your new business plan.
When you run a private label on Amazon, it’s time to ensure its growth. Reinvesting a steady stream of revenue back to your business is a wise decision to ensure the future of your eCommerce career.
Run Tests Before You Dive in
If you already have experience selling on Amazon, setting up your own product line is different. Instead of just paying from Amazon, the customers explicitly buy the product under your brand name.
To determine how the customer base reacts to your branded products, you need to test them first. Running a test drive makes sure there is enough demand for your branded product before launching it fully. One fast and super-efficient way to do this is to use Amazon Pay-Per-Click advertising (PPC), otherwise known as Amazon Sponsored Ads.
How to Sell Private Label Products?
We summarized the process of selling Private Label products on Amazon into 5 steps. However, it would help if you considered what you want to sell and which products are the most profitable before you start.
Best Products to Sell as a Private Label on Amazon
How to find the best private label products to sell on Amazon?
There’s no right answer, but typically there is a pattern that seems to repeat. The best product type for a private label on Amazon tends to be general, and the demand stays similar during the whole year. This means you should avoid seasonal items or complicated products with multiple color or size options, instructions, and warranties. The same goes for heavily regulated items such as certain food items, toys, and batteries that may require much legal paperwork.
Categories worth considering are the bullet points below:
- Clothes and Accessories
- Phone accessories
- Water bottles
However, don’t let these categories dictate your choices. If you find another one that you think will be good, go for it. Let’s assume you found your product.
Selling Private Label Products on Amazon
The process is quite easy and even newbies can adapt to it quite soon. Follow these 5 steps:
Building your own successful product line starts with an idea. Maybe you already have some product ideas on your mind, or you can start a brainstorming session to explore possible options. After you have the list of possible future hit products, it’s time to determine their potential.
Research and find products with high demand / low competition. Following the trends, the ‘Hot New Releases’ column can give an idea.
Keep an eye on the competitors. Primarily focus on analyzing the keywords the competitors use. They may offer good deals to attract customers.
Finding a good and reliable manufacturer is the essence of success for every private label on Amazon. Both price and quality need to match to keep your profits high, and customers satisfied.
You can find especially Chinese suppliers easily by using Alibaba, the first and largest supplier platform that comes to mind. In addition, since they have thousands of customers selling on Amazon, it is easy for you to agree. We suggest you reach out to at least 3 to 5 possible suppliers.
There are a few points to keep in mind when you source for the products. First of all, you might need your products customized, and suppliers’ capabilities to do this vary. Many suppliers announce the minimum quantity that needs to be ordered, which naturally affects your costs and logistics.
You need to consider how and in which location to store the items as well as how you want them to be shipped to you. This is a concern, especially if you decide to sell through FBA on the US markets, where your storage fees and limitations are affected by IPI (Inventory Performance Index) Score.
Lastly, ask about the payment methods and terms. The safer option is to prefer Alibaba’s supported payment methods, which protect you if something doesn’t go according to plans.
3- Product price:
Setting the right price is a challenging part of private-label branding. Especially if the brand is new, it may be harder to stand out from other generic products. In this case, your price needs to be competitive. However, this decreases your profit margin.
What you can do as an Amazon seller is to unleash the power of dynamic pricing on your private label. An AI-based Amazon repricer tool, such as Eva, automatically optimizes the price and increases your profits.
4- Product Listing:
Now that the product and supplier are ready, it’s time to build your Amazon listing page. People buy products by looking at the page you created in online shopping because they cannot physically see the products and touch them. That’s why you should have a great product page. So pay close attention to images, titles, and product descriptions.
Appealing, high-quality images grab the attention of potential customers and give them a realistic idea of how the product looks. Amazon also has requirements for the images, such as a white background, realistic colors, and smooth edges. The product with props should fill 85% or more of the image.
The title should be between 100 to 150 characters. It’s essential that the title is clear, descriptive, and includes the relevant keywords to find your product. Since you are selling your own private label on Amazon, mention the brand name.
The description is one of the most important aspects of your listing because people reading it will most likely purchase it. Therefore, make it clear and as informative as possible. The description area is also an opportunity to add important keywords.
Customers can be very meticulous when it comes to shipping and packaging. Therefore, you should choose the fastest option that is best for your business. Some sellers prefer to sell on Amazon but fulfill orders themselves from their homes or warehouses. This method is known as fulfillment by merchant (FBM).
However, Amazon got you covered if you feel like not handling the bulk order fulfillment yourself. Fulfillment by Amazon (FBA) includes the storage in their fulfillment centers, shipment, and customer service. An easy solution for busy sellers with many SKUs, but the service comes with a price. Selling on Amazon has costs, and sellers preferring this fulfillment method should also consider additional FBA fees.
In fact, Amazon allows sellers to list the same item, both FBA, and FBM. There are many benefits for Amazon FBA private labels to take advantage of FBM, and vice versa.
If you want to benefit from both fulfillment options, there is a tool just for you. Eva’s Intelligent Amazon Repricer is the only software capable of listing simultaneously and allows you to manage them effortlessly.
Create Your Unique Brand
Brands are many things, and one of the most noticeable factors are the visual elements such as logos and colors. At best, these elements make a lasting impression and speak for your company, influencing the customers’ decision to buy.
The second thing the customers notice when they receive your product is the packaging. Customizing the packaging is an excellent opportunity to stand out and be creative.
Bottom line, starting your own private label on Amazon requires a well-thought business model and extra effort but eventually pays itself back. When the brand grows and becomes more known, the profits tend to increase as well.
Amazon is a fantastic marketplace to reach out to millions of potential customers and test the markets. It may even become your primary platform for sales. However, despite selling your unique brand, your product requires a smart Amazon pricing strategy because it still faces competition from similar items. In this case, you may wonder how to stand out from the crowd and ensure your products sell.
Beat the Private Label Competition
One of the most critical factors in satisfying the customer and selling on Amazon is the price. Researches show that users doubt the quality if the price is too low. On the other hand, if the price is too high, the expectation will be higher and challenging to meet. Furthermore, Amazon can deactivate that product if it is considered as high priced.
Eva is the perfect solution for you if you struggle to find out the best Amazon pricing strategy. Our AI-based Dynamic Pricing knows how to change prices competitively and offers the fastest way to do that. Our Intelligent Amazon Repricer brings flexibility and adaptability to Amazon Sellers. You can quickly react to the changes, catalyze marketing efficiency, and monitor the competitive landscape.
To see Eva’s significant impact on your profit and sales, you’re more than welcome to try our 15-day Free Trial!