What are Private label products?
If you are reading this article, you probably want to know how to sell on Amazon in private label. However before sharing our tips with you, I would like to explain what is a private label product.
“Product in Private Label” is an expression used for goods that are produced by third-party companies, but sold under the brand name of the company that distributes them – a couple of macroscopic examples could be the Boots or Coop branded products.
Although, in fact, the above mentioned products are sold on behalf of these companies, they are not produced directly by them, instead they are purchased from third-party producers.
This type of products are much cheaper than those produced by the brands industry, whose prices rise due to marketing, distribution and advertising costs. The cost of an item in private label is instead determined only by its real value, depending on factors such as the materials used and the production costs.
Contained costs, however, do not mean that the products are low quality. Many private label products come from the very same factories that produce renowned brand goods. There are, in fact, quite a few famous companies, that produce their own main brand line and private labelled goods for third-party companies.
How to sell on Amazon and why focus on Private Label products
As a seller on Amazon, you have 3 main routes you can undertake:
- Selling products of other renowned brands;
- selling products in Private Label;
- selling products of your own production.
If you produce your goods directly, perhaps this article is not of interest to you. However, if you fall under one of the two other cases, you probably want to continue reading.
If you sell products of renowned brands, indeed you can take the advantage of riding the wave of their reputation. However, you would be a simple retailer and you will have to face the competition from all other sellers, who have access to the same merchandise you sell and with the fact that the consumer is not looking for your store but rather he is interested in the products you sell.
Generally retailers of other brands have a low profit margin, because they have to keep their prices in line with those of all the other sellers who sell the same goods. Furthermore, generic products, on Amazon in particular, prevent customer loyalty, meaning that your customers will not remember your store but only the product they purchased.
Creating your own brand, on the other hand, and selling private label products on Amazon, can give you the possibility to have higher margins, because you are selling your very own brand. It can create returning customers who will remember you and appreciate your brand.
Moreover, I want to highlight that Amazon can be a great stepping stone for your private label brand. Firstly because it is a great global showcase that can reach even customers who reside in geographically distant destinations. Secondly because, thanks to Amazon’s cross-selling tools, your products can appear on the platform, even if customers are looking for other types of goods.
It is very important that you present your products in the best way possible, because you will have a lot of visibility: always remember to include your brand name in the sales announcement, and make it visible as much as possible in related photos.
In order to make your goods attractive to customers, Amazon offers you 2 amazing opportunities:
- Joining the clients who sell through the Amazon Prime service, in this way your goods will reach consumers in just one day;
- Relying on Amazon’s logistics to manage orders, shipments and returns.
How to sell on Amazon, step by step
There are two types of seller accounts on Amazon:
- Individual Seller, someone who sells less than 40 pieces per month and pays a commission to Amazon every time he/she sells an item;
- Professional Seller, someone who sells over 40 products per month and pays a monthly fee.
Depending on your needs, you can limit your sales ads to just 1 country or to 5 other countries. You can start straight away by:
- Creating a new seller account, in this way you will have access to your dashboard;
- Adding a credit card, the bank details and a contact number;
- Sharing with Amazon the details of your business, the owners and the name of a reference person.
Once you finished the registration phase you can start uploading your products and creating the listings.
How to sell your Private Label products on Amazon
In order to sell your very own products in Private label on Amazon you have to:
- Choose a product suitable for an e-commerce, for example a product which:
- can create a recurring demand;
- falls within an acceptable price range;
- is non-perishable;
- is light weighted;
- is small in size. To get an idea of what are the best-selling products, you can check out Amazon’s best-sellers.
- Find a suitable supplier: you can contact a Chinese supplier to create your very own private label products. The easiest route is to choose ODM products, which are ready-made goods made with standard materials and components, on which you can simply print your logo (read here how to do it);
- Investigate your competitors and analyse how they market their products.
- Create customised packaging to give an even higher value to your goods;
- Ask suppliers to add labels on your products and to ship them directly to Amazon FBA warehouses.
How to create products in Private Label and ship them to Amazon FBA
In order to ship goods to the Amazon FBA warehouses you must comply with very strict packaging and shipping requirements, which is why it is very important to find a reliable supplier who can follow Amazon’s instructions.
If you don’t know how to find a reliable supplier who can produce products with your brand and ship them directly to Amazon, you can get in touch with Yakkyofy. You will be put in contact only with the best Chinese suppliers, who produce goods with all the necessary certifications.
Ordering your customised products from China is really easy, just choose the items you want, request a quote and wait for them to be delivered to the Amazon FBA warehouses. You won’t have to worry about shipping, customs, packaging and you can focus only on promoting your brand.
What are you waiting for?