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Selling Private Label Products on Amazon: Focus on Your Product

A step-by-step process on selling private label products on Amazon along with things you need to consider for your online business. Factors such as what to sell and when to sell are briefly discussed within.

Introduction

The e-commerce giant Amazon is home to thousands of merchants worldwide whether they are selling originally manufactured products, reselling other branded products or acting as middleman for other online merchants. Some of the best selling products in Amazon are actually private label products–items which are originally manufactured by private label manufacturing companies and just are acquired and sold by other companies under their own brand name.

Private labeling is easily one of the most popular business model when selling products in Amazon. But picking up this business option does not mean it would automatically mean you will raking lots of cash out of private labeling. It is a popular business model but not an easy way to make money on Amazon. There are a lot of factors to it from branding, marketing and promotions which has to be covered. Selling private label products is not as easy as commonly claimed, but definitely still feasible these days. In this wiki guide, we will teach you the right way on how to sell products on Amazon.


selling private label products

5 Easy Steps of Selling Products on Amazon

1. Identify your market and pick the right products to sell

You do not want to jump at Amazon head first by selling products that have tough competition and significantly low demand. Your initial step has to identify and research about your market for you to be able to determine when to sell and what to sell in Amazon.

Amazon experts say this initial step has been proven to be very crucial for Amazon merchants whether they are still looking for their first private label product or looking to add other products in their roster. This is a crucial stage wherein some of them end up stagnant and is unable to move forward the ranks because they end up picking the wrong products to sell in Amazon.

The following factors have to be considered when choosing the right selling products in Amazon. Product value, shipping costs, seasonality, product demand, sourceability and competition.

A great site to visit to check on potential products and innovative product ideas is the Amazon Best Sellers list. There, you can scope products and filter them to make sure you find products with less competition despite a high demand. You must be rational enough to weigh these categories and even dig deeper down into Amazon sub-categories. Other sites you can visit for finding right products for private labeling are 1) eBay 2) Reddit 3) Alltop 4) Alibaba 5and 5) Flippa.

The by-far best way is to get products ideas though BEFORE they are becoming popular. Try to think yourself of something that is currently underrated and that could sell well when branded and marketed correctly.

2. Get to know the right suppliers and manufacturers

The sites mentioned above can be a good source of suppliers and manufacturers as long as you know how to engage with people who are also on Amazon. If you are keen enough to do your research, you can be caught surprised to find out that a big percentage of these suppliers and manufacturers come from or are based in China. Simply filter your potential suppliers and manufacturers based on minimum order requirements, materials, service fees, price, manufacturing lead time and other factors for you to make sure you are working with someone who fits right on to your budget and needs.

You can also use Google and directly search for these suppliers and manufacturers. Most of them have websites and sometimes social media pages to make sure they are accessible via the internet and keep them closer to their current clients and potential customers. We cannot assure of their customer services when inquiring for them online, but there are far few of them who instantly reply to inquiries in just a matter of hours.

You can also find these suppliers and manufacturers at trade fairs and wholesale markets. Most of these private label companies display and showcase their products at these events and it would be easier for you to talk to them directly in these trade fairs and wholesale markets then ask for their contact details.

Last but not the least, you can work with a third party manufacturing company for strategic sourcing solutions. These companies can help you to get an edge over your completion in terms of price and customization.

3. Design and modify your products

Once you have decided which product/s you are going to pick for private labeling. You now have to design, brand and package these products to make them your own. Depending on your budget, you can choose to stick a simple label on the product or choose for it to undergo full-scale custom product design which could be inclusive of instruction manuals, ingredient lists and other product information.

Always keep in mind branding is a huge factor to selling private label products and marketing so better spend some cash on it by hiring professional graphic designers and packaging companies to stabilize your brand. Your investment for branding a generic product will surely pay off later on compared to simply paying for less efforts to transform a generic product to sell on Amazon.

4. Analyzing fulfillment options when selling products on Amazon

There are two options available when it comes to fulfillment when selling products on Amazon. The first choice is to store all your product in-house and the second it to pick Amazon’s FBA or a similar program by a different fulfilment provider. You can take advantage of third-party fulfillment centers as long as you make sure it is a cheaper option compared to Amazon’s FBA program (which it usually is). The latter is a popular option for small businesses trying to sell private label products. Here are the exact cost for Amazon’s FBA program.

Your fulfillment process will have a huge impact on your ratings as an Amazon merchant selling private label products. You have to make sure you have an efficient fulfillment line before even going live at Amazon.

5. Go advertise and sell

With all the prerequisites mentioned above in place, you can now start to advertise and sell private label products at Amazon. Your marketing strategy will be your sole responsibility and you need to find creative methods in order to stand out in a huge marketplace such as Amazon. You can also incorporate social media marketing on to your merchandise as this is considered as the most effective platform to market and sell private label products at Amazon these days. There is no right or wrong when it comes to marketing, simply do whatever it takes to sell and make money.

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