Amazon FBA Private Label

Collecting products from a third-party seller and selling those on amazon with the Retailer’s brand label is called Amazon FBA private label. The popularity of the private label amazon business is increasing rapidly because of the incredible benefits.

Amazon FBA allows a retailer to collect products at low cost, sell products with higher profit and stand out in a competitive market with high demandable products. Most importantly, Amazon FBA provides a great chance to launch a personal brand for the Retailer.

In this guide, we will discuss everything about amazon private labels. If you are interested in Amazon private label, then this guide would be great helpful for you. You will know about Amazon’s FBA service, FBA advantages and disadvantages, and more. So, let’s go ahead.

What is an Amazon private label?

Amazon private label means purchasing wholesale products from a third-party manufacturer and selling on Amazon with a private logo and brand name. Amazon basic is the best example of an amazon private label business.

What are Private Label Products?

Private label products are produced by one manufacturer and sold by several retailers. In this case, every Retailer uses creativity to make those products unique. For example, retailers change their designs, logos, and packaging colors to make them unique. Besides, they use their brand name before launching those products.
Private labeling has become popular worldwide because of its convenience and profit margin. Besides Amazon, thousands of retailers sell their private label products on others e-commerce platforms. Moreover, the popular private labeling personal brands are “great value” from Walmart, Mainstays from the target, and Amazon essential from Amazon. Private labels can include household items, sanitary items, and lifestyle items. Any physical product can be a private label product. Some of Amazon’s best examples of private label products are homeschool Planner, funny hat, and Copper Measuring Cup.

Why sell Private Label Products on Amazon?

Selling private label products on Amazon can make you profitable from several perspectives. Let’s know some specific reasons you should sell private label products on amazon.

Create your brand

We think it is an amazing opportunity to sell private label products. It will increase your profit more than a regular seller on Amazon. A typical retailer on Amazon can never make any brand value. On the contrary, a private label seller can create brand value through millions of Amazon customers. So, what would be greater than this?

Higher Profit Margins

Private label products directly collect from the manufacturer. So, a retailer can easily bargain and reduce the product price as much as possible. In most cases, the Retailer will buy the product at a much lower price. But you can sell these products at higher prices on Amazon.

Product customization:

Private label products naturally require some customization. However, a retailer can also fully customize their private label products. Analysis of customer reviews from your competitors can help you to know the customer requirements.
Depending on the competitor’s customer choice, you can customize and update your products. In this case, using the new smart package, high-quality graphical images, and attractive colors can improve your product quality more than others. However, in the case of private label products, you also get a lot of product customization options.

Creative control over the Amazon listing

Starting a private label business also allows you to do a new listing. So, you can arrange your amazon store with a new title, keywords, and other optimizing things. In the meantime, you are free to add your desired price, offer, discount, and more. In this case, an existing amazon product seller doesn’t get this listing control.

No competing for the Buy Box

An amazon reseller has to compete with another seller for the buy box. But a private label seller never has to make a competition for the buy box. That is why you won’t get that sale when your offer is not in the buy box. On the other hand, you will be the only owner of your private label product selling store. So, there is no competition.

The disadvantages of private label products on amazon

The private label product business doesn’t offer any guaranteed success. It is potentially profitable and steady earnings for the Retailer. The private label business has become popular but has some disadvantages too. Let’s know the disadvantages of private label products on amazon.

● Private label is not a guaranteed earning business
● There has a profit margin from $15 to $50 for private label products.
● It is competitive because many retailers work with similar items
● You need to have enough time to research the market and products
● If the investment is low, the private label becomes difficult.

What is amazon FBA service?

FBA means Fulfillment by amazon. It is a special service from the Amazon eCommerce platform. FBA service fulfills the retailer’s tasks easier. You can outsource all your order-related work procedures through amazon FBA service since amazon allows businesses to get these advantages so the Retailer can send their ordered product to the amazon fulfillment center. Then when a customer orders something, it is picked, packaged and shipped by the Amazon FBA center. Moreover, customer services and product returns are also included in FBA services.

How does the FBA work?

Amazon FBA works following the below four important steps. If you are considering taking FBA service from amazon, let’s know its working procedure.

Set up FBA:

You must have a seller account to enjoy the amazon FBA service. So, create your seller account, log in and go to seller central. You will get all FBA setup procedures there.

Create product listing:

A retailer also creates product listings depending on the customer’s demand. There are some regulations in FBA inventory for product listing. You can get ideas from there about what product should your listed or delete.

Prepare products:

A retailer has to prepare their private label products before sending them to the FBA center. Amazon has specific guidelines for transporting a retailer’s private label products to the fulfillment service center. By following those rules, you can send your product safely

Ship products to amazon:

Now you need to create a shipment plan. And must print amazon’s shipment ID on your product packet. Then send it to the amazon fulfillment service center.

Benefits of Amazon fulfillment (FBA) service

Lower shipping cost:

One of the great advantages of FBA is to reach products to customers at a lower cost. Using the FBA service, you can ship your private label products at a much lower cost than you’re packaging. Amazon asks for a cheaper shipping cost for fulfillment products.
Besides, retailers don’t require someone to manage packaging, shipping and everything. Even as a premium user, you do not have to pay more for fast two days delivery. Moreover, Amazon has started an export program for product shipping internationally.

Faster shipping:

Amazon fulfillment is best for faster product shipping. Even it tries to ship any products within two days. You can ship your products from the FBA seller center within two days if you are a premium seller. In this case, you won’t pay for fast delivery.

More storage space:

Amazon FBA offers a larger space for your product storage. So, you don’t require to manage to store space in the garage, basement or warehouse. As a result, you can save a lot of money.
Besides, Amazon FBA protects private label products with maximum security. Whether your inventory management is small or larger doesn’t matter. Amazon FBA will operate your business without hassle. SO, storing your products in the basement or garage is far better.

Customer return and refund management:

Amazon FBA has a special customer service supporter. That supporter will support your business 24/7 hours. So, the customer can reach your products when contacting the fulfillment service center. In the meantime, amazon’s fulfillment service handles all return and refund complaints from a customer.

What are we offering for an amazon FBA system?

Are you a retailer and thinking about the discussion and management with amazon FBA service for handling your private label business? A retailer will send his product to the Amazon FBA center and get amazing service. And all activities between these two will be controlled by the Retailer. Then we are here to help you broadly. Let’s know what we are offering you.

Save on Time:

We are determined to save you time. As a retailer, you need a lot of time to manage your product sales with the amazon FBA service. So, have you enough time to handle all of those tasks? If not, we will give you the best support. Firstly, we will track your product operation from inventory to quality control and shipment. With the time you save on this, you can think of innovative things for some other businesses. Moreover, we promise to reduce your stress and overwork load.

Released from own storage:

Every Retailer needs its own storage space to keep private label products. But finding a suitable space for temporary product storage is challenging. Some retailers store their products in a residence or garage. But it isn’t easy to store, pack, and ship products from home or garage. Besides, it is too expensive for a retailer.
So, amazon FBA provides a larger organized space for your temporary product storage. As a result, a retailer can save a good amount of money in a year. But who will manage and control the inventory management for the amazon FBA service? We are here to take care of your inventory for amazon FBA.

Expert Quality Control:

We have an expert team to prepare your amazon FBA services. Our skilled team member has researched a lot on amazon FBA rules and regulations. That is why our professional supporters can help you with product quality control. If you do not have enough expertise to handle quality control according to the amazon FBA guide, then we will help you.

Streamline the Process:

Maybe you lack the patience, tie, and energy to make an efficient, streamlined workflow. If you take an amazon FBA prep service from us, you don’t require to spend much time and patience in making workflow. We will work to streamline the amazon fulfillment process to reach your business with maximum potential success.

Improve Profit Margin:

We will help to speed up your business with more profit. Our team will work on two product preparation and shipping tasks. You will get support from years of experienced expert assistance. We work to bring more customers. And more customers will generate more profit for your business.
When your business grows, the customer demand will also grow. Then managing all tasks with amazon FBA might be tricky. No worries, we will provide you required support. If you are facing a problem like this, we can support you. We will guide you with our service to generate more profit for your private label company.

How to Sell Private Label Products on Amazon

There have a few crucial factors in Amazon’s private liable product selling. These factors can lead you to a successful private label business. All of these factors are closely related to one another. So, if there is a problem in one aspect, it will affect other factors. So, it is recommended to consider all.

Research on a potential suitable product:

You can make a private label business with any product. But if you want to succeed quickly in the private label business, keep the following points in mind.

Choose small and lightweight products:

Choosing small and no more than 1 kg product for private label is recommended. As a result, you’re shipping from the manufacturer, and re-packaging from your fulfillment center would be easier. As well as, your customer can release smaller and lightweight products at a low cost.

Non-seasonal:

Seasonal and event-based products are not sold all around the year.
In this case, you will get a lot of sales during one time of the year, but you will not get any sales during the rest of the year. So, don’t choose any seasonal and event-based products. Choose products that will sell more or less throughout the year.

Easy to sell:

Try to avoid groceries, toys, and electronic products. This type of product requires certification, paperwork, and legal compliance. Besides, these products can be faulty. So, it is good to avoid these products.

Uncomplicated:

Avoid selling clothing and electronic product. Although both could be profitable, there have several difficulties. In the case of electronic items, your customers might ask for customer service later. In the case of clothing, you need to stock varieties of colors and sizes in the same design. So, overall, this could be challenging. Besides, there has a product return hassle for this kind of product.
You can research Amazon for the best products that would be great for your FBA private label business. So, keep an eye on amazon’s best sellers, new releases, and movers to get an idea about products.

Research source to purchase for private label business:

You can figure out a few goods and reputed manufacturers. It is a critical stage for a retailer, but you can try to get huge product resources in Alibaba. Alibaba is a great source of multiple varieties of products. Besides, AliExpress is another source for private label product purchasing. But must contact with the supplier about Product cost to the supplier. Many suppliers can give you a free sample. Sometimes, you might get sample products with only shipping costs.
But no matter how you collect the sample, it’s your job to check the quality of the product. If you like the sample, go for further discussion of five dealers and make one or two dealers per your choice.

Choosing product samples and negotiating for price:

Your private label products can impact good or bad on your business. So, a sample from your selected supplier is most important to ensure your brand reputation. So, request some samples and use that in real life. Then you can understand the standard level of the products.
Collecting sample products from unknown supplier require expense with the manufacturer. Also, remember to check out the product certification.
After you like the product, talk to the supplier about the price. You will get chances to negotiate for a lower price. But remember that purchasing wholesale products with the lowest price is only sometimes good. You have to ensure the product quality as well as low price purchasing.
Confirm wholesale order if your chosen supplier agrees with your preferred price. However, a supplier may not agree with your price range. So, you need to make the negotiation easier. In this case, you can come to a deal after more discussion. In the meantime, talk with your wholesale supplier about your private label business with his products

Logo and package design:

Once you have brought the products, think about the brand logo and product design. Many retailers choose a logo and package design before purchasing products from a producer. But it is better to select the brand logo according to the product type after buying it. The best practice is to choose a logo depending on the average products of your private label business.

If you are not good at design, hire a professional graphic designer. Besides, there have several Amazon FBA private label services where you can get an amazing graphical image for your product.

Create a product list for Amazon FBA private label:

Have you already completed your discussion with the products supplier and graphic designer for a logo and package design? Then your product is produced, and the design is created. It is high time to create a listing for the amazon FBA private label.
Remember that you need an approach to reach your products, about 197 million authentic amazon customers. So, you need to optimize your products as much as possible with high-quality graphics, less competitive keywords, and eye-catchy titles. For this, you need to research enough.
Here we have some tips for your successful product listing on Amazon. First of all, Research amazon search results to get effective keywords. Secondly, take enough time to make a unique and attractive title. You must try to use bullet points when representing your product features. Most importantly, you must use relevant keywords and titles for your product.
Moreover, Amazon has its ranking algorithm. So, we recommend using the primary-level keywords first. And all of the keywords would be related to your products and service. But never use irrelevant keywords. An irrelevant keyword can lose your ranking on position.

Testing the market:

Market testing can help you to know the demand for your chosen products. So, you can create an Instagram account and upload your product for testing purposes. But your Instagram must be relevant to your product and have enough followers.
This process will let you know the actual demand for your product. Moreover, it will help you to get more authentic customers from an outside resource. It will help you improve your business with the latest marketing strategy. Besides, Instagram marketing also lets you review customer feedback

Setting a competitive price:

Be careful when you set prices for private-label products. The average price range for private label products is $15 to $50. So, set up your price range within this price. Don’t sell a product for less than $15 because it doesn’t make you a good profit. On the other hand, those who buy products for more than $50 find reputed brands. So, don’t sell private label products for more than $50.

Fulfill product order with amazon FBA:

You need amazon FBA fulfillment when you start to sell your private label products on Amazon. However, you can do it by yourself or with a team. But selling and maintaining more than thousands of products on amazon is not an easy job. So, it is best recommended to use the amazon FBA service. After a customer place an order, from payment to product receipt, returns, order cancellation and shipping, everything you can get from an amazon FBA service.