Detailed How-To for Private Label Sellers

 

Here you will find how to start working on Amazon and build your private label brand. The first steps are similar to what FBA sellers should do: find product ideas, check out the demand, analyze your competitors. Your main goal is finding best private label goods ideas, as these will be the products you will work with further.

 

What Does ‘Private Label products’ mean?

Well, these are brands and branded products that legally belong to a seller (retailer or supplier). Note, that retailers may not produce these items by themselves, they usually order them from manufacturers, mainly Chinese.

So, manufacturers have no legal right to own that labels and brands, as they just produce products for retailers that sell them under their own brands.

 

Steps of Private Labeling

To create your own brand, your private label, you should take several steps that can take a long time. Don’t be eager to get jumps in revenues or lots of brand advocates in early months. Be patient. Growing own brand on Amazon usually takes years.

And here the steps of creating and developing your private label on Amazon:

  1. Finding a suitable product or niche.
  2. Choosing a supplier for producing a product.
  3. Create your brand style (designs, logo and packaging).
  4. Add the product to a listing on Amazon.
  5. Join the Amazon FBA.
  6. Start selling your branded items on Amazon and grow your business.

 

How to Define Good Private Label Goods?


You know the scale of Amazon with millions of products sold in its marketplaces. What to start with to pick up just one product idea? Follow these simple guidelines:

  1. Set certain product criteria: size, weight, price, etc.
  2. Don’t select restricted products. Some of them can’t be sold on Amazon without reviewing.
  3. Don’t select unwanted categories, later we’ll tell you more about them and why they should be avoided.


Product criteria

So, let’s start with the details of criteria for your future private label products.

  1. Price should be between $20 and $60. Not to low and not too high as well, as you should make profit without making your product too expensive. Moreover, people sometimes connect low prices to poor quality.
  2. Small size and lightweight. Items of your choice should fit a shoe-box and weight under 2-3 lb. This influences the shipping costs and your margin. What’s more, Amazon charges additional fees for weighty large products.
  3. Simpleness. Your item should be simple for customers not to have too many questions about how it works and what should they do with it. It can also be durable, as customers rarely return high-quality and durable products.
  4. Note, that your product actually can be private labeled. We mean that it should be kind of unique, so it is always better to stay away from niches taken by well-known brands.
  5. There should be the demand for products. You can easily check this by looking at BSR (it should be low) and the search volume (it should be high).

These factors are essential your success on Amazon.

By the way, here is a detailed manual on how to start your own FBA or Private Label business on Amazon.

Apart from everything said above, there are several other points to keep in mind while selling on Amazon. Their main idea is finding goods with low competition and high demand. Here they are:

  1. Sales rank. It is the way Amazon ranks all the products by their sales volume. Still, the higher is some product’s sales volume, the more is the competition. You should invent some innovative methods of selling products to beat competitors with high sales rank. That’s why we recommend selecting some category where best sellers have ranks of 1000-1500. This means that you will get enough search volume and will be able to sell product profitably (get not bad margins) as well.
  2. Product reviews. See how many reviews your competitors have. Too many reviews can mean great competition. It is also recommended to check the contents of reviews: are they positive or negative? This is the place where you can learn about competitors weaknesses and use it to enhance the product and beat them.
  3. Listing quality. Best sellers usually have the most high-quality listings. It would be hard to compete with them. Look at medium-quality listings and try to make yours better. It will help to overcome your competitors in a chosen niche.

After you have chosen some product to sell, you should look for a manufacturer.

 

How to Find a Supplier?

You can look for a supplier either in the US or in China. Most Amazon sellers search for manufacturers in China as prices for products of the same quality are much lower there. You will have to care about logistics, though.
Alibaba is a great place to find suppliers, as they provide foreigners with special wholesale discounts and the assortment of products is really vast.

Here is our article on how to find high-quality products in China and not to become scammed.

Long story short, here is the list of points for you to keep in mind while looking for a Chinese supplier on Alibaba:

  1. Pay attention to their experience, try to find someone who has been on Alibaba for 2 years or more.
  2. Discover whether they give any possibilities for customizing private label products.
  3. Look for OEM. These are suppliers who don’t produce products under their own brand, but manufacture goods for other sometimes even widely-spread brands.
  4. Find out what payment methods they use, choose ones who work with PayPal or Escrow.
  5. Ask for samples before making a large order. Moreover, think of your future order in advance and ask about minimum order quantity (MOQ).
  6. Check all the factors which can prove supplier’s good faith.

 

Create Your Brand Style: Logo, Package, etc.

These things are what makes your brand different. You have to research your competitors and find out what they are lacking to make your designs the best.

Here is an example:

The first picture demonstrates a knife with a logo on its blade. Not bad, but we don’t have any information about its package.

The second picture shows us both a knife and its package. Noteworthy, these products are in the same price range. We are sure that their usability is pretty much the same as well.

If you are not a designer, you can hire one on Fiverr or Upwork. Well, the price can be not very cheap but it is not a great piece of cake when your product needs to be distinguished from all others.

 

How to Host Your Product on Amazon?


Always keep in mind that the gist of Private Label is creating a strong brand identity and perception for the prospects. That’s why you should use the following points while hosting your goods on Amazon:

  1. Use the name of your brand in the listing title.
  2. 50% of your product pictures should include the logo.
  3. Your logo can be sticked to the product’s package.
  4. You may add branded accessories to every order.

After it works and your brand becomes well-recognized, you have to protect it from copying. Amazon Brand Registry will be of great help here.

 

How Does Amazon Brand Registry Work?

It is an Amazon program that helps sellers control their brands and private labels more properly. It gives some sort of guarantee that your product won’t be counterfeited or stolen. Other sellers won’t copy your photos and product descriptions, so you get a full control over your Private label.

However, this kind of “immunity” is applicable only to Amazon and its marketplaces. There are no guarantees that your product won’t be faked offline and sold by small retailers.

After all, to achieve the higher level of protection, you can register a trademark. It will be a legal approval that all rights belong just to you.

So, now you know what to do and can at least start thinking of your private label product. It has a great potential in any case. So… What will it be?