Amazon is one of the world’s most successful businesses. If you’re thinking about selling on Amazon, you’ve definitely heard of Amazon Private Label and how it’s helped millions of merchants boost their sales.
This sales technique has been used for a number of years. However, it’s worth noting that traditional private labelling isn’t as effective as it once was, for one simple reason: as Amazon becomes more populated, competition becomes tougher.
What is Amazon Private Label?
Before we get into the details, there are four main ways to sell on Amazon FBA: Amazon Private Label, retail arbitrage, wholesale, and creating your own product.
Private label items are products that are manufactured by one firm and then branded, promoted, and sold by another.
Furthermore, selling your private label items through Amazon FBA is one of the most profitable methods to do so. Right now, you may gain from designing and selling your own private label items in a variety of industries, including electronics, cosmetics, clothes, and food.
How Does Amazon Private Label Work?
Private labelling simply entails locating an in-demand product that is already being made in its unbranded condition – which is how all things begin – and then branding it as your own.
Finding a product on Amazon with high sales but few reviews, purchasing it, and labelling it as if it were yours is what Amazon Private Label is all about. Essentially, you’ll strive to improve the presentation of that original existing goods by establishing your own brand.
There are a few things to think about before you decide to attempt Amazon Private Label. Remember, you’re not selling a brand; you’re building one for an existing product.
This implies that the dividends will take some time to arrive. Consider it more like investing in equities and bonds than setting up a shop. In the long term, stocks are more profitable.
This marketing method does need a financial commitment upfront. You’ll need to purchase items and customise them to fit your brand. It is critical to do a test drive to ensure that the product will sell successfully.
What is Amazon Brand Registry?
The Amazon Brand Registry enables you to protect your registered trademarks on Amazon while also providing customers with an authentic and trustworthy experience. To be eligible for enrolling, brands must currently have a registered trademark.
The brand registry programme assists businesses in mitigating a number of concerns, including:
- Unauthorized or inauthentic listings of your items by other sellers. This is also known as a hijacked listing by sellers.
- Sellers offering items that are identical to your brands at a lower price.
- Sellers are lowering the prices of all products in a category, forcing your company to cut expenditures in order to compete.
There are various solutions available to businesses that do not have a trademark. They can use the IP Accelerator programme, register for their trademark separately and wait, or opt out of the brand registry entirely.
Do you need to be a part of Amazon’s Brand Registry program to sell products from your own Private Label?
The answer is no. But if you’re doing, know that you will have to tackle several risk factors.
The following are some of the most common risks involved with selling on Amazon:
- Listings that have been hacked and are selling counterfeit goods
- Low-cost producers offer identical goods at a lower cost.
- Category saturation necessitates drastic price reductions in order to compete.
One of the most effective methods to safeguard your internet business is to register a trademark with Amazon’s brand registration.
How to list products for your Private Label without being on the Amazon Brand Registry?
Sellers that market items without being members of the Amazon Brand Registry programme are referred to as “unbranded products.”
When you’re not a member of Amazon’s Brand Registry service, adding items with your brand name becomes more challenging. However, avoiding brand registration is not all that difficult.
Follow these steps mentioned below:
- Open a seller support case and include the area code 5665 in the subject line.
- Explain that you are a manufacturer of a specific product that requires a brand registry exemption.
- Attach product and package photographs that clearly display your brand name.
- Let’s say the goods doesn’t have your brand name or any special branding on it. In such situation, while establishing a new listing, you must list your product as generic.
While this process isn’t difficult, it does take time, as do many things on Amazon. It’s especially true if your company has a large product inventory that you’d like to sell on the platform.
9 tips for running your own Private Label on Amazon
If you’ve decided you want to sell from your own Private Label without being a part of the Amazon Brand Registry, here are some quick tips for you to safeguard and grow your business:
1. Do extensive market research
Look for products that might be suitable for Amazon private labelling. There are many items with the potential to be private labelled, but you must pick what is ‘proven to sell well’ rather than what you ‘hope’ would sell well.
2. Outsource directly from the manufacturer
Try to outsource your Private Label products directly from the manufacturer to cut down on costs and get thousands of product options to choose from.
3. Try to get as many samples as you can
Obtaining samples from your preferred providers is crucial since your Amazon seller reputation is on the line. Requesting samples allows you to view and experience the product you’re contemplating as a private label product in real life, as well as learn about the quality level.
4. Make sure that you have a perfect listing
For your product title, do some keyword research, make sure you have high-quality photographs, and prepare your bullet points for your description.
5. Test your product market
You may test the waters by opening an Instagram account and presenting your goods if a product has struck your interest. You’ll be able to engage individuals more quickly this manner, and it may also serve as a strategy for attracting outside traffic. You may also utilise it to solicit client feedback via surveys or direct communications, which will ultimately aid in the improvement of your marketing plan.
6. Always rely on FBA by Amazon for best results
Using FBA is unquestionably a secure bet. This Amazon-backed fulfilment service not only provides you the peace of mind you need when completing your clients’ purchases, but it also boosts customer confidence in your brand.
7. Seasonal items are not promising enough for your Private Label
Seasonal items are not the ideal choice for Amazon Private Label since you want to have year-round sales. Christmas items, or practically any holiday products, winter clothes, and so on are some examples.
8. Make sure you don’t have to fret over packaging
Make sure your goods fits inside a tiny flat-rate package and isn’t more than one or two pounds in weight. This will save you money on manufacturer shipping and during the fulfilment process.
9. Avoid paperwork
Food, toys, and batteries, for example, might be difficult to sell if they include any “red tape.” Choose things that are simple to make and don’t require any legal paperwork or certificates.