It’s hard to imagine the modern world without Amazon, as the e-commerce giant leads the way in online shopping with millions of in-demand products and everyday essentials for people of all ages.
So, if you like shopping online with Amazon, you may be wondering: what is Amazon private label? The same thing crossed my mind, so I started researching, and here’s what I learned!
What Is Amazon Private Label In 2022?
Amazon private label refers to a selling practice where merchants buy goods from a manufacturer before labeling and marketing them with their own brand. Amazon Basics is the most successful private label, as Amazon doesn’t actually make these products but instead sources goods from manufacturers and puts the famous Amazon label on them in 2022.
Keep reading to learn more about Amazon private label, including how it works and what it means for sellers and shoppers!
What Does Amazon Private Label Mean?
When you hear Amazon private label, this describes products purchased from the original manufacturer before being resold under a different brand.
For sellers, private labeling offers an opportunity to scoop up items with high sales and few reviews.
Upgrading the presentation and brand name makes the item more visible and attractive to shoppers.
This is actually one of the more popular selling tactics on Amazon, as there’s an opportunity to make more sales and drive revenue up with smart private labeling choices.
Branded products sell for more money and are more popular with consumers, as they establish a connection with certain brands and keep coming back for more.
Even if a merchant doesn’t make a certain product, they can buy it in bulk and add it to their brand for more exposure and ultimately more sales.
For shoppers, the advantage of private label brands on Amazon is there are more products to choose from at competitive prices, particularly from top-rated sellers.
Also, most private label brands sell popular products that people are searching for already. This means there are a lot of everyday items and household goods to be scooped up at great prices.
How Can I Sell Private Label on Amazon?
If you’re interested in selling private label on Amazon, the first thing you need to do is find a good product with plenty of potential.
Remember, you’re creating a brand for an existing product, which should be more profitable over time, but will take a bit longer to start seeing a return on investment.
Speaking of investment, this Amazon selling strategy requires an upfront purchase of products before adapting them to suit your brand.
That’s why a test run is so important, as you want reassurance that the item is likely to sell well before investing time and money into this private label launch.
Well, keyword analysis is one of the best ways to do this.
Here are the main steps to selling private label on Amazon:
- Choose a profitable product.
- Opt for a quality manufacturer over an ultra-cheap company.
- Prioritize branding design and quality.
- Write informative, appealing product descriptions.
- Test the market and capture customer feedback.
- Try to stay in the competitive price range of $15 to $50.
- Consider Fulfillment by Amazon to streamline logistics.
Which Products Are Good for Amazon Private Label?
The success of an Amazon private label venture is based primarily on the product itself and whether it’s an in-demand, easy-to-sell item.
Obscure products or seasonal goods aren’t recommended for Amazon private labeling, as you want something you can sell year-round with consistent revenue.
Also, items with red tape like toys, batteries, or food can be difficult to sell via private label, as you want to avoid certifications or legal requirements when possible.
Clothing can be tough to manage for private labels, too. That’s because the more sizes and colors there are to choose from, the more you have to manage.
It’s best to choose items that are easy to sell and ship, with straightforward descriptions and reliable features.
Some examples of popular private label categories to explore are baby products, craft supplies, office supplies, housewares, sports equipment, and pet care.
The array of budget buys on Amazon Basics is a good guide to what works and what doesn’t for private label selling on Amazon.
At the end of the day, it’s important to research possible items and invest in the option in which you see the most potential.
Just remember it will take some time to get private labels off the ground, but with the right planning and management, you could see a significant boost in revenue and sales.
Amazon is a world leader in e-commerce and tech with countless innovations and smart retail practices that put the company a step above the rest. Private labeling is a prime example, as Amazon purchases products and resells them under the Amazon Basics brand.
Private labeling isn’t limited to Amazon itself, as third-party merchants can also sell goods this way. Essentially, buying goods in bulk and selling them under a bigger, more reputable brand helps merchants succeed on Amazon and also gives shoppers a great selection of products.