What is Private Label?
WHAT IS PRIVATE LABEL?
Private labeling a product means you are putting your brand (label) on a product manufactured by a 3rd party manufacturer, therefore making it your own.
By creating a private label product you become the sole owner of the brand name you created.
This gives you all authority over the brand’s looks, price, distribution channels, and what products to launch in the marketplace.
When I first started creating private label products, I was contacting random companies that made products and asking if they would make “their product with my brand instead.”
The fact that they would say “yes” was mindblowing to me…
What is Private Label and Creating Private Label Brands?
If you are looking to make some real money online, it makes sense to look to the biggest marketplace on the internet – Amazon. There are a variety of different ways you can make money through Amazon. You could use affiliate marketing and earn a commission based on every sale that was made using your links. One way that is becoming more popular is selling using a private label.
If you are new to the concept and want to learn more about what private labels are and how you could sell on Amazon using your own private label, you’ve come to the right place. In the following post, that’s exactly what we’re going to cover.
What is a Private Label and Private Label Selling?
Private label selling is when you purchase generic products, normally for a very reduced price and in bulk from another manufacturer, and then add your own packaging, logo, and branding.
You then have a quick and easy product you can start selling as your own, without having to build a factory, buying machinery or worrying about copyright issues or stepping on other toes.
How to Setup Your Private Label
Choose a Product
The first step you need to set up a private label is to decide on the type of product or products you are going to sell.
To do this you need to do some serious research.
Yes, this is not exactly the most fun thing in the world, but it is crucial.
The best place to start is Amazon. You can check out the list of best-selling products.
Although this is provided to help customers find what they are looking for quickly, it is also a great resource to use for ideas about the products you might like to private label. If you find one there is a great demand for, you are already cutting out some of the risks associated with bringing a new product to market.
Obviously, you need to stay away from any products that are branded, and it’s always best to aim for items that are lightweight, inexpensive, and very generic, like electronic accessories and kitchen utensils.
Other tips to finding great products to private label include:
- Items that weigh less than three pounds and fit inside a standard shoebox
- Products that are often bought with other items that are popular, like phone cases and charger
- Items that are very durable and non-perishable
Research the Competition
The next step you need to take to have any chance of success selling private label products whether you are selling on Amazon directly or using Amazon FBA, is you need to check out your competition.
Look at what other brands are doing to market the items you are interested in selling. Look at everything from the listing content to the pricing, their ranking in the bestsellers list and the customer reviews.
You are ideally looking for a balance between demand and competition, where:
- The price offered by competitors is at least over $15
- There are not many reviews left for the products on your competitor’s pages
- Competitors with bestseller rankings of less than 1,000
- The quality of a competitors listing is either low or very average
Find the Best Supplier
Obviously, as the product you choose is important to your whole entire business, you need to make sure you choose a good supplier. Although you may be able to find one in the USA or local to you, the best place to look is international, especially if you are looking to reduce the amount you spend as much as possible.
Look for a supplier using the same keywords you used when you were researching Amazon and consider the following points when comparing and contrasting suppliers:
- What is their minimum order size?
- How much do the goods cost?
- Is there a variety of different styles and types available?
- What is the lead time on orders?
- Do they have a private label policy?
Designing and Branding Your Private Label Products
It is best to wait, if you can until you have a supplier in place before you start designing the logo and other branding aspects of your private label products. Whether you decide to try it yourself or hire a freelancer, advertising agency, or design studio, is entirely down to your skillset, budget, and how quickly you want to start marketing your products.
To get some ideas of what you could possibly do for logos and branding, it’s always good to again refer to your competitors. You want to make sure you are not copying or coming up with something like theirs because you want your customers to be able to differentiate between your rivals and your own products.
Once you have the branding and logo information, you can send the relevant files to the supplier and then production can begin.
Creating and Optimizing Amazon Listings
The next part of the process involves creating your Amazon listings.
You will have a bit of time you can spend crafting and fine-tuning a listing that is going to attract buyers, while you wait for your products to be manufactured and shipped.
You can again, choose to do this yourself by creating your own seller account and writing the content, and providing the images or you can choose to work with an Amazon expert who will help you.
The reason you might want to have someone else create the listing content for you is Amazon is very picky about what you can and can’t say within listings. (Claims or even some keywords to avoid)
Another reason is that you need to please the buyer and the algorithms at the same time.
If you are new to Amazon, it might be best to get an expert to do it for you, so your progress to market your products is not hindered.
Protect Your Private Label Product
One of the biggest benefits of choosing to sell private label products is to establish your own strong brand. To stop your brand from getting lost on Amazon, there are things you can do to create a strong brand presence, including:
- Using your brand in all listing titles and one of the images for each product
- Ensuring the logo is on all packaging for your products
- Giving serious consideration to registering your logo as a trademark, particularly if you aim to sell it outside of Amazon.
Although this is a very brief guide, we hope this has whet your appetite for success and helps you get started with private label selling through Amazon.
It does take a lot of work, but the effort is worth it in the end.