There are three ways to sell on Amazon.
- Sell items you have manufactured
- Resell items from other brands
- Private label
Private label mans that you sell items made by other manufacturers, under your own brand name.
This is one of the most lucrative and popular ways Amazon retailers do business.
How to sell white label products on Amazon
Your first step is to decide what to sell. You don’t want to sell an item that is too highly competitive, nor do you want to try and sell an item there’s no demand for.
As well as popularity and competition, you should also consider profit margin, shipping costs and seasonality.
Understanding these points is where most wannabe Amazon sellers come unstuck and end up wasting money.
A sensible way to start gauging what is selling well on Amazon is to look at The Amazon best sellers page. It is updated hourly and gives you a clear view of what is currently in demand.
First, select to look at just the category you want to sell in. Then, go to the menu on the left-hand side where you can go even deeper into looking at sub categories. Be on the look out for items that are lightweight, high ranking and generic.
Another section that may be of interest is the Amazon Movers and Shakers page. On each category page you’ll see a set of products. Each product has been given a ‘sales rank’, noting its previous ranking against its current position. It looks at which products have made the most gains in sales over the past 24 hours.
When you find a product you are interested in, deep dive into a few of the top brands that appear in the Amazon search results for that product. Assess each listing’s content, reviews, pricing and best-sellers rank to get a feel for the level of competition.
Find a private label manufacturer
If there’s a branded product you are interested in, and it’s being sold by the manufacturer, contacting them about white labelling is a good idea. Many manufacturers sell their products to end users under their own brand name whilst also selling the same items wholesale unbranded to other companies.
Sites like Alibaba and IndiaMart offer access to millions of manufacturers across the world. You can even filter your search results by minimum order requirements, materials, price and more to get an accurate feel for costs and potential mark-up.
Brand and package your private label
Once you have found a potential supplier, request quotes for bulk orders. Remember to factor in shipping costs and any customs charges. If you think there’s profit to be made, you should then order some samples. Test the item thoroughly. You need to know the quality of an item before you invest in a bulk order.
When you have found a product that you think has potential, you need to decide who you will sell to. From that, you can build your brand image and design your packaging. Packaging adds a lot of value to a product, and you should consider elements such as instructions and ingredients lists as well as product labels.
Brand and packaging differentiate a product from competitors before the customer tries it. Your brand will be the foundation of your marketing and will determine your sales volume. It is super important and so you should always work with a professional to solidify your brand. The investment will more than pay off in the long run.
Fulfilment is what Amazon do well. As a brand, Amazon have built a massive customer base on fast and reliable order fulfilment. According to Statista, there are 90 million paying Prime subscribers in the United States alone. If you need to be sharp with fulfilment anywhere, it’s Amazon because customers there expect a super-efficient service.
Selling on Amazon, you can choose how to handle fulfilment. You can fulfil orders in-house or use Amazon’s FBA program. Alternatively, you can use outsourced fulfilment centres or see if your private label supplier offers dropshipping.
Remember, your shipping and fulfilment process will directly impact your ratings as an Amazon seller. Be extra sure your supply chain is in efficient working order before going live with your private label products.
Lastly, be sure to consider the costs of everything — shipping, picking, packing, warehousing, and all logistics — before deciding on which method is right for you.
Add your products to Amazon. To strengthen your brand, you should consider setting up your own brand website. If you are accepted to the Amazon brand registry you can have your own custom Amazon brand store.
Paid advertising on Amazon continues to grow and paid results often get the dominant position in Amazon search results. Selling private label products on Amazon, you may not always be the cheapest, but paid ads can help you to still be seen first. Use this alongside paid social media campaigns to target customers who want your products.
Customer feedback greatly influences Amazon sellers success. Therefore, you should make sure that customers are always answered quickly and politely. If you are starting out, a customer service executive should be one of your first hires.
Profit from your private label brand
Selling private label products on Amazon is essentially just finding generic products that are already selling well on Amazon, then creating your own packaging and logo and marketing them better than your competition. The brand you create is the selling point. If you want to sell private label products on Amazon, you should invest a lot of time and budget into researching your customer persona and building a strong brand around that.
Profits vary by product, but items that rank within the top 100 for their category on Amazon typically accumulate thousands of dollars in sales every day. With a profit at least 50% and adherence to the above steps, you can grow a healthy Amazon business around private-label sales.