private label Archives - Seller Snap Thu, 09 Nov 2023 08:08:15 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.2 https://www.sellersnap.io/wp-content/uploads/2020/07/cropped-favicon-32x32-1-32x32.png private label Archives - Seller Snap 32 32 Comprehensive Guide to Private Labeling: Finding Winning Private Label Products and Private Label Manufacturers https://www.sellersnap.io/private-label-products-complete-guide/ https://www.sellersnap.io/private-label-products-complete-guide/#comments Wed, 16 Aug 2023 01:36:01 +0000 https://www.sellersnap.io/?p=21321 Private label products have been an essential component of the consumer industry and the economy in general. Although private labeling gained popularity in the 1980s, its rich history can be traced back as early as the 1800s. 

Presently, private labeling has risen to prominence as one of the top options for sellers and entrepreneurs looking to enter the eCommerce industry. 

If you want to establish your own private labeling business, this article serves as a guide to help you discover private label products, connect with private label manufacturers, and explore effective channels for selling your inventory.

What Are Private Label Products and How Does Private Labeling Work?

 

what-is-private-labeling

 

There are many ways to participate in the booming eCommerce industry. Apart from venturing into Amazon FBA or auctioning items via eBay, you can kickstart your eCommerce venture by selling private label products.

Private labeling is one of the most convenient ways to start an eCommerce business in 2023, as it helps you lower your startup costs and reduce stress at the very onset of your eCommerce journey. With private labeling, there is no need for you to immediately open a front office and hire employees to set up the product line for your brand.

The first step towards becoming a successful private label seller is to find winning products. Essentially, private label products are merchandise created by third-party manufacturers but marketed under the retailer’s own brand. The retailer or private label seller holds authority over various aspects of the products, such as specifications and packaging.

In its simplest form, a private label product refers to an item produced by one company but sold under another business’s brand name.

Some pioneering businesses that helped popularize private labels in the 19th century were Brooks Brothers, Macy’s, and Lord & Taylor. Dubbed as “palaces of desire,” these businesses offered private label goods at a fixed price below their competitors.

Since the private label products offered by the likes of Macy’s are priced less than brand-name alternatives, it gave consumers more economical options while becoming a “counter-inflationary force in the economy.”

Today, the private label business model has found new life, particularly in the field of eCommerce. eCommerce sites, especially Amazon.com, ushered in a more dynamic platform for private label businesses.

The private label model has become a popular choice for most Amazon sellers. It is estimated that more than 50% of Amazon sellers utilize the private label business model for their own brand and product line.

 

private-label-stats

 

From a macro-perspective, Europe’s private label segment has the highest market penetration, between 20% to 50% of supermarket unit sales. While in the United States, the Private Label Manufacturers Association (PLMA) reported a growth of 11.3% in-store brand sales, reaching a new yearly high of $228.6 billion.

Considering growth rates and market penetration levels, it is safe to say that private label consumer goods perform better than some branded products. It suggests that consumers recognize that private label products can offer comparable or even superior quality and value compared to the national brands they used to buy.

How To Find Private Label Products

Finding a winning product for your private labeling business is crucial for success. To help you find private label products, here are some necessary steps you should take into consideration: 

 

finding-private-label-products

 

Perform Proper Market Research 

Before you launch a product on the internet, you should see to it that thorough research and analysis have been done. It is best to conduct proper market research before investing in your private label product ideas, as it helps you save time, money, and effort.

Market research pertains to the process of evaluating the viability of your product, which allows you to know your customers, the market trends, and even your competitors in the market. 

Conducting research helps you avoid costly mistakes. For instance, if you are new to private labeling or you are a small business owner transitioning to eCommerce, proper market research can provide you with critical information including but not limited to:

  • Potential Total Project Cost
  • Potential Profit Margin
  • Possible Return on Investment (ROI)
  • How Much a Customer Is Willing to Pay For Your Product
  • How Your Competitors Price Their Products

There are many ways to conduct market research to help you improve your private label product ideas. The traditional method, often employed by big companies or corporations, is to hire a prominent market research firm. 

However, if you are on a budget, you can utilize market research tools, software, and platforms that provide actionable insights, including the following: 

Census Bureau: The Census Bureau offers useful information based on the U.S. census. With the help of the Census Bureau, you can identify potential target markets across the United States. 

Qualaroo: This market research tool helps you understand your target audience through targeted surveys. Targeted surveys are vital to obtaining information from a specific audience. 

Answer The Public: Answer The Public is a free-to-use market research tool that provides a set of adjacent topics and questions people are searching for about a particular subject. 

Statista: This statistical portal for market information can provide reliable visual data, market research reports, and statistics for your private label business

Qualtrics: Qualtrics is an all-in-one market research tool capable of creating advanced surveys to segment markets. It can also provide you with powerful recommendations to improve your research. 

Pew Research Center: Pew serves as a free data source that provides a dataset by research area, including Global Attitudes & Trends and Social & Demographic Trends.

Google Trends: Google Trends provides you with insights and analysis on Google’s top search queries, which you can use to analyze the potential of your product ideas. 

Use Product Research Tools 

Another method to help you find the best private label products for your eCommerce business is to use product finder or product research tools. A product research tool can help you narrow down your choices of products for your eCommerce business based on specific filters. 

Some of the popular options when it comes to product finder tools are the following: 

SellerApp: You can use SellerApp to look for potential winning products online. SellerApp offers sellers and entrepreneurs premium features including but not limited to their database of over 100 million products and close to a billion data points, as well as real time-tracking of crucial product metrics. 

AMZBase: If you plan to perform product research for your Amazon private label business, you can use this free product research Chrome extension. AMZBase is unique from other free Chrome extensions because it provides immediate access to other seller tools and platforms like Alibaba, AliExpress, eBay, and even the Google search engine. 

CamelCamelCamel: CamelCamelCamel is a popular price tracker that can also be used as a product research tool, especially by newbie online sellers. It has features that can make your product research faster, and the best part is it is totally free. To use this product research software, you follow the steps below:

STEP 1: Go to its website, camelcamelcamel.com

 

camel-camel-camel-image

 

STEP 2: Once you are on the website, you can search for a product using the Amazon ASIN number. However, using an Amazon ASIN number for product search is only ideal if you already have a specific product in mind and you simply want to further confirm its viability. 

 

camel-camel-camel-image-2

 

STEP 3: Alternatively, if you do not have a specific product in mind or you simply want to check more product ideas, you can use the “Popular Products” tab to give you various options for potential private label products

 

camel-camel-camel-image-3

 

Check Social Media for Trends

Apart from using private label seller tools to find winning products for private labeling, you can also use social media platforms to check for products that are gradually gaining popularity. Here are some social media platforms you should look into for trending items. 

TikTok

TikTok has introduced a new shopping feature that enables third-party sellers, brands, and content creators to showcase and sell products on their platform. Since products are showcased through in-feed videos and Lives, it quickly catches the attention of TikTok users worldwide. 

You can utilize TikTok Shop to your advantage if you wish to check for trending products online. One notable method to search for potential winning products on TikTok is using TikTok hashtags. 

 

tiktok-search-page

 

Using the hashtag #TikTokMadeMeBuyIt, you can check what products are trending and resonate well with users. You should pay attention to the views, comments, and likes obtained by a particular product video, as it indicates shoppers’ sentiment towards the product being promoted. 

Pinterest 

Pinterest is another popular social media platform that you can use to check for trends and trending products. To find potential winning products on Pinterest, you can inspect the following: 

Pinterest Trends: These features will give you insights into popular content on Pinterest. Pinterest Trends can show you a historical overview of top search terms and topics across multiple countries, including the United States, Canada, the United Kingdom, Brazil, Spain, and more. 

Pinterest Predicts Report: Before the end of each year, Pinterest releases an insightful report known as Pinterest Predicts Reports. This report can help you identify the following year’s potential trends and winning products. For next year, you should be on the lookout for Pinterest Predicts Report 2024

 

tiktok-stats-2024

Image Source: Pinterest Business

 

Explore Popular Pins and Boards: You can check for potential winning products through popular pins and boards. Examine popular pins and boards for products that attract high engagement. Analyze the discussions on these pins and evaluate the comments to understand consumer preferences better. 

Instagram 

Instagram is another popular social media website that embraced eCommerce into its platform through its Instagram Shopping. Instagram Shopping gives business owners and entrepreneurs an immersive storefront that allows Instagram users to shop for various products and brands. 

There are several ways through which you can leverage this social media platform for product research, and this includes: 

Checking Hashtags: Similar to TikTok, you can also check hashtags related to your niche. Checking for relevant Instagram hashtags enables you to discover trends, find competitors, and gain insights about your target market.

Following Influencers: Influencers thrive on Instagram through product promotions. By following influencers, you can gain better insights into their content and the products they promote. Audiences’ responses to products that influencers promote give you ideas on how to improve your future products. 

Monitoring Competitors: You can also use Instagram to check on your competitors and gain a perspective on how they use the platform for their products, including pricing strategies and consumer behavior. Having this relevant information can help you improve product research and marketing strategies. 

YouTube

Another effective avenue to help you find winning products and improve your product research is YouTube. This video-sharing social media platform showcases many video posts that can guide you to potential winning products.

 

 

In particular, top 10 videos, unboxing videos, and consumer reviews give you valuable insights into product features, pros and cons, and overall customer satisfaction. Additionally, with the help of these product video presentations, you can better understand how products are presented and initial user impressions.  

Lastly, YouTube product videos also give you a glimpse of emerging trends. You should look for product videos or eCommerce-related videos with high views and engagement to give you an idea of popular products and categories. 

Check Amazon for Product Ideas

Amazon offers numerous product ideas to help you decide which items are ideal to launch for your private labeling business. It is estimated that there are over 12 million items across Amazon categories. 

There are many ways to find potential private label products on Amazon, and it includes the following: 

Checking Amazon Suggest: Amazon Suggest is a valuable feature that helps you better understand what Amazon shoppers are looking for. To gain insights concerning Amazon Suggest, go to Amazon’s search bar and type in your initial product idea, category, or niche. 

 

amazon-suggests

Image Source: Amazon

Amazon will then give product suggestions just underneath your search term. Sometimes, these suggested products do not even have their own category on the website, which means it is something new to the marketplace. 

Checking Amazon Movers: You can also check the Amazon Movers and Shakers page. You can use this Amazon page to give you an idea for your potential private label product

 

amazon-movers

Image Source: Amazon

This page displays products trending on the website, including the biggest gainers in sales rank over the past 24 hours. Since it is an emerging trend, you will have a better opportunity to dominate that particular category or niche. 

Checking Amazon Best Sellers: You can also check Amazon’s Best Seller list to help you find winning products or further improve your product research. This list showcases Amazon’s top-selling products within featured categories near real-time based on BSR scores.

 

amazon-best-sellers

Image Source: Amazon

Check Amazon Wish List: Amazon provides shoppers with a feature allowing them to list some of the products they want to receive as gifts. However, you can utilize this Amazon Wish List to get more ideas of what products most consumers want. Hence, expanding your list of potential private label products

 

amazon-wishlist

Image Source: Amazon

Attending Trade Shows and Industry Events

Despite easy access to inventory items online, you must also consider the advantages of face-to-face transactions. Attending trade shows and industry events is still highly suggested to give you additional options regarding potential winning products for your private labeling business. 

When attending this type of event, visit booths and engage with exhibitors or private labeling manufacturers to learn more about their products and latest innovations. 

You can stay up-to-date with the latest product developments by actively participating in trade shows and industry events. Furthermore, you can also gain more industry-specific knowledge, insights into consumer demands, and a clearer understanding of industry trends by attending industry events. 

Consider Other Industries or Product Categories

When searching for winning products for your private labeling business, you should also seek inspiration from other industries or product categories. You can take one thing from other industries or product categories and put them together to improve your product idea. 

Try to examine different thriving products or emerging trends in unrelated fields that possess comparable characteristics or address the same issue that your target market encounters. Evaluate whether there are specific product attributes or functionalities that can be incorporated into your own product concept.

Likewise, it is beneficial to investigate consumer preferences and behavior in other industries or niches to make necessary modifications to your private label product. Aim to enhance existing ideas and create a more innovative product that brings value to consumers.

Top 9 Private Label Categories Consumers Prefer | Private Label Products You Should Consider 

 

Private label products were once considered generic alternatives to popular brands. However, consumers have become more open to buying private label items over the past years. Thus making private labeling a highly lucrative business model.  

To give you an idea of what products you should develop for your business, here are the top 9 private label categories consumers favor

 

Personal Care 

 

 

personal-care-category

Image Source: Amazon

 

Personal care is one category you should check for private label opportunities. It is estimated that almost 55% of consumers purchased private label personal care products. 

Personal care products have already established traction in the private label industry, and you can leverage consumers’ familiarity with personal care products. Some popular private label products under personal care include shampoo, soap, and body cream. 

Apparel

 

apparel-category-private-label

Image Source: Amazon

 

Consider adding clothing and apparel items to your private label inventory, as they present a profitable opportunity. Approximately 55% of consumers have already made purchases of private label apparel, and about 24% have expressed their willingness to explore different types of private label apparel items.

If you want to embark on a private labeling business centered on apparel, you should look into jeans, T-shirts, socks, and underwear as your possible inventory items. 

Footwear

 

private-label-footwear

Image Source: Amazon

 

Footwear products are another ideal category you should consider for your private labeling business. Venturing into private label footwear products can be profitable, especially since more than 31% of consumers are willing to purchase private label footwear items, including but not limited to shoes, boots, heels, and slippers. 

Beauty Products 

 

 

private-label-beauty-products

Image Source: Amazon

 

Beauty products continue to be in high demand among consumers, whether shopping on Amazon or other eCommerce platforms. Statistics suggest that over 30% of consumers have already purchased private label beauty products, and approximately 23% are open to buying such private label items.

Some popular consumer purchases for private label beauty products include facial cream and makeup. These products specifically fall under the cosmetic category. If you wish to venture into private label cosmetic products, you should know the laws governing cosmetic items, especially in the United States. 

Although cosmetic products sold in the US do not require FDA approval, some laws and regulations still apply to cosmetics. The two most important laws pertaining to cosmetics marketed in the United States that you should be aware of are the Federal Food, Drug, and Cosmetic Act (FD&C Act) and the Fair Packaging and Labeling Act (FPLA). 

 

Pet Supplies 

 

private-label-pet-supplies

Image Source: Amazon

 

There is definitely a market for private label pet supplies as consumers move away from overexposed national brands. It is estimated that around 31% of consumers have already purchased private label pet products, and 15% are planning to do the same. Some pet products for private label inventory may include eco-friendly pet shampoo, pet treats, pet wipes, and more. 

 

Electronics 

 

private-label-electronics

Image Source: Amazon

 

Electronics is another category that consumers consider for private label products. More than 30% of consumers are open to the idea of purchasing private label electronics products. You can start with items such as batteries, ear pods, shavers, and other small gadgets for your private labeling business. 

 

Fashion

 

private-label-fashion

Image Source: Amazon

 

Handbags, backpacks, wallets, and belts are some of the products under the fashion category you can include in your private label brand. Over 35% of consumers are interested in private label products under the fashion category.  

 

Home Furnishing

 

private-label-home-furnishing

Image Source: Amazon

 

Another avenue to check for potential winning products is the home furnishing category. Some items you can include in your private label inventory under this category are bath towels, duvets, decorative pillows, and other products that provide consumers with stylish options for interior design. 

 

Fitness Accessories 

 

 

private-label-fitnes

Image Source: Amazon

 

Lastly, you can also check products under the fitness accessories category to include in your private labeling business. Products such as yoga mats, lifting belts & gloves, and elastic bands are some of your private label options.

You can take advantage of the growing popularity of home fitness exercises and sell your own private label fitness accessories. Venturing into private label fitness accessories would likely yield positive results since the home fitness industry is projected to increase to  $14 to $21 billion by 2028. 

 

How to Source Private Label Products? | Finding Private Label Manufacturers or Suppliers

 

private-label-suppliers

 

Once you have narrowed down your potential private label items, you can now start searching for private label manufacturers or suppliers, depending on your need and business objective. Here are some ways to help you get in touch with potential suppliers or manufacturers for your private label brands

Online Platforms and Directories

The easiest approach to finding private label manufacturers is to use online directories and B2B platforms. Technological advancement has made it much easier to communicate with potential suppliers, even those based overseas. 

Some of the popular online platforms and directories you can check include. Alibaba, Global Sources, and DHgate.com. These websites have unique features and functionalities that make finding a supplier to attend to your private labeling needs quick and easy. 

Local Manufacturers

Depending on the product you are looking for, local manufacturers in your region may accommodate private label requests. Local sourcing has advantages like shorter lead times and accessible communication.

If you want to have a shorter lead time or quick access to a manufacturer’s factory to better understand its manufacturing process, you should consider local manufacturers in your area. For private label sellers based in the United States, you can explore some of these private label manufacturing companies outlined below. 

Private Label Manufacturers in the United States

 

Company Product Offering Website Location
Classic Caps & Embroidery Custom Headwear www.classicce.com/custom-headwear.htm Texas
Sockprints Custom-Branded Socks for Businesses www.sockprints.com California
David Oreck Candle Company Candles www.davidoreckcandles.com Los Angeles
Private Label Select Organic Skincare Products www.privatelabelselect.com New Mexico
Superior Supplement Manufacturing Custom Supplements www.superiorsupplementmfg.com California
Tropical Products Personal and Home Care Products www.tropicalproducts.com Massachusetts
Brushes by Karen, Inc. Cosmetics & Brushes Brushesbykaren.com New York
Champion Brands, LLC Engine and Motor Oils www.championbrands.com/private-label Missouri
Safetec of America, Inc. First Aid Ointments & Sprays www.safetec.com/private-label New York
Daily Manufacturing Personal Care Products www.dlymfg.com/private-label California
R.D. Alchemy Non-toxic, Therapeutic (Natural) Products www.rdalchemy.com/pages/copy-of-private-label-white-label-custom-form California

 

Social Media and Online Communities

When searching for a reliable private label manufacturer or supplier, you should also utilize social media platforms like LinkedIn and Facebook. These platforms can help you connect directly with manufacturers or suppliers of private label products

Moreover, industry-specific forum sites like Reddit and Discord can provide industry-specific information while connecting you with other private label enthusiasts. You can expand your network and improve your industry knowledge by actively participating in these online communities and social media platforms. 

Recommendations and Referrals

You can also ask other business owners from different niche markets to refer you to private label suppliers or manufacturers of good standing. Getting referrals from trusted sources can help you find reliable manufacturers and suppliers who have already proven their capabilities. 

Pros and Cons of a Private Labeling Business

Knowing the pros and cons of private labeling can help you come up with better decisions that align with your business goals. Identifying the pros and cons of private labeling helps you mitigate or avoid potential risks and costly mistakes. It can also help you evaluate your capacity as a private label seller. 

To refresh your perspective on private label selling on Amazon or other eCommerce sites, here are some of the pros and cons of the private labeling business you should consider:

Advantages of a Private Labeling Business

Control Over Product Branding: One of the key benefits of selling private label products is you have control over your branding. It means you can develop unique packaging, product design, and marketing strategies based on how you want to build your brand identity

Better Profit Margin: Ordering directly from manufacturers or suppliers means obtaining products at a lower cost. Thus, giving you a higher profit margin compared to reselling established brands

Pricing Control: Since you order directly from private label manufacturers, you can bypass third-party services that require additional costs. Lower production costs and decreased business expenses give you a competitive edge to adjust your product pricing according to your strategy that benefits your brand. 

Disadvantages of a Private Labeling Business

Resources Needed: Unlike selling established or national brands, private labeling business requires a significant initial investment that will be used for product development, marketing, and distribution. Aside from resources, you should also have the necessary expertise to manage the critical aspects of the business. 

Market Competition: Since private labeling has become popular, you should be prepared to face numerous competitors. It will always remain a challenge for private label sellers to consistently keep their products and brand unique among competitors. 

Limited Control Over Product Quality: As a private label seller, you will often depend on third-party manufacturers for your inventory. As a result, you have less supervision over product quality. Finding a reliable and consistent supplier who can consistently deliver high-quality private label products continues to be a significant undertaking for private sellers.

Where to Sell Private Label Products

To maximize your success in the private labeling business, it is vital to know where you can sell your products. Here are some platforms to consider for selling private label products

eCommerce Sites

Online marketplaces are the most convenient places to sell your private label items. Popular options you can choose from include but are not limited to Amazon, eBay, and Etsy. These marketplaces already have an established following and infrastructures to make your private label selling activity more convenient.

Your Own Online Store

If you wish to avoid referral fees, monthly fees, and other fees associated with listing products on online marketplaces, you can opt to create your own online store. Having your own eCommerce website means complete control over your branding, customer experience, and product pricing.

Social Media Platforms

If you are on a tight budget, you can still proceed with your private labeling business by selling on social media platforms. Instead of paying for platform monthly fees, you can showcase your products on Facebook, Instagram, and even TikTok. 

To be successful in this approach, you should build a community online and engage with viewers or followers. Once your business picks up, you can decide whether to sell on Amazon or develop your own online store

Start Your Private Labeling Business Today

Private labeling allows you to showcase your unique ideas and establish a brand that connects with consumers. Additionally, it also provides flexibility in inventory management, enabling you to offer products that reflect your entrepreneurial values.

Beyond improving your understanding of private label products, the insights and tips mentioned above aim to boost your confidence to take the first step toward entrepreneurial success. Start selling your private label products today. 

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How Amazon Resellers Can Start a Private Label Brand https://www.sellersnap.io/how-to-start-amazon-private-label/ https://www.sellersnap.io/how-to-start-amazon-private-label/#comments Tue, 08 Jun 2021 01:14:11 +0000 https://www.sellersnap.io/?p=17011 It’s no secret that reselling on Amazon is a highly competitive business model. There can be tens or even hundreds of companies selling the exact same brands as you. This often results in the companies with the most efficient operations finding success while leaving little reward for the creatives.

As an Amazon reseller, you have access to highly valuable data. And this data, coupled with your operational expertise gained from reselling and a little creativity, can be leveraged to build a more profitable, defensible business with significantly less competition by expanding into a private label offering.

Here is a quick, comprehensive guide explaining how Amazon resellers can start a private label brand.

What is a Private Label Brand?

A private label brand finds existing items manufactured by a third-party and sells them under its own branding. 

For example, let’s assume you wanted to sell vitamins. Instead of trying to track down all of the individual raw materials, formulations, bottles, and labels, you could instead work with a contract manufacturer that has pre-made vitamins ready to ship. Then, all you have to do is supply them with your logo and packaging concepts so they can add your “label” to the products.

Unbeknownst to the consumer, there are many brands that are selling the exact same product made by the exact same supplier. They’re just branded differently.

Why You Should Start a Private Label Brand

There are many reasons why you should start a private label brand, opposed to just reselling other brands on Amazon. And while reselling on Amazon can provide consistent, low-effort cash flow, it doesn’t give you much control over your business, and profit margins can be low.

However, when you start a private label brand, you can take advantage of the Amazon flywheel and remove yourself from some of the headaches of reselling.

Here are some additional benefits of creating a private label brand:

  • Higher profit, since you choose your suppliers and don’t rely on reselling other brands that you’re buying at a markup.
  • You retain more control over your listings through IP and Amazon brand registry and have the ability to optimize for higher conversions.
  • You have a better opportunity to build a brand outside of Amazon and start accumulating customers loyal to your brand.
  • Your business would earn value if you were to sell it since you own your IP, your customer relationships.

Steps to Start a Private Label Brand as an Amazon Reseller

Now that you understand what a private label brand is and the benefits of building this type of brand, let’s walk through the steps you can take to create a private label brand as an Amazon reseller.

Step One: Find What Private Label Products to Sell

Leverage your existing data and expertise.

You are selling existing brands on Amazon. And whether you’re selling a few hundred dollars or hundreds of thousands of dollars worth of product, you have data

This means you can leverage this data and category expertise to identify products with the most potential. 

Consider the products that (1) are most profitable (2) you possess the most expertise and confidence in 3) have minimal competition and (4) cause the least amount of issues and complications with Amazon.

For example, you may find that generic shampoo is highly competitive with thin margins and is therefore, likely not worth getting into. However, you may find in your data that some of the more niche shampoo brands perform well. And over the years, you’ve developed expertise in the hair care category so it might make sense to explore the idea of a niche hair care brand. 

Product Research

Your products represent your brand. Even though you aren’t physically making the products, each products’ quality will directly impact the success of your brand. So, take the time to conduct extensive product research to ensure your brand offers the best products on the market for your target category and price point.

Here are a few tips for conducting product research:

Step 1: Use the Right Tools

While you have plenty of internal sales data, platforms like Helium10 or JungleScout will allow you to leverage third-party data to further evaluate existing products being sold on Amazon. To find more product research tools, visit this Amazon seller tool directory.

Step 2: Identify Competitor Shortcomings

To determine this important factor, look at competitors’ Amazon product reviews and Q/A. With a little competition recon, you will understand their shortcomings. Once you garner this information, you can devise how you can make improvements and differentiate your new products.

 

photo-of-amazon-review

Amazon.com: A Screenshot (cropped) of  customer review, Retrieved May 13, 2021; From https://amzn.to/33TnsXe

 

Step 3: Avoid Saturated Categories

The line between popularity and saturation can be fine. Yet, you must choose products with proven selling potential that aren’t overly saturated and have no opportunity to differentiate.

Step 4: Reduce Complexity

  • Product Dimensions
    • You want your products to be small and compact. Ideally, you want your items to weigh 3lbs or less and fit easily into an average shipping box. The easier it is to transport, the lower your shipping and FBA storage fees. 
  • Item Price
    • The higher you can feasibly sell your products, the more opportunity you have to capture higher margins. Shoot for items that can sell for at least $20. Additionally, the use of an Amazon repricing tool will also streamline your pricing strategy. 
  • Seasonality
    • Seasonal products can be tricky, for the simple fact that they are inconsistent and are difficult to forecast sales. For example, if you sell Christmas sweaters and you under forecast inventory, you could sell out of inventory in November right before the busy season and thus, lose a considerable amount of sales. On the other hand, if you over forecast, you could be stuck with excess inventory going into the new year.
    • You can have seasonal products to boost sales for that season and offer evergreen products to balance the seasons. Additionally, you don’t want to start with a seasonal product as your very first product.
  • Manufacturing
    • The simplest manufacturing plan is the best plan. The fewer moving parts you have for your product to be sold and reach your customer, the better. For example, a bar of soap will be much easier to manufacture than a custom electronic device. 

Bonus Tip: research your competitor’s businesses, not just their products. Evaluate their operational efficiency and try to find gaps in their process. 

For example, your primary competitor may have a 70% 30-day feedback score on Amazon. After reading a few customer complaints, you may find the competitor has issues 1) shipping orders on time and 2) that products are frequently damaged. 

Since you’ve been reselling on Amazon for a while, you likely have a good system in place and can fulfill orders on time (if you’re not using FBA) which will give you an edge. Additionally, since you know customers are unhappy about the condition of the product they’re getting from your competitor, you’ll want to ensure you have a more thorough quality assurance process in place and perhaps use more protective packaging.

Step Two: Finding Suppliers

Finding suppliers sounds much more complicated than it is. Here are a few ways to find the best suppliers:

  • Find the right platform:
    • You could find a private supplier, but it might be easier to leverage a platform like  Alibaba that has thousands of suppliers available for your choosing.

 

photo-of-alibaba-homepage

Alibab.com: A Screenshot (cropped) of homepage, Retrieved May 13, 2021; From https://www.alibaba.com/

 

  • Ensure each supplier meets your criteria:
    • Make sure the company has at least a five-year history.
    • Only work with gold status suppliers.
    • Find a supplier with a lower Minimum Order Quantity (MOQ), at least for your initial order and until your sales ramp up.
  • Order samples and evaluate each product.
    • Get samples from three potential suppliers and carefully inspect and test each one to ensure quality.

Step Three: Branding

Branding is how you’ll differentiate your private label products and emotionally connect with your customers. If you’re not skilled in this area, seek out professionals – it’s worth spending extra to get this right. 

Here are the key elements of branding:

Choosing a Name

Make your brand name unique but easy to remember (and spell). Remember, if a customer wants to look up your private label’s offerings directly, you want them to find your brand easily. Make sure the name is available for a domain name and social media handles.

Creating a Logo

Much like your label’s name, you want your logo to be easy to recognize without being obnoxious. You want to use colors that reflect the tone of your brand. For instance, if you are selling baby items, you might want to use light, bright, fun colors. You can find graphic designers on Upwork or Fiverr. 

Packaging

Your packaging should display your label’s name, logo, and the name of the product. Ensure your packaging abides by all legal parameters (such as child-proofing, if applicable).

You want your packaging to be appealing to customers. However, the colors and the information need to reflect the product in its entirety. Therefore, if a warning label or specific usage direction is required, make sure the statement is clear, visible, and meets all requirements.

Step Four: Creating and Optimizing Your Amazon Listings

As a reseller, you may not have as much experience creating and optimizing listings since you’re typically ASIN matching. Here are a few quick tips on how to optimize your listings:

    • Title optimization: Always put the best keywords in the title and keep it under 70 characters.
    • Description: Be concise and exact, using plain language and offering as much detail about the product as possible while highlighting the benefits and differentiators of your product.
  • Product photos: Product photos should be well-lit, conducive to detail, and show every relevant side of the product.

 

amazon-product-detail-page

Amazon.com: A Screenshot (cropped) of  product detail page, Retrieved May 13, 2021; From https://amzn.to/3hy5pOc

Step Five: Getting Reviews

Getting reviews is an easy way to build customer trust and activate the Amazon flywheel. First and foremost, the only way to get good reviews is to provide a quality product with quality service. Then, you can leverage a platform like FeedbackWhiz to automatically ask customers for reviews.  

Conclusion 

Starting a private label brand as an Amazon reseller is one of the most productive ways to expand your business, which you retain the rights to, and have Amazon work for you. Even though it could take a healthy amount of work to gain traction with a private label brand, if you leverage your existing expertise and follow the steps outlined in this guide, you will find success.

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About the Author:

Wesley Stryker is the founder of Commerce Caffeine, an ecommerce Software Discovery Platform that helps brands find the best Amazon seller tools and Shopify apps for their businesses. Wes has over 10 years of experience operating and consulting ecommerce businesses.

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