Amazon Basics
Text

Private Label

Lesson 15 Chapter 2 Module 2

Ah, Private Label... This is the king of FBA business models and my speciality.

Have you ever looked at an object people use daily and thought, "I would have made this thing so much better..." ?

Well, you can. And you can make money from it. Lots of it!

Private label entails developing your own brand and selling your branded products on Amazon. There are two main ways of doing private label:

  • Get a manufacturer who allows you to put your brand on their existing products.
  • Develop your own products for your brand.

Both options have massive potential but if you want to distinguish yourself from the millions of other people selling on Amazon, product development is the way to go.

"Product development" may sound intimidating but it's not. In fact, it's fun and rewarding.

HOW PRIVATE LABEL WORKS

This is the most "hands-on" business model. It means that you be directly involved in many of your business's processes such as brand development and registration, product sourcing and/or development, and so forth.

Before you can register for a Professional Sell plan on Amazon, your brand has to be developed. All this means is you need to decide on a name, design your logo and register for a trademark. All this is necessary to:

  • Distinguish yourself from competitors and
  • Protect your brand and products from 'hijackers' on Amazon who want to make easy money by stealing from honest sellers. Yes, crime and corruption is a thing on the internet too, unfortunately.

Also, your products should be ready by the time you open your Professional Sell account at Amazon so you can have the first inventory sent to Amazon as soon as possible after they approve your account.

Once your Professional Sell account is approved, you can list your products for sale and send your inventory to Amazon. 

As a private label seller, you will need to know more about marketing than other sellers. Don't worry though, we teach you everything you need to know about effective marketing in the Advanced Training Programme.

Once everything is in place, the selling process works exactly the same as with other FBA business models. You will still use Amazon to fulfill your orders and handle customer service.


Pros

  • With private label, you are completely in control. You don't have to enter into 'price wars' and undersell yourself.
  • Little to no competition. You don't have to compete for a spot on an already overcrowded Amazon listing as you will have your own listing. This also creates less distraction for your potential customers which means they'll be more likely to buy your product.
  • This is a scalable business model. In other words, you can grow your business as big as you like. It's perfect for long-terms financial success and freedom.
  • You can build a sellable brand. Once your brand is established and profitable, sell it for a premium price! Many people build and sell successful brands for a living.
  • Multiple product lines. Let's say you sell in the Home and Kitchen category - you can sell any product within that category and as many different products as you like.

Cons

  • It's more expensive to get started with than other FBA business models.
  • It takes more time and effort to get started than with other business models.
  • You typically have to order large quantities of stock to get good prices from your manufacturer.

Private label is part of our Advanced Training Programme. We'll teach you everything you need to know about it.

Next we'll look at the wholesale business model.

(End of Day 5)

Pen
>