February 22, 2023

The Power of private label

Private label products are essentially products and services that are created by one company, but sold under the brand name of another company. This means that the company selling the product or service does not actually manufacture or produce it themselves, but instead sources it from a third-party manufacturer.

Examples of popular private label products include Walmart's Great Value brand, Target's Mainstays, and Amazon's Amazon Essentials. These products are all created by different manufacturers, but are sold under the respective brands of the companies that sell them.

It's important to note that private label products are not limited to physical goods. Services such as freelance work, web domains, and insurance products can also be sold as private label products. Essentially, any product or service that can be branded and sold by another company can be considered a private label product.

Discovering Private Label Products for your Business

1. Generating product ideas is an essential first step in creating a successful private label business. Fortunately, inspiration can come from a variety of sources.

One way to discover potential products is to keep an eye out for trending items while out shopping. Look for fresh, unique items that may not yet be widely available at big-box stores like Wal-mart or Target. For instance, you might spot an item like copper measuring cups at a specialty store like Anthropologie and recognize its potential as a private label product.

Once you've spotted an item that you think might be a good fit, it's time to confirm its viability. Use research tools to investigate the product's sales potential and assess the level of competition in the market.

Another way to generate ideas is to browse through Amazon's product categories and subcategories, paying special attention to the "Hot New Releases" section. Take a look at other sellers' Amazon storefronts and product listings to see what's popular and what gaps in the market you might be able to fill.

Finally, don't forget to explore the web for cool product ideas. Social media can be a great source of inspiration, as can crowdfunding sites like Kickstarter and IndieGoGo, where inventors showcase their innovative product ideas. With a little creativity and research, you can generate a wide range of product ideas to explore and potentially launch as part of your private label business.

2. When deciding which private label products to sell, it's important to consider specific attributes that can help you save on costs and simplify your business operations.

First and foremost, it's wise to start with products that are small and lightweight, able to fit into a small, flat-rate box and weighing no more than one or two pounds. This can help you save on shipping costs both from the manufacturer and when fulfilling orders through Amazon FBA.

It's also best to choose products that are non-seasonal, avoiding items like Christmas lights or Valentine's Day gifts that have limited sales windows. Additionally, consider selecting products that are unregulated and don't require significant legal paperwork or certifications, such as food or toys.

Finally, opt for products that are uncomplicated and have fewer customer service issues. Electronics and fashion products, for example, can be more challenging to sell due to their complexities, including multiple colors and sizes for a single SKU. By focusing on products with these specific attributes, you can streamline your private label business and set yourself up for greater success.

3. Conducting market research is crucial to determine whether your private label product is worth selling.

In the past, market research was a time-consuming task that involved spreadsheets and analyzing product listings. Fortunately, tools like Jungle Scout's Chrome Extension make this process easier. To use this tool, perform a search on using your product idea as a search term, click the "JS" button to open the extension, and verify the product's data, such as the average monthly sales and reviews per product. Personally, I look for products that sell an average of 250-400 units per month and have less than 100 average reviews to minimize competition when launching a new product.

4. Once you have identified a potential product and verified its sales data, the next step is to find a manufacturer who can make it for you.

Alibaba is a useful platform for finding suppliers as it allows you to purchase wholesale and bulk products directly from overseas manufacturers. To begin, you will need to create a buyer account on and perform a search for your product, much like you would on Amazon. Once you have found product listings similar to your private label product idea, you can reach out to the supplier/manufacturer by sending a message and requesting more information. It is a good idea to ask about the price per unit, shipping costs, payment terms, customization options, and samples. It is recommended to contact 3-5 suppliers for a product and order a sample from each to ensure product quality. Alibaba is safe to use as they thoroughly vet all of their suppliers.

5. When creating a private label product, it's possible to include a logo on both the packaging and the product itself.

If you lack graphic design skills, there are affordable professional designers available on freelance websites like Jungle Market. To make your product stand out, consider adding unique designs or features to differentiate it from existing products on the market. This customization could be something as straightforward as changing the product's color or making the handle longer. Finally, packaging is an essential aspect of the customer experience. Including helpful information, a website URL, and other details on the packaging can enhance your marketing efforts and improve the overall impression of your brand.

6. It's important to not only know what products to sell and how to manufacture them, but also how to get those products to your customers.

There are several ways to fulfill orders, such as fulfilling them yourself from your garage or warehouse, or using third-party fulfillment centers. One popular option is Amazon's FBA (Fulfillment by Amazon) service, which has been a game-changer for many Amazon sellers since its introduction in 2008. With FBA, you gain access to Amazon's massive customer base, and they handle everything from storing your inventory to shipping and handling customer service. All you have to do is send your products to Amazon, and they take care of the rest.

7. After completing the necessary preparation steps, the next critical step is choosing a manufacturer for your private label product.

As recommended earlier, it is essential to reach out to 3-5 potential manufacturers for your product and order samples from each of them to make an informed decision. The quality of communication and the condition of the sample when it arrives are crucial factors to consider. Although the cost is a significant factor, it should not be the only consideration, and it is unwise to select the cheapest option without considering quality and communication. You can use the lower price quotes from the manufacturers with better communication and fulfillment skills to negotiate prices. Once you have decided on your manufacturer, you can arrange payment via your preferred method, and most suppliers accept PayPal or Alibaba's Trade Assurance to process safe and secure payments.

8. Additionally, it's important to optimize your Amazon listing for search by including relevant keywords in your product title, bullet points, and product description.

Using tools like Jungle Scout or Helium 10 can help you identify high-ranking keywords for your product and optimize your listing accordingly.

It's also a good idea to include high-quality product images and videos, as well as customer reviews and ratings, to increase the likelihood of a customer purchasing your product.

Lastly, consider using Amazon Advertising to drive more traffic to your listing and increase sales. This can include sponsored product ads, sponsored brand ads, and sponsored display ads.

9.When it comes to optimizing your Amazon FBA private label product listing, Amazon PPC advertising can be a powerful tool to boost sales.

By bidding on sponsored ads, you can increase the visibility of your product on search results, competitors' pages, and even outside of Amazon. To make the most of Amazon PPC, you can use reports in Amazon Seller Central to identify keywords that convert well, and Jungle Scout's Keyword Scout tool to research your competitors' keywords. After some tweaking and experimentation with your bids, you can significantly increase your sales.

In addition to Amazon PPC, you can use A/B testing to experiment with different elements of your product listing and see what works best. By running two concurrent tests with small changes to your listing, such as the main image or price point, and using automated software like Splitly to analyze the results, you can learn what elements are most effective in driving sales. You may be surprised to find that some images and titles you thought were helping your sales are actually hurting them.

In conclusion, starting a successful Amazon FBA private label business requires patience, research, and dedication. But by following the steps outlined in this guide, you’ll be able to start a profitable Amazon FBA private label business in no time.

Remember, the key is to find a product that meets your goals, that you can sell at a competitive price, and that has the potential to grow over time. Use tools like Jungle Scout to validate your product ideas and make data-driven decisions.

Once you’ve selected your product, invest in creating a strong brand identity, and create an optimized Amazon listing with high-quality product photos and a persuasive product description. Use Amazon PPC to drive traffic to your listing and optimize your listing over time using split testing.

With hard work, a little bit of luck, and the right strategies, you can build a thriving Amazon FBA private label business that generates passive income for years to come. Good luck!

There is no cost, no obligation and no pressure. And it may be the best 30 minutes you’ve ever spent on getting your business off the ground.

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