Selling private label on Amazon can be a lucrative business model if you do it right. Nutritional supplements are an extremely popular niche if you have products that are in demand. Amazon, however, is quite competitive, making it essential to follow the right blueprint if you want to succeed. Let’s look at how to sell private label products on Amazon.
What Are Private Label Products?
Many people want to sell products but don’t have the resources or expertise to create them from scratch. Private label products allow you to sell products made by another company and sell them under your own brand name. Selling private label on Amazon has become a successful strategy for many online entrepreneurs.
Nutritional supplements are a very popular category of private label rights products. There’s a huge and growing demand for quality supplements. This is not, however, something that you can simply make in your basement. It takes a great deal of knowledge and equipment to produce supplements. Learning how to sell private label products on Amazon takes some research, but it’s a lot simpler than learning to manufacture your own supplements.
It’s easy to confuse private label and white label products. The mechanics of how to sell private label products on Amazon isn’t very different than selling white label products. However, private label means that you are the only brand that can sell a product. With white label, it’s a generic product that anyone can sell. Both can be profitable, but selling private label on Amazon is better for building your brand.
Considerations for Selling Private Labels Products on Amazon
Once you decide to sell private label rights products, you need to decide where to sell them. There are several reasons selling private label on Amazon is such a popular choice. Amazon is the largest online retailer, with millions of customers in every niche. Lots of customers go directly to Amazon when searching for anything, including nutritional supplements. Selling private label on Amazon makes sense if you want to reach the largest possible audience. The following are five tips on how to sell private label products on Amazon.
- Do Market Research – Selling private label on Amazon is fairly simple. However, with so much competition, the most important consideration is what to sell. There are thousands of supplements for hundreds of conditions. You have to pinpoint your market. Identify your customers and your competition. Here are some points to consider.
- How large is the demand for the products?
- Who are your main competitors?
- How often will customers need to buy this product? Repeat business is crucial for supplements.
- What is the ideal price point for each product?
- Find the Right Private Label Manufacturer – When researching how to sell private label products on Amazon, you need to find a private label products manufacturer that meets your needs. The following are some qualities to look for.
- Brand reputation. Look at the experience and reputation of the company. They should also have certifications such as GMP (Good Manufacturing Practice).
- Quality and selection of products. You need to find a company that offers high quality products. It’s best if they have a good selection, so you can offer your customers variety. Make sure products meet your standards. For example, you may want products that are certified organic, non-GMO, kosher, vegan, or that meet other criteria your customers care about.
- Pricing. You have to make sure you have sufficient margin to make a profit. When looking at pricing, don’t overlook shipping and other possible fees. Some companies, for example, charge label fees on every order. If you want to sell private label on Amazon, it’s best to sample products from several manufacturers. Call them and get an idea of how helpful their support staff is.
- Create Professional Designs – One crucial aspect of how to sell private label products on Amazon is the design, including your logo, graphics, and overall presentation. The appearance of your products is important for establishing trust and credibility. Customers in a retail store often choose products that are more attractively packaged. The same goes for online sales. Even if customers can’t see and touch the product, they can see photos. And, once they order, the appearance can have an impact on how they feel about it and how likely they are to reorder.
- Choose Your Fulfillment Strategy – When researching how to sell private label products on Amazon, you’ll find that there are two main choices. There’s FBM, which is fulfillment by merchant or FBA, fulfillment by Amazon. There are pros and cons to each. With FBM, you are fully responsible for handling orders. You either have to stock merchandise yourself or arrange for drop shipping. One of the advantages is that you save money, as Amazon charges fees for handling orders. FBA is the more popular option. In exchange for fees, Amazon stores products in its warehouses. Amazon handles order processing, customer services, and any returns. There are also Amazon SEO advantages, as Amazon often favors FBA products. You’re more likely to win the coveted Buy Box, where your product is featured.
- Create and Optimize Your Amazon Listings – When selling private label on Amazon, the way you list your products has a great impact on your results. There are several components of an optimized listing.
- Quality photos. Several photos from different angles are best.
- Product information. For supplements, make sure all details are listed, such as the potency, number of units or weight, and ingredients.
- Category —Make sure products are listed in the appropriate category.
- Keywords in the titles and descriptions.
- Use bullet points to list product features.