Best Practices to Sell Private Label on Amazon

According to the data, private label businesses had a profit of $5.5 billion in 2018, up 4.4 percent from the previous year (source: plma.com). In the United States alone, roughly one out of every four products sold is a private label or store brand product. This indicates that the market is on the rise.

After you’ve completed your study, you should take the following procedures to ensure a smooth sailing experience:

  1. Picking a profitable product

The greatest place to begin is with Amazon’s best-selling items list. You can get a sense of what customers are looking for or buying. That is invaluable knowledge. Avoid crowded categories and keep an eye on what your competitors are up to.

Focusing on fresher material is an excellent tip.

Products that aren’t yet available at other large shops or marketplaces. To uncover new products, dig deep into departments and subcategories. Pay attention to the columns labelled “Hot New Releases.”

  1. Choosing the right manufacturer

Make sure you don’t make the mistake of going with the cheapest manufacturer, even if you have a good relationship with them. In some circumstances, the cheapest product is not the best. Using the lower price quotes to help negotiate lower pricing with the manufacturers is a better option.

Manufacturers who are eager to bargain usually have higher communication and fulfilment skills. It is preferable to select a supplier who provides outstanding service in all areas. Always remember that you have the option to walk away from a transaction when bargaining.

Once you’ve decided on a vendor, make arrangements for payment using your preferred method. For safe and secure payment processing, most providers will accept PayPal or Alibaba’s Trade Assurance.

You should tell your supplier about working with private label products at this stage. It might be as simple as having labels printed for you and then adding them to your product packaging to maintain your private label status. To determine the best solutions, speak with your manufacturer.

  1. Investing in quality design and branding

“A picture is worth a thousand words,” as the saying goes. Quality design and branding will not only provide you a smooth online presence in the marketplace, but it will also improve the experience of your clients. Amazon A+ Content can assist you in achieving these objectives.

  1. Creating killer listings

Make sure to include the following elements in your listings:

In your description, include as many details as possible. Make it as educational as possible. The majority of customers reading the product description are about to make a purchase decision. Take advantage of this chance! To make content easier to read, use bullet points. Also, don’t forget to include keywords in the product description.

Maintain a straightforward approach. In the title, include vital information about your product. Make sure to include your company’s name. The length of your title should be between 100 and 150 characters. Be concise and strategic with your keywords!

Make it pleasant to the eye. It is your obligation to ensure that your customers fully comprehend your product and how it functions. From every aspect, use high-quality photos and videos. Buyers will usually get a fair notion of how it looks in real life if there are at least six images. On the longer side, Amazon suggests at least 1280 pixels.

  1. Testing the market

You can test the waters by opening an Instagram account and presenting your product if a product has struck your interest. You’ll be able to engage individuals more quickly this manner, and it can also serve as a strategy for attracting outside traffic.

You may also utilize it to solicit client feedback via surveys or direct communications, which will ultimately aid in the improvement of your marketing plan.

  1. Setting a competitive price

A range of prices between $15 and $50 is suitable for a private label product. A product that sells for less than $15 has a relatively narrow profit margin. Customers favor recognized brands for anything over $50, thus anything over $50 will move slowly for private labels.

  1. Using Fulfillment by Amazon (FBA)

FBA is unquestionably a secure bet. This Amazon-backed fulfilment programmed not only gives you the peace of mind you need when fulfilling your clients’ orders, but it also boosts customer confidence in your brand.

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