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How to Manage Your Amazon Private Label Supply Chain
Staying ahead of your competition on Amazon can appear to be an impossible and expensive goal. Whether you’ve been running a private label Amazon business for a while or are new to the game, you’re likely to have issues with your supply chain management.
Being a top seller on Amazon is not easy, but one way to get ahead of your competition is to source quality products and put your own brand on them. This is called “private label,” and going this route with your e-commerce business has many benefits but is also full of challenges.
Further Reading: Amazon Wholesale vs. Private Label
Amazon Private Label Supply Chain Management: The Basics
No matter what product you sell, it takes a journey through the supply chain to reach your customer. Depending on the product, there are also nuanced steps in between each point along the way.
In short, here is the supply chain journey for most products sold online and in brick-and-mortar stores:
Supplier → Manufacturer → Distributor → Retailer → Customer
As an Amazon FBA private label seller, you are the retailer in this supply chain. Regardless of your role in supply chain management, it is crucial to understand how your business syncs up with other parts of the supply chain.
Good supply chain management creates a cohesive, streamlined, and high-performing business model. When all of the elements of the journey coordinate to make everything from design to shipping to marketing run smoothly, everybody wins.
Supply chain management aims to keep costs as low as possible for everyone on the chain, leading up to the customer. So, how exactly do you do that?
3. Test out Your Product
It is best to test out your product and see it in person by ordering samples of your product from your manufacturer. What appears to be an excellent product online may be a poorly made product that you would not want to put your name on, let alone sell on Amazon.
Set a quality standard and never lower it. Once you have finalized your product choices and branding, place that order!
5. Invest in Optimized Amazon Product Listing Copy
Amazon product listings that perform the best are ones that offer detailed information about the product.
Customers read product descriptions for the specifications they’re looking for in a product. Include high-quality product photos in your listings.
Further Reading: The Private Label Optimization Guide
6. Show Up on Social Media
So many trends begin on social media. It’s not only a great way to discover upcoming trends, but you can also generate buzz and redirect users to your product page on Amazon. While the virality of a trending product may be fleeting, interest in such a product continues to grow.
Amazon’s supply chain is just one of the ways you can streamline your private label supply chain management. The platform isn’t perfect, so it’s crucial to understand what types of challenges or additional costs are involved when partnering with Amazon as a private label business.
Further Reading: The Amazon Private Label Checklist
Risks of Selling Your Private Label on Amazon
Your private label product is available on Amazon, and you offer Prime shipping to your customers. Your product’s journey does not end there. Potential delays and additional expenses are hard to plan for, but knowing what to expect can keep your business from hitting a wall.
Here are some downfalls of using Amazon FBA to sell your private label products:
- While Prime customers enjoy free shipping, sellers are responsible for covering the cost of shipping. Sellers cannot choose which items have free shipping but must cover the cost as if they all do.
- Inventory updates are essential for an e-commerce business, primarily if you sell a particularly popular item. Inventory update delays with Amazon can lead to unhappy customers.
- Amazon’s supply chain analysts’ trend forecasting isn’t 100% accurate. This can lead to making large buys of your private label product that you cannot sell since it’s no longer popular.
- No matter how you ship your products, there is always a risk that one will get lost in logistics.
All of the above risks of selling your private label on Amazon eat into your bottom line, so include losses and shipping costs in your budget.
Further Reading: 3 Tips for Selling Private Label Products on Amazon in 2022
Amazon Private Label Supply Chain Management: Final Thoughts
Like nearly all businesses, having a successful e-commerce business is dependent on a multitude of factors. The best part is that you have control over the majority of them. Selling a private label product on Amazon FBA doesn’t require any certifications or prior selling experience. If this model appeals to you, conduct market research and produce a small batch of your product.
So how can Feedvisor help? Finding the right pricing for private label ASINs can be complicated. Feedvisor’s sophisticated dynamic pricing technology lets you set floor and ceiling price boundaries. This helps you create pricing that reflects your brand value, maintain equity, and stay profitable even during seasonal and market fluctuations.
Find out how Feedvisor can help you manage your entire catalog and provide you with data you can leverage to set optimal product prices.