3 Tips for Selling Private Label Products on Amazon in 2022
Selling on Amazon was not always this complicated; increased competition and supply chain issues have resulted in sellers needing a more complex strategy. Get three helpful tips for selling private label on Amazon in 2022.By Rachel Van ClepperFebruary 22, 2022
Selling on Amazon was not always this complicated; increased competition and supply chain issues have resulted in sellers needing a more complex strategy. Get three helpful tips for selling private label on Amazon in 2022.
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As competition continues to grow on Amazon and supply chain issues persist, selling private label products is no longer a passive income opportunity. It takes effort and planning to be a successful private label seller on Amazon. There is now much greater importance on your Amazon selling and optimization strategy as a private label seller.
Private label products are manufactured by a third-party manufacturer or company and then sold to another company to brand, market, and sell under their own brand name or label. Private label products, in theory, could be a generic Alibaba product with their brand label added, a product with custom additions or changes, or a unique product sold exclusively by that brand.
Advantages of Selling Amazon Private Label Products
There is a reason why there are many deciding to sell private label products on Amazon. Private label products have many benefits on Amazon, including:
Increase in Credibility. By selling products under a private label, you can capitalize on in-demand products while contributing to your own brand’s credibility.
Higher Profit Margins. White label products are generally less expensive, allowing you to achieve higher margins.
More Exposure. Amazon values private label products and will give more exposure to private label sellers on the platform.
Option for Customization. Depending on customers’ needs and demands you can stand out by customizing your products.
Take time to find the perfect title. If you aren’t sure where to start, take a look at your competition and decide what you want to replicate and how you want to stand out.
How to Sell Private Label Products on Amazon in 2022
Many e-commerce businesses prefer to buy popular products already in high demand and brand them under their own private label. But to be done successfully, there is a process you must follow when starting out, and that begins with adequate research.
Pick Your Products
When you are just starting out as a private label reseller, the first step is to research successful, in-demand products to private label and sell on Amazon. Popular private label products to start with include household items, groceries, and electronics.
Picking your first private label products should take time, so be sure to consider the following:
There are two different methods that you can use when sourcing your products. You can go directly to a manufacturer to secure a private label product, or you can order one-offs of products on sites like AliExpress to avoid dealing directly with a manufacturer.
We suggest dealing directly with a manufacturer, but be sure to take the time to compare supplies and negotiate prices. The best way to make sure you invest in quality products is by asking for a sample. Although not free, this may save you a lot of time and help you avoid bad reviews if the product is not up to snuff.
Once you have sourced and decided upon your products, it is time to begin to research keywords for your product title and description, and collect high-quality images of your product(s) to create a listing on Amazon. Take time to find the perfect title. If you aren’t sure where to start, take a look at your competition and decide what you want to replicate and how you want to stand out.
Decide on Shipping Process
Before you make your first sale, you need to find a way to fulfill your orders. You have a few options, including fulfilling your own product, finding an outside source to package and ship your product, or becoming an Amazon FBA seller. The next section will give you some tips about making this decision.
Creating branded products gives you a much greater chance of success than brandless items or listings.
3 Tips for Selling Private Label Products on Amazon
1. Fulfill Your Orders with Amazon FBA
Many sellers use Amazon FBA to sell private label products. You can fulfill orders yourself, but by using Amazon FBA, you can reduce your risk and pass the responsibility on to Amazon to handle your customer service.
Using this shipping method allows you to send your inventory to one of Amazon’s warehouses, and they will store, pack, and ship your orders to customers and take care of returns and refunds. If you want to save time, this is the best way to do it. If you want more control over your products, you can consider a different fulfillment method.
As we discussed at the beginning of this article, it takes a bit more work to sell on Amazon than it used to. There is more competition, drastic changes in demand, and low stock availability due to ongoing supply chain issues. Despite the increased competition, 69% of consumers have purchased a product on Amazon in the last two months. Optimizing your price by understanding the competition and demand will help you increase your profit and stand out from the crowd.
3. Don’t Just Resell, Brand Your Private Label Products
Creating branded products gives you a much greater chance of success than brandless items or listings. One way to do so is by creating a logo and color scheme for your private label brand.
Use your core product decisions to get a clear idea of your brand identity and invest in a graphic designer to help you make a logo and a brand vision that you are proud of. Incorporate the brand logo as a label on your products, in the packaging, and on your listing. Taking the time to do this will help you create brand recognition and foster trust with your customers.
About the Author
Rachel Van Clepper is a content marketing writer for Feedvisor, where she contributes to the company’s content marketing initiatives. Before joining Feedvisor, she was a senior content marketing writer for a nonprofit software company.
Final Thoughts
Selling on Amazon was not always this complicated. As competition grows in 2022, many Amazon sellers are looking for ways to stand out. You don’t need specialized training to succeed; you just need a thoughtful strategy. We suggest investing in a dynamic repricer for private labels on Amazon.
Get a deeper look into Feedvisor’s ProductSphere and understand how you can use our technology to get a competitive edge for your private label products on Amazon, including inventory and forecasting with machine-learning optimization algorithms.
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