How the Amazon Private Label strategy works: its pros and cons

Amazon Private Label is a sales strategy that avoids the hassles and risks of manufacturing on the Amazon platform. Let's look at it in more detail.

What is Amazon Private Label?

Amazon Private Label is a model in which you sell finished products without being the manufacturer. This is similar to the practice of supermarkets that offer their own branded products without actually producing them.

Amazon Private Label Benefits

1. Full control over your reputation: you don’t have to worry about negative reviews associated with the manufacturer’s brand, as well as scandals and disputes that may arise when selling a product from other sellers.

2. Uniqueness and Market Standout: You can customize your packaging, add gift stickers, or change the base colors to attract customers.

3. Dumping: Proper dumping allows you to reduce the price and at the same time ensure greater turnover. Statistics show that 90% of Americans compare prices on Amazon before purchasing.

Preparing for launch:

Work on visual style: Create a logo, determine corporate colors and fonts, develop packaging design and think about gifts for the order (if this is included in your concept).

It's important to remember that Amazon Private Label is a long-term strategy focused on building a brand for someone else's product.

What products are best for Amazon Private Label?

Let's take a look at which products are best suited for Amazon Private Label. This will help you choose the most suitable product for your business:

1. High Margin Products: It is beneficial to choose products with high profit margins. This will allow you to make a good profit even after taking into account all the expenses such as marketing, packaging and shipping.

2. Products with low competition: Study the market and find products with low competition. This will allow you to penetrate the market more easily and attract buyers.

3. Lightweight and compact products: Products that are easy to pack and ship usually work best for Amazon Private Label. EThis reduces delivery and storage costs.

4. Products with repeat demand: Choose products that are in constant demand. This will help you create a steady flow of sales.

5. Products with good reviews: Check customer reviews on Amazon. Products with positive reviews usually attract more buyers.

6. Seasonal Products: If you want to focus on seasonal products, choose those that are in high demand at certain times of the year (for example, swimsuits in the summer or umbrellas in the fall).