2020 How to Create Amazon Private Label Product to Kickstart a $500K+ Brand
Many people are focusing on amazon private label product due to current pandemic and of course, the latest trend. It’s a profitable business strategy. The reason is it works simple! A user can source products in bulk and label on them. Selling products under your own brand name on Amazon is easy.
Although the private label product process is simple, the responsibility is big. Yes, you need to research a lot. You require to spend time and show dedication to come up with a brand name which hits minds. You need to focus on all touchpoints of the audience. From a business name to unique logo to trademark and packaging, everything should be creative.
Today in this topic, we will share the steps to create a unique private label product brand for amazon. These easy steps would help you build a great brand.
However, without further ado, let’s get started!
Benefits of having your own brand on Amazon
Here are some of the amazing benefits you need to know;
1. Loyal & repeat customers:
One of the best benefits of having your own brand on Amazon is it wins you, loyal customers. Once customers start recognizing you and buy products, you can easily leverage your business. You can combine your products with packaging/images, so a customer can recognize you from far. It let you win loyal customers, and thus generates your sales.
2. Opportunity to scale:
Having your own brand let you combine different products. For instance, Dunkin’s Donuts announces a range of coffee; it will go well with the product. You too can brainstorm, and find the best fit for your existing product. It will help you leverage your business.
3. Enhance Buyer Confidence:
Creating your own private label product lets your customers trust your business. When you work on credibility, it gains you more recognition and loyalty. With growing credibility, you will notice amazing buyer confidence. Consumers like to trust those who introduce their own labeling. They buy from a brand they know and like.
How to Find a Private Label Product to Sell on Amazon
Here is the detailed information about private label products to sell them on Amazon:
Undoubtedly, Amazon is the #1 platform for consumers. It’s retailers’ first choice when it comes to online selling. The sellers could take advantage of Fulfillment-By-Amazon (FBA) program and can build a successful business.
According to the statistics, during the third quarter of 2019, 3rd party sellers sold 53% of all paid units of Amazon. However, if you wish to beat your competitors, then you need to come with a good strategy.
Below are some of the amazing steps you can follow for selling your private label product on Amazon:
Step 1: Research trending products
The first thing is to research trending products. It’s necessary to come up with the trendy products to boost your sale on Amazon. Amazon is a good place to start selling. Here are some amazing ways of finding the best products.
- Size – always ensure that your product fits inside a standard shoebox.
- Weight – it’s best to sell products that are lightweight (no more than 3 pounds).
- PPC-eligibility – you need to choose those products which are eligible for PPC.
- Durability – always check for the durability of a product. It will help your chances of success on Amazon.
If you choose a product that has a good track of selling, you would be able to eliminate all kinds of risk.
Step 2: Take a few tips from the competition:
After creating a list of potential products, you should look at our competitors who sell the same products. You can check for their selling price, marketing methods, and reviews, etc. This step will help you find the right product, which has good potential. One more thing is, always be sure to confirm that the market for a particular product you have chosen is not overcrowded.
Step 3: Look for the right supplier:
Once you have decided on the product and have the best balance of demand and competition; the next step is to source that product from somewhere.
However, to ensure to find the best supplier, it’s necessary to compare different products and companies. Below are a few categories for comparison:
- Minimum and maximum order sizes
- Order lead time
- Shipment costs
- Quality of goods
- Private label policy
Always reach an agreement before committing to any supplier. Always check the company for its reputation. You should check for the previous reviews.
Steps to Create Your Brand Private Label Product For Amazon
Above we have discussed some amazing benefits of private label products. Now let’s find out how to build a brand on Amazon.
Note: Remember, this could take extensive planning. Yes, you need to check for the market, how things are working, and then take the necessary steps. But for all that, you need to work hard for the best results.
Step1: Recognize Your Target Audience and Do Product Research:
The #1 step is to identify your target audience. This is the initial step that you need to follow before doing anything. Identifying your audience is necessary and challenging. But by knowing to whom you are going to sell will help you leverage your game. It helps you plan a better brand strategy. However, once you have identified, you can conduct proper research. It will let you decide how to proceed with your brand.
Step 2: Choose a branded name for your store:
Brand naming is of utmost importance. It should be simple yet effective. It shouldn’t belong or complicated. You can choose a short name, which customers can easily remember.
Note: The name should be relevant to your brand. However, if you are thinking of going with a single product, then you can have the same brand name. But if you want to expand your product range, then it’s better to come up with something interesting which resonates with your brand. But whatever you are going to do, always choose the best brand name for the products.
Step 3: Design your brand identity:
It’s important to design your brand identity with proper research. It should include everything about your brand which your customers will associate with your goods, like:
- A unique logo: It should be memorable and straightforward.
- Attractive Color Palette: Maximum choose 3 colors combination that will resonate with the audience.
- A Powerful slogan: Select a concise, and powerful slogan which will give customers an idea of what your business is all about.
For instance, if you are not good at creativity, then you can hire a good designer. At another place, you can also use a free logo generator. Nowadays, many websites let you customize logo, in different shapes, text, and icon.
However, once you are fully satisfied with your brand identity, it’s time to implement consistency. Creating a unique brand is the first step, and then other steps are the later ones. Uniqueness is what makes you different from others, and can help you set your game apart.
Step 4: Register a trademark
Next step is trademarked items. These could be identified by either a ™ or ® symbol. The ® indicates that the item is registered with the U.S. Patent and Trademark Office (USPTO). The ™ is a proprietary, defines as a common-law distinction which shows that you are the first one to use the trademark, and the infringing on this trademark could confuse public from identifying the good’s source.
However, the seller is not required to get registered a trademark as an Amazon seller; however, doing so has many benefits. Here are those:
- Your business will be better protected from any damages or forgers.
- It will allow you to enlist multiple products into Amazon’s Brand Registry.
- You will get access to Amazon’s A+ Content feature, by which you could add visual content.
To register a trademark, you can make an application on the EUIPO website or even on USPTO. But it could be time-consuming. But if you are not really ready for a trademark, you can use ™ symbol to stop competitors from using your content. Research well before doing so, make sure you’re not infringing someone else’s trademark.
Step 5: Use custom packaging:
The last step is to use custom packaging. This is a crucial step in creating your brand or business. You can use your logo to look professional, and this way can increase the brand’s recognition.
But make sure you are fulfilling all the requirements of packaging. If you are not, then you can experience long delays while importing goods.
However, you can still do this by taking the necessary steps:
- You can search on the internet regarding packaging requirements.
- Ensure your supplier uses standardized packaging
- Take a close look at what you are competitors actually doing.
Here is a list of information which you may be included in product packaging to meet all the requirements.
- Must have GTIN (Global Trade Identification Number)
- The country you are originating products from
- A fulfilment Network Stock Keeping Unit Identifier
- Any applicable certifications and legal warnings
- Your brand name
However, once you are done with the research, you can simply design your packaging. But it must showcase your brand. Try to be creative enough from your competitors.
Step 6: Choose a good supplier or sourcing agent ahead:
A right supplier or Sourcing agent can provide a stable supply chain so that your product stock will re-stock fast during the hot season. Otherwise, you can face a lot of product issues which harm your store sell and review
Where to Find a Private Label Manufacturer in China?
It’s easy to make a successful private labeling business. But for that, you need to ensure you are working with the right private label manufacturer. We have tried our best to cover all the necessary information you need to know about the right private label manufacturer in China.
Where to Find Private Label Product Manufacturers?
You must be thinking of where to find the right private label product manufacturers? Well, to answer this question we have listed down some ways:
Local trade shows
Trade shows are the best option to find the right local manufacturer. As many exhibitors from different regions participate in exhibiting their products, trade shows are the best to meet the manufacturers face-to-face to have a better conversation.
Internet is a vast world. You could find much information which could help you find the best manufacturers. You can use that information to avoid falling for a scam. It’s the best idea to identify a new partner for your business.
For this, you could use the following platforms:
Alibaba is the best platform to find the biggest supplier directory. Around 8.5 million active sellers are listed there, which mean you can always find what you need.
How to Find the Right Private Label Manufacturer?
Finding the right private label product manufacturer could be very challenging. It’s of utmost importance to find the best for your products as you are going to sell them under your trademark. However, failure could result in loss of business. So for your help, here are some of the ways you could try to find the right fit for you.
1. The best way to find the right private label product manufacturer?
Are you struggling to find the best manufacturer? Well, then get the necessary info of the supplier.
No matter how much efforts you would need to put into getting the basic contact info, go for it. Investigate the manufacturer background, who they are, what they do, who is middleman, etc. The better you understand the business background, the better the experience you would have.
- Check out if the manufacturer is real?
- What kind of products he manufacturer?
- What’s his business scope? And so on.
2.Ask particular questions for the product
The best and the next step is to ask some specific manufacturing questions from him. You can contact him and ask various questions related to the business. The questions like:
What organizations have you worked in the past?
It will help you understand the business’ core mission and the value they offer. It will let you identify the level of quality they provide. You can even check their partners on the internet.
You could also ask for the business license and quality certificate. It will help you go deep to know about their business. You can ask for business scope, contact info, and location, etc.
However, for protection, you can also verify the authenticity of license info at the Industrial and Commercial Administration Bureau.
What’s MOQ (minimum order quantity), sample time, and payment terms?
These are the very important factors to consider. This helps you understand the parameters of manufacturing your item with the suppliers. You may have to know about the MOQ, lead time, samples, and the payment terms for your business.
3. Manage the manufacturing process and get your samples
When you decide to work with a manufacturing factory, remember to specify your manufacturing process requirement in your business contract. You have to get at least one sample for each item before you decide a batch manufacturing process. For your sample manufacturing process, you have to know
- If you have any special raw material requirements?
- What colour do you want?
- What kind of manufacturing process do you need?
- Do you want to have your brand logo on your sample?
Remember to keep your manufacturer informed about your manufacturing process requirements and have your samples produced. After you get your samples, you have to inspect them and check their functions.
4. Get updated on the manufacturing process
You have to get updated on the manufacturing process and know the production timeline for your products. You are allowed to ask for updates from your manufacturer to ensure a smooth operation. You have to know your assembly line and make a good business schedule. Remember to inspect your items after the production line to make sure of the high-quality of your products.
5. Checkup before shipping
Always ensure the quality of private label products; for this, you can check your items before shipping. This is a very important step. Quality inspection let you ensue of everything and help you avoid any pitfalls.
Private Label Product’ Pitfalls To Avoid:
Here are some of the pitfalls you should always aware of. These are pretty important and could be neglected by beginners. But don’t worry we are here for you.
IPR related issue
IPR (intellectual property right) is the most necessary factor to consider when you outsource to a private label product manufacturer. Yes, you need to keep IPR even if you are authorizing the other company to manufacture your item. But make sure you pen down everything contractually so that you can protect your rights.
You need to aware of product certification that requires an item you sell. You could find various agencies, like FDA, and IEC that have regulator standards which you must follow. If you fail to follow, then you would have to face certain consequences. You can also ask manufacturers for the testing reports.
Private Label Product FAQ
What is a private label product?
Well, that’s a simple concept. You buy something from a local market or a local manufacturer, but use your own labeling to make your own. Its best example is AmazonBasics. Amazon itself doesn’t manufacture the products, but source them from other manufacturers.
How do you promote a private label?
You need to think about what you will do to keep a buyer on PDP after PPCs or promotions on Amazon, and various other social media platforms. You need to get your customers to your page, where they will check multiple other similar products with much better reviews, quick shipping, and badges, etc.
How do I find a product to private label?
The best way to do so is to check online marketplaces. The product is around us. We just need an eye to find it. The best way to search for private label products is to look within your chosen niche, and then contact the supplier. Some of the best marketplaces for such work is Alibaba.
Is private label profitable?
Yes, it’s profitable, actually more profitable than wholesale products. The reason is the cost remains low. Otherwise, the wholesalers here can expect 10-15% profit margins. At the same time, private labels can see up to 40%.
Do I need to private label products to sell on Amazon?
Well no, it’s not necessary to have your own brand. You don’t need to have a Brand Registry Approval before listing your chosen branded items. But the thing is brand registry can offer various benefits which help you protect your interests, especially when you are selling on Amazon.
Well, in simple words, Amazon Private labeling is not a difficult job, neither an impossible task. However, you may need to aware of every right way to run your business on Amazon. With a positive mindset and planning, you can build your own brand with creativity. You just need to put your efforts into finding the best supplier for your needs. And if you are interested in private labeling, then we have mentioned all the necessary steps above.
We hope this article will help you learn all about private label products on Amazon. Follow all the steps carefully and check the results. Don’t forget to share with us if you have something interesting.