What is FBA Private Label Selling on Amazon?

With over 59% of Amazon sellers opting to sell private label, it’s no wonder that FBA private label selling is one of the most lucrative ways to make money as an Amazon seller. Amazon FBA is a way of launching your own private label business online without going through the costly process of creating your own product from scratch.

Here’s everything you need to know about private label selling on Amazon.

What are Amazon private label products?

Private label products are products that are made by a 3rd party manufacturer which are then branded and sold by other companies under their own labels, or names. In other words, multiple companies can source the exact same product from one manufacturer and just brand it and market it differently to fit their business model.

What is FBA?

FBA stands for ‘fulfilled by Amazon’. This means that you outsource your shipping and handling to Amazon to get your products to the people who purchase them.

Examples of Amazon private label products:

Some of the most popular private label goods include makeup, travel mugs, coffee cups, and notebooks, but there are private label manufacturers for nearly every good on the market. Private label goods are not made exclusively for you: the same manufacturer can sell the same product to other people, which means that competition could be steep. Fortunately, there are ways to maximise your earning potential.

Are private label brands only sold on Amazon?

Private label selling is popular on Amazon however every big store with an ‘own’ brand can be considered a private label reseller. Even Amazon Basics can be considered a private label good.

What are the benefits of FBA private label selling?

Amazon sellers looking to branch into private label selling will find that there are many benefits that come with selling private
label goods. For example:

• Lower starting costs.
With private label selling, you don’t need to manufacture your own goods, only to rebrand existing products. This can save you time, money, and effort when it comes to launching your own brand quickly.

• The brand belongs to you.
While this seems a given, when you are selling products that are not private label on Amazon, you are beholden to the prices, laws, and regulations of selling those products, and you need to seek out brand approval before you make any changes to that product. With private label selling, those options are solely set and upheld by you.

• More profit.
As you own the products, it is much easier to create a markup that will give you a high boost in profit. Your costs will be much lower overall, as you can buy the manufactured goods at cost and then sell them for a greater profit margin.

Is private label reselling for me?

Private label selling on Amazon is a great way to diversify the offerings that you have available on Amazon Marketplace. It’s well worth a look if you’re interested in branching out by creating your own brands. Although setting up your brand may initially be time consuming and require some capital, the return you can gain through private label selling may be highly worth the investment in the long run.

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