How to Sell Private Label Products on Amazon?

 

There have never been more opportunities to offer products through Amazon. You can sell your original creations. You can sell popular branded products. Most importantly, for this very guide, you are also able to sell private-label products.

If you are a newcomer to the term “private label,” you likely have a few questions. What are private labels? How do you sell them on Amazon?

What is a Private Label Product?

In simple terms, a private label product is something that you market as your own, but it was actually manufactured by another company.

You put your private label, aka brand name, onto an undistinguished product. This isn’t like taking a Samsung phone, slapping on your logo, and saying you made it – that’s called fraud. A private label is taking a generic product, preferably a great one, that you are legally allowed to promote under your brand.

For an example of a private label brand, look no further than Amazon themselves. Their Amazon Basics range is not manufactured in-house. Instead, they source items that are made by other producers. These products are then sold under the Amazon Basics name as an Amazon product.

How to Sell Private Label Products on Amazon?

You have seen the pros and cons, and have made a decision: you’re ready to get up and running. When learning how to sell private label products on Amazon, the first tip is not to rush into the process.

The biggest error new clients can make, as we constantly remind them, is attempting to run before they can walk. All it takes for your private label dreams to crash and burn, along with a sizable chunk of cash, is the wrong product, the wrong market research, or the wrong angle.

If you have yet to get started as a seller on Amazon, you first must create an account on the platform. There are two seller account options on Amazon: Individual and Professional. Here’s a quick summary of the two:

Individual Seller Account

This account type is free for everyone to create and allows you to list up to 40 products. The downside is that a commission – in the form of $0.99 – is applied to each Amazon sale you make. Furthermore, a 15% consolidated fee is applied to your sales. You also cannot gain approval for any products found within restricted categories.

Professional Seller Account

This account type is free for everyone to create and allows you to list up to 40 products. The downside is that a commission – in the form of $0.99 – is applied to each Amazon sale you make. Furthermore, a 15% consolidated fee is applied to your sales. You also cannot gain approval for any products found within restricted categories.

Our recommendation is to first start out with an Individual Seller Account. This helps to save money as you get up to speed with the platform. Once your products are all listed on Amazon and ready to ship, switch over to the Professional Seller Account to maximize results in the long run.

Either way, you only need an account to get started on your private label journey.

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