Anyone wanting to sell retail products online knows that Amazon is the market to either beat or join – and for most business owners, joining is far more profitable. Amazon does make it very easy to turn a profit selling private-label products (or white-label products) if you are a motivated entrepreneur. What does private-label mean, and how can you get started selling these products on Amazon? Here’s what you need to know.
What Is a Private or White Label Product?
If something is called private label or white label, it means that the product is made by a company that doesn’t brand the product. Instead, they sell the product as a generic item in bulk to retailers, who can then sell the item under their own brand name.
Here’s an example:
Say you are a brand that sells gym clothing, and you want to add a basic grey t-shirt to your product catalogue. There are companies out there that make basic grey t-shirts with no brand name on the tag. You can purchase these shirts in bulk at wholesale prices and then sell them under your own brand name.
This allows you to save a ton of money in production, and also means you can add new products to your inventory very quickly. You have the power to react to trends and demand much more quickly.
Selling white-label or private-label products on Amazon isn’t something that is going to make you rich overnight, but it is a very smart way to expand your product selection and build your brand name. So, let’s talk about how to get started with this process.
Start by Choosing the Product
The first step to selling white label products on Amazon is to choose the products you are going to sell. Not only do you need to choose which products will appeal to your customer base, and what works with your brand’s image, you’ll also need to research the products that are available from private label companies, and ensure that you are buying something of high quality to resell.
Start with an idea of what your customer’s main problem is. Then consider what kinds of products would solve that problem. If their problem is that they struggle to feel productive at their messy desk, desk organizers may be your best selling item. Keep in mind what your target audience needs, and then start looking at the options available to you from wholesalers. You’ll want to look for products that are ranked very highly by buyers through other sellers.
If your business is more eclectic and can offer a wide range of products, a good way to expand your listings is to check out the top 100 products in each category on Amazon. Look for generic items that are ranked very highly, and try to make them lightweight if you can. This will save you money and keep the price of the item low.
Research Your Competition While You Shop
The next step is to get an idea of how much supply already exists to meet the demand. You don’t necessarily want to sell an item that is already saturating the market, but you do want to sell things that you know there is a demand for. You can search Amazon for the competition in your specific price range. You may find that products are in demand and are priced right, but aren’t getting a ton of reviews or ratings simply due to a poorly presented listing. You may find that a product you wanted to sell is being overpriced by many sellers. Note anything you learn about the market for that product and use that information to decide what you’ll sell and how you’ll sell it.
Now Get in Touch with Your Supplier
The next step is to actually find a supplier and contact them. Most Amazon sellers who do white-label selling turn to easy to work with suppliers that can work with them on inventory and fast lead times. Make sure to find the right supplier that can always be on your side when your product starts getting popular.
Moving On to Finishing Touches
Now it’s time to get the products finished for your brand. You’ll want to have branded packaging created to put on the products, which can be created by graphic designers or digital artists. You’ll also want to have a great product listing created, either by yourself or by a professional writer who has a good grasp on SEO practices. Make sure that your new product is presented in a way that represents your brand the way you want.
Sign Up for FBA And Get Started
Now you just have to get your product signed up for the Fulfillment By Amazon (FBA) program, and let the system do the work for you. You can work to drive traffic to your listings with advertising campaigns or great listings, but once the orders start coming, Amazon will handle the process of fulfilling the order. Your job turns more towards customer service and managing the rest of your business.
To Sum It Up
Selling white-label products through Amazon is a fast way to expand your product catalogue. Once you’ve researched the products you want to sell, find a supplier, get your branded packaging designed, and start listing your products. Let Amazon handle the fulfillment and you’ve got a new stream of passive income that is building your brand name at the same time. Depending on what types of products you are selling and how high quality your packaging is, you could easily add a new product to your catalogue for under $10,000. You save in the production and testing phases, and your customers can get the products they need very quickly.