Olivia has a dry facial skin. So, she looks a lot older than her age. After watching a video on YouTube, she decided to give Korean products, otherwise known as K-Beauty, a try. She used K-Beauty moisturizers, facial masks, serums, and anti-aging creams. After a few weeks, her face has that pinkish glow and it almost looks like a glass.
And so, Olivia came up with a business idea. Why not build a K-Beauty empire? She was so enthusiastic. But, she has one problem. She doesn’t have a background in chemistry and she doesn’t really know how to produce moisturizers or facial creams.
After extensive research, she found a reliable manufacturer. She came up with a cool and catchy brand name. Soon, Olivia’s K-Beauty products are selling like hotcakes on Amazon.
Olivia has what we call a private label product. A private label is a brand that sells goods produced by another company. Let’s say that you want to build a bottled water brand, but you don’t have the skill or the capacity to produce them. All you have to do is find a company that manufactures brandless bottled water. You can buy a few thousand bottles and place your label.
Product labels are products that are manufactured by one company, but sold under another company’s brand name. These products are also known as private brands or store brands.
You can find hundreds of private brands in the market today, including Target’s Mainstay, Walmart’s Great Value Brand, and Amazon Essentials.
Why You Should Sell Private Label Products or PLP?
Creating private brands can benefit retailers in many ways, including:
1. Product label brands can make you stand out.
Private brand labeling allows you to customize your packaging to include your product name, company logo, description, and contact information. This helps you build your brand. It allows you to invest a little more on premium packaging to make your products stand out.
2. It gives you a strong sense of control.
Creating private labels help increase your control over various factors, such as marketing, sales, and distribution. Plus, you have complete control over pricing. Customers won’t go to a department store and find your product at a much lower price.
3. It is cost-effective and efficient.
You don’t have to spend a lot of money or time on product development and production. You can just acquire well-developed products and place your label. You don’t have to create a product from scratch.
Private products are cost-effective and this gives you a competitive advantage. Why? You can set your price a little bit lower than that of your competitors. This will help you steal their some of their market share.
Selling private products on Amazon can hasten the growth of your online business and increase your revenue and profit. Having your own brand also opens you to a world of possibilities.
Step by Step Private Labeling Guide
Building your successful private brand using Amazon’s FBA (Fulfilled by Amazon) program is not as hard as you think. You can create your own private brand following these 8 easy steps:
Step 1 - Generate product ideas.
Before you start your own private label, you must be clear about what kind of products you want to sell.
Here’s a criteria that you can use in choosing the right product:
Aligned with your passion and values
Choose a product that you like and believe in, something that you’re truly passionate about. For example, if you like salted egg popcorn or potato chips, you can try and sell that.
Choose a product that customers can use all year round. Don’t sell seasonal products like Christmas trees, winter clothes, and Valentine’s Day gifts.
Pick a product that you can sell for around $25 to $50. You won’t be earning enough profits for products below $25 and customers usually don’t go for products that cost more than $50.
Go for small and lightweight products. Those that fit in a flat-rate box and weigh no more than two pounds. This can save you shipping fees.
Electronics are great, but they often have issues. This could lead to problems, customer complaints, returns, and bad reviews.
Less Red Tape
Amazon has classified some products as hazmat (hazardous materials) or dangerous goods. These products are highly regulated and come with a lot of red tape.
If you want to avoid red tape, sell unregulated products. Avoid hazmat products, such as nail polish, cellphones, power banks, speakers, dishwashing liquids, cleaners, whipped cream, essential oils, e-scooters, life vests, and battery-operated toys.
Below are awesome private label ideas that you can use:
Coffee body scrub
Anti-aging face scrub
All natural deodorant
Reusable shopping bags
Step 2 – Do a Market Research
Once you’ve chosen the right product, you have to make sure that it sells. So, it’s important to do an extensive market research.
Conducting an extensive market research minimizes your investment risk and it helps you spot growing market trends. It keeps you one step ahead of the competition and it helps you identify what people really need.
You don’t have to do a formal market research. You can simply check Amazon’s best seller list, to see what’s in demand.
You can also use an app and extension called Jungle Scout. This tool can help you verify the demand for your product. It’s safe to choose a product that sells at least 250 units each month.
Step 3 – Look for reliable private label manufacturers
Looking for product suppliers is quite easy. You can easily go to Alibaba and create a buyer account.
Once you’re done, search for your product. So, if you want to sell water bottles, type the keyword “customizable water bottle”. Check the listings and send a message to suppliers.
Ask the supplier for the price and payment methods. You should also ask if the supplier ships to your location. To get the best deal, reach out to at least three suppliers. Order a sample from each supplier, so you’d know which one is the best.
Choose a manufacturer who responds to your requests in a prompt manner. Choose a supplier that offers high quality products at an affordable cost
Step 4 – Create your own logo and packaging design for your Amazon labels
A lot of suppliers offer packaging and logo design services. You can create your own, but it’s best to hire a professional graphic designer to do this.
When designing your packaging, consider your target market in mind. If you’re targeting teenage girls, you can use the color pink sparingly. You should use a minimalist design if you’re targeting men.
Step 5 – Set a price for your products
Remember that Amazon is an extremely competitive market. The ideal price range is around $25 to $50. Also, make sure that your price point is within twenty percent of your biggest competitor’s price.
Step 6 – Create an Amazon listing for your private label brands.
When your products are ready, it’s time to create your Amazon listing. Hire a product photographer to help you showcase your product in the best way possible.
You also need to create a readable and compelling product description. Make sure to highlight your product benefits. Don’t just enumerate the features. It’s also best to use bullet points. Remember that online shoppers don’t have ten minutes to read your product description. So, keep your description short and direct to the point.
Step 7 – Optimize your listing
You’ve probably heard about SEO (Search Engine Optimization). SEO is the process of integrating “keywords” or “search terms” into your content to increase its ranking on Amazon search engine results page (SERP).
To optimize your listing, you have to find out what keywords your customers use to find your product on Amazon. Let’s say you’re selling salted egg potato chips. You can do a keyword research to see which keywords have high search volumes. You can use tools like KeywordTool.io, Jaaxy, or Soovle.
Let’s say that the keyword “salted egg potato chips” has the highest search volume. All you need to do is strategically place this keyword in your listing title and in your product description.
Step 8 – Run ads
One of the best things about FBA is that you just have to set it and then forget about it. But, if you’re serious about earning huge profits, you’ve got to give Amazon Advertising a try. This helps get the word out about your brand.
Amazon PPC is a great and affordable advertising platform that you can use to introduce your brand to Amazon shoppers.
Creating your own private label exposes you to vast possibilities. It is affordable, efficient, and you don’t have to do all the weight lifting.