Amazon private labeling has enabled tens of thousands—if not millions—of people to earn multiple times the average salary a United States citizen makes using only a laptop.
These sellers didn’t visit manufacturing hubs overseas or spend months acquiring product development skills; they learned how to source and promote goods on Amazon and put their knowledge into practice.
A disclaimer: creating a profitable Amazon private label store doesn’t need much legwork but it definitely requires hard work—private labeling isn’t an overnight get-rich-quick scheme.
However, with consistency, dedication, and a willingness to learn and improve, Amazon selling can balloon your income and create digital assets that pay dividends for years to come.
In this post, you’ll learn how to source private label products wholesale and create a powerful brand on Amazon!
Private labeling is the practice of sourcing ready-made products from manufacturers and applying your own branding to it. It’s a selling model that allows merchants to bypass the product development phase, outsource manufacturing, and jump straight to selling unique products online. When done right, Amazon private labeling has the potential to generate millions in revenue.
Private labeling isn’t the only way to sell and do business on Amazon—there’s wholesale and white label too. Knowing how each business model works helps avoid confusion during the early stages of online selling.
There exist selling models on Amazon other than white label and wholesale e.g. dropshipping and arbitrage. So why choose private label over the rest?
Some advantages of selling private label goods include:
Private label has its fair share of detractors—the following are popular ‘disadvantages’ of private label products:
Although these points are touted as disadvantages, they aren’t as bad as they seem. Yes, private label does require a higher upfront cost but it offers the biggest possible returns as well—sometimes multiples of what is required to set up the store. With bigger risks come bigger rewards.
Profitability does take time but once your product edges closer to the top ranks, you need to exert less efforts to sustain the business. Compare this with dropshipping and wholesale where unexpected price wars or contractual disputes with manufacturers and suppliers can bring your business to an abrupt halt.
Finally, private label seems complicated but it doesn’t have to be—YouTube and Google contain plenty of experts on how to sell private label product guides.
The private label process—end to end—can be summed up in 5 stages. Each stage includes only the information new sellers need to know to sell private label products on Amazon.
Let’s start with step 1: Identifying niche products to sell on Amazon.
Amazon has a combined product count of 353 million products but not all of them sell well, and some don’t sell at all. Just like most people don’t venture beyond the first page of Google, buyers prefer to purchase items listed near the top of Amazon search results.
The ‘right’ product is defined by a few characteristics like:
Other factors worth considering include average number of reviews (preferably less than 1,000 on average), product price (between $12-100), product tier size (Standard-sized), and the fulfillment method (FBA over FBM).
Popular Amazon categories filled with product opportunities in 2022 include:
A rookie mistake to avoid is to select products based on your ‘gut feeling’—in the world of online selling, success has to do more with data than intuition. Ask profitable sellers how they manage their affairs and you’ll discover that most rely on third-party seller tools to run their Amazon business.
And although there exist manual methods of product research, insights gained from using reliable product hunting software provide sellers with the competitive edge needed to dominate targeted niches.
Not seen a reputable seller tool in action before? Check out the image below.
Image Caption: The ZonGuru product and keyword research tool called Keywords on Fire.
The above is a screenshot of a top-rated seller tool like ZonGuru that helps new sellers uncover the best-performing products to sell on Amazon. You start by typing in a desired product (or keyword) and the tool extracts information straight from Amazon’s database. These insights help determine whether a product is worth investing in or not.
The tool analyses average number of reviews, units sold per month, ad spent per keyword, and other variables to assign an overall score. The higher the score is to 100, the more likely it is to succeed and make money for the owner.
The following are a list of popular products (for Amazon US) worth looking into using a tool like ZonGuru:
Beauty & Personal Care:
Health & Household:
Note: High monthly search volume keywords usually require larger budgets to launch and rank on Amazon.
Reliable private label manufacturers form the cornerstone of a successful online business. They’re responsible for providing quality products, offering live support, shipping inventory on time, and not hiking up prices or nullifying the contract without due notice.
Finding such manufacturers can prove to be challenging if you don’t know where to look. The following are popular marketplaces (and product sourcing apps) for sourcing products online:
Out of these 7 marketplaces, the best private label manufacturers are found on Alibaba.com.
Image Caption: Alibaba.com – the sourcing hub for third-party Amazon sellers.
Alibaba.com is one of the world’s largest online marketplaces connecting distributors and suppliers with Amazon and eBay merchants. A quick search unveils manufacturers for just about any product that sells on Amazon. The trick is to know how to find the right people for the job.
Just as you would look at review ratings and customer feedback to purchase the best products on Amazon, you must also vet manufacturers on Alibaba. Check whether prospects have the following attributes next to their company names:
Sourcing products from Alibaba.com also requires you to get in touch with potential manufacturers and ask the right questions. For more details on how to work with the right suppliers, check out this Alibaba product sourcing guide.
With the right product in hand and a reliable manufacturer by your side, it’s time to set up your Amazon store. Create an Amazon seller central account and choose a selling plan. Since you’re most likely interested in selling private label products wholesale, opt for the Professional selling plan that caps at $39.99 per month regardless of how many products you sell.
Image Caption: Differences between the Individual and Professional selling plans on Amazon.
An Amazon listing (or product detail page) is where buyers get to know more about your product—its purpose, usage, dimensions, possible color variations, etc. However, the listing doesn’t just tell visitors how to use your product but also serves to convince buyers that your offering is the best. Amazon listing optimization is a two-fold process:
In addition to these two-steps, adhere to the following guidelines:
The last stage of the private label journey is to market your product to relevant audiences.
Advertising Amazon products is done mainly through a PPC (Pay-Per-Click) model. Even though some people leverage social media platforms to bring in external traffic, Amazon PPC remains the most potent weapon in sellers’ advertising arsenal.
Explaining how to use Amazon’s PPC model to maximum effect requires a blog of its own (P.S: check out this Amazon PPC training guide for more details) but for the sake of brevity, here are the three types of PPC ad campaigns you can create to bring in sales:
If this is your first private label rodeo then we recommend sticking to sponsored products campaigns—they’re simple to launch and maintain and produce results.
If you found this post helpful, you can bookmark it for future reference. However, truth be told, encompassing and explaining the entire private label journey is beyond the scope of one blog. Add to that the fact that Amazon’s online selling policies change from time to time and it’s easy for new sellers to make costly mistakes.
Whether you’re just starting your Amazon journey or been in the game for a while, ZonGuru has just what you need to improve your business. Sign up for a FREE trial today, cancel any time.
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