Private label products are products that are manufactured by one company and then sold under the brand of another company. Finding and selling private label products can be done by researching popular products, looking for manufacturers, and negotiating terms and pricing. Pricing private label products on Amazon can be done by researching similar products, considering costs and desired profit margins, and monitoring competitors’ prices. Examples of private-label products to sell in 2023 can include household items, personal care products, and health and wellness products.
Private label products are products that are manufactured by one company and then sold under the brand of another company. Essentially, the manufacturer allows another business to put its branding on the product.
To find private label products to sell, one can research popular products and look for manufacturers that offer private labeling services. You can also attend trade shows and industry events to find manufacturers and suppliers. Once you have identified potential manufacturers or suppliers, you can negotiate terms and pricing.
Pricing private label products on Amazon can be done by researching the prices of similar products, considering your costs and desired profit margin, and monitoring your competitors’ prices.
Examples of private-label products to sell in 2023 can include household items such as cleaning supplies, personal care items like skincare and hair care products, and health and wellness products like supplements and essential oils.
What Are Private Label Products?
Private label products are goods that are manufactured by one company and then sold under the brand of another company. This means that the manufacturer allows another business to put its branding on the product.
How to Find and Sell Private Label Products
To find private label products to sell, one can research popular products and look for manufacturers that offer private labeling services. You can also attend trade shows and industry events to find manufacturers and suppliers. Once you have identified potential manufacturers or suppliers, you can negotiate terms and pricing.
How to Price Private Label Products on Amazon.
Pricing private label products on Amazon can be done by researching the prices of similar products, considering your own costs and desired profit margin, and monitoring your competitors’ prices.
Examples of Private Label Products to Sell in 2023
Examples of private-label products to sell in 2023 can include household items such as cleaning supplies, personal care items like skincare and hair care products, and health and wellness products like supplements and essential oils.
Consider Specific Product Attributes.
When choosing private-label products to sell, it’s important to consider the following qualities:
Small and lightweight
Your product should be able to fit into a small, flat-rate box and weigh no more than one or two pounds. This can help save on shipping costs from the manufacturer and later when it is fulfilled by you or by Amazon FBA.
Non-seasonal
Your product’s sales should not be dependent on the season. Examples of seasonal products include Christmas lights, Valentine’s Day gifts, winter clothing, etc. Avoid these whenever possible to ensure consistent sales throughout the year.
Unregulated
Certain products like food, toys, and batteries come with regulations that can make selling those products difficult. It’s advisable to stick to products that are easy to manufacture and distribute and don’t require a lot of legal paperwork and/or certifications.
Uncomplicated
Electronics can be fun to sell, but they often come with a lot of headaches and customer service issues. The same is true for fashion and clothing products, which may require you to have multiple colors and sizes for a single SKU. Choosing products that are simple in design and function can help reduce customer service issues and make your business more manageable
Conduct Market Research.
Conducting market research is an important step in determining whether or not a private-label product is worth selling. In the past, market research required a lot of time and effort, but now there are tools like Jungle Scout’s Chrome Extension / Helium10 that can help with product research instantly.
To use Jungle Scout, follow these steps:
Perform a search on Amazon.com using your product idea as a search term. For example, you can search for “Pillows”
After the search results page loads, click the “JS” button to the right of your browser search/address bar to open the Jungle Scout Chrome Extension (you will need to have purchased and downloaded the extension for it to work).
Verify the product’s data.
The Chrome Extension will show you the average monthly sales, average reviews per product, and more for the search results.
When evaluating products, it’s important to consider certain criteria to identify potential opportunities. For example, you may prefer products that sell an average of 250-400 units per month and have less than 100 reviews to avoid heavy competition when you launch your product. However, you should also evaluate other factors such as price point, profit margins, and long-term potential
Research Product Suppliers and Manufacturers.
Now that you have the perfect product idea, and you’ve verified the sales data using the Helium 10 / Jungle Scout Chrome Extension, all that’s left to do is to get it made!
Thankfully, in 2023, we have Alibaba to help us get that done.
If you’re not familiar with Alibaba, Alibaba is more or less the Amazon of China, allowing us to purchase wholesale and bulk products directly from overseas manufacturers.
And not only is Alibaba easy to use, but it’s safe, too, as they thoroughly vet all of their suppliers.
Here are the basic steps to finding potential suppliers on Alibaba for your private-label product:
- Create a buyer account on Alibaba.com.
- Perform a search for your product on Alibaba; Alibaba’s product database works similarly to Amazon’s.
- Find product listings that are similar to the private label product idea you wish to sell.
- Send a message to the product supplier/manufacturer requesting more information about the product. I like to ask the following:
- What is the price per unit for this product when I order 500 units (or however many units need to be ordered)?
- Can I have a sample shipped to my location? If so, what’s the cost?
- What payment terms and methods do you accept?
How can I customize this product?
Typically, I reach out to 3-5 suppliers for a product.
From each of these suppliers, I order a sample of the product
Finalize Your Logo, Design, and Packaging.
To finalize your logo, design, and packaging for your private label product, you can hire a professional and inexpensive graphic designer to create an eye-catching logo, customize the design of your product to make it stand out from others on the market, and invest in thoughtful packaging that improves the customer experience and helps with your marketing efforts by including your brand’s website URL and other helpful information.
Determine Your Fulfillment Strategy.
Of course, knowing what to sell and how to manufacture private-label products is only half the battle.
We also need a way to get our products to our customers.
There are tons of ways you can fulfill your orders.
Some people fulfill their goods from their garage or even their warehouse. Others use third-party fulfillment centers to ship their goods.
I mostly rely on Amazon’s own internal fulfillment service: FBA.
Since its introduction in 2008, FBA’s been a game-changer for Amazon sellers.
Not only do you get access to Amazon’s 2.5 billion monthly shoppers, but Amazon handles your products for you.
All you have to do is send your inventory to Amazon. From there, they store, pick, pack, and ship your goods for you…not to mention the fact that they also handle your customer service.
Decide on Your Manufacturer.
To decide on a manufacturer for your private label product, it’s important to reach out to 3-5 potential manufacturers and order samples from each.
Evaluate the manufacturers based on factors such as how quickly they ship samples, the condition of the samples when they arrive, and the quality of communication.
Avoid the mistake of choosing the manufacturer with the lowest cost if the quality of the product and communication is not up to par. Instead, use the lower price quotes to negotiate prices with manufacturers that have better communication and fulfillment skills.
Once you’ve selected your supplier, arrange payment via a safe and secure method such as PayPal or Alibaba’s Trade Assurance.
Create Your Amazon Listing.
Creating an Amazon listing for your private label product is an essential step in the process of launching your product on the platform. To ensure the success of your listing, it’s important to have everything ready to publish and launch well in advance. This includes high-quality product photos, which are crucial in attracting customers to your listing. If you don’t have photography skills, it’s recommended to hire a professional photographer to take the photos for you.
One of the most important elements of your listing is the title. It helps Amazon determine where your product should be seen in its database and also helps customers find your product when they search for it. To optimize your title, make sure to include relevant keywords, such as your product’s main features and benefits, at the beginning of the title. Follow that with secondary and tertiary keywords that you want to rank for as well.
In the product description field and bullet points, make sure to incorporate your product’s strongest features and benefits. These help customers make a purchasing decision when they click through to your page. The more your private label product meets their wants and needs, the more likely they are to buy. It’s also important to keep in mind that creating a listing may take time, around 3-4 weeks for the manufacturer to create the product and another 1-2 weeks to ship it to the seller or the nearest Amazon fulfillment center.
Optimize Your Listing to Increase Sales.
To optimize your Amazon FBA private label listing and boost sales, there are several strategies you can implement. Utilizing Amazon’s PPC advertising system is one effective way to attract more attention to your product. By bidding on sponsored ads, your product will be more likely to appear on the first page of search results, as well as on remarketing ads outside of Amazon, and even on your competitors’ product pages.
To determine which keywords to bid on, you can run reports through Amazon Seller Central to see which keywords are converting and generating sales. Additionally, using Jungle Scout’s Keyword Scout tool can provide insight into the keywords your competitors are utilizing to make sales.
Another strategy for optimizing your listing is to use A/B testing tools like Splitly. This allows you to run concurrent tests with small changes to your listing, such as the main image or price point. These tests will help you identify which elements of your listing are most effective, and which may be hindering sales. This information can then be used to make informed decisions about your listing and improve its overall performance.
How to Price Private Label Products on Amazon.
When pricing private label products on Amazon, it’s important to avoid the common mistake of setting a very low price point. Instead, focus on making your product stand out in other ways, such as through better design, packaging, and sales and marketing language in the product listing. Additionally, consider offering exceptional customer service after the sale is made.
As a general guideline, aim to keep your price point within 20% of your competitors’ average sales price. For example, if you find that similar products are selling for around $25, try to price your product between $20 and $30.
It’s also worth noting that pricing your product too low or too high can negatively impact your sales. For example, if your product’s price is too low, it may be difficult to turn a profit after accounting for the cost of goods and advertising expenses. On the other hand, pricing too high may result in slower conversion rates and negative reviews from customers who feel the product is overpriced.
In general, it’s best to launch private-label products on Amazon that sell between $20 and $50. This range is likely to maximize your profit margins while avoiding the pitfalls of pricing too low or too high.
