How do I start an Amazon FBA private label?

Q&A ProCategory: Amazon SellersHow do I start an Amazon FBA private label?
Kayce Pullin asked 4 years ago
1 Answers
Dani Avitz Staff answered 4 years ago
Amazon FBA means Amazon Fulfilled-by-Amazon—a great option for sellers because Amazon does all the hard work for you! It means that you store your products in Amazon’s fulfillment centers, and Amazon is responsible for packing, shipping and customer service for those specific products. As user of the FBA service, you pay fulfillment fees per unit and monthly inventory fees to Amazon. Typically, sellers who exclusively sell on Amazon and in high volume make an excellent fit for Amazon FBA.Private label products are made by a third-party manufacturer and sold under a retailer’s brand name (the private label). As the name implies, you put your own label on existing products that might have been modified or enhanced and sell them under your own brand. This way, you can set yourself apart from your competition by being the only seller of this specific product, which results in customers associating the product with your brand. This advantage comes with (typically) costly brand development and expensive pay-per-click advertising campaigns. Not all products can be privately labeled so sellers need to know what to look for.So how do you start an Amazon FBA private label? There are five basic steps you need to take:
  1. Research profitable high-demand/low-competition products using an Amazon product research tool such as Algopix. More details on how to evaluate product opportunities can be found here.
  2. Source the products found with Algopix from a supplier. Alibaba and SaleHoo (paid) are two of the best places to find suitable suppliers for your eCommerce business. Order your first batch of products.
  3. Create a listing for your product on Amazon. More details on how to do this can be found here.
  4. Ship the products to Amazon warehouses so that you can take advantage of the FBA option.
  5. Start selling and develop your brand by:
    • Running ads & promotions to entice new customers to try your product.
    • Using internal Amazon tools for your listings to appear in the search results.
    • Engaging with customers to improve your next batch of products.
And that’s it! Sounds simple in theory, but there are obviously many, many little steps associated with these five steps.The first step—the product research—is actually the hardest part in this process. This is where Algopix provides immense value: With key data points like product identifiers, recommended market price, detailed expenses breakdown including Amazon marketplace fees and shipping costs, competition analysis, demand level, estimated profit and total sales estimation, you can make better decisions about what to buy and where to sell!