Over the last few years Amazon has not only served zillions of customers with cost effective products but also has made way for hundreds of people to earn some good money by selling private label products. The concept of private labeling is fueled by the thought of selling a generic and best selling product on Amazon under a private label.
Private labeling requires you to create your own brand image for a particular product which is already a bestseller on Amazon. During the process of creating the own brand image, the packaging and logo of the product has to be created by the business owner and the marketing of the product has to be done in a better way. Better marketing would lead to better exposure of the product before the customers before they know that it is a less pricey product.
Advantages of private labeling
As you take up the business of selling private label products, you automatically get to enjoy certain benefits. These benefits are mentioned below.
You have more control on the pricing along with the marketing of the product.
Manufacturing cost of private label products is much lower as you would be getting them directly from the manufacturers and suppliers.
Lower procuring cost of private label products lead to higher profit margins even after keeping the price range lower than the competition.
A particular private label product under a private brand name would be available only from one retailer – hence the business owner can enjoy a monopoly over the product.
Competition finds it difficult to match the prices of products that are private labeled as they would have to incur additional marketing and sales cost.
Important points about private labeling
While selling of private labeled products may sound like an easy and uncomplicated way of earning money, there are certain things that you should be informed about. Firstly, it is not a quick money business. It would require good time for you to establish your private brand over the international and highly reputed brands selling the same product.
You need to go through the list of best selling products that gets published on Amazon. That will help you save time and money to ensure that your product will sell in the market. As you run your eyes down the list of bestselling products, you would automatically be getting a fair idea about the product that you would want to sell under your private label.
You should also be checking out the competition. To do this, you need to check out the prices offered by competition, number and rating of customer reviews on the products sold by competition. This would give you a fair idea of the level of competition that you would be facing while selling a particular product. If you think that the competition is quite fierce and you may not be able to cope up with it, you should switch to a different product that would be less competitive in the market.
Last but not the least, you got to ensure that you create a good listing of your product. A good quality listing would include high quality images of the product, explanations about the working and the specifications and justifications on why and how your private labeled product is better than the ones which are sold by reputed brands.