Private Labelling on Amazon

Private Labelling on AmazonPrivate Labelling on Amazon

If you’re in the know, then you’re already know all about private labelling. But in case you’ve been doing things the same way since day one, then RepricerExpress has an awesome new thing for you to learn about.

Wait, Wait, Wait — What’s Private Labelling?

It’s a pretty simple concept: you sell your own inventory and use your own packaging, but the items you’re selling have been made by someone else. It’s a bit different than if you’re selling iPods or Nike sneakers, as those come in their own packaging. Rather, it’d be like approaching Apple or Nike to make tablets and sneakers for you — without using their label — and then selling it under your own brand name.

What’s really neat about this is you get a great product to sell, but don’t have to deal with all the fuss that goes along with brand name marketing costs. Ever wonder how much it costs to be a licensed Apple or Nike seller? We don’t know the exact figure, but it’s a lot more expensive than just selling your own brand. And by selling your own brand with less marketing costs, that translates into greater profits on your end. Bazinga!

How to Do Private Labelling Right

It seems like a quick and easy way to boost your profits, no? And it is — as long as you follow these simple rules first.

  • 1. Be Patient: You’re creating a brand, and not just selling it, so the dividends are going to take a bit of time to reveal themselves. If you think of it as creating and building an asset, you’ll be on the right path. It’s like buying stocks and bonds versus opening a lemonade stand: there’s more money in the former, but it’ll take some time and patience before you get to the big payday.
  • 2. You’ll Need Capital: Along with patience and time, the other big ingredient you’ll need is money. It can take quite a bit of cash to buy products to convert into your own label, along with all the learning and knowledge you’ll have to acquire in the meantime. The best bet is to find a private investor, but barring that, be prepared to put in the financial time to make it work.
  • 3. Adopt the Right Mindset You’re an inventor, not a reseller, so start thinking like one. As we mentioned in the beginning, you’re building an asset instead of selling one for others, so get into that mindset as quickly as possible.
  • 4. Understand How Selling an Asset Works: Back in the old days of Amazon, you became a pro by selling under the Amazon umbrella. Things are going to change now, as your customer base will change, too. But before you can advertise a full product line, you have to test the items first and a super efficient way of doing that is with Amazon Sponsored Ads. Every smart private labeller-retailer will tell you that a test drive is one of the most important parts of the process, especially when it comes to risk management.
  • 5. Invest and Reinvest: The last important lesson successful private labeller-retailers will tell you is that in order for your brand to grow, it needs a steady diet of revenue. It may be tempting to sink that cash into another aspect of your business, but ask yourself what’s more important: going out for a business lunch, or helping your little puppy grow?

The Amazon Private Label Checklist is a handy resource that can help sellers analyse the numbers and see if they should proceed, before investing a significant amount of time and money into a product.

Where You’ve Seen Private Labelling Brands Before

It’s a lot more common than you may think, as here are some of the biggest ones you’ve likely come across:

  • Costco and Kirkland Signature
  • Tesco and Value/Finest
  • Walmart and Great Value
  • Kmart and American Fare
  • Target and Archer Farms

Just about any big store you go into, you’ll see they have their own ‘house brand’ and it’s just one of many examples of these retailers realising the value of building their own asset.

Final Thoughts

When you engage in private labelling on Amazon, you can do away with a lot of the pricing rules that come along with reselling other brands. But in order to do that, you’ll still have to be competitive about it and use RepricerExpress. Luckily, it’s a whole lot faster to start with than the steps we listed above, as the only thing you have to do right now is sign up for your 15-day free trial.

Free trial

Related: The Best Products to Private Label on Amazon


Want monthly repricing tips, trends and news direct to your inbox?

See our Privacy Notice for details as to how we use your personal data and your rights.