Maybe you’re a seasoned reseller, or maybe you’ve just started your journey selling on Amazon. Perhaps you haven’t decided if you’re firmly on Team Wholesale or Team Dropshipping. We're here to open mystery door No.3: Team Private Labeling.
So, What is Amazon Private Labeling?
Private Labeling boils down to your brand entirely belonging to your company.
Private Labeling differs distinctly from arbitrage or wholesale, where you would resell products from other brands. With arbitrage or wholesale, you have no autonomy over the product’s branding and pricing.
Compete with countless sellers for an immeasurable wealth of wholesale products? That sounds almost impossible.
With Amazon Private Labeling, my individuality can shine through to my consumers. The shots are yours to call, so what’s next? E-commerce domination.
In today’s e-commerce market, it’s easy to fall into the mouse trap of becoming purely sales-oriented. Many sellers elect overused advertising strategies, calls to action, and synthetic personalization.
Think about the last perfume advert you watched. There are only so many ways that a particular fragrance will make you smell like a CEO (and we’ve seen them all).
Building a unique brand identity will give you an edge no other seller can replicate.
Why You Should Choose Amazon Private Labeling Over Dropshipping
Dropshipping is a business model where a retailer does not keep the product it sells in stock. Instead, when a customer orders, you purchase the product from a third-party supplier. The supplier will then ship it directly to the customer.
It sounds pretty simple. You’re free from the obstacle of storing products independently, and overhead costs are at an all-time low. The fly in the ointment is within the nature of the competitive market.
Customer retention builds a reliable e-commerce business, which is only possible after customer satisfaction. In a dropshipping business, the product is ultimately not your own. An encounter with an unreliable supplier could be devastating when building customer loyalty.
Additionally, there is no getting around the disadvantages of the lack of branding. You can’t subject customers to your branding unless you supply personalized packaging to suppliers. Consequently, you lose out on potential brand exposure.
Comparatively, Amazon Private Labeling allows you to create your own brand identity. You can implement any additional creative elements and packaging guidelines. Creativity makes your brand's products recognizable. You can’t achieve customer retention before your customer knows their seller's unique brand.
With Amazon Private Labeling, you eliminate the risk of competitors offering a cheaper product sample.
Why You Should Choose Amazon Private Labeling Over Wholesale
Another alternative sales method is the wholesale business model.
In a wholesale business model, the seller purchases a product in bulk straight from the manufacturer at a wholesale price. The seller then sells these products individually on Amazon to make a profit through mark-up.
It is practical to sell a product from an established brand. Becoming an exclusive seller of a product will amass loyal customers.
However, as Amazon sellers become ubiquitous in the e-commerce market, it is only getting harder to be an exclusive seller.
With Amazon Private Labeling, you can customize your products. Where there is the freedom to customize, there is also the freedom to refine.
Research gaps in the consumer’s knowledge and feedback on the competitor’s product(s). In doing this, you can implement refinements that will make you the go-to seller for your product.
The Advantages of Amazon Private Labeling: Yes, There Are Even More
We’ve covered the benefits of establishing a unique brand. We’ve covered the benefits of complete control and customization of your product. That is only the tip of the iceberg with Amazon Private Labeling. Here, you’ll find even more benefits for when you switch to Private Labeling:
Boosting the Profit Margin
You are in the driver’s seat with Amazon Private Labelling. You control the CoGS (Costs of Goods Sold), which means you can negotiate higher prices for your product. The pricing is yours to command and raise if you so choose.
- Winning the Buy Box (Easily)
The Amazon Buy Box is on the product page's right side. The Buy Box makes it easy for customers to add products to their carts or make instant purchases.
Expectedly, resellers compete with other sellers to win the buy box. However, Amazon's Private Labeling removes this obstacle because private brand owners are the only sellers of their products. This does wonders for the conversion rate and revenue.
- Controlling Your Listing
Controlling your product listing means that you can offer a diverse range of products. You will be catering to the needs of varying customer demographics. Expansive customer service is how your brand identity will stand out from the crowd.
How to Start Private Labeling on Amazon
You know the advantages of Amazon Private Labeling. Now, you need to get started. Here is how:
1. Pick Your Product
You must find the right product that you can stand behind. Mind-mapping or bullet-pointing product categories that interest you is a great way to start your research. Looking into categories like electronics can help you formulate product titles and find associated products that relate to your brand.
2. Source Your Product
Partnering with an experienced supplier is vital to Amazon Private Labeling. You can go directly to the manufacturer or place orders on sites like AliExpress. Whichever avenue you choose, you must ensure your supplier is credible and reliable.
Remember to consider additional expenditures if sourcing from overseas. The most successful sellers find reliable leads on the best product opportunities.
You must carefully select your brand’s logo, product and packaging design. Set your brand apart from competitors with bold aesthetic choices and some heart - everyone loves a great backstory.
4. Listing Creation
You must ensure that your Amazon listing is rich with keyword content so the consumer can find your brand. Without high-quality product photography and well-educated infographics, your customer won’t feel confident in your credibility as a seller.
5. Launch Strategy
Now, you must put your brand's products out there. Sponsored Display ad campaigns are a great way to increase your visibility to potential consumers.
You are ready to start Private Labeling on Amazon but may still feel daunted. Fortunately, we have tools and tips to help your brand identity!
Tips for Building a Strong Brand with Private Labeling
Understand Your Demographic: familiarize yourself with what your consumer wants and why they should go to you above all other sellers. You need a message that resonates.
Consistency: your presence online is paramount. A good seller makes their brand recognizable everywhere. Furthermore, a great seller makes their brand recognizable as reliable and synonymous with high-quality service and products.
Quality Over Quantity: one exceptional product will always trump ten mediocre ones. The ideal product meets and exceeds consumer expectations.
Engage With Your Customer: always look for feedback. Nothing is perfect, and so there is always room for improvement. Feedback is essential for refining your product. Building a friendly rapport with your demographic is crucial to customer retention.
Protect Your Brand: register a trademark or enroll in Amazon’s Brand Registry. Your product is protected and irreplaceable; you have total peace of mind.
Common Challenges You May Face (And Overcome)
Nothing worth having comes easily, but thankfully, the difficulties that may arise from Amazon Private Labeling are conquerable.
Supply Chain Issues
The post-COVID interdependency of today’s supply chain can wreak havoc on a private-label brand. Fortunately, there are things you can do to combat the devastation.
Closely track your inventory. Take advantage of pricing deals and seasonal products. Remain candid and communicative with your customers, as well as your suppliers. These strategies will protect your brand’s image against matters out of your control.
Competition and Market Saturation
Unique branding requires time, effort, creativity and budget. In a highly saturated market, staying up-to-date on trends is a must. Finding gaps in the market is the only way to ensure your product is relevant. You should be asking: what are my competitors not doing?
Adapting to Amazon’s Changing Policies
You must consistently review and be compliant with changes to Amazon’s policies. If you don’t comply with Amazon's terms, you don’t have an accessible brand. No brand, no profit.
It is never a good experience when there is a customer service issue. However, finding the positives in the negatives is critical to becoming a long-lasting seller. Negative feedback is your chance to improve your product and show your brand’s adaptability.
Getting Started With OA Cheddar
Amazon Private Labeling can do wonders for your brand, granting you complete control of your product, brand and pricing strategies. You are your boss when you choose Private Labeling. If your brand wants to expand, Private Labeling is the way forward.
So, are you ready to take your brand to the next level? OA Cheddar’s Cheddarsoft software is here to help!
Cheddarsoft is a revolutionary tool made perfect for private brands. This tool allows you to store items you’ve sourced in one location. You can organize items based on differing attributes like supplier, sales rank, and ROI. You can now compile lead sheets, making it a simple task to find lead opportunities.
For a private brand, there has never been a more accessible tool to navigate your OA purchases and stock quantities. Just like customers require a reliable seller, your brand needs a reliable map to guide you to further success!
Take it from the experts.