21/01/2022
What is Amazon Private Label and How Does It Work?
Before we get down to the nitty-gritty, you should know that there are four main ways to sell on Amazon FBA: Amazon Private Label, retail arbitrage, wholesale, and creating your own product.
Amazon Private Label is about finding a product on Amazon that has high sales, but maybe a low number of reviews; getting that product, and labeling it as if it were yours. Basically, what you will try to do is to upgrade the presentation of that original existing product by creating your own brand. (We will outline the benefits of this strategy below.)
With retail arbitrage, you go to retail stores to find products on a deep discount; you buy that product; look for its original price, and sell it on Amazon to make a profit. In the long run, this practice can turn into a real hassle since you have to be constantly going out to hunt those bargains.
Wholesale has to do with going to different manufacturers; buy their product at wholesale price, and flip it on Amazon for the regular retail price. The only downside is that it is getting extremely saturated. There are so many manufacturers out there producing very similar products that, in some cases, they’d rather sell them on Amazon their own. Also, you’ll find many established sellers with a solid reputation that won’t be easy to outrank.
Creating your own product requires a bit more effort from your part. But, by doing it so, you will definitely have bigger chances of standing out from the competition, thus of getting higher sales.