AF179 - AMAZON FBA Private Label Truth: What the experts won’t tell you

help for sellers Feb 01, 2021

Amazon communities all over the interwebs have been abuzz about creating private label products. Private labeling on Amazon can be lucrative, but there’s a reason I created my first full-on, authentic private label product only after ten years of running an Amazon business online. Building private label items is risky and involves large investments of time, energy, and money. While risk, investment, blood, and sweat are indeed part of running an online business, it definitely doesn’t have to cost you your entire life savings and two years of your life to see success in your Amazon journey.

Today, I discuss the ups and downs of private labeling on Amazon. I define what private labeling is, differentiate it from “white” labeling, and explain whether it’s really the Holy Grail of Amazon. I enumerate the average time and cost of investment related to building a private label item as well as describe how long it takes to launch a private label product off the ground. I also illustrate some of the risks involved in private labeling and reveal a strategy I’ve used to implement private labeling in a more profitable and less risky way. 

“Amazon is its own beast. You need to understand how it works before you can launch a private label product.” - Kristin Ostrander 

This week on the Amazon Files:

  • What private labeling means and how it’s different from white labeling
  • The average wait time to get a trademark
  • The challenges of developing a brand and making yourself stand out in the market
  • Why private labeling is time-consuming and expensive up-front
  • My first full-out private label item
  • The importance of market research
  • How long it may take before you can see the ROIs on your private label item on Amazon
  • Different costs and expenses involved in private labeling
  • What ‘minimum order quantity’ means and its relationship with creating private label items
  • Red tape, customs nightmare, and the risks of developing a private label item
  • The “Poor Man’s Private Label” and wholesale bundling
  • How wholesale bundling works and why it’s a great alternative to private labeling
  • Keeping list hijackers away by creating custom packaging
  • Building wholesale bundles from retail arbitrage items
  • The power of product research and due diligence
  • Creating value-add to your wholesale bundles
  • Your next step to the Poor Man’s Private Label

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Grow Your Amazon Business!

Thanks for tuning into this week’s episode of The Amazon Files, the show to help Amazon seller along their business journey one step at a time with Amazon expert and your host, Kristin Ostrander. If you enjoyed this episode, head over to Apple Podcasts, subscribe to the show and leave us your honest review. Don’t forget to share your favorite episodes with your friends on social media! Use the codeword #Poorman’sPL to join us on Facebook. Each week, Kristin hosts a live discussion on how to grow your Amazon business. Don’t forget to check out our website and subscribe to our mailing list for even more resources.

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