AF328 - The Pain of Private Label on Amazon

Today, I want to share some insights and solutions for those who have been disappointed with their private label experiences on Amazon. I'll also introduce you to an alternative approach that could potentially lead to quicker profits and less upfront investment.

In this episode, Kristin discusses the challenges of private label selling on Amazon and offers an alternative approach - the "wholesale bundle system". She explains the differences between white label and private label, sharing her own experiences and success with bundling. Kristin also talks about the impact of COVID-19 on supply chains and the importance of understanding Amazon's rules and regulations. She introduces hands-on learning about building bundles and navigating trade shows. This episode aims to provide insights and solutions for those disappointed with their private label experiences.

The Challenges of Private Label Selling on Amazon

Private label selling can be a great way to establish your own brand on Amazon. However, it's not without its challenges. I've heard countless stories of people who were promised success with private label, only to end up with unsold products. Starting a private label can be expensive and time-consuming, and it's not always the best starting point for new sellers.

Introducing the Wholesale Bundle System

Instead of jumping straight into private label, I suggest exploring other options. One such option is the "wholesale bundle system," which I often refer to as the "poor man's private label." This system was developed as an alternative to private label, requiring less upfront investment and potentially leading to quicker profits.

While the process of developing and importing products for private label has become faster and more accessible in recent years, the benefits of the wholesale bundle system are still significant. For instance, I've had success with bundles such as multipacks of granola bars and carrying cases for toys.

The Impact of COVID-19 on Supply Chains

The recent pandemic has had a significant impact on supply chains and overseas importers. Many businesses suffered financial losses due to the disruptions caused by COVID-19. I recall a client who followed a private label program but ended up with $25,000 worth of unsold products. Upon investigation, we realized that the program was actually teaching white labeling, where the product is the same but with different branding.

White Label vs. Private Label

Understanding the difference between white label and private label is crucial. White label involves buying an existing product from a manufacturer and putting your own branding on it. Private label, on the other hand, involves creating a unique product from scratch or making significant changes to an existing product.

White labeling can be a successful business model if you're good at branding and marketing. Influencers, for example, can use white label products and sell them to their audience. Private label, however, requires more time, money, and energy to develop a unique product.

Building a Bundle Brand on Amazon

Building a bundle brand on Amazon can offer a level of security, as bundle brands can be protected under Amazon's brand registry and trademarks. Private label products, on the other hand, require a lengthy and complex process from development to shipping, including quality control and inspection.

I advise against starting with a private label if you're new to Amazon, as it requires knowledge and experience. Instead, start with wholesale products or small batches of bundles, which can be more affordable and less time-consuming.

The Wholesale Bundle System

We've conducted a 40-day bundle challenge, where participants were able to successfully launch bundles in a shorter timeframe compared to private label products. After going through the necessary training, participants are able to develop a bundle in just one day.

For more information on the wholesale bundle system, visit mommyincome.com/system. I encourage you to share your stories and reach out for assistance with your private label products that may not be performing well. I'm grateful for your support and encourage you to leave reviews.

Remember, every business model has its challenges, but the value of having control over your own business and continually testing products is immeasurable. Stay informed, stay motivated, and keep pushing forward.

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"If you have experienced pain in a private label or you're just not sure, I never ever suggest that you start there." - Kristin Ostrander

TIMESTAMPS:

The pains of private label (00:00:02)

Discussion about the unrealistic promises and challenges of private label selling.

Not starting with private label (00:00:53)

Suggesting alternative strategies to private labels and reasons for not starting there.

Private Label vs. White Label (00:10:51)

Explanation of the difference between private label and white label products, including examples and benefits of each.

Starting with White Label and Bundling (00:16:01)

Discussion on starting with white label and bundling products as a cost-effective way to enter the market, with examples of successful bundling strategies.

Importance of Proper Bundling and Brand Registry (00:17:45)

Emphasis on the importance of following Amazon's bundling rules to avoid account suspension and the potential consequences of incorrect brand registry filings.

Private Label vs. eBay (00:18:47)

Comparison between selling on eBay and Amazon, highlighting the limitations of eBay and the advantages of Amazon for brand new wholesale products.

Strict Policies on Amazon (00:19:42)

Discussion on the strict policies of Amazon, including the requirement for proof of authenticity and the consequences of not following the rules.

Why Private Label is Not Recommended (00:20:38)

Explanation of why the speaker does not recommend starting with a private label on Amazon, sharing personal experiences and suggesting alternatives like bundles for standing out in the market.

Private Label Process and Challenges (00:27:15)

The speaker discusses the process and challenges of developing a private label product, including brand registry, trademarks, quality control, inspection, and shipping.

Benefits of Bundling for Private Label (00:29:19)

The speaker explains how bundling can be a beneficial option for private label sellers, including the possibility of collaborating with other bundlers and reaching a wider audience.

Advantages of Wholesale Bundling (00:33:46)

The speaker highlights the advantages of wholesale bundling, such as not needing to handle the products personally, using a third-party prep center, and exploring other platforms like Walmart and Target.

The 40-day bundle challenge (00:37:24)

Discussion about the 40-day bundle challenge and how it allows people to launch bundles quickly and without a large financial investment.

Assistance with dead products and appreciation for listeners (00:38:24)

Offering assistance in resurrecting dead products through bundling and expressing gratitude for listeners' support and engagement.

RELATED CONTENT LINKS

1. FREE Masterclass: How to Confidently Start & Scale An Amazon Business
2. JOIN MY LIST
3. LEARN FROM ME
4. Why Wholesale Bundles?
5. Best Tools for FBA Sellers!

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