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What is Amazon Private Label?

Amazon Private Label Business means launching a Product with your Brand on it. Let’s say a Water Bottle is selling well on Amazon and you plan to launch a Private Label Brand of Water Bottles, then you will find a cheap supplier, most probably in China. Order the Product in Bulk Quantity and have your Brand (ABC) Printed on it. So now you will sell these ABC Branded Water bottles on Amazon or anywhere else. This is called Private Label Business.

Is Amazon Private Label Risky?

Yes and No. If we look at this from the perspective of Money then yes. It is risky, it is not an easy business model, and requires a lot of research and money. And if the research part is not done properly then the whole business can potentially fail. But if done properly and we took it from a long-term perspective then unlike the Wholesale Business model, this business model has longevity. This is an Asset then you can later on flip as well for many multiples of your Profit.

Is Amazon Private Label a Flappable Business?

Yes, Amazon Private Label Business is an Asset. And like other Assets, it can be sold/flipped at multiple months’ worth of profit. Making it a very attractive Business Model.

How much time does it take to make Money on Amazon Private Label?

Private Label requires not only a lot of investment but a lot of research and time as well before and during its launch. Usually, it takes around 12-15 months to launch a private Label from start to profitability and organic sales. This included time in the preliminary Product and Market Research as well.

How much investment is needed to launch a Good Private Label Business on Amazon?

It depends on the Marketplace itself, Amazon has different marketplaces in different countries, but the good ones to launch a PL are US, UK, and Germany. Japan is also a good market for Amazon if language isn’t a barrier for you. But we recommend and always go to the US. Since it is the largest marketplace of Amazon therefore we go in that marketplace. The investment is a lot higher i.e. 40,000 USD and above to launch a decent product in the US. But the return is higher as well. You can also look into the UK being the 2nd largest Marketplace of Amazon but VAT itself takes a big chunk of the profit. Therefore we always recommend the US marketplace to those who can manage the investment and handle the competition

Why does Private Label take so much time to be launched and profitable?

Private Label is a research-intensive Business. Therefore a lot of preliminary research goes into it. Product hunting itself takes 2-4 months at least and that too by a Professional Product hunter. Products are checked on a long list of checklists before they are approved and then market research and product feasibility start, which includes a detailed souring cost as well. And then it is officially launched after 5-7 months of research, sourcing, production, shipping, etc. Then the launch starts and the ranking part comes in. Then after 5-6 more months of ranking and stabilization, organic ranking is achieved and organic sales are coming in on automation.

What is the most difficult part of Launching a Private Label on Amazon?

The most difficult and important part of the whole Private Label Journey is the Product Hunting part, The product itself is the core part of the whole private label launch. If a product is chosen wrong then no matter how good you are, you can have the best sourcing price, the best marketing, the best photography, and the best SEO-optimized Listing. If a product is not good then the whole launch would be a total failure or at best a below-average launch. That is why product research is the most important and difficult part of the launch.

What are the different types of costs involved in a Private Label Business?

A Private Label launch includes a lot of costs. Some of them are below.

  1. Sourcing (includes sample, inventory checkup, and 3 months of inventory as well).
  2. Amazon Listing (Included Photography, Videography, Listing SEO Optimized Content, EBC/A+ content).
  3. Legal costs (Including Company Incorporation, Patent checking and filing of the product, and Trademark if any).
  4. Marketing (Including PPC marketing, giveaways, and Influencer Marketing).