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5 Reasons Why You Should Sell Your Own Private Labels on Amazon

By Sarah Kaiser
Published: Mar 01,2017

You may notice nowadays that people are constantly on their phones, tablets, and laptops. This is a good thing for many of us that own our own businesses, especially when they sell goods online or have a well-liked or professional website. All types of businesses are not the same however. One type of online business, a private label business, is becoming more and more popular, as many people are making money selling their items through Amazon. This is a practice that has gained attention from many for a few years now, since numerous sellers have found success with it. Here are some of the top reasons why you should consider selling your own private label products through this large marketplace, and aspects to keep in mind to ensure decent profit margins.

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1. You have a great product. If you have a product that is not only useful to some, but will also fit right into the lives of nearly everyone, there’s no reason why you shouldn’t share it with the masses. This can be anything from a scarf to an item to help in your kitchen. A product that makes someone’s day to day routine easier or a product that offers a better value than other items in its class should always be a big seller, especially if it comes in different shapes, sizes, or colors, so people can feel like they purchased something that is just right for their tastes. What is even better is if your products are really well made, so someone won’t have to keep purchasing more because they break. When someone uses a product and then notices that they don’t want to live without it again, that can cause them to purchase more to keep in case something happens to one, and they are likely to leave you a stellar review, which can go a long way into selling more units.

2. Your product is cost efficient. Another great thing to remember is that you have to sell your product at a reasonable price. You can’t alienate people that need your product because you want to make your more money per item. On the flip side, you also can’t price it so low that you won’t make any money on it. The trick is to sit down with all your expenses and see what you need to charge for each item to make a profit, after you pay your expenses. Try to put yourself into a customer’s shoes and see what you would be willing to pay for the product, instead of just giving it an arbitrary price. Additionally, in some cases, it is a lot easier to sell items online versus having a storefront, due to all the overhead associate with having your own building. It is also easier for you to get robbed or have a setback where you lose inventory if you have a place where people are able to see all your merchandise. If you don’t have to worry about loss prevention and storage fees, it should make things easier to price. Another advantage when selling online only is that you can house your products somewhere safe, like in your house, or even take advantage of the Amazon Fulfillment program, which can save you some space and stress.

3. It doesn’t weigh much. You may not think it’s beneficial to sell products that are lightweight, but it is. You will have to be concerned about shipping items all over the world, so you’ll have to be familiar with charges for domestic shipping and international shipping, depending on where you want to sell your goods. This is why you don’t want a product to be too heavy, since lower weights mean lower shipping costs. Keep in mind that you still can’t price your product out of its usefulness, meaning it should still be available at a reasonable price, even if it costs more to ship it than to purchase it from your supplier. It is up to you to figure out the math, and you can do so easily by checking other products online and looking at shipping charts and policies online.

4. Offers passive income. If you don’t know what a passive income is, it is essentially a way to earn money without you really having to do much. It works like your savings account and how it earns interest if you keep saving money in it. It is also a way to earn extra money whenever you have a job but need money on the side or plan on changing careers or leaving your current position. When you’re selling private label products through Amazon, this is the type of income you will earn, since it doesn’t take as much on your part to sustain this type of business as other types of companies. When you are using proper sales strategies selling through Amazon, you will start to see your hard work come to fruition in just a few short months in the form of passive income. Of course, this is no reason to slack off, since you'll always need to work a little bit harder to make sure that you are remaining a top contender on the site and in your niche.

5. Your niche isn’t saturated. The most important thing to look out for is saturation in your niche. In other words, you will have to do some research on Amazon to see how many people are selling items just like yours, or at least something similar, and at what price. It is also helpful to read the reviews that people are writing, so you know if these products are made well or not. After that, you can figure out if this is the right type of product to sell on the site or if you’ll need to regroup and perhaps find different products to sell. You should remember that you can do other promotions outside of Amazon to be sure that your items get noticed too. You can have your own websites, social media accounts, or purchase ad space on blogs or popular websites to get your name out there as well, which can give you the upper hand, if there is some competition in your product niche.

About author

Sarah Kaiser is a digital marketing manager at Casino Global Sourcing, the sourcing division of a French retailer Groupe Casino. is the product catalog of Casino Global Sourcing, which offers helps and tips from product sourcing, cost saving to sales boosting for Amazon third party sellers . She’s a fan of water sports and has studied business management in France. Her works have been published on dozens of websites and blogs.

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