But have you considered how to turn Amazon into your business partner?
Its possible to make hundreds or thousands of dollars a month by selling private-label products.
Before diving in, though, its important to understand this isnt a get-rich-quick strategy.
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It takes diligence, patience and a willingness to see an idea through from start to finish.
To be most successful, set your expectations accordingly.
Wait… What Is Private Label on Amazon, Exactly?
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Sound appealing?
Lets break it down step by step for an actionable look at how to build your own private-label business.
The best-seller rankings essentially serve as your pre-market product research.
During this phase, study your competition to see how theyre doing.
For example, lets say the product youve honed in on is an insulated water bottle.
It usually takes me hours of research to find an opportunity I believe will work.
However, lets say your research for insulated water bottles met all of these requirements.
Now youre ready to find a supplier.
Trust me on this one and head over toAlibabato look for an international supplier.
(Its important to note that overseas suppliers may manufacture goods that dont meet U.S. safety regulations.
Its up to you to ensure the products are up to standard.)
Start your supplier search by entering the same key phrase into the Alibaba search box.
Find the style youre looking for and research a few different suppliers.
However, youll need to email the supplier to get an accurate quote for your order.
Ive found suppliers are willing to negotiate, even on your first order.
Generally, theres also room for negotiating prices.
Just act confidently and pretend youve been there before even if you havent!
Dont worry, though you dont have to create them yourself!
Use a website likeFiverrorUpworkto hire professional designers at competitive prices.
On Fiverr, you simply search for designers and then send them your job proposal.
Ive used both sites, but prefer Upwork for packaging and logo design.
Can you imagine how many more units they would sell with descriptive listings?
This is your chance to set your product apart and differentiate your brand as knowledgeable and informative.
Well, up until now, you may be right.
While FBA takes a small percentage of your profits, its well worth it for most sellers.
When a customer makes a purchase, you dont even have to lift a finger.
Amazons fulfillment centers take care of everything, including returns and customer service issues.
Many sellers run some sort of sale or discount during a products launch.
This is a great way to increase visibility and attract an initial burst of sales.
Another option is to use Google AdWords to drive traffic to your listing.
While AdWords will be more expensive, I tend to generate more sales from it than from other methods.
While these are the most common strategies, there are hundreds of other ways to increase sales and traffic.
This is where you might get creative and have fun with your product!
Or, if everything is working on its own, simply sit back and let the passive income accumulate.
How Much Can You Earn With a Private-Label Amazon Business?
Products that rank in the top 500 typically produce hundreds of dollars per day.
Even a product in the top 2,000 to 3,000 can earn you a steady supplemental income.
Since different types of products have different price points and associated costs, those numbers are estimates.
How Much Does It Cost to Start a Private-Label Business?
Its difficult to specify the initial investment for your own private-label brand, since it depends on your product.
I ordered 500 units at a per-unit cost of $3.20.
So launching my first private-label brand cost me about $2,000.
Look for a healthy profit margin.
I like to aim for a per-unit profit margin of at least 50%.
It all depends on the product, but theres a niche for every budget.
While theres a lot of information here, setting up your own e-commerce business will take some extra research.
Schuyler Richardson is a Greenville, South Carolina-based freelance writer and e-commerce entrepreneur.
Hes an avid sports fan and graduate of the University of South Carolina.
The Penny HoardersAdam Hardycontributed to this article.
It sounds appealing right?
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