Many online business opportunities came with the emergency of Amazon business hub. Today Amazon has the biggest repository of products that can be purchased online. Literary, Amazon has turned to be the biggest online retail where anyone who is a legal Amazon account holder, can access online Amazon services and order products from the comfort of their homes.

6 Essential Factors to Start a Private Label Business on Amazon

Once a customer orders their products, Amazon employs its complex but efficient shipping arrangements to deliver the products within the shortest time possible to doorsteps of their customers.

Do you have a plan to start a business on Amazon platform? What type of business do you want to venture into on Amazon?

There is an endless list of business opportunities you can explore and mobilize the required resources to start offering goods and services to your clients. Amazon market is flooded with products from different sources, what do you need to make your private label business stand out among the rest?

The biggest question is how you are going to get your clients? This is where now the Amazon FBA proves to be helpful.

Wait! Have you started thinking of selling on Amazon already? Relax! You can’t start selling on Amazon before you even have an Amazon seller account! Before you even start thinking of your market, here are some factors to consider for you to establish a successful private label business on Amazon.

Identify and choose the best business segment for you
Do a thorough research on Amazon market and identify the best business niche. There are two main business niches you can consider establishing your business in the general niche and the private niche. The general niche is always flooded with products.

To give your business a unique feature from other businesses, establish your business in a private niche. For example, if you start a furniture business, deal in a specific line of furniture. You could customize products in both indoor furniture and outdoor furniture.

Being specific gives your private label business an upper hand over the other business establishments on Amazon. When customers search for products on Amazon search bar, they tend to be specific. Hence Amazon will give your business a priority when listing search results to customers.

Below are some points to guide you on how to best choose your niche.
•  Be single-minded about what you want to sell and to who you want to sell your products.  You can be helped to make right choices by factors such as your abilities and skills, your ability to solve problems, your life achievements and other factors.

•  Identify the products you want to sell and the specific category of customers you are targeting.
•  Place yourself in your customers’ shoes so that you can fully understand their needs and wants.
•  Carry out an evaluation to identify whether your intended products will get a market in your chosen business niche.
•  Produce a prototype of your product to test your market before you launch your real product.

Assess your competitors
Every business investment must face stiff competition at some point. When assessing its level of competition, here are key points to emphasize on.

•  The strengths and weaknesses of your competitors. To emerge the winner, dwell on your competitors’ weaknesses. For example, if your competitor does not offer after sales services to their customers, start offering it and give your clients extended warrants. Extended warrants will make your customers feel their money is secured.

•  Your intended customer base. Employ modern methods to help you find more customers. Use social media platforms, influencers, google AdWords to strongly campaign for your products online. Use google analytics to identify which social media many Amazon users access it from. Launch many adverts in these social media.

•  Product quality. Understand that customers pay for value contained in your products. Make sure your products are of the best quality in order to win hearts of your customers.

Finding a steady supply of your products
According to statistics, more than 80% of consumers using Amazon have a preference to private label products compared to the products from national brands.

This is a fact backed by the trend witnessed in 2009-2014, where over 14 billion USD were shifted from being spent on national brands to private label products.

6 Essential Factors to Start a Private Label Business on Amazon

Quickly seize the opportunity and find a supplier who can produce a unique product that suites personal taste and preferences of your customers. In the case of outdoor furniture, design seats that suites different outdoor functions.

With this unique designs, your products will attract many customers than your competitors’. Your source of product should be consistent and efficient.

To distinguish your private label business from other business setups in Amazon. Design a unique logo to identify your business and products. Employ qualified graphic designers people who have acquainted themselves with Amazon rules and regulations concerning designing logos and packages in Amazon to design for you.

Ensure that your logos are designed with the latest technology so that they look appealing to your customers. The colors should be carefully chosen to suit different preferences of customers. Your packaging style should not be copied from your competitors to avoid legal battles and being banned from selling on Amazon.

Your packages should include clearly worded instructions on how your product should be used and also the contents of the products.

Create seller account on Amazon
Once you have mobilized all the above resources, you are now ready to register as an Amazon seller. Amazon provides two categories of accounts. You can either open a professional account or a personal account. To know more on this accounts and their respective privileges, follow here. To create an account on Amazon, follow the simple procedure below.

• Visit and go to sellercentral.
• Click on ‘Get started’ link.
• Fill the required details in the provided table and click next
• Follow the guided instructions in order to complete your registration.

Marketing strategy
To make your first sale, you need to do a number of marketing stuff. You could check my other article about how to do social media marketing for your private labels on Amazon for detail.

•  First, you have to lower your prices to attract customers. Lowering prices doesn’t mean your products are of low quality. This is just a marketing strategy to attract customers to your new business. Never shy away from cutting into your profit margins a little by offering special discounts and coupon codes to increase your conversion rates at the early stage.

•  During your product launch, consider using influencers. Influencers can help a lot in drawing a lot of traffic to your product. Influencers are not necessarily Hollywood celebrities but they definitely have tons of followers in their social media accounts like Instagram, Twitter…

•  In any marketing venture, you need to ally your business with other business owners. They can share your product and you can share their product. This is a very organic form of advertising, as you will by and large be in the same category of products.

Private label business is the way to go in the current millennium. However, to succeed in this business, you have to research on your market before you invest in it. If you follow the steps above, your business might have succeeded by 20% before it even starts.

About the Author
Sarah Kaiser is a digital marketing manager at a French retailer’s sourcing division, which specializes in private labeling, Asian supplier audit and customized product sourcing. See how further your private label business can grow by having a free inquiry on their online catalog, or follow @Godirek on twitter.
Editor-in-chief at Cyberockk, Rizwan is an avid mobile geek and a gaming lover. He loves to keep a tab on new tech and loves to share the latest tech news and reviews on Smartphones, Gadgets, Apps and more.