Private label is considered to be one of the most popular Amazon business models. More than 71% of sellers are using this method of selling. Let’s try to figure out why this method is so popular among sellers. A private label is a model under which retailers rebrand and rename manufactured products to their own brand. Even Amazon itself practices this method by selling private label products on its platform, such as the Amazon Essentials clothing line.
Compared to other business models, this method is the most expensive and needs a larger capital of investment. It also comes with high risk, as those who operate under this model are more open to Amazon seller suspensions. Now let’s try to understand how profitable this method actually is and what risks it carries for those who use it. Nearly 55% of sellers who chose private labels make $5.000 per month; you start to reap your profit within six months after starting your business.
Private Label requires more knowledge for selling on Amazon, because of the many guidelines the platform has set for private label business. Obviously, not following these guidelines will result in getting seller accounts suspended. Here are some tips Got Suspended Clients has for private labelers:
- First of all, take the time and do some research on Amazon’s product database.
- Reach out to the manufacturer for creating a product. Don’t just pick and choose. You need authorization from those responsible for creating the products.
- Start creating new listings for your products.
- Begin promoting your products on Amazon.
- Try to figure out what your competitors are offering by checking out their product listings.
For simplifying this process, you can integrate the FBA Fulfilment by Amazon with your business. Through this program, Amazon handles product storage, returns, and customer service. This means less risk of Amazon seller suspension for you.
It’s equally important to pick products that are actually suitable for private labeling, as not all products can be sold under this model. Products such as sports clothing, baby products, home and kitchenware, and products for children are a good place to start.
If you are new to this, try picking products that are easy to private label. You can move on to more complex levels as your business grows.
As soon as you find the jackpot, you should put your logo on the packaging or on the product. Before doing this, try to approach the issue with full responsibility. Make sure you have all the authorization you need from all involved parties, and that the paperwork is taken care of.
Now comes the fun part. Designing your product.
Do your best in creating a unique logo, different from others. You can even be creative with your packaging. Is everyone else using square boxes? Use round ones. Your imagination is the limit. Also, include your name and webpage on the package. It helps you seem more presentable.
Keep in mind that if you don’t take extra care with this business mode, you will most certainly get hit with Amazon account suspensions. This is because Amazon likes to check your supply chain from time to time, and if heavens forbid you to have a private labeled product which you had no authority to private label, you’ll be hit with suspensions such as inauthentic suspension. Make sure you keep every invoice and documentation around for Amazon’s referral. It will be too hard to reinstate your seller account without proper documentation.
For such kind of force majeure situations, the Got Suspended Clients team is your go-to account reinstatement service and can reinstate your Amazon seller account with due diligence. Our experienced writers will appeal your Amazon seller suspensions by composing carefully-drafted POAs which will help you in the process of a speedy reinstatement.