Creating and selling a private label on Amazon is a strategy that allows sellers to differentiate themselves from competitors and build a unique brand. Private label implies that the seller produces products under their own brand and has the right to use it on Amazon, including exclusive clearance and promotion.
Benefits of own brand:
- Product and brand control – the seller has complete control over the design, quality, and features of the product.
- High margins – Having a brand helps the seller avoid price competition and increases margins.
- Amazon Brand Protection – Amazon provides brand protection tools such as Brand Registry which helps to protect the product from counterfeits and increase customer trust.
Private label options:
- FBA with private label – sellers ship their products to Amazon warehouses to gain Prime status and take advantage of the platform’s logistics.
- FBM with private label – the seller can manage shipping themselves if, for example, the goods are bulky or require special storage conditions
How to choose the right model?
- Determine your goals and capabilities – if you have a high order volume and need fast delivery, FBA may be the best option. If you want to minimize costs and have established logistics, FBM may be a better fit.
- If you have your own brand – for private label, either FBA or FBM may be suitable, depending on the type of product and resources available. With FBA, you’ll have Amazon support and access to Prime, which increases your brand’s credibility. With FBM, you’ll be able to keep your logistics costs under control and manage all aspects of your service.
- Examine the specifics of your product – for popular, smaller items that require quick delivery, FBA is a favorable option. For unique or larger items, FBM may be a more economical and convenient option.
How the prep center helps:
- Quality preparation of branded items – the prep center helps ensure packaging and labeling that meets Amazon and the seller’s brand requirements. This is especially important for private label brands to make a good impression on customers.
- Focus on quality and brand protection – preps centers often offer quality checks at the acceptance stage, minimizing the risk of rejects and returns. This helps to maintain a good brand reputation.
- Flexibility to work with different sales channels – a preps center can handle sales not only on Amazon, but also on other marketplaces such as TikTok, Eatsy, eBay or Walmart, as well as direct sales from a brand’s website, helping to expand reach and manage logistics flexibly.
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