What is the Amazon FBA private label?
Before we get to know what the Amazon FBA private label is, let’s have a look at what a private label is. So, essentially, when a product which is manufactured by a third party is sold under a particular brand name, that product is called a private label product. When you are the brand owner, you get to decide all the specific aspects of the product like-
– what your product looks like
– how your product is packaged
– how it is made
– what the label looks
– any other features that you want to add to make the product unique.
The Fulfilment by Amazon or FBA private limited is a service provided by Amazon, which was started in 2012, which helps facilitate the storage and distribution aspect of businesses, big or small. If you use FBA, you will be allowed space in Amazon’s warehouses to store your products. Not just that, Amazon will pack your products and even deliver the products to your customers, as and when ordered. On top of that, FBA will also handle returns and provide customer care for your products. (Related Article: How to Labeling your amazon products with fba fnsku or upc stickers)
What are the advantages of Amazon FBA private label products?
The Amazon FBA private label solves a series of problems that businesses of all sizes face. It takes an immense amount of time and effort to receive orders, finding storage space in a warehouse, pack products and to ship the products to the customers. This hinders with a company’s plans of expanding their business and establishing their brand. Amazon FBA takes care of all these tasks by using their warehouses, which are spread across the globe. All you need to do is ship your products to one of Amazon’s FBA warehouses and that’s it. Amazon will then proceed to store, ship and even package all the orders that you receive from customers, regardless of the fact which channels the orders are from, Amazon or not. Handling customers can also be extremely hectic, the Amazon FBA private label solves this by taking care of the returns and by providing customer service for all your products.
How to start Amazon FBA private label business?
To get started with the Amazon FBA private label, you first need to provide your details to Amazon through the ‘Contact Us’ link provided on their website. Once you have done this, Amazon will get back to you, once they review your information, and provide you with information on the next steps and how to proceed. If you get accepted into their program, you will be required to register one of their FBA centers as an additional place of where you do business, with the main tax authorities.
Now that you have been accepted into the program and you have completed all the formalities, you will be required to work on how to get started with your business through FBA.
There are 4 easy and simple steps to get started with your own Amazon FBA label business. These are-
1. Find a profitable niche product
Making a profitable product can be a really difficult task, especially because of the over saturation of the market. Every other person has a product to sell. How can one differentiate? You can do so by finding a niche which is profitable, i.e. which has a lot of demand in the market but not a lot of supply. A niche can be described as a highly specialized area in the market. For example, an organic shampoo. A normal shampoo is mass-produced and is already being bought in extremely large quantities. It is considered by a lot of people as a basic necessity and so the market is huge. But something like organic shampoo has a much smaller market. The companies that are manufacturing them as not doing so in great volumes and the group of people who are buying them is also smaller. Since organic shampoos are a niche, it is easier to compete in the market instead of taking on mainstream giants like ‘Head & Shoulders’. So, the first step that you need to do is to find a niche product which has a lot more demand than supply.
2. Add values to your Amazon FBA private label product
You need to make your product different from the other products on the market. For this, you need to make your product more valuable. There are several ways in which you can do so. Add more features to it, that no one else has or maybe even create a completely new product which solves the same problem but in an efficient and innovative way. You can also add value to your Amazon FBA private label product by putting a message behind the product which will motivate potential buyers to buy your product instead on anything else.
3. Find private label manufacturers
You need to be extremely careful when you’re deciding on a private label manufacturer. Because your manufacturer will be the one responsible for the production of your product. So, you will need to keep the following things in mind. First of all, your manufacturer should have the goods required to make your product. They should have the low factory direct prices while still providing high-quality product manufacturing. Make sure the manufacturer you hire is well known in the industry. Lastly, the delivery schedule should be reliable and no defects or damages should be present in the products.
4. Prepare marketing material
Your business needs marketing material to inform potential customers about your product, to attract more people and convert them into customers. Marketing materials are a great way to make a good first impression, but only if it is presented efficiently and effectively. You should take some time to create the marketing material that will suit your brand the best. It is a great investment to make because your marketing material will determine the image of your company. You should create a message, set objectives and pick the right layout. Marketing material will help you boost your company’s popularity, so do it carefully.
If you have any more questions about Amazon FBA Private Label Business, please do get in touch so we can assist you in getting the right information.
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