Private-label or “phantom brand” products are those supplied by one company to be sold under another company’s brand. You see them on grocery store shelves when a local grocer sells food items from another source under their store’s name—usually at a lower price. You also see them on Amazon.
When you create your own private label brand, as opposed to selling a generic alternative, you can often earn more money and have more say about the products’ quality and style.
Not every product sells well as a private label item through Fulfillment by Amazon, but those that have the right specifications often do. Here’s a look at some of those desirable specs:
Examine the physical structure of the product. Can you easily add your logo to it with a label, case, etc?
Not easily found elsewhere
If someone can buy your product at Target, they may not need to buy it online. Sell something that people can’t get in the usual shopping places.
Small and light
To cut down on storage and shipping fees, make sure the product you are peddling is compact.
To rank well on Amazon, you want your product to hold up well with shipping and use. This facilitates good customer feedback and a low return rate.
High-priced items are risky because people check a number of sources before buying them, and you might lose their business in the process. Choose items that will sell for somewhere between $20 and $100.
Good profit margin
A smart rule of thumb is to make sure that you are making about $15 on a product that sells for between $25 and $35. Make sure that your profit margin accounts for exchange rates as well as fees, including shipping, storage, and duty.
If something can be used once and tossed, that’s one thing. But if it’s a product that people will need on an ongoing basis, that’s even better. Make sure that you include instructions for easy re-ordering.
There’s a tremendous opportunity for private-label selling through Amazon FBA right now. Do your research, watch the trends, pick the right products, and you will see the results in your bottom line.