What is Private Labeling
A free video tutorial from Damir Šerbečić
Amazon FBA Seller, Digital Marketer, eCommerce Entrepreneur
4.4 instructor rating • 8 courses • 106,176 students
Introduction to private labeling business model and its potential.
Learn more from the full courseAmazon FBA as a Private Label Business Launching Platform
Learn how to sell on Amazon FBA. Find, launch and scale your own private label brands without touching inventory.
07:29:55 of on-demand video • Updated June 2020
- Proven and tested ways to launch, sell and expand private label products
- Spot a profitable product opportunity in growing market with strong demand
- Sell in the United Stated and Canada no matter where you live in the world
- Open a US checking account without travelling to the US or having a US company
- Get paid by Amazon no matter where you live in the world
- Find reliable suppliers overseas
- Import products cost effectively to the United States
- Best way to import products if you are not from the United States
- CHECKLIST: What to ask suppliers
- CHECKLIST: Due diligence - how to spot fraud suppliers
- How to properly label your products and send to Amazon FBA warehouses
- How to optimize Amazon product listings like big brands
- Strategy for launching and continually marketing your brand, on and off Amazon
- Increase social proof of your product listing and get 100% legitimate verified reviews
- How to drive external sales and ultimately increase keyword rankings on Amazon
- How to deal with negative reviews and unhappy customers
- How to avoid getting your seller account suspended
- PERSONAL SUPPORT: I will answer every question that you might have along the way and review your product listing with improvement suggestions
- ACTIVE DISCUSSION BOARDS
- REGULAR ANNOUNCEMENTS with latest Amazon policy and guideline updates
- And much more!
English [Auto] OK so for those of you who don't know what private labeling is. Let me start off by briefly explaining and introducing you to private labeling and its potential because in this course we are going to focus on only on private labeling products sourcing method for selling on Amazon. So privately billing which is also known as white labeling or OTM is a way of sourcing products where you arrange with a manufacturer to put a brand name on a product that they're producing and to create a custom packaging for that product. So basically you're creating your own custom brand without doing the manufacturing part. So the whole production is done in a factory in China or actually anywhere in the world. And then you simply buy X number of units and tell your supplier to put your logo on a product or to create a custom packaging. Of course you're also able to work with a supplier to create minor product improvements so you can have a totally custom and unique product. Now the reason why private labeling is the most lucrative business model currently available on Amazon is because profit margins are much higher compared to selling brands from other companies. With this model you can expect margins of up to 60 percent. But the most common profit margin is about 40 percent. And also by having a unique brand no one else can sell the exact same product like yours under your product listings. Now another advantage when you're building your own brand which not so many people talk about is exit potential. So you see when you're selling somebody else's brand you're basically building somebody else's business. But if you're working on marketing your own line of products under your brand name you're building your own asset that can later be sold to other businesses as well. Now does Amazon private label businesses can be sold for up to 30 times your monthly profit which means that if you build a 10000 profit per month Amazon private label business then you can expect to sell it for between 25 hundred and three hundred thousand dollars in cash. Now this will be hard to achieve if you were to sell somebody else's brand on Amazon. And honestly this level of scale and acid building is not possible with other selling strategies because with privately building you're building your own asset and intellectual property in terms of trademarks without doing the production and manufacturing part. So like I said in this course I will show you step by step ways to find high quality and reliable suppliers overseas or domestically in the United States. Also I will show you how to negotiate and how to get high quality products produced under your brand name then once your product hits Amazon FBA you will learn how to get highly targeted traffic to a product listing and how to increase perceived value of your brand and product so that you can position yourself as a premium brand and make customer pay extra for your product. Now if you're wondering how much would it cost to start a private label business. The answer is not much but it depends because of course it depends on which products are sourcing. What type of shipping are you using. And also if you're selling high risk products then you will need to get liability insurance but for basic and non-complex products you can start with less than $1000. And in some cases with even less you can easily negotiate with most suppliers to source between 500 and 1000 units with your brand on each product unit. And also with custom product packaging. And then once you achieve high rankings and higher level of sales you just need to reinvest profits into more inventory and scale your business. Also when you're selling your own private label brand you are setting the rules which means that you're free to sell your brand anywhere you want your private label brand can be expanded to other Amazon marketplaces such as Europe United Kingdom Japan Mexico Canada you can also sell on other e-commerce Web sites or through our own e-commerce store or you can even go a step further and offer your brand to off line retail stores. The decision is yours. Remember Amazon is only one distribution channel but currently it's the best one for launching a new private label brand. This is all part of assett building. Which can lead you to big six or even seven figure exits. So that's it for now. Let me know if I have any questions about private labeling and Amazon. Be in the discussion type of this lecture or you can send me a private message here on me. So talk to you soon. And let's start working on your new private label business.