So far, the information and stories shared on SideHustleDiary.com have been focused on my experiences with retail arbitrage and reselling existing products through Amazon FBA. Another great way to earn money with Amazon FBA is through the sales of your own, private-label products.
Private labeling refers to the process of sourcing unbranded products in bulk directly from the manufacturer, and then re-selling those products under your own brand name. While the process of private labeling your own merchandise typically involves more capital, more risk, and more uncertainty, there are distinct benefits as well.
When you’re selling your own merchandise on Amazon, you are able to create and control your own product listing and avoid competition (at least on your specific brand.) If done properly, your sales volume and profit margins can be very high. Also – since you are sourcing your products through manufacturers, you never have to worry about your supply drying up. If you find yourself with a winning product – you can always order more.
Robin and I are in the preliminary research stages of first own private-label product, and have already benefited greatly from the free tools and tutorials shared by Greg Mercer, the founder of the revolutionary product-research software, Jungle Scout. As described in my book, Greg’s free ‘Sales Estimator‘ tool is something I use every day in my retail arbitrage sourcing.
Today, Greg sent over to me the following infographic, in which he lays out the process, from start to finish, as to how to successfully find and launch a private-label products on Amazon. If you’ve ever considered getting into private-label sales, I definitely recommend bookmarking this graphic. I’ve done a lot of research on this topic myself, and while there are a lot of details to execute properly, this picture boils it down perfectly.
If you’re interested in learning more about Greg Mercer and the private-label process, I recommend that you check out his recent interview on Scott Voelker’s, Amazing Seller Podcast, in which Greg and Scott discuss, in great detail, their own successful methods for selecting and launching their own products on Amazon. And, while you’re there, be sure and scroll through the rest of the content on Scott’s site. In my opinion, there are no better free sources of information on successful private labeling than what can be found between the one-two punch of TheAmazingSeller.com and JungleScout.com.
And, in case you were wondering, I am not currently an affiliate for any of Greg or Scott’s product offerings – just a big fan.
(Note: If you click the image below, you will be taken to JungleScout.com. While you’re there, be sure and sign up for access to the free ‘Sales Estimator’ tool, which can be accessed from the pull-down menu labeled, ‘Free Resources.’ In addition to being invaluable for private-label research, this tool can also be a huge help in retail arbitrage sourcing as well.)