Last Updated: August 15, 2025
Want to break free from the commodity trap? Launching an Amazon private label business could give you the brand ownership, control, and profit potential you’ve been looking for.
It can be frustrating competing with hundreds of Amazon sellers offering identical products, often forcing you to sell at razor-thin margins. That’s why many sellers turn to private label to create their own branded products through trusted manufacturers.
However, here’s the reality with Amazon private label: it’s not a walk in the park. The competition is fierce, and success demands careful planning, smart product choices, and consistent execution.
The good news is that this blog will talk about how to start and grow a successful Amazon private label business, covering everything from product research to branding, fulfillment, and marketing. It will also share key benefits, common challenges, and expert tips to help you stand out in a competitive marketplace.
Table of Contents
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What Is Amazon Private Label and How Does It Work?
Private label on Amazon involves products made by a third-party manufacturer, then branded, marketed, and sold by a different company. Many sellers source everyday items from platforms like Alibaba or AliExpress and rebrand them with their own logo, packaging, and design.
By using this model, sellers gain control over branding, create a stronger connection with customers, and improve their chances of earning higher profit margins. It allows them to stand out from competitors who sell generic, unbranded products.
This process typically starts with finding a product that has strong demand but low competition. From there, sellers create their brand identity, including the name, logo, and packaging, before partnering with a manufacturer to produce the product.
It’s no surprise that nearly 60% of third-party sellers on Amazon have taken the initiative to produce and brand their own products through the private label model. Once launched, the goal is to build customer loyalty, expand the product line, and scale operations for long-term success.
Benefits of Amazon Private Label
Amazon private label offers plenty of advantages that have encouraged 92% of sellers in the Home & Kitchen category to launch their own private label products. Here are the top benefits you can expect:
- Build a brand that can be sold or licensed in the future.
- Control your branding, pricing, packaging, and marketing.
- Protect your listings and prevent hijackers through Amazon Brand Registry.
- Earn higher profit margins, often 20-50%.
- Add related products under the same brand to grow your catalog.
Drawbacks of Amazon Private Label
Just like any other business model, private label also has its own set of challenges. Below are the most common ones sellers face:
- Requires more setup, including branding, packaging, and advertising.
- Learning and managing advertising can be a steep learning curve.
- Demands more time and effort compared to wholesale.
- Long lead times from overseas manufacturers can disrupt cash flow.
- Often takes 3-6 months before seeing a profit.
How Amazon Private Label Differ From Wholesale Business
Two of the most popular ways to sell on Amazon are private label and wholesale. While both can be profitable, the right choice depends on your budget, timeline, and long-term business goals.
| Amazon Private Label | Amazon Wholesale | |
|---|---|---|
|
What You Sell |
Products made by a manufacturer but branded and packaged under your own label. |
Products from established brands that you resell on Amazon. |
|
Upfront Investment |
Higher. Covers product development, branding, packaging, and marketing. |
Lower. No product development; mainly inventory purchase. |
|
Profit Margins |
Typically higher due to brand control and differentiation. |
Lower since you compete on existing listings. |
|
Control |
Full control over branding, pricing, and marketing. |
Limited control – listings and branding belong to the brand owner. |
|
Setup Time |
Longer. Includes sourcing, branding, and listing creation. |
Shorter. Often, just buy inventory and start selling. |
|
Advertising |
Usually required to drive traffic and sales. |
Often optional since products already have demand. |
|
Scalability |
Easy to expand with complementary products under the same brand. |
Depends on supplier relationships and product availability. |
|
Risks |
Longer lead times, higher upfront costs, and a longer path to profitability. |
High competition for the Buy Box, risk of price wars. |
|
Best For |
Sellers with more capital, patience, and interest in brand-building. |
Sellers with limited capital who want faster turnover. |
What Is Amazon Wholesale and How Does It Work?
Amazon wholesale is a business model where sellers buy branded products in bulk from manufacturers or authorized distributors at discounted prices. They resell these products individually on Amazon under existing listings, earning profit from the difference between the wholesale and retail prices.
Benefits of Amazon Wholesale
Amazon wholesale offers several advantages that make it appealing for many sellers. Here are the main ones:
- Requires minimal setup since products already have existing listings.
- Less time-consuming because you don’t need to create listings or build an audience.
- Faster return on investment with shorter lead times.
- No need to spend on advertising to drive traffic.
- Often requires a smaller starting budget and lower upfront costs.
Drawbacks of Amazon Wholesale
Wholesale can be a profitable business model, but it’s not without its challenges. Here are the most common ones sellers face:
- Hard to build long-term value since you’re selling other brands.
- Limited control over listings and Buy Box ownership.
- Profit margins shrink when more sellers compete for the same product.
- Building supplier relationships can be time-consuming.
- Some products require licenses or permits, adding extra costs.
How to Start an Amazon Private Label Business
Starting an Amazon private label business can feel overwhelming with all the moving parts involved. But with the right steps and a clear plan, the process becomes much more manageable.
Step 1: Meet Requirements To Sell Private Label Products
Selling private label products on Amazon means following strict safety, legal, and Amazon-specific rules. As the seller, you’re fully responsible for ensuring your products meet these standards before they can be sold.
Amazon checks compliance during product development, listing creation, and whenever regulations change. This includes using Amazon-approved labs for testing, submitting updated compliance documents on time, and staying alert to renewal or re-testing notices.
Step 2: Perform Product Research
Researching the right product is crucial in starting an Amazon private label business. This process requires careful analysis to avoid selecting a product that other sellers are offering that may not attract buyers.
Sample Criteria for Product Research:
- Price Range: $20-$70
- Monthly Sales: Minimum of 300 sales
- Number of Reviews: Average of 500 or fewer for the top 10 products
- Product Rating: Aim for products with ratings up to 4 stars to identify improvement opportunities
- Competitor Listing Quality: Use tools such as Jungle Scout to check the quality of competitor listings
Base your product decisions on data, not personal preference. Validate ideas by checking how similar products perform on Amazon to find high-demand, low-competition opportunities.
Step 3: Choose a Reliable Supplier
Finding the right supplier is key to a successful private label business. While you can place one-off orders from sites like AliExpress, going directly to the manufacturer gives you better quality control and the chance to form a long-term partnership.
Work with suppliers experienced in your product category, who communicate clearly, and offer a fair balance between cost and quality. Always check their minimum order quantities and quality assurance process before committing to bulk production.
Step 4: Design and Develop Your Brand
Creating a unique brand for your private label products helps you stand out from competitors and improves your chances of winning the Buy Box. Focus on your design, packaging, product benefits, and brand story to build a strong emotional connection with customers.
Keep your brand consistent with colors, fonts, and messaging while making decisions that appeal to your target audience. Make sure your branding complies with trademarks, patents, and other intellectual property rights before sourcing to avoid legal trouble.
Step 5: Choose a Fulfillment Method
Choosing how to fulfill your private label orders is a key decision that impacts costs, delivery speed, and customer experience. Amazon offers two main fulfillment methods for sellers to consider.
- Fulfillment by Merchant
You handle storage, packaging, shipping, and customer service yourself. Best for lower sales volume or products that require custom packaging and handling. - Fulfillment by Amazon
Amazon stores your products, handles packaging, ships orders, and manages customer service for a fee. Ideal for a hands-off approach and faster shipping through Prime eligibility.
To help you choose between the Amazon FBA private label and FBM private label, read our article: The Difference Between FBA and FBM: Which Is Best for You?
Step 6: Manage Inventory
Maintaining the right amount of inventory is essential for keeping sales steady and customers happy. Running out of stock can lead to lost revenue, while overstocking can tie up your capital and increase storage fees.
Effective inventory management helps you meet customer demand without creating costly excess. Use tools like Amazon’s Inventory Management to forecast sales, monitor stock levels, and adjust orders before problems arise.
Step 7: Launch Your Product
Launching your Amazon private label product means making sure every detail is ready before you go live. A strong start can help you build momentum and sales quickly.
Before You Launch
- Get a UPC Code: Required for product identification.
- Register a Trademark: Protects your brand name.
- Join Amazon Brand Registry: Gives you control over your listing and prevents hijacking.
Optimize Your Listing
- Add SEO Keywords: Use search terms that your customers are typing in.
- Write Compelling Copy: Clear titles, bullet points, and descriptions that sell.
- Set Up PPC Campaigns: Drive traffic to your listing from day one.
Perfect Your Product Images
- Hire a Professional Photographer: Showcase your product from multiple angles.
- A/B Test Your Main Image: Find the version that gets the most clicks.
- Add A+ Content: Provide a richer shopping experience.
Make Sure You’re Ready for Orders
- Send Inventory to Amazon or Prep for FBM: Have products ready for immediate shipping.
- Choose a Launch Date: Pick a strategic day for maximum visibility.
Step 8: Implement Strategic Pricing
Did you know that 68% of online shoppers compare prices before hitting the buy button? This is why launching with a strategic pricing plan can help you win early sales, boost reviews, and gain algorithm traction faster.
Instead of starting at full price, consider offering a steep discount, around 50% off your target price in week one, to attract buyers and offset the “no reviews” barrier. From there, raise prices gradually each week until you hit your target by week eight, adjusting based on sales trends and inventory levels.
Step 9: Market And Promote Your Product
Once your private label product goes live, your goal shifts to driving traffic and turning views into sales. Amazon PPC is a great starting point, allowing you to target relevant keywords so your product appears in front of shoppers who are actively searching.
Don’t stop at Amazon, use social media platforms like Facebook, Instagram, or TikTok to highlight your product’s benefits and create buzz. You can also tap into external traffic sources such as your website, email list, or influencer partnerships to funnel highly qualified visitors directly to your Amazon listing.
Turn Your Amazon Idea Into a Profitable Brand
From product research to PPC campaigns, we’ll guide you every step of the way. Your private label journey doesn’t have to be complicated.
What Private Label Products to Sell on Amazon
Looking for examples of private label products to sell on Amazon? Here are some popular categories and trending items based on Amazon’s Best Sellers list:
- Beauty & Personal Care
This category continues to grow with consistent demand for products like skincare, hair care, makeup, and bath essentials. Private label sellers can stand out by offering unique ingredients or premium packaging. - Kitchen & Dining
Everyday kitchenware never goes out of style. Consider utensils, food storage containers, small appliances, and drinkware that solve common cooking or storage problems. - Automotive
Car accessories are always in demand, from phone mounts and chargers to organizers and cleaning kits. These products appeal to both daily commuters and car enthusiasts. - Clothing, Shoes & Jewelry
Focus on trending or niche apparel, footwear, and accessories like shapewear, leggings, or jewelry organizers. Seasonal and comfort-focused items often see strong sales. - Electronics
Popular tech items include wireless earbuds, phone chargers, fitness trackers, and smart TV accessories. Staying updated with technology trends ensures you’re selling products people are actively searching for.
Challenges to Expect When Selling Amazon Private Label Products
Learning about the challenges sellers might encounter when they choose to sell private label products on Amazon is a good way to prepare for potential setbacks. It also helps sellers find ways to prevent or solve these issues before they affect their business.
1. Needing a Specific Number of Product Reviews
93% of customers read product reviews before purchasing, which is why many sellers believe they need a high number of reviews to drive sales and boost conversions when selling private label products. While reviews do influence buying decisions, focusing solely on review count can distract you from more important factors like product quality and sales velocity.
You can solve this challenge by enrolling in Amazon Vine to collect honest reviews from verified buyers. Be patient, consistently deliver excellent products, and provide great customer service to naturally build a solid review base over time.
2. Struggling to Find a Reliable Supplier
Finding a reliable supplier can be tricky, especially if you’re sourcing products from overseas, where communication barriers, time zones, and cultural differences can complicate things. Many sellers fear being scammed or ending up with low-quality products that could harm their brand.
The best way to address this is to build long-term relationships with trustworthy suppliers by starting small, requesting samples, and setting clear expectations from day one. Consistent communication, regular quality checks, and even on-site inspections can go a long way in ensuring you get products that meet your standards every time.
3. No New Niches Left for Private Labeling
With over 9.7 million sellers on Amazon, the marketplace is crowded, making it feel like every profitable niche has already been taken. This high level of competition can make it difficult for new private label sellers to identify a unique space to build their business.
To overcome this, ask yourself about pain points in products you personally use that haven’t been addressed yet. Tap into your unique experiences, explore niche markets within larger categories, and consider offering product variations, add-ons, or serving underserved customer segments to stand out.
4. The Pressure to Sell Across Every Amazon Marketplace
Many private label sellers feel pressured to expand globally, thinking they need to sell on every Amazon marketplace to succeed. But global expansion comes with its own challenges, such as different regulations, shipping complexities, and cultural preferences that can make scaling overwhelming.
Instead, focus first on dominating your primary marketplace and building a strong, profitable foundation. Once established, evaluate other marketplaces carefully, considering profitability, demand, and logistics before making the leap.
5. Mistreatment of Amazon Sellers
Amazon is a highly customer-centric platform, prioritizing the needs and satisfaction of buyers above all else. While this approach builds trust with customers, it often leaves sellers feeling unsupported or treated unfairly, especially when policies seem to favor large brands.
To navigate this, sellers should stay updated on Amazon’s ever-changing rules and protect their business by diversifying sales channels beyond Amazon. At the same time, focusing on operational efficiency and delivering top-notch customer service can help offset the risks of relying too heavily on one platform.
FAQs About Amazon Private Label Business
Launch Your Thriving Private Label Brand on Amazon in 2025
While Amazon is a fiercely competitive marketplace, private label selling still offers huge opportunities for those willing to put in the work. With the right products, strategies, and commitment to quality, sellers can carve out their own profitable space.
By following the steps outlined in this guide, you now have a clear roadmap for launching and growing your private label brand on Amazon. From product selection to marketing, each decision you make will influence your long-term success.
Ready to take your Amazon business to the next level? Contact our Amazon agency today for a free consultation and discover how we can help you build a thriving private label brand and achieve lasting success on Amazon.
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