What Is Private Labeling?
Written by Bashar Katou on April 24, 2018
Designating a product manufactured or packaged for sale under the name of the retailer rather than that of the manufacturer”. Wikipedia. Throughout its history, private label has been mislabeled or misrepresented as being cheap in quality. Most private label products suffer this stigma because they are priced lower than the competition. Bargain pricing is part of their identity. The idea of private label frequently is born out of a competitive reaction to high-priced merchandise. Customers assume or are told by the competition that something priced lower represents lower quality. This is far from the truth. 

In the nineteenth century, merchants dealing in the mail order and/or retail- wholesale business recognized the need for lower-priced merchandise, but of a high quality. They cut the cost of goods by eliminating the middleman-an importer, jobber, or distributor, for example-ordering directly from a manufacturer or manufacturing products themselves. Other cost efficiencies were introduced, such as buying for cash (for better terms), buying in greater quantities, buying at the right time (for plentiful supplies), and buying with expertise in domestic and international trade conditions. “Satisfaction guaranteed or your money refunded” became the slogan backing private label quality. PLMA.

    The Process of Private Labeling
when selling on Amazon is as simple as locating products already selling well on the platform using specific criteria, then locating a manufacturer who can re-product same or similar products, we then place our logo or brand on the product and sell it on Amazon under our own accounts. When creating the “Private Labeled” products, sellers always look into differentiating themselves from the other sellers in the market whom are also selling similar product by bundling an item, or two, or more, which also gives the seller a winning edge as they can now charge more than the competition. Another way sellers try to differentiate their listings is by creating variations of a product, for instance, if one is selling sports jersey shirts, instead of offering only a medium or a large, a seller would like two, three or more options, that way buyers are more eager to buy from the one sellers as they have more options.

    when searching for a product to private label
Ideally, when searching for a product to private label, sellers are looking for a product which is high in demand and low in competition. Items used on the day to day life are typically not the best products for private labeling such as toilet paper, plastic napkins, foam place, etc. as although such products have high demand, they also have very high competition. Three of the most important variables I personally look at when doing product research, which is THE most important phase of this entire process is:
Number of Sales: I always suggest that sellers try to locate the prospective product using the broadest keyword possible. Imagine yourself the customer who has an issue and is trying to see if there’s a solution to it by purchasing a product which they never purchased before, they get on Amazon and begin searching. The goal is to make $3,000 a month. I look at profiting $10 per sale and a product which sales 300 units a month. The way I analyze products is by looking at the top 10 listings and ensuring at least 7 of the products match my research criteria.

    The number of reviews:
The more the reviews, the higher the competition. The way Amazon’s algorithm ranks products is by how many daily sales and total reviews they have; the more the sales and reviews, the higher a product will rank. I look at products which at least seven of the top ten listings, not including the sponsored ads, have seventy or less reviews.

    Sell price:
Sell price means profits. People get hesitant as the price of a product increases, they begin doubting whether or not they truly need that product and begin researching for a cheaper price; therefore, I look for products that sell between $18 and $35. I also ensure that the cost of my product does not exceed 25% of the selling price. For simplification, if I plan on selling a particular product for $20, I make sure the cost of manufacturing and shipping product to Amazon’s warehouse does not exceed $5.

Those are just some of the most important variables I look at when analyzing products for private labeling. If you’re interested in learning more about this concept and how I was able to scale a business from $1,200 to my name all the way to more than $12,000 in weekly revenues, click below!

Bashar J Katou

Bashar is a 7-figure Amazon FBA seller who also has a passion to helping other start successful Amazon businesses. Bashar has spent the past year educating thousands around the world of this missed opportunity and has in the process create many 5, 6 & 7 figure Amazon sellers from scratch! If you want to learn more about how Bashar can help you, reach out and schedule a call with his team today!
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What Is Private Labeling?
Written by Bashar Katou on April 24, 2018
Designating a product manufactured or packaged for sale under the name of the retailer rather than that of the manufacturer”. Wikipedia. Throughout its history, private label has been mislabeled or misrepresented as being cheap in quality. Most private label products suffer this stigma because they are priced lower than the competition. Bargain pricing is part of their identity. The idea of private label frequently is born out of a competitive reaction to high-priced merchandise. Customers assume or are told by the competition that something priced lower represents lower quality. This is far from the truth. 

In the nineteenth century, merchants dealing in the mail order and/or retail- wholesale business recognized the need for lower-priced merchandise, but of a high quality. They cut the cost of goods by eliminating the middleman-an importer, jobber, or distributor, for example-ordering directly from a manufacturer or manufacturing products themselves. Other cost efficiencies were introduced, such as buying for cash (for better terms), buying in greater quantities, buying at the right time (for plentiful supplies), and buying with expertise in domestic and international trade conditions. “Satisfaction guaranteed or your money refunded” became the slogan backing private label quality. PLMA.

    The Process of Private Labeling
when selling on Amazon is as simple as locating products already selling well on the platform using specific criteria, then locating a manufacturer who can re-product same or similar products, we then place our logo or brand on the product and sell it on Amazon under our own accounts. When creating the “Private Labeled” products, sellers always look into differentiating themselves from the other sellers in the market whom are also selling similar product by bundling an item, or two, or more, which also gives the seller a winning edge as they can now charge more than the competition. Another way sellers try to differentiate their listings is by creating variations of a product, for instance, if one is selling sports jersey shirts, instead of offering only a medium or a large, a seller would like two, three or more options, that way buyers are more eager to buy from the one sellers as they have more options.

    when searching for a product to private label
Ideally, when searching for a product to private label, sellers are looking for a product which is high in demand and low in competition. Items used on the day to day life are typically not the best products for private labeling such as toilet paper, plastic napkins, foam place, etc. as although such products have high demand, they also have very high competition. Three of the most important variables I personally look at when doing product research, which is THE most important phase of this entire process is:
Number of Sales: I always suggest that sellers try to locate the prospective product using the broadest keyword possible. Imagine yourself the customer who has an issue and is trying to see if there’s a solution to it by purchasing a product which they never purchased before, they get on Amazon and begin searching. The goal is to make $3,000 a month. I look at profiting $10 per sale and a product which sales 300 units a month. The way I analyze products is by looking at the top 10 listings and ensuring at least 7 of the products match my research criteria.

    The number of reviews:
The more the reviews, the higher the competition. The way Amazon’s algorithm ranks products is by how many daily sales and total reviews they have; the more the sales and reviews, the higher a product will rank. I look at products which at least seven of the top ten listings, not including the sponsored ads, have seventy or less reviews.

    Sell price:
Sell price means profits. People get hesitant as the price of a product increases, they begin doubting whether or not they truly need that product and begin researching for a cheaper price; therefore, I look for products that sell between $18 and $35. I also ensure that the cost of my product does not exceed 25% of the selling price. For simplification, if I plan on selling a particular product for $20, I make sure the cost of manufacturing and shipping product to Amazon’s warehouse does not exceed $5.

Those are just some of the most important variables I look at when analyzing products for private labeling. If you’re interested in learning more about this concept and how I was able to scale a business from $1,200 to my name all the way to more than $12,000 in weekly revenues, click below!

Bashar J Katou

Bashar is a 7-figure Amazon FBA seller who also has a passion to helping other start successful Amazon businesses. Bashar has spent the past year educating thousands around the world of this missed opportunity and has in the process create many 5, 6 & 7 figure Amazon sellers from scratch! If you want to learn more about how Bashar can help you, reach out and schedule a call with his team today!
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