Benefits of launching a private label brand on Amazon

A private label on Amazon is not an easy or quick way to make money. Why should a seller go through the trouble then?

• No brand restrictions: There are certain restrictions on selling products from other brands on Amazon. When you’re creating your own brand, that’s not something you need to worry about.
• Less competition:  You’re not competing with products of the same brand when you’re a private label seller. This means you don’t have to worry too much about other sellers undercutting your listing and stealing customers.
• A+ Content  Amazon A+ Content, also known as Enhanced Brand Content, is only available for brands registered on Amazon. With Amazon EBC, you can customize your listings with multimedia content. The premium content feature enhances the user experience which leads to more traffic and conversions!

Not everything is great about being a private label seller on Amazon. There are a few hurdles you have to overcome to set up your own brand.

• High starting cost  Creating a private label requires a lot of upfront capital. Manufacturers demand bulk orders and in order to be competitive, you need to make sure the cost per product is low. A private label will usually set you back a few thousand dollars early on. A private label is a long-term investment.
• Branding  A private label is great if you can pull it off, but branding your product and standing out from the competition is easier said than done.
• Higher risk  Spending a significant amount on product purchases and branding comes with its own risk. You’re not picking up an established brand and there is always the risk that your private label fails to make a mark. In these cases, you’re likely to lose more money than if you were a regular seller.

I hope you found this article helpful. Many Amazon sellers recently started trading stocks and crypto currencies, hoping to diversify their income, which is a very good idea with all the uncertainty which comes with the platform. For this reason, we launched a new Facebook group, Crypto Arbitrage Income (Bitcoin, Crypto, Altcoins, Blockchain, Trading) – feel free to join us and forget about the troubles of selling on Amazon for a moment!

Regarding Amazon Seller Performance, you can always participate in our Amazon Seller Performance – Friendly Advice – Worldwide group, where you will be very welcome.

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Additionally, here you can watch my YouTube video, where I am presenting you several secret tips about appealing Amazon Seller Account suspensions (don’t be confused by the opening of the video, where I am enjoying a vacation – it’s a part of the story):