From making a concept to using the tools and perks Amazon has to offer, here is how to build your own private label brand.
With the Amazon Brand Registry growing, Amazon continues to pressure sellers to create brands over listings. Brands on Amazon improve the shopping experience by inciting loyalty, thus increasing return shoppers. Repeat customers make up a third of all online orders.
It’s a lot easier to convince customers who have already bought your products. With this in mind, it’s never been a better time to create a private label brand on Amazon.
What is Amazon Private Label?
Amazon private labels do not create their products. Instead, they source their products from manufacturers and sell them under their names. This strategy is suitable for people who see the business’ need but lack the resources to create a product themselves.
This strategy is excellent for individuals who have limited capital to break into eCommerce as well. Private label selling levels the playing field between small businesses and large corporations.
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Steps on how to build a brand on Amazon
We have a simple five-step process you can use to build your Amazon Brand:
- Find a niche (or product)
- Create an account and join the Amazon Brand Registry
- Source your products
- Create product listings with engaging content
- Promote your products
Step one: Find a niche
Your first step will be to find the type of product that you want to sell. You can choose baby stuff, kitchen supplies, bathroom accessories, and anything else that comes to mind.
Below are some different ways you can get that research:
The Amazon trend report references the current season’s top trends. For example, 2021 has seen an increase in at-home exercise equipment. Targeting a specific product in that niche might allow you to ride the momentum.
Google Trends will provide you the overall trends for people searching on Google. You can take one of two approaches with it: enter a niche you already know or enter a generic term like “product” to see what’s working overall.
For example, entering “coffee” will reveal growth in terms like “iced coffee maker” and “coca-cola” coffee. Entering the term “products” will show many people searching for skincare products and office equipment.
As people’s needs change, both trend reports will adjust accordingly. By being aware of these trends, you are targeting those needs directly.
Pinterest and other social media
Social media, especially Pinterest, are full of ideas you can take for product research. Top pins in any category draw attention to popular product categories.
Social media is beneficial in finding trending items—people pin (or like) their favorite designs, home decor, and outfits. Utilizing and converting that information for your business can allow you to piggyback on strategies that already work.
Amazon analytical tools
There is a vast number of potential tools, like AMZScout, built for finding products on Amazon. These tools can be used to research based on actionable data, telling you of likely profit margins.
Some of these tools allow you to calculate sales to see the potential profit margin. Check these tools out and see about their free trials to see how long you can experiment with them.
Using the right combination of trending topics and actionable data will allow you to move into sourcing products quickly.
Step two: Create an account and join the Amazon Brand Registry
When you finish up with ideas of what you want to sell, you can move on and create your Amazon account. However, it isn’t enough to create your account if you want a brand; you’ll also need to be a member of the Amazon Brand Registry.
The Amazon account creation process
First, you’ll need the following information handy for account creation:
- Your name
- Your business or personal address
- Contact information (email and phone number)
Once you create the account, Amazon will put you into an immediate pending status. From this point, you will need to link your bank account with Amazon and provide them with the front and back of your driver’s license or passport.
If your bank account isn’t on the list of supported banks, you will need to provide your account number, routing number, name of your bank, and a picture of a recent statement.
In this case, Amazon will also schedule an appointment where you will need to provide physical copies of these documents. Amazon will also send you a postcard with an included code you will need to provide to confirm your address.
Once you’ve finished this, you will have access to Seller Central.
Qualifying for the Amazon Brand Registry
To have a proper Amazon brand, you need to be a member of its Registry. To do this, you will need to start with an active (or pending) trademark in an approved country. Brands with the World Intellectual Property Organization (WIPO) and the European Union Intellectual Property Office (EUIPO) are acceptable.
Amazon requires you to have some sort of text-based element to your brand. You will also need to provide a list of product categories where your brand is applicable. Amazon can take anywhere from a couple of days to a couple of weeks to approve your application.
Step three: Source your products
Your next step is to find a good source for your private label products. Simply Googling “private label manufacturer” is one way to get it done. However, you’ll find that sites like Alibaba or Aliexpress will make that process a bit easier.
Both Alibaba and Aliexpress have a database of manufacturers. That means you can search for what you need and talk to the manufacturers directly to see if you’ll be a good fit.
Manufacturers should be more than willing to send you a product sample. Samples are necessary for you to test the quality of prospective products. Inferior quality products will lead to negative customer reviews, and you don’t want that.
Step four: Create product listings
Once you’ve established a good source, you’ll need to create relevant product listings. You should build product listings on Amazon SEO, meaning finding appropriate keywords to put into your description.
Many of the Amazon analytics tools mentioned earlier support this effort. However, you can also use your eyes to find targets in your product category.
Keywords should be as detailed as possible, containing more than two words. These are known as long-tail keywords, mainly because they include the “seed keyword” with the more general category.
Ideally, hitting the narrow and long keyword will eventually enable you to rank well for the seed keyword. With a combination of good customer service, fast shipping, and quality products, you can make that happen.
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Step five: Promote your products with Amazon ads
Nobody will know about your products unless you promote them. Thankfully, Amazon has a robust ad platform that will enable you to create display advertising targeting specific keywords.
Sponsored Product advertising is a great way to get exposure for your products. Enough positive customer experiences, as a result, will eventually allow you to rank for Amazon SEO.
Being part of the Amazon Brand Registry also gives you access to Sponsored Brands advertising. This form of advertising is excellent for sellers who want to draw attention to their brand story.
Because brands are more memorable than products, the brand story has the potential to appeal to customers. Long-term customers who understand and seek out your brand are more likely to purchase your products.
Quick tips on making sure your Amazon brand is successful
When creating your first brand, here are some quick tips you can use to help your brand stand out:
- Create a logo and brand packaging: A symbol has a chance to become an easily recognizable graphic for your company. Combine this with brand packaging, and the customer has a greater chance of recognizing your brand over others. Brand awareness is key to long-term customer loyalty.
- Use Amazon Stores: The Amazon Brand Registry allows you to create a storefront that contains all of your products. As your product line grows, be sure to utilize it so loyal customers can return with greater ease.
- Use Amazon Influencer Program: The Amazon Influencer Program hires known internet celebrities to sell your product. Utilizing the program will link you with someone who can effectively market your product.
- Avoid restricted categories: Restricted categories, like groceries or weapons, are far more challenging to sell. Unless you have a particular passion for those restricted items, avoid them when creating your Amazon store.
Private label sellers can be incredibly effective at marketing. Becoming a brand that sells manufactured products levels the playing field between you and large corporations. With enough effort, your brand can gain widespread recognition, resulting in more money for you and the manufacturer.
We hope this article helps you out on your journey to becoming a top Private Label Seller. It takes time and effort, but following these steps will give you the opportunity for consistent earnings.