Amazon Private Label is one of the ways that you can sell products on Amazon. This method requires you to find a profitable product on Amazon and a manufacturer who can make it with your own unique customizations and branding. Once you have these things in order, your products can be shipped into Amazon warehouses and sold to customers online. Private labeled products can’t have any identifying trademarks from the manufacturer, and must clearly be marked with your own unique trademark. A trademark is a word, phrase, symbol or design that identifies your brand and distinguishes it from others. It acts as an official certification that you own that trademark and no one else can use it without permission from the trademark holder. You want this out in the world so people know you created that particular product or service and no one else did.
There are many benefits to Amazon Private Label and arguably one of the notable aspects about this business model is how scalable it can be. It doesn’t matter if you’re just starting out or have been in e-commerce business for years – there’s always room for improvement when it comes to scaling a product! Here are some ways how to scale an Amazon FBA private label business.
1. Scale the Business Using Social Media
A great way to scale your Amazon FBA business is by using social media. For example, you can use Facebook, Instagram or Twitter to advertise your products and increase your brand awareness. A successful business will have a strong marketing plan in place where they post regularly and engage with followers on social media sites. It’s also important to remember that you should be posting high-quality content in order to attract people to your product. Affiliate Marketing and partnerships with Social Media Influencers are both great strategies to increase traffic to your product listing and attain more sales.
2. Prevent the Product from Being Copied
Selling products on Amazon is great because the platform puts your products in front of millions of customers. On the contrary, it also increases your risk of counterfeiters, hackers and knock offs. It is essential to do everything possible to protect your trademark from being copied, and one of the best ways to do that is by enrolling in the Amazon Brand Registry Program. Unfortunately, it can take months for your brand to officially be Amazon Brand Registered, however, you can enroll in the Amazon IP Accelerator Program to get the IP protection and Brand Registry benefits off the bat.
3. Keep up with Trends
Keeping up with new and upcoming trends is key to scaling your Amazon business in the long-term. Things are always changing and evolving, which means you need to be on top of those changes. For example, if you’re only selling a certain type of phone case, but cell phones are switching to more durable glass screens, you’ll want to make sure you’re at least considering that trend. Using trends to guide your decisions on specific product customizations and features is a great way to attract customers and increase conversions.
4. Know your Target Market
One of the first steps to take towards scaling a private label Amazon business is to identify your target market. You need to be able to pinpoint your audience and understand exactly what their demand is. Understanding your target market will help you figure out which products you should invest in, which features to include and what materials to manufacture with. Scanning through the reviews left on competitors product listing pages to see what complaints are most prevalent can extremely beneficial, as you can ensure your product addresses these issues.
5. Customer Feedback and Reviews
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Customer feedback and reviews are some of the most impactful factors that come into play when scaling your Amazon business. Receiving plenty of positive reviews from customers will give your product listing priority in Amazon’s A10 Algorithm, so your product will be put at the top of the first page of search results. This is extremely benefical because customers have proven to be most likely to purchase a product that is on the first few rows of the search results. Furthermore, good reviews establish credibility and trust with your customer base. On the other hand, negative reviews will drag your listing down in search results and negatively impact your brand reputation. It is opportunistic to seek out reviews from family, friends and collegues when you launch your product on Amazon. Moreover, you can reach out to your customers by providing an incentive (within Amazon regulations) or asking for feedback after they receive their purchased product.
6. Pricing Your Products
Scaling your Amazon business is inextricably linked to pricing your product right. This requires you to consider your profit margins, the price point of your competitors products, as well as the price you believe customers are willing to pay for the product. Pricing can also depend on the category you’re in, the saturation of that product on Amazon and the unique features that your product includes. Pricing should be one of the most important decisions you make when scaling an Amazon FBA private label business. You’ll want to do some research and consider all these factors before deciding what your prices will be! Keep in mind that if you are not locked in to one price forever and you can strategically change the price of your product to produce the best profit margins possible.
Here are some examples to consider when determining the price of your product:
- What’s the competition charging?
- Are there any coupons or discounts you can use?
- What’s your profit margin?
- What is the weight of each item you’re purchasing?
- How many units do you plan to purchase at once?
- How do advertising (PPC) expenses affect my pricepoint?
- How do manufacturing/shipping costs affect my pricepoint?
- How do FBA fees affect my pricepoint?
This blog detailed the major aspects of scaling Amazon Private Label business. There are many different ways to scale an Amazon FBA business and several ways to avoid the common pitfalls. Focusing on the right steps to take when growing your business is key to its success. With these tips and tricks, you can make your Amazon Private Label profitable and scalable into the long-term.