Global fintech and funding innovation ecosystem

What Is FBA Private Label: Everything You Need to Know in 2022

Guest Post | Oct 27, 2022

Private labeling - What Is FBA Private Label: Everything You Need to Know in 2022

The growth of digital commerce giants like Amazon has presented a new platform for brand owners to earn money – with private labels. Private labeling allows individual merchants to create a trusted and unique brand. All it requires are generic goods. If your business makes a name for itself, it's also very profitable.

All this sounds alluring and easy, but it needs much more effort than it seems to develop a successful AMZ private label.

Let's check how you can develop a successful FBA private label in the marketplace!

What Are Private Label Goods on Amazon?

Private label items are products fabricated by one company to get branded and sold by another. Such items are generally already present in the market; you just put your branding label on items as a private label merchant. And high chances are the manufacturer is making the same merchandise for another brand.

It indicates you do not need to reinvent the wheel or create a new concept to offer items under the unique brand.

Private labeling is a famous practice among the largest retailers worldwide — not just AMZ sellers. Imagine any grocery shop you go to frequently; most have private-label items, for example, Costco's Kirkland Signature. It provides items similar to those by more well-known brands — but at a lower cost.

Is Selling with Private Label Profitable?

Yes, it is. When you do it correctly, the model has the best potential for high profit margins and massive exit. However, it's not the easiest FBA solution. Unlike wholesale, sellers need to market their brand. So more factors can go wrong.

For example, you can make great products by studying customer feedback, especially negative ones. Then, you continue putting attention and caring behind your goods and improving them. As a result, you will develop outstanding goods and enhance your brand reputation.

Next, your task is to add other related items to your business. They all profit from the brand, and each item is also helping your business. So you need to master the e-commerce game and stay great at merchandise development, branding, and marketing.

Finally, you earn big money if you can deliver 2-3 years of profit, and another business wants to purchase your brand for 2-5 years of annual revenue.

3 Tips for Operating as a Private Label Seller on Amazon

1. Fulfill the orders with the FBA solution

Many merchants use AMZ FBA to move private-label goods. You may fulfill orders yourself; however, with FBA, you will reduce your risks and pass all the responsibilities on to the marketplace to handle your client service. Such a shipping method lets you send the inventory to one of the platform's warehouses, which will pack, store, and ship your goods to buyers and manage refunds and returns. If you wish to save time, it's the most effective way to do it. Still, you can use another fulfillment method if you wish for more control over your goods.

2. Optimize your pricing on Amazon

It required more work to work on the platform than it used to. Due to continuous supply chain matters, there's more competition, demand changes, and low inventory availability. Optimizing your pricing by understanding other sellers' strategies and customer demand will allow you to stand out from the competition and increase your profits.

3. Do not just resell - brand your items

Selling branded goods gives you a higher chance to succeed than brandless listings or items. One option to do so is to develop a color scheme and logo for your private label business.

See:  5 Tactics to Boost Your Online Content’s Visibility and Amplify Your Marketing Initiatives

Employ your core item decisions to have a clear idea of the brand identity, and hire a graphic designer to make a brand vision and logo that you will be proud of. Then, add the brand logo as a label on your goods, listing, and even packaging. Taking some time to do it will help you build company recognition and obtain the trust of your clients.


Private label items require research, time, effort, cash flow, and vetting. Still, if you keep involvement and control throughout the entire process, you will increase your margins and earn incremental revenue in the marketplace.

NCFA Jan 2018 resize - What Is FBA Private Label: Everything You Need to Know in 2022The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit:

Latest news - What Is FBA Private Label: Everything You Need to Know in 2022FF Logo 400 v3 - What Is FBA Private Label: Everything You Need to Know in 2022community social impact - What Is FBA Private Label: Everything You Need to Know in 2022

Support NCFA by Following us on Twitter!

NCFA Sign up for our newsletter - What Is FBA Private Label: Everything You Need to Know in 2022


Leave a Reply

Your email address will not be published. Required fields are marked *

1 × five =