What Is Amazon Private Label & How To Start Selling in 2025

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December 26, 2024
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Whether you’re looking to start a side hustle or build a full-time online business, Amazon private labeling has leveled the playing field. You don’t need massive startup capital or a business degree—just creativity, strategy, and the right approach.

In this guide, we will explore how to sell private label on Amazon, what private labeling is, its benefits, and a step-by-step roadmap to launching your own successful private label business in 2025.

Ready to learn how regular, ordinary people are creating extraordinary online brands and finding financial freedom? Let’s get started.

What Is Amazon FBA Private Label?

Amazon Private Label is a business model where sellers source generic products, customize them with their own branding, and sell them exclusively under their unique brand name. As a private label seller, you work directly with manufacturers to produce products under your brand name, giving you control over product development, pricing, branding, and marketing.

Private labeling is typically dominated by small to medium-sized businesses, making it a highly accessible business model for aspiring entrepreneurs. If you’ve bought something on Amazon (who hasn’t?), there’s a good chance it came from a private label seller. At last check, private label sellers actually make up the bulk of sellers in the Amazon marketplace, with 54% of all sellers in the marketplace being an Amazon private label business.

What Are the Benefits of Selling Amazon Private Label?

Glad you asked! Selling private label on Amazon has plenty of benefits for new sellers considering starting a business and for experienced sellers weighing the pros and cons of selling on other online marketplaces. Below, we’ll highlight a few of the primary factors that draw people to become a private label Amazon seller:

  • Brand Ownership: As a private label seller, you own and control your brand. This allows you to build brand recognition, foster customer loyalty, and fully control your product line and marketing strategy.
  • Higher Profit Margin Potential: By sourcing products directly from manufacturers, you can often achieve higher profit margins than reselling existing branded products.
  • Product Customization: Private labeling allows you to customize and improve upon existing products based on customer feedback and market trends. You can work with manufacturers to enhance features, address pain points, and create truly unique offerings.
  • Listing Control: When you launch a private label product, you create a brand new listing on Amazon. This gives you complete control over product images, descriptions, pricing, and keywords, all of which put you in the driver’s seat for running your business with few restrictions.
  • Buy Box Ownership: As the sole seller of your private label products, you automatically win the Buy Box for your listings. This prominent “Add to Cart” button significantly increases your chances of making a sale.

Many of these benefits come with private label selling, regardless of the platform you use to sell. Others can be accurately attributed to the massive size and easy-to-use structure of the Amazon FBA private label opportunity. The real magic happens when they’re combined. Amazon’s FBA program takes a load off the seller’s shoulders regarding tasks and workload while simultaneously putting your Amazon private label products in front of a consumer audience in the hundreds of millions.

How To Start Selling Amazon Private Label Products in 2025

Step 1: Find the Right Product

Every successful Amazon business begins with the right product. But how do you find the perfect product for you? The answer is through product research, where you’ll dive deeply into product ideas and their markets, analyzing critical factors and metrics before ultimately deciding if you should hop on the opportunity to sell it or leave it on the cutting room floor.

Ideally, the perfect product has a steady stream of sales throughout the year and has consistently medium-high interest and as little competition as possible. While selling a product you’re passionate about or have expertise in is a bonus, experience in a market or product knowledge isn’t a prerequisite, so don’t limit yourself to what you know.

Defining “the right product” differs for each person, considering their preferences, resources, and risk tolerance. However, uncovering a product with some combination of consumer interest, affordability, and opportunity to compete within the market should be the foundation of your private label product research, as these will play a major role in your success, profitability, and ability to start getting a return on your investment.

Pro Tip: For a comprehensive guide to product research, check out our ultimate guide for product research on Amazon, which highlights Product Discovery and Market Intelligence, our two industry-leading research tools that identify and validate product ideas, helping you make data-driven decisions you can feel confident about when jumping into the Amazon marketplace.

Step 2: Source Products From Reliable Manufacturers

Finding a slam dunk product idea is an incredible start, but finding the right manufacturer to bring the concept to life is just as critical.

Product sourcing plays a crucial role in ensuring the quality and consistency of your private-label products. Reliable manufacturers can be found through platforms like Alibaba, trade shows, or domestic suppliers that offer private label product sourcing. However, it’s essential to consider factors such as minimum order quantities, lead times, and quality control procedures before committing to a supplier.

Requesting samples is a vital step in this process. Samples allow you to evaluate the product’s build, functionality, and overall appeal. Feel free to be as meticulous as you need to be with requests and feedback, as this is a long-term investment and substandard quality won’t last in the marketplace, as negative reviews could doom your Amazon business before it takes off. Ask questions, compare and contrast it to what the competition offers, and examine it from a consumer perspective. Would you be satisfied if you wanted or needed this product and paid your hard-earned money for it? By the time you finalize the product, your answer should be a resounding yes.

Once satisfied, negotiate terms with the supplier to establish a relationship supporting your business’s growth. Our Quality Inspection Guide provides detailed tips for sellers sourcing internationally to ensure your products meet your standards.

Step 3: Develop Your Brand

Next, it’s time to start working on your brand! While it may feel like putting the cart before the horse by worrying about your brand before launching your first product, it’s a requirement on Amazon with real benefits you can use to boost your business.

First, you’ll need a brand name and logo. Anything goes on Amazon, as you’ve probably seen, there are some wild, nonsensical, and unpronounceable brand names on the platform. However, we recommend keeping it simple, sensical, and related to your product. For example, a brand focused on eco-friendly products might use earthy tones and nature-inspired imagery in its branding. For help with designing a professional logo, check out our step-by-step guide.

You’ll also want to check and ensure you’re not registering a trademarked name. You can check this using the Trademark Search on the United States Patent and Trademark Office website. By checking this, you’ll make life easier for future you, saving you time dealing with a trademarked brand and paving the way to join Amazon Brand Registry, a step we highly recommend. This protects your intellectual property and grants access to powerful tools such as A+ Content, which can enhance your product listings with rich visuals and detailed descriptions.

Step 4: Optimize Your Product Listings

Once you’ve found your product idea, brought it to life, and figured out your brand, it’s time to build upon that foundation and create your product listing.

Creating an optimized product listing is crucial for visibility and conversions on Amazon. Your listing needs to be both search-engine friendly and compelling to potential customers. Start with thorough keyword research to understand what terms your target customers are using to find products like yours.

Your product title should include your most important keywords while remaining readable and engaging. Amazon allows up to 200 characters for most categories, but focus on putting your most important information in the first 80 characters, as most mobile users will see this.

Product descriptions and bullet points should strike a balance between SEO optimization and persuasive sales copy. Focus on benefits rather than just features, helping customers understand how your product will suit their needs. Each bullet point should address a key customer pain point or highlight a unique selling proposition of your product.

High-quality images are non-negotiable in today’s marketplace. Invest in professional photography that showcases your product from multiple angles, demonstrates its size and scale, and shows it in use. If your product has special features or unique selling points, create infographic-style images to highlight these aspects.

Pro Tip: Avoid common mistakes that could hurt your sales! Check out our guide on common product listing errors and how to resolve them to ensure your listings are conversion-ready. Before submitting your product listing to go live, reference our Amazon Listing Optimization checklist to know your listing is ready to drive clicks and conversions.

Step 5: Choose Your Fulfillment Method

Regarding fulfillment on Amazon, sellers have two primary options: Fulfillment by Amazon (FBA) or Fulfillment by Merchant (FBM). While both have their merits, FBA has become the go-to choice for most private label sellers, and for good reason.

With FBA, Amazon handles the storage, packaging, shipping, and customer service of your products. This hands-off approach lets you focus on product development, marketing, and scaling your business. FBA products also become eligible for Prime shipping, which can significantly boost your conversion rates, as Prime members often filter their searches to show only Prime-eligible items.

A table highlighting the pros and c ons or FBA vs. FBM.

For an in-depth comparison, check out our FBA vs. FBM guide to determine which fulfillment method best suits your business.

Step 6: Launch Your Product

It’s finally time to go live! Making your product available for purchase is a big step once completing the first five steps, but it will take much more than that to make an impact.

Start with a competitive pricing strategy. While you don’t necessarily need to be the lowest-priced option, your initial pricing should be attractive enough to encourage early adopters. Consider running a limited-time launch discount to drive those crucial first sales.

Launching your product effectively ensures early visibility and sales momentum. Run promotional campaigns such as time-limited discounts, sponsored ads, or giveaways. For example, our Product Launch Service connects you to hundreds of thousands of shoppers, helping your product gain visibility and rank higher in Amazon’s search results. Combine these tactics with PPC ads to maximize reach and jumpstart your sales velocity.

For more detailed product launch strategies, read our guide on how to launch a product.

Step 7: Collect Reviews and Build Credibility

Often overlooked, customer reviews are a humongous part of the Amazon marketplace ecosystem. Even the best, most well-thought-out plans can be neutralized by a slew of negative reviews from customers. On the flip side, positive reviews enhance your product’s reputation and improve conversion rates. Unlike products sold at brick-and-mortar stores, which usually come with some brand name recognition, Amazon private label products are largely unknown by the masses, making your customer reviews incredibly important for building trust with the consumer.

The most impactful things you can do to fortify your product reviews don’t have much to do directly with reviews! Performing diligent quality assurance and ensuring your product imagery and listing copy accurately showcase and describe your product will almost always do much of the heavy lifting with customer satisfaction, mitigating negative reviews and increasing the likelihood of a satisfied customer.

In recent years, Amazon sellers have taken note of the importance of customer reviews, with many resorting to black-hat tactics to artificially inflate their review count and ratings. As a result, Amazon and the Federal Trade Commission have fought back to maintain the integrity of customer reviews and testimonials.

However, there are measures you can take to boost your review count within Amazon’s Terms of Service. Our Review Generator tool automates the process of requesting reviews, outperforming traditional email follow-ups by up to 5 times the success, putting you in prime position to get a leg up on the competition.

Step 8: Monitor and Optimize Performance

Although other third-party sites may talk about running an Amazon business as an opportunity to create passive income, we want to be clear and state this is not passive income. For it to truly be passive income, it would mean there’s little to no work needed after going live, and that simply isn’t the case!

Success on Amazon requires continuous monitoring and optimization. Track key performance indicators such as sales velocity, conversion rates, and advertising ROI to identify areas for improvement. When an area of your business takes a dive or sees a boost, you’ll want to know why. Tracking these insights, whether sales, impressions, conversions, or general visibility, gives you a deeper understanding of your business and place in the market.

Because tracking performance for so many key aspects can be tedious, especially when you have multiple products in your catalog, we created our turbocharged trio of tracking tools: Listing Analyzer, Keyword Manager, and Competitor Intelligence. Each tracks aspects of your listing performance over time, specifically analyzing your product listing images and copy and keyword performance. It also allows you to see how you stack up against selected competitors, allowing you to capitalize on their success and find your competitive edge.

A screenshot of Listing Analyzer and the data under the product analysis tab.

Similar to how your car dashboard might inform you that you’re due for an oil change or should add some air to your tires, drastic swings in key performance indicators should tip you off that you may need to look under the hood of your Amazon business, taking note of any recent changes that may be affecting your business, and address them accordingly.

How Viral Launch Can Help You Succeed

When Amazon opened up the marketplace for private label sellers around 2009, simply entering the marketplace with an Amazon FBA private label business was enough for a great shot at success. In 2025 and beyond, the market is far too crowded for participation alone to equal success. You need an edge, and that’s why we exist.

For nearly a decade now, we’ve been endlessly dedicated to the Amazon marketplace and equipping sellers with the best data, tools, and resources to be successful.

  • Market Research: Identify winning product ideas with Market Intelligence.
  • Listing Optimization: Create and refine listings with our Keyword Research and Listing Builder tool.
  • Launch Strategies: Kickstart sales with our Product Launch Services.
  • Competitor Insights: Stay ahead with tools for tracking competitors’ performance and keywords.

Take advantage of our 14-day free trial by signing up today to access our suite of tools and see the difference they can make to fuel your Amazon empire.

Final Thoughts on Amazon Private Label

While launching an Amazon Private Label business in 2025 requires more strategic planning than ever before, the opportunity for success remains as promising as ever.

Remember that success in private label selling is rarely overnight. It requires patience, persistence, and a willingness to continuously learn and adapt. Focus on building a strong foundation with quality products, optimized listings, and excellent customer service. As you gain traction and gather customer feedback, you can refine your approach and expand your product line.

With the proper approach, data-backed decisions, and strategic preparation, there are no limits to what you can do private labeling on Amazon. So what do you think? Are you ready to make the leap into starting your own private label business? If so, be sure to check out our ebook on how to find your next great product to sell on Amazon and streamline your success in the e-commerce world.

Try Viral Launch, the all-in-one solution for new and established Amazon sellers.

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