Sometimes referred to as private label, one of the most popular and trendy ways of building a seller presence on Amazon is building one’s own label.
Private Label can mean a variety of things in practice:
A designer who prototypes and launches their own unique product
An importer of white/no label goods who puts their own sticker/label onto the product
A sourcing agent who works with a factory to modify one of their offerings and offer it on their own brand
Private Labelers are legally responsible for the products that are sold under their mark, and can be litigated against, forced to recall, and held liable for damages that occur as a result of any issues with their product. However, typically private labelers can achieve 30-60% profit margins on their product due to going directly to the source.
Some issues to consider:
- Is your product legally compliant to sell in the US? Does it require certification? Is your factory required to be registered?
- Is your product safe to sell? Does it contain toxic heavy metals, or microbiological contamination?
- Is your product labeled and packaged in such a way that you will be successful on Amazon? Customers expect labeling that meets the minimum requirements in the US, and e-commerce is very hard on packages. Insufficiently packaged goods can lead to customer complaints on your product.
- Are you confident in the quality of the production from your factory? Are they ISO 9001 certified? Have you done any inspections of your production runs to ensure consistency of production?
- Have you defined your brand goals? It is essential to define your brand, then find a product that fits into that overall goal. One product won’t make you successful in your venture; a successful brand with a solid stable of products will make your venture successful. Developing your quality protocols to fit this brand will help you meet your sales goals on Amazon.
I recommend using some of the other successful methods to choose a product if you don’t have any particular passion in this space. If you do have a passion and know that the product will work, we’ll start from there.
Our specialty is in filling the safety, regulatory, and quality component of own label development. We are all experienced compliance and policy professionals who can help you navigate the situations where your brand can be shut down, either by Amazon or by governmental regulators or through civil litigation.
Every product requires packaging, labeling, sourcing, shipping, and marketing – not every product requires testing or certification, or is important for its production to choose a certified or registered factory. We help you determine which products those are, and if your product is one, we help you navigate the regulations involved so that you do not incur a port seizure and have Customs seize your goods and destroy them, or have Amazon force you to recall and delete your listing due to a regulatory or safety issue.
Schedule your Brand Strategy consultation today!