Amazon Private Label: Myths and Facts

Private Label Mythbuster

This post is by Will Tjernlund, a third-party Amazon seller who has sold over $10 million worth of inventory through Amazon over the last 3 years. Will’s business was profiled on Web Retailer earlier this year, and you can find Will on Twitter as @WTjern.

Private labelling is where you buy generic items, then add your own branding to create a whole new product. It’s one of the most popular strategies for people who sell through online marketplaces, especially Amazon sellers.

When something gets as popular as private labelling is right now, hype can take over from reality. Rumours start about how it works, what you need, and what you should always do – or always avoid. Then they get repeated and spread until it’s hard to tell fact from fiction.

So here are my top twelve myths about Amazon private labelling. They’re misconceptions that I’ve heard time and time again, and now’s the time to put them right.

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3 Emerging Markets to Have on Your Global Ecommerce Radar

Three Emerging Markets

This post is by Lorna Franklin, an Account Manager at SimulTrans, a leading localisation company providing services into over 100 languages. With a degree in translation studies, a postgraduate diploma in digital marketing and experience driving international sales in a successful ecommerce business, Lorna has a passion for international ecommerce and the art of providing a localised experience for global consumers.

The beauty of the internet and the growth of cross-border trade is that small businesses and large corporations are now on an even playing field when it comes to selling globally.

There is just as much opportunity out there for SMB’s to establish themselves as a dominant player in their sector as there is for their larger competitors.

But with growth slowing in developed ecommerce markets, and even the “first tier” of emerging markets like Brazil and Russia, it may be time for smaller retailers to start thinking about newly emerging markets. Enter an emerging market early, and you may be able to establish yourself long before your competitors arrive.

In this article I’ve picked out three markets which, based on some really promising growth statistics, might be worth keeping on your radar.

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Top 10 Private Label Landmines for Amazon Sellers

Private Label Landmines

Imagine owning your own successful line of private label products on Amazon: high customer demand, no direct competition, ability to set your own prices easily, and larger than usual margins.

What’s not to like about this arrangement?

Nirvana for any seller obviously. It sure beats the challenges of procuring national branded products that millions of other sellers are fighting you to source.

However while building your own private label brand has appeal for lots of reasons, going alone to build a private label product business is rampant with risk: the hidden costs of private-label product sourcing must be clearly understood by anyone considering this approach. We want to instil informed confidence in you to build a private label business properly.

The top 10 landmines for Amazon private label sellers are in the infographic below.

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Meet Momox: The World’s #2 Seller on Amazon and #4 on eBay

Medimops Momox

You might never have heard of Momox, but this German company is the world’s second largest seller on Amazon, by volume of feedback received. Momox is also the fourth largest seller on eBay, by the same measure.

That’s an amazing achievement on it’s own, but there’s more. The company’s international selling accounts feature four more times on our list of the world’s top Amazon sellers, and are again on the eBay list with their fashion brand ubup.

But what does that translate to in sales? Well, this year Momox has reached 100 million Euros in annual revenue. That’s 112 million dollars, or 73 million pounds. They have two warehouses, with about 70,000 square metres of space (750,000 square feet) and 1,000 employees.

So where did this ecommerce giant come from?

Actually the company started from nothing only twelve years ago when Christian Wegner, then unemployed, sold a few second-hand books on eBay. Last week Wegner generously spared the time to talk to me about how his business has grown over the years. Here’s what he told me.

Many thanks to Marc Jarrett of Emjay Consultancy for his help with the interview and translation. Emjay Consultancy helps companies expand into the UK, Germany and China.

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Amazon Account Suspensions: Myths and Facts

Amazon Suspension Myths

This post is by Chris McCabe. After several years evaluating seller account performance for Amazon’s merchant assessment teams, Chris left Amazon to apply those skills as a merchant account liaison. If sellers need help communicating with Amazon or navigating its occasionally opaque processes, he intercedes and facilitates solutions.

Why are Amazon account suspensions on the increase in 2015?

This is a subject of frequent debate among those active on Amazon marketplaces. I have watched the spike in aggressive actions and tried make sense of what initiated this rise in account restrictions.

The Product Quality squad had to strengthen policy enforcement across the board once management decided that too many buyers were complaining of counterfeit or fake items, of items arriving in a condition other than what was described, and of items which were generally not as they had been listed on the site.

This team came together in an effort to implement more punitive strategies that would reduce these complaints and reinforce buyer trust in marketplace item quality. As a result of this, every buyer complaint is assessed in either automated or manual fashion and a warning is sent. If additional complaints come in, more actions are taken, up to and including suspension.

I do my best to guide sellers through the reasons why they have lost their accounts, either temporarily or permanently, due to suspected policy violations. In the course of these conversations, I have discovered some misconceptions among sellers.

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