Private labeling seemed like the perfect business model for the Amazon marketplace. But has the whole private label ethos now had its day?
Private labeling has long been seen as the golden child of business models for Amazon sellers. It allows you to create your own brand and a unique listing, then use some simple marketing methods to push it to success.
For a long time private labelers have had an open playing field to take advantage of the Amazon marketplace. However, a number of changes and challenges are making it increasingly difficult to prosper.
Competition is higher than ever, the market is oversaturated in many product categories, and it is becoming harder than ever to find new products. This has forced prices down and caused profit margins to shrink. Dirty tricks from some sellers are rampant and, overall, the marketplace today is far more aggressive and hostile than it once was.
In this article we discuss the changes which have most affected the Amazon private label business model. So much has changed, is it still possible to succeed as a private label seller?
Everything you need to know, from what makes a great private label manufacturer to the best directories – and the worst mistakes.
This post is by Gary Huang, an American based in Shanghai, China. Gary has been working in sourcing since 2008, and is the creator of 80/20 Sourcing which teaches online sellers and small business importers how to save time and make more money when sourcing from suppliers in China.
FACT: there are over 2.8 MILLION factories in China. They range from state of the art and fully-automated manufacturing facilities, to loose groups of stay-at-home women who cut and sew textiles from their own homes. Whatever you’re looking for, there’s a pretty good chance there’s a factory in China that can make it.
But if you’re an Amazon private label seller or an ecommerce entrepreneur, how do you know which type of manufacturer is right for you?
In other words, how do you find the right private label manufacturer for your business? One that makes products at the right quality and the right price, provides the service you need, can deliver on time, make the modifications you want, and manufacture them under your brand.
Amazon’s Choice is a unique seal of approval from Amazon. But how are products chosen, and can you improve your chances of getting it?
If you shop on Amazon, you may have seen the Amazon’s Choice badge starting to appear on certain products when browsing the site. The badge has steadily become more visible, with more and more products featuring the logo.
But what does it really mean, and how does it work? Are Amazon’s Choice items selected by an algorithm, or through deliberate human curation? It’s something of a mystery, and has left sellers puzzled and itching to find out exactly how products are chosen.
What isn’t such a mystery is the significance to shoppers. In a nutshell, Amazon’s Choice is the same as saying, “Amazon recommends”. It acts as a stamp of approval which, until now, has been a very rare thing to see from Amazon themselves. Instead of relying solely on customer reviews, buyers can immediately see which product is the “best”, straight from the horse’s mouth.
While no-one knows exactly how Amazon’s Choice works, there are a lot of clues out there. Here’s everything we’ve uncovered, including the factors involved in selecting products and how you might improve your chances of attaining that little badge.
Chad Rubin investigates a Chinese brand that has become one of Amazon’s most successful sellers. How have they achieved so much?
This post is by Chad Rubin, President of ecommerce business Crucial Vacuum, CEO of ecommerce ERP system Skubana, and board member of the PROSPER show for Amazon sellers.
Ever feel like your competition knows more than you?
One minute it’s going so well. You’re at the top of your product page on Amazon, reviews are flowing in and your biggest concern is getting the next batch of orders delivered on time.
But there’s a niggling worry. Little “what ifs” float around your head. What if a cheaper product comes along? What if I lose my supplier? What if the Chinese sellers catch on and start cutting out the middleman entirely?
Well, I’ve got some good news – it doesn’t matter what you’re worried about. Whether it’s low-priced competitors, direct-to-market manufacturers, or sources of new stock drying up.
In this post I’m going to explain why Chinese sellers are dislodging their rivals and dominating Amazon. I’m also going to show you exactly how they boost demand for their products, increase traffic and grow a following.
Sound good? Let’s dig in.
As private labeling hits saturation point on Amazon, eBay’s new technology is making it attractive for private label sellers and brands
This post is by Anojan Abel, Founder of ShelfTrend, an inventory analytics tool that provides reporting and insight into live shopping activity on the eBay marketplace.
eBay is not traditionally the first venue that sellers think of when looking to develop and launch their own private label brands.
Amazon, however, has attracted hordes of private label sellers, thanks to its strong catalog-based model, effective marketing options, and hands-off order fulfillment using FBA – all features that eBay has lacked.
Now the Amazon marketplace has become a victim of its success, overrun with dozens of me-too listings in popular categories. Competition in has become overwhelming for private label sellers, even downright dirty in some cases, and buyers have become wary of low-quality superficial brands.
But major changes are underway at eBay. Slowly but surely the marketplace is casting off its flea-market image and implementing big technology changes, that make it much more attractive to brands and private label sellers. Despite weak growth in recent years, it has retained a huge base of loyal buyers, with a different demographic to the typical Amazon Prime subscriber. Yet developing private label products for eBay is very much in its infancy.
In this post, I’ll explain what has changed at eBay to create this new opportunity for private label sellers and brands, and how businesses can get started early and capture the crucial first-mover advantage.