5 Rules for Selling Private Label Products on Amazon

5 Rules for Selling Amazon FBA Private Label Products

Private label products are the hot new topic. There are a ton of courses coming out, some ultra expensive, and others very easy on the pocketbook.

I wanted to write this quick blog post to shed some light on some things that you need to know before you buy any private label course or jump into trying to create your own power brand. It's not as easy as some people make it out to be, and if you do things the wrong way you can end up spending thousands of dollars for nothing.

Know that it takes capital

First and foremost, before you even think about pulling the trigger on any private label course you need to understand that you need a lot of capital in order to be successful. Creating your own private label is not the same as going out and finding product to resell on Amazon, you will essentially be buying in bulk from a supplier whether they are domestic or overseas. These suppliers generally will not give you a good deal on your product, nor will they prototype anything for you, if you are not going to buy in large quantities from them.

That means you need… Money.

So, not only are you going to be paying for a course on how to do all of this private label stuff (some courses are in the thousands), you are also going to be paying thousands of dollars in order to sell your private label product.

If you don't have that kind of money, don't waste your time.

Know that it's not about quick wins

Here's the big difference between those who make their own products and those who simply resell on Amazon…

People who are successful in building their own brand know that they are creating an asset. Resellers simply want to make money.

There is a huge difference between these two mentalities. Sure, we all want to make money. But the person who is building an asset knows that even if they build something that only brings in $500 a month in profit, as opposed to flipping products for a few thousand a month, the $500 a month private label product is far superior.


An asset is always better than just knowing how to flip product because an asset has an inherent value that is sustainable over time. I would much rather have 10 $500 assets taking me $5000 a month than thousands of reselling items that make me $10,000 a month because I know that my private label products have a value that can be forecasted and scaled.

Know thy customer and mitigate risk with good sponsored ad campaigns

I've yet to find a course that teaches this, but one of the most important and profitable ways to be successful with a private label product is to understand your customer. The only way to understand your customer on Amazon is to use Amazon Sponsored Ads.

It's foolish to go out and talk to a supplier, by a whole bunch of product, slap it on Amazon and expect that you are going to make a ton of sales. It doesn't work that way. (I mean it can, but it's very rare)

Mitigating risk when creating a private label product is key. You should be testing your products using Amazon sponsored ads to make sure that you're actually able to make sales. This concept requires a mindset shift and is probably the thing I have to talk about the most when it comes to learning how to use Amazon sponsored ads. But, when you understand how to do this it becomes gold.

Test your product before you buy in bulk from a supplier.

Stop thinking like an Amazon reseller

This is where I get in trouble a lot. There is a reason why I'm not as prominent in the Amazon FBA scene as some of the other “gurus” are. The main reason is that I can't comprehend why anyone would want to spend the majority of their time reselling.

True businesses focus the majority of their time on building some sort of asset. This is because an asset something that's going to generate revenue without me. I don't want to have to continuously start from scratch every month, trying to find product, processing my shipments, and so on. I want to build something bigger than myself. Private label products for something that's bigger than me.

If you have a short-term reselling mentality you will not do well with Amazon FBA private label products.

Build on your successes

lastly, you should always have it in the back of your mind that the revenue that comes from your private label product should be used to create and sustain another one. Yes, it's super tempting to want to take the money and use it for something else, but the more that you put back into your private label empire, the more likely you are going to become wealthy from them.


I want you to want to build private label products, but you need to realize that they are very difficult to create (if you are doing it the right way and mitigating your risk through testing). Home run hitters are rare when it comes to first time private label products. But that's okay, build small but successful private label products and over time you'll be able to build assets that generate revenue for you consistently.

If you want to get into the private label realm but you don't want to do all of the research, risk mitigation, and work involved – make sure you check out my Power Brand Partner Private Label Service where I do it all for you.  I've had a ton of great feedback for the program and I know you'll love it.

About The Author

Dean Soto

Founder of the Online Empire Academy and creator of Wooshmetrics.com