buildingan amazon private label strategy

Building a Solid Amazon Private Label Strategy

Creating Amazon private label products has become all the rage lately. Part of it is because of the very well marketed courses that promise you can make millions off of one private label idea, without having to spend a lot of money, and without having to do much work. (and are simply NOT true).

Another reason is because it's hard finding things to sell on an ongoing basis, and having a private label product solves that by having something you can sell over and over again.

But, once again there is this idea that you can simply create a private label product and all of your problems will be over.

Here's the deal, in order to be successful with private label, you need to have an Amazon private label strategy. As with anything that's worth doing, creating your own product is going to be difficult but a great experience – if you do it the right way.

Here my quick tips for building a solid Amazon private label strategy.

Always remember that you are building a business and not making quick cash

The allure of private label products is usually based around the idea that you can make quick and sustainable cash. The problem is that the reality does not prove this theory true.

As with any investment, private label products should be seen as a business investment rather than a means to make money quickly.

In other words, rather than trying to find that one product that makes $1 million within the first three months, or one that makes you $1000 a day, you should be striving to build a portfolio of private label products.

Your Amazon private label strategy should be like building Legos

Take the stock market for example, sure there are some penny stocks that if you were to invest in them your returns could be extremely high. Of course, the risk in these stocks are also extremely high and often they are scams.

The same concept goes with private label products. The higher the reward, the higher the risk. That being said, build small win assets over time that are risk mitigated rather than betting the farm on one product.

  • Beauty
  • Health
  • Gardening
  • Toys
  • Food

There are a ton of categories to choose from that allow for great markups…  Don't just stick to one product and one category!

Have you ever seen kids using Legos to build amazing and silly things? They never use the same blocks over and over again. In order to build their spaceship or boat, they need to use a multitude of blocks.

Well, if you want to build the spaceship that's going to take you to the stars when it comes to wealth, you need to have different things within your private label portfolio.

Do your homework first!

The #1 way to ruin your Amazon private label business is to not put in the up front research first.  What I mean is to make sure that you have a product that people actually want and that there is not so much competition that your profits are going to get choked u p like a flower among weeds.

The easiest way to do your research is by looking at keywords in your prospective market.  The free way to do this is by using the amazon search bar by typing in your keywords and see if any suggestions pop up.  Generally this means that people have been searching for those terms, but it definitely doesn't tell you how many.  You can also use tools that try to do the research for you.  Out of all of the tools our team uses, our favorite by far is Keyword Inspector (and its product research brother KIPRT) because it doesn't just rely on the suggestions bar, the Amazon API, or just searching keywords in a listing.  When you analyze a competitor's listing it basically tells you exactly what customers are searching for to find and buy from that listing.  Plus it uses historical data rather than current data to show estimated volume for a keyword which makes it much more accurate than other tools.

It's one of the reasons we were able to do numbers like this with one of our products on Cyber Monday:

cyber monday amazon sales

Mitigate risk by having many products generating small and large returns

Another reason why you don't want to but the farm on that big win is the risk of competition and Amazon itself. If you've been selling on Amazon you know what I'm talking about…

Just because you have a private label product doesn't mean that you don't have competition. Sure, if you establish your brand and build a customer base you have a pretty good chance of dominating your particular market.

But, you never know when a competitor with the exact same product can out market you.

Also, Amazon is notorious for changing their terms for third-party sellers.

Whether it's making it so that you need approval to sell a certain category or product, or stopping the sale of your product entirely, if you were to bet the farm on one awesome private label brand you would lose your entire revenue stream.

Now, just because you have a multitude of products doesn't mean that every product is going to be generating small amounts of revenue.

Some may do amazingly well, some may generate a few hundred dollars a month, but the point is that you will will have consistent revenue even when changes by Amazon, or if competition rears its ugly head.

Remember, building a business is priority

Look, I get it, we all need to make a cash flow every month – but when you are focused solely on making money you miss the point of it all. Your priority needs to be building a business that's bigger than yourself. By having a solid Amazon private label strategy that's based around risk mitigation and portfolio diversification you can build something that stands the test of time and also makes great income consistently.

Updated December 2015:  I wanted to update this article because as our team has been researching, creating, and growing private label products, one of the most time consuming aspects of a good private label strategy is research.  There's a great site that has vendors from our team and others that do all of the private label research for you called MooFlip.  It's a great way to get a get proven private label concepts quickly and out to market.  There are a bunch of different vendors and offerings and it's growing at a steady pace.  You can check out MooFlip by clicking here.

About The Author

Dean Soto

Founder of the Online Empire Academy and creator of