What You Need to Know About Amazon Private Label Brands

Introduction

Amazon private label brands are brands that are owned, manufactured and sold by Amazon. Amazon charges the seller a 15% commission on the sale price of the items listed under those private label brands. Third-party sellers can participate in the Amazon private label brands program by using the Brand Registry and making sure their products fit Amazon guidelines. For example, Amazon Elements is an Amazon private label brand of products, from vitamins to diapers, that are all natural and readily available at a discounted price to Prime members. You can also get information about sales volume for private label products. Using FBA (Fulfillment By Amazon) is required for all sellers who wish to sell through a private label product

Owned, Manufactured and Sold by Amazon

• Amazon owns the brand.
• Amazon makes the product.
• Amazon sells the product.
• Amazon is the only seller of that product.

Commission On the Sale Price of the Items

As a seller, you will be charged a 15% commission on the sale price of each item listed under your private label brands.

Third-party sellers can participate in the Amazon private label brands program by using the Brand Registry and making sure their products fit Amazon guidelines.

If you want to be an Amazon private label brand, you will need to meet the following requirements:

• You must be a registered seller on Amazon.com and have a UPC code for your product.
• You must have a manufacturer’s certificate of conformity so that Amazon can verify that the products are eligible for listing on its website.
• Your company must also sign up for Brand Registry and agree to follow all of Amazon’s terms and conditions as they relate to selling your product(s).

Last but not least, make sure that your product is approved by Amazon.

Get Information About Sales Volume for Private Label Products

You can also get access to sales volume data, but this information is only available for private label products. The sales volume data is divided into seven categories:

• Sales (units sold) – The total number of units that have been purchased by customers during a specific time period.
• Revenue (total revenue) – The total amount of money generated through the sale of your product(s).
• Average price per unit/product – How much each customer paid for your product(s), including taxes and shipping charges. It does not include discounts applied at checkout or discounts given for buying multiple items in one transaction.
• Average price per unit/product excluding any purchase discounts – A snapshot of what consumers are paying without taking into account any special offers or deals they receive when they buy a product from you. This number should be used if you want to compare it with other similar businesses selling similar products so that you can see how competitively priced yours are compared to others’.

Using FBA is Required For all Sellers

FBA is a great way to grow your business. If you’re going to go this route, you should know that FBA is required for all sellers who wish to sell through a private label product. You can’t ship from your own warehouse. Amazon will take care of all shipping, packaging and customer service.

As an added bonus, if you use FBA there’s no need for return labels or tracking numbers on products being shipped back to the seller.

Rules and Guidelines You Need to Understand

There are a number of rules and guidelines you need to understand about selling Amazon private label brands. You need to be a registered seller with Amazon. Next, your product has to be unique – no one else sells it on the platform. You’ll also want to make sure that your packaging and labels adhere to their branding standards in order for your products to sell well.

Lastly, there’s pricing: because most people will be buying these items through Prime Pantry or Subscribe & Save, which means that you can’t charge more than $25 (or around $12 for Subscribe & Save items). This means that there aren’t many opportunities for adding value or improving quality of life through higher-end features like free shipping – but if this doesn’t bother you then by all means go right ahead.

Conclusion

With the growing popularity of Amazon private label brands, there are many more opportunities for sellers to make money selling these products on the platform. However, there are also a number of rules and guidelines related to selling them that you need to understand before doing so.