Selling on Amazon: own products, private label, or other brand products?

1. Producing and selling your own goods

2. Selling products from other brands

3. Selling private label products

Conclusions

By now, everyone knows that Amazon is the largest global marketplace, where anyone can test themselves and start their own business. But precisely for this reason, this marketplace is full of products and sellers, and competition is extremely high in every field. When competition is high, two categories manage to emerge: large and wealthy multinational companies and people with good ideas.

On Amazon, there are three macro-groups of sellers: those who produce the items they sell, those who sell private label products, and those who sell products from other brands.

1. Producing and selling your own goods

The first category is very simple to understand. A company, which has its own production and established sales channels both online and offline, creates a storefront on Amazon to expand its business. Those who already have an established business can gain great benefits by launching on Amazon, broadening their user base, and reaching foreign markets.

2. Selling products from other brands

Selling products from other brands is perhaps the most complex market to enter, as in this case, competition is stronger and more direct compared to other cases. To sell, it is important to be able to win the Buy Box and have competitive prices, but this can create a race to the bottom where there are no winners.

The fundamental advantage of this type of selling is that for the most part, these products do not need significant sponsorship since they are already known by consumers.

3. Selling private label products

More complex and less known is selling private label products. First of all: what does private label mean? In short, it involves buying white label products (finished products, but without a brand) from another market (mainly the Chinese one), applying your own brand, and selling them.

To create your own brand in private label, you essentially need to find manufacturers (local or foreign) that offer quality products at advantageous prices. In this phase, it is vital to study the market and the competition. As we mentioned, the market is full of sellers; choosing a product with high competitiveness can mean being crushed by the competition and seeing your business go up in smoke.

Market research is important for finding paths less traveled, perhaps small market niches with low competition. Finding your place in the market is fundamental, and to do so, you must study carefully.

Once you have found the product you want to launch, you need to find the right manufacturer who offers quality products and advantageous prices. Always check the products in person; if the manufacturer is abroad, ask for samples. It is always better to discover potential defects in person rather than through negative reviews.

The next step is to customize the products. You need to choose a name, a logo, and designs to make the product unique. If you buy the product from factories producing abroad on a large scale, it is certain that the same product is available online; this is why it is important to differentiate your product both graphically and in communication.

You can customize the product itself, the box, or add a booklet that better illustrates how it works and improves the customer experience. Also from a communicative point of view, it is important to make people understand how special your product is, what your values are, and what your goals are.

Example: If you choose to sell thermal water bottles, you can choose a precise target based on the look you give the bottles (for example, making bottles for children by decorating them with suitable drawings), explain the unique features of the product, such as how long it keeps drinks cold; finally, communicate how important it is for your brand to minimize plastic consumption and that the mission of this bottle is to help people do something for the planet.

Of course, it is also possible to skip this process and sell the product without any modifications; in this case, you can guarantee lower costs, but your product will be more anonymous and will have nothing to differentiate itself in the market, apart from the price. This takes away your brand's chance to be recognizable.

Conclusions

In conclusion, the choice is yours; we have illustrated the different possibilities to allow you to have as complete a vision as possible. Always keep in mind that every business has its difficulties, and it is important to be prepared to manage them.

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