Private Labeling is all the rage on Amazon right now, so I posed a question about this topic to the FBA FlipSide Facebook group. I wanted to know who has jumped onto the PL ship and how it's going for them.
Everyday Donald Schaefer takes the time to motivate the group by post an inspirational quote. He is a successful seller who has steadily built his business, and has freely shared answers to questions. He jumped in right away with more information than could fit on a Facebook post, but kindly emailed me with his thoughts and opinions about private labeling. Here is our first guest blog post! Thanks Donald!
From the desk of Donald Schaefer:
Here is my take on Private Label:
I’m a big researcher. We took 3 paid Private Label courses. As far as we were concerned the money was well spent. We got our 1st product into Amazon 4 weeks after completing the last course.
The Cons of Private Label
You really need some help before trying Private Label. It can save you a ton of money. The courses out there are not cheap. There is a lot to learn. You need I feel a minimum of $1,500 to start (after paying for a course). I feel there is a ton of good information on the web, but I would rather take a course from someone that is successful in doing it already. If you really want to do it right, then plan to spend around $3000. This covers your 1st product and promotions. Beware that some of the research is downright boring, and it will take a lot of time and patience to learn the things you need to know about private labeling.
What I LOVE about Private Labeling
Because of the cost and research involved, the competition is a lot less then you have with regular FBA products. There is no race to the bottom to worry about because you always own the buy box.You are in charge of your own progress. The private label model is very scalable. The earning potential is awesome (if you do the promotions right). To an extent, you can control pricing. All you do is reorder your products when you start to run low.
We started with our 1st product on March 15th of this year. It was in the Amazon warehouse then.
As of now with proper promotions we are averaging 7 or more sales a day, and expect to reach 10 to 15 by end of this month giving us around $1200 to $1500 a month NET profit. Now, rinse and repeat. Imagine if you had 3 products doing the same!