How to Start Selling Private Label Products on Amazon or Shopify

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Andy Yu
Author

Starting any business is challenging, but selling private-label products cranks it up. You need to find China private label manufacturers and ship the products to customers.

If done well, you stand a chance to make a profit. But what does “doing well” entail? I will discuss tips for selling private-label products on both Amazon and Shopify. Stick around! 

Understanding Private Label Selling on Amazon and Shopify

Private Label Selling on Amazon and Shopify

Before we discuss the steps to take before you can start selling private labels, what are they? The idea is simple. Private label products are successful items that are remarketed as yours. The products would have your logo, design, and custom packaging

This form of e-commerce gives you brand control and market differentiation. Remember your favorite shoe brand? Imagine you have a similar design. However, instead of the well-known brand image, you put yours.

Now, you can sell the products on Shopify or Amazon. But I wish it was as simple as I had spelled out. Instead, the process demands several steps before you can start selling. Fortunately, this article addresses e-commerce private label strategies.  Let’s get into it. 

Steps to Start a Private Label Business on Amazon or Shopify

Start a Private Label Business on Amazon or Shopify

Selling private-label products online is easy once you know what to do. Here, we highlight the steps for both Amazon and Shopify sellers. This way, you know where to put your foot regardless of your chosen platform. Undoubtedly, both have their perks. 

Step 1: Product Research 

Deciding what product you want to resell is a crucial first step. To start the business, you need private-label product ideas for e-commerce. The product you choose is vital.

Does it have a thriving market? Is the market saturated? Proper product research sheds insights on these questions. It ensures you make an informed decision on choosing top products imported from China. You need a growing demand to make profits from this business. 

Tool Features Pros Cons
Jungle Scout
  • Product data base
  • Sales History
  • Keyword research
  • Extensive data
  • User-friendly interface
Can be costly
Helium 10
  • Keyword research
  • Product tracker
  • Profit calculator
  • Comprehensive toolset
  • Free trial
The user-interface is not friendly
Keepa
  • Price tracking
  • Sales History
  • Alerts
  • Real-time price data
  • Easy to use
Limited features compared to others
SellerApp
  • Keyword research
  • Product listing optimization
  • Sales analytics
  • All-in-one platform
  • Affordable pricing
Can be difficult for beginners

Use Helium 10 or Jungle Scout tools to find the best private-label products. These tools expose high-demand products with low competition. 

Note the products/niches with growth potential. Analyze the competitors’ products. Read reviews and note pricing. This way, you can find ways to differentiate your products. 

Step 2: Finding Private Label Manufacturers

Finding Private Label Manufacturers

Connecting with the right supplier can be what separates you from the competition. But how to find China private label manufacturers?

Also, where to buy products to sell on Amazon?

Dealing with many businesses tells me this step can be demanding. However, there are ways you can go around it. To find suppliers, use platforms such as: 

These platforms are home to thousands of reliable private-label suppliers offering custom products. You can connect with them regarding the products you want to sell. Nonetheless, there is a decent risk of scams from these platforms. I hope you already know about Alibaba scams.

Don’t worry! Here is how to spot good China suppliers from the bad ones: 

1) Read reviews and ratings: Many of the platforms above have a rating system in place. Use these metrics to spot the good from the bad. I recommend you focus on personalized messages. Several suppliers often pay for reviews and ratings. 

2) Get Samples: Ensure top-notch quality by requesting samples. Sampling allows you to gauge the supplier offerings. 

3) Ask for recommendations: Ask accomplished stores on Amazon or Shopify how they connect with their suppliers. It can help you connect with yours.

You can also read one of my top posts – how to find Chinese private label manufacturers for Amazon FBA.

Step 3: Branding and Design 

Many sellers prefer to set up their designs when the product drops. However, you can take a proactive step before the product arrives. I recommend you take this route. You can design it yourself if you have decent experience.

Alternatively, you can hire a designer for new product development. It will help you plan designs for the incoming products. Ensure the designs are unique and do not resemble a trademarked design. 

Step 4: Listing Your Private Label Products

While you wait for your products, you can start listing them on Shopify and Amazon. The secret to listing is keeping the descriptions original and compelling.

I often recommend sellers upload product images, pricing, and descriptions. Ensure that the pictures are high-quality and follow engaging descriptions. If you are having difficulties, you can hire a third party to handle the process. 

Step 5: Advertise the Products 

advertise private label products

You need to let people know about your private-label products. Before your store starts generating income organically, it needs to push. 

For Amazon, you can try Amazon PPC. You can use this advertising tactic to gain an edge. You should refer to the advert regularly to optimize it for the best responses. A dedicated Amazon private label guide ensures you get the advertising right.

Social media marketing can give you an edge as a Shopify seller. Use X, Facebook, and Instagram to upload your store’s products.

You can use Shopify tools to spot places for improvement in the ads. For both Amazon and Shopify, I recommend that you urge customers to drop reviews. This way, you grow your credibility. 

Step 6: Order Fulfilment

When customers place orders, order fulfillment ensures they receive their products. If this step is stifled, it can lead to customer loss and a barrage of bad reviews. You can use the Amazon FBA to store, package, and ship your product as an Amazon seller.

Regularly monitor this process to ensure no delays or issues with order fulfillment. For Shopify, you need to find a logistic partner or global supply chain provider. It is the major difference between Amazon and Shopify.

Step 7: After-sale Support

Much research proves repeat sales are one of the main factors that make a business fly. Hence, customer service is crucial, especially after a sale. It builds trust and, ultimately, brand loyalty. Set up customer support channels like social media, email, and phone support. Analyze your customer reviews to optimize your products better.

Legal Considerations for Private Label Products

Legal Considerations for Private Label Products

Image Source: Pexels

The private label business comes with some set of legal considerations. Here is a guide to ensure you are on the right side of things: 

1) Trademark Protection

A crucial legal consideration is ensuring your branding is unique. If your design infringes on existing trademarks, it can harm your business. I can ensure this doesn’t happen by conducting in-depth research. Our sourcing agency offers a comprehensive trademark to safeguard your product’s brand identity. 

2) Product Liability

Many of my clients deal with defective items from suppliers. As a private label business, you are liable for these faults. Hence, following the necessary safety standards and guaranteeing quality is crucial. 

3) Regulatory Compliance

All products aren’t the same. I often have to spell this out. It is understandable how one can mix things up. However, the regulations that apply to sneakers don’t necessarily apply to underwear. 

For instance, FDA guidelines apply to food and beverages. Similarly, the CPSC standards guard children’s products. My sourcing agency is fully equipped to work according to these regulations. Full compliance is crucial to avoid legal complications, and we can help you achieve it.

4) Labeling Requirements

Wrong labels can lead to legal issues. You need to provide precise information regarding the products. Wrong labeling can cause legal complications, especially with clothes and food. 

5) Intellectual Property

Intellectual property rights are a common roadblock in this business. You need to secure the required copyright and patents for your packaging. It ensures your intellectual property is safeguarded. 

Legal considerations are often ignored, leading many to lose their businesses. I know how it sounds. The process seems exhausting. Fortunately, you needn’t worry. Contact me today to get all your legal requirements sorted. 

Where Should You Sell Your Private Label Products?

Where Should You Sell Your Private Label Products?

Shopify and Amazon are great places to set up your private label business. However, owning a private label business on either platform differs. Here is a table that compares both platforms to ensure you make an informed decision: 

Criteria Amazon Shopify
Order Fulfilment  Order fulfillment by Amazon (FBA)  Self-fulfilment or utilizing a third-party logistics partner 
Fees  High fees, including referral and FBA  Low fees, constituting monthly fees
Customer Base Massive, immediate access to millions of possible customers  Requires building your customer base 
Brand Control  Limited  Complete control over branding and store designs 
Visibility  Gains from Amazon internal search traffic  Needs SEO and marketing to drive traffic. 
Marketing Tools  Deals and Amazon PPC  Social media marketing and other options 
Competition High  Varies, but often less than Amazon
User-experience  Simplified It can be complex to understand 

Each platform has its perks. Amazon is beginner-friendly, but Shopify gives you more control over your branding. I recommend you do further research before you start a private label business. 

Selling private label products on Amazon and selling private label products on Shopify differ. You mustn’t enter with the mindset that they aren’t. 

Best Options for Private Label Product Fulfillment

Factor Fulfillment by Amazon (FBA) Self-Fulfillment Using a Sourcing Agent
Inventory Storage Amazon handles storage Self-storage required The sourcing agent may handle the storage
Packaging and Shipping Amazon handles packaging and shipping Self-packaging and shipping The sourcing agent offers custom packaging and shipping from China
Customer Service Amazon handles customer service Self-handling of customer inquiries and returns Sourcing agent may handle customer service
Costs
  • FBA fees (storage, pick-pack, shipping)
  • Shipping costs
  • Packaging materials
  • Labor costs
Scalability Easily scalable with Amazon’s infrastructure Requires more manual effort to scale Can be scaled with the agent’s expertise
Control Less control over branding and customer experience More control over branding and customer experience Moderate control, depending on the agent’s services
Expertise Leverages Amazon’s expertise in fulfillment Requires in-house expertise or outsourcing Relies on the agent’s expertise in sourcing, quality control, and logistics

As you can see, using a sourcing agent can be a suitable option for businesses. An agent can work on various aspects of the fulfillment process, including;

However, it’s important to carefully select a reputable agent to import from China. Clearly define the required services to avoid potential issues.

An entrepreneur in the US wanted to launch a private-label skincare brand. OwlSourcing helped them source high-quality ingredients from reputable Chinese suppliers. Our team also helped them design minimalist packaging. By using our expertise, they were able to launch a new brand successfully on Amazon.

Read More:

Final Thoughts!

As you can see, anyone can buy from China and sell on Amazon or any other platform. Things are easy if your business is in the hands of a reliable Amazon FBA sourcing agent in China.

Selling Private Label Products on Amazon or Shopify is not a one-day job. It requires dedication and attention to ensure the desired results.

Contact us if you have problems selling Amazon and Shopify private-label products. I will ensure you get the help you need!

In 2016, Andy spearheaded OwlSourcing's mission to simplify global imports. Our goal was to establish an information-sharing platform for global imports and product sourcing. We handle all the logistics, enabling you to concentrate on marketing and sales. Consider us your external procurement department in Asia, with fees billed upon order confirmation. For a comprehensive service breakdown, please visit our service page

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