Want to turn a simple idea into a thriving business? Choosing the right Amazon FBA private label product can make or break your success. This guide shows you how to leverage FBA to launch products strategically, stand out in a crowded marketplace, and grow a business that lasts.

Quick Summary

  • Amazon FBA Private Label is a business model where sellers create their own branded products manufactured by third parties and sold through Amazon’s fulfillment network.
  • How to start: Choose profitable products, source reliable manufacturers, order samples, build your brand, create optimized listings, and launch with marketing campaigns.
  • Essential requirements: Amazon seller account, product research tools, manufacturer partnerships, branding elements, UPC codes, and initial inventory investment.
  • Cost structure: Monthly fees ($0-$39.99), referral fees (5-45% depending on category), FBA fulfillment costs, and manufacturing expenses.

Understanding Amazon FBA Private Label

An Amazon private label is a business model where products are made by a third-party manufacturer but sold under the seller’s own brand. The seller has full control over the entire process, including production, packaging design, and brand development.

The main goal of running a private label on Amazon is to target a specific niche where products can compete in both price and quality, allowing the brand to attract and retain loyal customers through repeat purchases.

Understanding Amazon FBA Private Label

Advantages Of Selling Amazon FBA Private Label

To understand why Amazon FBA Private Label has become the top choice for sellers, Megaficus will analyze the key competitive advantages of this business model:

  • Higher profit margins: Sellers buy directly from suppliers, so they cut out middlemen and keep more of the revenue.
  • Lower competition: Private label products are unique, which means sellers often face little or no direct rivalry.
  • Creative control: Sellers own their brand, giving them the freedom to design packaging, branding, and marketing strategies.
  • Stronger product listings: Private label listings stand out because sellers can fully customize images and descriptions, unlike resellers.
  • Buy Box advantage: Since private label sellers are often the only ones offering their product, they usually secure the Buy Box with ease.
Advantages Of Selling Amazon FBA Private Label

What You Need To Start A Private Label Business On Amazon?

If you want to launch an Amazon private label business, there are some key steps you need  to start:

What You Need To Start A Private Label Business On Amazon?
  • Amazon Seller Account: You must register for an Amazon seller account, which costs $39.99 per month plus additional selling fees.
  • Product Research: You need to choose a product with strong demand but not too much competition. Tools like Amazon’s Product Opportunity Explorer can help with this step.
  • Supplier or Manufacturer: Find a reliable partner who can produce your product based on your requirements. Many sellers use Alibaba, and beginners can follow guides on how to source products from Alibaba for Amazon.
  • Branding: Create a unique brand name, logo, and packaging design to make your product stand out.
  • UPC Codes: Most products on Amazon require UPC codes, which you should purchase from GS1, the official provider.
  • Product Listings: Build detailed and optimized listings with high-quality images and compelling descriptions to increase visibility and attract buyers.
  • Inventory: Prepare initial stock based on your product type and the supplier’s minimum order quantity.
  • Compliance: Make sure your product meets all required safety standards and regulations for its category.

Step-By-Step Guide To Sell Private Label Products

To ensure your private label venture starts on the right foundation, Megaficus will walk you through every essential step required for building a successful private label business.

Finding The Right Product Idea

First of all, let’s get started by brainstorming items that connect to your interests or skills. You can also explore Amazon categories to find gaps in the market or chances to improve current listings.

When evaluating potential products, you focus on criteria that show good demand with limited competition:

  • Price between $20–$70: This price point usually converts well on Amazon.
  • At least 300 monthly sales: Shows there is enough demand to make profits.
  • Fewer than 500 total reviews: Suggests lower competition in the market.
  • Average rating below 4 stars: Gives you room to create a better product.
  • Listing quality score of 5–7: Highlights opportunities to optimize the listing.

You can quickly collect this data using tools like Jungle Scout’s Chrome Extension or Helium 10’s Cerebro, and then let the numbers guide your decision so you choose products with the highest growth potential.

Finding The Right Product Idea

Source Manufacturers

Once you know the product you want to sell, the next step is to find a suitable supplier or manufacturer. While you could buy generic items from sites like AliExpress, these often come with higher costs and little room for customization. For long-term success, it is better to work directly with a manufacturer that can provide private-label products.

Source Manufacturers

Although it might be tempting to choose the manufacturer with the lowest price, this often means accepting lower quality, which can quickly damage your brand’s reputation.

For example, when your private-label Bluetooth earbuds stop charging, produce crackling sounds, and disconnect frequently after just weeks of use, frustrated customers leave one-star reviews and never return to your brand.

Since it is difficult to regain trust once customers have a bad experience, it’s safer to partner with a manufacturer who delivers higher-quality products. Therefore, you always request product samples before committing to ensure they meet your quality expectations.

Build Your Brand

To build a strong identity, you need to define key elements such as your brand name, tagline, mission, values, logo, brand story, and color palette, while also shaping a style that fits your target audience.

For example, if you focus on busy professionals, your brand should feel organized and professional, whereas a brand targeting younger customers can be more vibrant, creative, and approachable.

Once your strategy is clear, the next step is to bring it to life visually. Hiring a professional designer on platforms like Upwork or 99Designs will help you create a consistent logo, packaging, and visual assets.

Then, by giving clear feedback during the process, you can ensure that your branding looks polished and stays consistent across Amazon, social media, your website, and all customer communications.

Build Your Brand

Create Your Amazon Listing

Start your Amazon SEO with keyword research to see what shoppers are typing into the search bar. Instead of chasing broad terms like “water bottle”, target long-tail keywords such as “32 oz stainless steel water bottle with straw”.

Additionally, when writing your product title, you should always follow Amazon’s category rules. For example, in the Sports category, titles should stay under 200 characters and avoid symbols or promotional phrases like “Best Seller”. A strong title could be: “HydroFlow 32 oz Stainless Steel Water Bottle with Straw Lid – Insulated, Leakproof, BPA-Free”.

Moreover, your product description should be around 300 – 2,000 characters, depending on the category, and explain exactly what the product is and how it benefits the buyer. For instance, instead of saying “high-quality design”, write: “Double-wall vacuum insulation keeps drinks cold 24h or hot 12h, perfect for workouts, travel, or office.”

Use bullet points to highlight the top five features of your product, keep each point under 200 characters and focus on both benefits and specifications.

Create Your Amazon Listing

Finally, high-quality images are also crucial because they appear not only as thumbnails in search results but also in the full listing view, so you should use professional photos from different angles while following Amazon’s requirements:

  • The main image must have a pure white background, with the product covering at least 85% of the frame.
  • Each image should be at least 1,600 pixels on the longest side to enable zoom, but not exceed 10,000 pixels.
  • Accepted file formats include JPEG, PNG, TIFF, or non-animated GIF, and Amazon recommends JPEG.
  • Additional images (5-8) should show lifestyle use, product details, or scale comparisons.
  • The photos must not contain watermarks, promotional text, or distracting borders.

Set Your Price Point

When setting your price, it is a good idea to stay within about 20% of the average price of similar products from competitors. For example, if the average competitor price is $30, you should consider pricing your product between $24 and $36.

You should also consider your expected sales volume. Thin margins are acceptable if you are confident that your product will sell quickly in large quantities each week. However, if you expect sales to be slower, you need higher margins on each unit to stay profitable.

Set Your Price Point

Get Set Up With Amazon FBA

By choosing Amazon FBA, you can ship your products directly to an Amazon warehouse, and the company will handle storage, packaging, and delivery on your behalf, helping reduce the amount of work for sellers.

Amazon provides two main selling plans, and your decision depends on your sales volume and long-term goals:

  • Individual plan (best for smaller sellers).
  • Professional plan (best for larger sellers).
Get Set Up With Amazon FBA

Launch And Promote Your Product

Beyond individual product listings, you should invest time in customizing your Amazon storefront, since Amazon reports that stores with three or more pages keep visitors engaged longer and generate nearly one-third more sales per visitor.

When your storefront is ready, you should create a launch strategy that drives traffic and builds early momentum. 

For example, you can run giveaways or flash sales to generate buzz, set up Amazon Sponsored Products ads to reach shoppers on the platform, and use Facebook Ads or Google Ads to capture audiences outside Amazon. In addition, you can collaborate with influencers through blogger outreach to expand your brand visibility.

It is also smart to plan marketing campaigns around peak shopping periods, such as holidays, because offering discounts during these times can greatly increase sales and attract valuable early reviews that strengthen your brand reputation.

After launch, you need to track performance using Amazon Brand Analytics, then adjust ad spend, pricing, and product descriptions to stay competitive and ensure continued growth.

Launch And Promote Your Product

How Much It Cost To Sell Amazon FBA Private Label?

You’ll need to consider several types of Amazon fees, such as account charges, referral commissions, and fulfillment costs. Amazon provides two main seller account options:

Individual or Professional Seller Accounts

Amazon offers two primary seller account options with different cost structures:

  • Individual Seller Account: Sellers pay $0 in monthly fees but are charged $0.99 for each item sold.
  • Professional Seller Account: The Professional plan requires a monthly subscription fee of $39.99 but eliminates per-item selling fees entirely.

Referral fee

Every time you sell an item on Amazon, the platform takes a referral fee, which is a percentage of the sale price:

Product CategoryReferral Fee Percentage
Amazon Device Accessories45%
Appliances (Compact)15% up to $300; 8% over $300
Appliances (Full-size)8%
Automotive & Powersports12%
Baby Products8% ≤ $10; 15% > $10
Beauty, Health & Personal Care8% ≤ $10; 15% > $10
Clothing & Accessories5% ≤ $15; 10% $15.01–$20; 17% > $20
Consumer Electronics8%
Electronics Accessories15% ≤ $100; 8% > $100
Furniture15% ≤ $200; 10% > $200
Grocery & Gourmet8% ≤ $15; 15% > $15
Home & Kitchen15%
Jewelry20% ≤ $250; 5% > $250
Lawn & Garden15%
Media (Books, DVDs, etc.)15%
Office Products15%
Pet Supplies15% (22% for veterinary diets)
Sports & Outdoors15%
Toys & Games15%

Successful Examples Of Amazon FBA Private Label Products

Several brands have achieved remarkable success on Amazon by mastering the private label formula. Here are the most notable examples and the key lessons they offer.

Amazon Basics Batteries

Amazon Basics is among the most successful private label brands on the marketplace, known for delivering everyday essentials at a lower price than leading competitors. For instance, a 20-pack of Amazon Basics batteries is priced at about $15, whereas a 24-pack from Duracell costs around $22.

Amazon Basics succeeds through a carefully crafted strategy that leverages both market intelligence and platform advantages:

  • Price positioning: Consistently 20-30% below name brands while maintaining quality.
  • Market validation: Only enters proven, high-demand categories.
  • Trust leverage: Uses Amazon’s credibility to overcome brand recognition challenges.
  • Strategic placement: Benefits from Amazon’s algorithm favoritism and prime positioning.
Amazon Basics Batteries

Anker Products

Anker stands as one of the largest private label brands on Amazon, having launched exclusively through the platform. The company is well known for producing reliable electronic accessories, like charging ports for phones and laptops at significantly lower prices compared to major brands such as Apple and Samsung.

The company’s remarkable growth demonstrates how focusing on fundamentals can build a powerhouse brand:

  • Quality focus: Build reputation through consistent product reliability.
  • Customer-centric approach: Actively responds to reviews and improves products based on feedback.
  • Niche domination: Started with charging accessories before expanding to related categories.
  • Brand building: Invested heavily in product photography, descriptions, and customer service.
Anker Products

FAQ About Amazon FBA Private Label

What is a private label on Amazon FBA?

An Amazon FBA private label involves sourcing a generic product from a manufacturer, branding it with your own logo and packaging, and selling it exclusively under your brand on Amazon.

Is Amazon private label still profitable?

Yes. Selling private-label products on Amazon can still be profitable, but it demands careful planning because of growing competition and higher expenses.

How to sell private labels on Amazon?

You find a product with demand, create your own brand (logo, packaging, design), source from a manufacturer, list it under your brand on Amazon, and optimize with keywords and visuals.

How does Amazon private label work?

Amazon private label operates by having a seller spot a product in demand and collaborate with a third-party manufacturer to create it under the seller’s own brand, complete with custom logo and packaging.

Is private label better than wholesale?

Private label gives you full control over branding and higher profit margins, while wholesale is easier to start but offers less control and lower margins.

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