Did you know that private label sellers grew by 70% in 2016 on the Amazon marketplace and delivered 2 billion products worldwide by FBA (Fulfilment By Amazon). Private label sellers have created 600,000 more jobs outside of Amazon and increasing net sales revenue from $7 billion in 2004 to $136 Billion in 2016. In 2016 Amazon private label products accounted for half of all sales revenue generated. That’s just over $17,5 billion.
So just from the above stats you can see that there is a huge amount of buying power on the Amazon platform. So many people are looking for different products all the time. Heck, how many times haven’t you ordered from Amazon something you needed or were looking for. The fact that there are so many shoppers on Amazon makes sense to provide a product on the market that people want by improving on it and making it real value. Anyone can get a piece of the pie.
The difference between private label and selling a known brand is that the brand name belongs to you. The product improvement, design, feel, colour and function belongs to you. It allows you to develop a brand not only for selling on Amazon but exporting to other countries, larger retail stores such as Walmart, selling on your own website, selling to brick and mortar stores. There a lot more you can do with private label. You have OWNERSHIP! There are no service level agreements in place WHEN YOU OWN THE BRAND! You decide the direction and how the brand must grow. It allows you to create employment opportunities for others in marketing, sales, product development, book keeping, product photography etc.
It’s your brand, you own it!!!
Ok, still not convinced… Amazon is in North America, United Kingdom, Europe, Japan, India, Mexico and will be opening its doors in the Middle East. They just acquired Souq.com. You will be able to sell your private label products in any of these regions provided you use Amazon FBA service. You will have access to market places that would be close to impossible to touch by being in another country. The internet has given us access to a global market. Now is the time to tap into it. Now is the time to become its pioneers.
Selling on Amazon can cost you a few thousand dollars to start off whereas opening a regular and mortar store can cost $100,000 and more. So from a financial risk stand point, you have a lot less to lose. You just have to work consistently and diligently to make it a success. It’s like any other business. Hard work and determination can see you become successful in the physical products industry and selling online. You are now able to remove unnecessary cost such transport, warehousing and dispatch. Everything is taken care of through fulfilment centres who deliver the product to the customer. Freight forwarding companies make sure that your products are collected from your international supplier and shipped to your destination country. All you have to do is make sure that your offer a good product at a competitive price and that you work on marketing your products online.
Well, I hope I have given you guys some serious food for thought and that I will be seeing a few of you taking steps towards starting your own physical products empire.
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See you at the top!