Wholesale Vs. Private Label: Which One is Better for Amazon Selling?
There are a few different ways to sell products on Amazon. Depending on what your goals are, you may be more successful using a private label or a wholesale model. As with anything, there are advantages and disadvantages to each model. Today, Nine University
takes a look at both options to help you decide which one is the best for you and your business.
The Pros and Cons of Amazon Wholesale
To sell your products wholesale, you will need to place one or more high volume orders with a brand manufacturer and sell these products to your customers using your Amazon account. Here are some of the advantages of selling using the wholesale model.
It Can Be Less Time Consuming
Selling items wholesale isn’t as time-intensive as a private label. And it can be easier to scale. You may not have difficulty finding wholesale products to sell on Amazon either if you know the right place to look.
There’s No Need to Create New ASINs
You do not need to create new ASINs or detail pages for your products. These are two of the leading brand-building practices you need to follow when selling private label products.
A Lower Cost for Marketing
You don’t need to set aside a significant amount for advertising for your products. That’s because the items you sell wholesale are typically already in high-demand, and a lot of marketing is generally not required.
Here are a few of the disadvantages of selling Amazon wholesale.
You Will Need a License
You must obtain a wholesale license to resell products using the wholesale model on Amazon legally.
You will be selling products that multiple other merchants are already selling, which could cause a lack of demand to occur.
The Pros and Cons of Private Label
Private label products are those made by a third-party manufacturer that you resell under your brand name. The manufacturer has no rights to your brand or the label. You get to decide on the logo, label and packaging, and product design. Here are some of the benefits of selling private label products.
Maintain an Excellent Profit
The profit margins can be rewarding if you can find a product niche that is high in demand yet not common with other merchants.
You Have More Control
You will have more influence and control over the creative process and the products that you sell. Unlike selling wholesale products, you will have your brand and build up a unique reputation.
No Limits on Adding New Products
As long as your cash flow allows it, there are no limits to the number of new products you can add to your line, as there might be to sell wholesale.
Here are a few of the disadvantages of selling private label products.
You Need Upfront Capital
You will need to have a good amount of capital upfront with orders already in place if you want your private label business to be a success.
More Time Consuming
Operating a private label business on Amazon can be much more time-consuming. You have to commit to being more involved with the creative process, creating the individual product description pages and various branding elements.
Become a Successful Amazon FBA Seller
If you would like to learn more about how to become a successful Amazon FBA seller
, we are here to help. At Nine University
, we offer courses to help people just like you who want to get started selling their products on Amazon. Check out our website today for more details or watch one of our informative videos
to learn more.