Amazon FBA (fulfilled by Amazon) has transformed how brands sell online by offering sellers a streamlined way to manage their inventory, shipping, and customer service. Within the FBA ecosystem, the Amazon private label business model has emerged as a lucrative selling strategy. In this guide, you’ll learn the A-Z of Amazon FBA private label — how to get started in 2025, best practices, and common challenges.
What is Amazon Private Label?
Private label Amazon products are manufactured by one company, then branded and sold by another. They might be existing products manufactured without branding, so you, as the private label seller, add your branding and sell them under your brand.
The main difference between Amazon private label and other Amazon business models is that you sell products under your own brand in private label. In other Amazon business models, such as dropshipping or wholesale, you sell products that belong to other brands.
So why should you start a private label Amazon business?
- Brand control: Amazon private label gives you complete brand control since you sell items under your brand. You can build a loyal customer base and grow your brand beyond Amazon.
- Higher profit margins: Selling items under your brand gives you more freedom to price your items as you wish. This lets you get higher profit margins since the cost of goods tends to be lower because of large order quantities.
- Long-term sustainability: selling via Amazon private label can be your launching pad to build a long-lasting brand. Your private label Amazon brand can be a great long-term business that you can sell for multiple seven figures.
Why Choose FBA for Your Amazon Private Label Business in 2025?
FBA and private label are the perfect combo on Amazon, and here is why.
Growth Trends and Market Demand
Amazon has been on an upward trajectory, especially after the COVID-19 pandemic. This makes it the perfect platform to launch and grow your private label Amazon brand. There’s also increased customer demand for affordable and unique products, which presents significant opportunities for private-label sellers.
Amazon’s Increasing Seller Tools and Resources
The Amazon ecosystem comprises the tools and resources you need to grow your FBA Amazon private label. Amazon FBA offers a reliable storage and shipping infrastructure that helps private-label sellers deliver items to customers in record time. Other resources like an effective PPC advertising system, brand analytics tools, and customer service all work in tandem to help you launch and build a profitable private label FBA business.
Competitive Advantage
Competition on Amazon is stiff, but selling private-label items gives you a competitive advantage. When you sell through a business model like wholesale, you’re selling the same items from the same brand as several other sellers. This means you’ll be competing for customers and the Buy Box. With Amazon private label, you’re selling under your unique brand, which gives you a significant competitor advantage. You also get complete ownership of the Buy Box if you have trademarked your product.
Getting Started With Amazon FBA Private Label Step-by-Step Process
Let’s walk through starting an Amazon FBA private label business.
Step 1: Product Research
A great product is the foundation of a successful FBA private label Amazon business, so you need to spend time doing product research. You must make data-driven decisions when choosing a product, so using product research tools like JungleScout and Helium 10 is crucial.
Here are the key factors you should consider during Amazon private label product research:
- Demand: The higher the demand, the better. Aim for products with at least 300 sales per month on similar listings
- Profitability: Profitability is an important factor to consider, and the ideal private label Amazon product should be priced between $15 and $50. Remember to factor in your overhead costs
- Competition: Ideally, the product you choose for your private label FBA business has low competition, shortlist products with high volume and few positive reviews
Once you have a shortlist of products based on the factors I mentioned, you now have to narrow down that list based on the following:
- Improvement potential: Find products with high sales volume and low star ratings. Then, fix the customer complaints and bring an improved Amazon private label product into the market
- Legal limitations: Ensure the product meets Amazon private label requirements. Consider Amazon restrictions, ensure product safety to customers, and determine whether it’s trademarked
- Ease of sourcing, importing, and selling: Choose smaller, lighter products that are easier to make, source, and ship
Step 2: Sourcing Your Private Label Amazon Product
Once you have a suitable Amazon private label product, the next piece of the puzzle is finding a reliable supplier. You can start your supplier search on B2B supplier marketplaces like Alibaba, Global Sources, 1688, and Mfg.com. You can also find suppliers using tools like Helium 10 to search for your competitors’ suppliers.
So, what quality should you look for in a good supplier?
- Must have a good product: Ensure they create products suitable for your target region
- Experience: Go with a manufacturer that has been in the business for a while
- Communication: Track response time and responsiveness to questions for each supplier
- Price: Find a supplier that gives a fair price
- Short shipment time: You want to go with a supplier that ships products fast without any delays
It’s important to have more than one supplier you’re willing to work with to push harder in price negotiations. It also gives you a fallback plan if your primary supplier doesn’t come through.
Step 3: Branding Your Amazon Private Label Product
When creating a Private label Amazon brand, you want to choose a generic and simple brand name to sell more products under it. Only select a product-specific brand name if you intend to use it only for that product/niche market
Once you have your Amazon private label brand name, start designing your packaging and logo. You can hire a freelancer on marketplaces like Upwork or Fiverr to design your logo and packaging for you.
Next, determine the packaging style based on the product’s nature and customer expectations. For example, if you sell chocolate, customers expect a specific type of packaging.
Figure out your product’s Amazon and legal packaging requirements and determine your packaging’s nice-to-haves (product inserts, visually appealing packaging, product info, contact info, etc). Once you have everything in order, you can design and create your packaging.
When selling private label FBA products, it’s crucial to enroll in the Amazon Brand Registry to protect your brand and have greater listing control and additional functionality.
Step 4: Creating a Winning Amazon Private Label Listing
Your listing is how your customers will find and purchase your product. You need to optimize your listing with high-quality images to attract customers and relevant keywords to make your listing visible in searches. We explain listing optimization in great detail in this blog post, but here is a quick rundown of the 7-step process of optimizing your listings:
- Research the relevant keywords to include in your listing — use a keyword research tool like Helium 10.
- Draft listing title, incorporating your primary keyword, brand name, product name, and product quantity or size
- Draft listing keyword-optimized bullet points with main product features and benefits to customers
- Draft a listing description and include all the relevant keywords and information about your brand and product
- Purchase the necessary UPC barcode for your product
- Get high-quality product pictures for your listing and follow Amazon’s image requirements
- Create your listing in Seller Central
Step 5: Shipping to Amazon FBA
It’s always advisable to hire a freight forwarder to handle all the shipping logistics, especially if you’re shipping many products at a time. You need to find a freighter who’s good at communication, has experience handling goods like yours, and is familiar with Amazon’s requirements. Typically, the shipping process for your private label Amazon business will look like this:
- Get your Amazon private label goods from the factory to the port — There are two options:
- Free on Board (FOB), where the factory transports the goods to the port for you.
- Ex-works (EXW) is where a freight forwarder transports the goods to the port for you.
- Transport your goods from the port via air or sea. Sea shipping is cheaper but takes longer (3-4 weeks). Air shipping is more expensive but faster (5-10 days)
- Your goods will arrive at the domestic port of entry. Your freight forwarder can act as your customs broker. You’ll need some documents for this step. Custom clearance can take anywhere between a week and a few weeks.
- Prepping Amazon private label goods for FBA. Adding required labeling can be done by a third-party logistics company (3PL). Some freight forwarders offer 3PL services, so check with your freight forwarder.
- Set up a shipment on Amazon by entering all the shipping details on Seller Central.
Step 6: Launching Your Product
Amazon boosts your products in the first month, so ensure your listings are properly optimized before launching your product. However, the boost you get from Amazon won’t be enough for a successful launch. You must invest in Amazon PPC advertising to get the sales velocity that will impact your Amazon SEO ranking, and generate enough product reviews to keep your product selling.
Best Practices for Scaling Your Amazon FBA Private Label Business
Now that you’re familiar with setting up an Amazon FBA private label business let’s look at the best practices you should consider to stay profitable and grow your business.
Inventory Management
Effective inventory management is a crucial factor in the success of your Amazon private label business. To have a business on Amazon, you must have the inventory to sell. Luckily, My Real Profit offers real-time FBA analytics tracking, so you never miss a beat with your inventory management. Our FBA analytics dashboard also helps you spot trends and changes based on several metrics to ensure you always have optimal inventory levels. With our real-time FBA inventory analytics dashboard and a reliable supply and shipping system, you can be assured never to get caught in a stockout.
Expanding Your Product Line
Selling one product would be considered keeping all your eggs in one basket. Building a private label Amazon brand takes a lot of work and resources. You can’t afford to invest all that time and money on a single product. You must expand your product line so that if one product doesn’t perform well, you still have several others to carry your brand.
When expanding your product line, you must conduct product research afresh to find profitable private label FBA products that fit your brand. Leveraging customer feedback and using tools like Helium 10 and Jungle Scout can help you identify opportunities for new products. Once you have identified and validated suitable products, consider bundling them with your brand’s existing product to help increase sales velocity.
Building Customer Loyalty and Brand Reputation
One of the perks of an Amazon FBA private label business is the ability to build customer loyalty around your brand. Building customer loyalty and brand reputation starts with customer service. Respond promptly to customer queries, resolve issues fast, and go the extra mile to exceed customer expectations. Ensure to also request customers for reviews, and respond to both positive and negative reviews.
As you focus on customer satisfaction, implement effective branding strategies to grow your Amazon private label brand. Develop a strong brand identity, create consistent branding across all touchpoints, and invest in high-quality product packaging. Running loyalty programs and promotions will also draw more customers to you and help you build customer loyalty.
Automating Your Processes
As your Amazon FBA private label business grows, you’ll discover that you can’t wear all hats simultaneously, and automation will become necessary. You’re already selling via Amazon FBA, so shipping and order fulfillment is automated. However, other areas of your business take up time, such as Amazon PPC management, repricing, and analytics. There are third-party PPC management and repricer tools.
For analytics, My Real Profit is your go-to solution with a one-pager analytics dashboard that helps you track all your key Amazon metrics — from PPC sales to product-level performance breakdowns. We help you track all your metrics with a heatmap that instantly points out where your trend is going. You don’t have to go from page to page on Amazon to dig up your performance data. We bring it to you in a simple, easy-to-use dashboard.
Challenges and Solutions for Amazon FBA Private Label Sellers in 2025
The Amazon FBA private label business model has its fair share of challenges. Let’s look at them and the solutions.
Overcoming competition
Even though selling private label Amazon reduces competition, it doesn’t eliminate competition completely. You still need to overcome competition from other brands selling similar products.
Differentiating your brand with a unique brand story and value proposition helps you stand out. Optimize your listings and invest in PPC advertising to rank higher than the competition.
Navigating Amazon’s Evolving Policies
Amazon’s policies change occasionally, so it’s crucial to stay updated so you can remain compliant. Join Amazon forums and regularly consult with Amazon Seller Support to stay informed on policy changes.
Managing cash flow and scaling smartly
You need cash flow to keep your Amazon private label business afloat. You must develop a comprehensive financial plan that outlines your revenue projections, expenses, and cash flow forecasts.
Track your key financial metrics, such as gross profit margin, net profit margin, and return on investment (ROI). You’ll also need to track your costs and fees, such as cost of goods, refunds, marketing expenditure, and Amazon fees, to get a clear image of your finances. Then, scale at a sustainable pace to avoid overstretching your resources.
Conclusion
Although Amazon’s FBA private label requires a bigger investment, it’s one of the best business models for long-term profitability. It’s a transformative business strategy for sellers who want to build distinctive brands to generate long-term profits in 2025 and beyond. This guide gives you the blueprint to set up an Amazon private label business. As you grow your private label business, My Real Profit analytics tools will help you keep a finger on your business’ pulse and never miss a beat.
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