There is an entire segment of sellers online who produce and sell private label products. At its most basic definition, these are products that are manufactured by another company, then labeled with the brand of the selling company. This is often (but not always) an easier way to venture into online sales than reselling products or manufacturing and developing a new product.
Regardless of whether you are selling a product that you patented and manufactured yourself, or simply private labeling, an essential step in product development is to understand why you are selling your product. This includes (but is not limited to) understanding the benefits and differentiation between your product and the competition. This step is important to complete before determining pricing.
When selling on Amazon in particular, there are often several competitors selling the same private label product. This can become difficult to differentiate yourself, especially when using the same keywords and search terms, and the same layout of product pages. How do you make your product stand out amongst the others? Consider why you are selling the product. This answer will play into your product branding.
When the actual tangible product may be the same, the brand is a strong differentiating factor. The branding produces added value, which may include better customer service, different warranties or guarantees, as well as the placement of being budget friendly, mid-range, or high-end. You may also add value through better instruction manuals, free e-books, helpful videos, or post-purchase communication through email or social media.
A great way to help think about the why part of selling your product, as well as the branding, is to fully examine competitors. This includes ordering the products of competitors, as well as reading customer reviews of these products. These reviews may have an added bonus of providing you with ideas for product and brand development – see what customers most like and complain about the competition, and consider integrating that into your product and brand.
Private label products offer more limited product development than manufacturing your own product, but taking time to complete the steps of product and brand research and development is essential for success on Amazon and other online marketplaces.