- So is the 29th of April, 2022,
and your boy is starting Amazon FBA from scratch.
Well, there are three ways to sell on Amazon,
Amazon retail/online arbitrage,
Amazon wholesale, and Amazon private label.
Until now I was doing arbitrage Amazon
which is where I simply go to local supermarkets
or local shops and buy their products
to resell on Amazon,
and wholesale Amazon which is where I buy products bulk
from brands or wholesalers at a lower price
and resell them on Amazon.
However, after one year of doing this
I feel like it's finally time
to step into the big boy's league which is private label.
This is where you create your own product, your own brand,
and sell it on Amazon FBA.
As always I'll be documenting this entire journey
on this YouTube channel,
so make sure you hit that subscribe button
and turn the be on to never miss a video
because I post every single week.
This is the first ever video
into this private label journey,
so if you're a complete newbie just like me
in the private label world
then it's the perfect time to start along with me
as I'll be teaching you everything I learn on this channel.
In this video my goal is to go through as many courses,
mentors, ebooks, and Fiverr to try and do as much research
as I can for private label,
and then I'm gonna summarize it all for you,
so you understand
what private label is and how does it work.
Before I do that, you must be wondering, Jats,
why do you need to start private label?
Isn't Amazon wholesale profitable or good enough?
See I'm starting private label
because it's a way of selling on Amazon
where you can make high profit margins
and have less competition.
Plus it's part of this Amazon FBA thing.
So, I need to master it to be known as the FBA king.
Now, to explain this private label and wholesale thing
lemme jump on my laptop to show you guys
the difference using listings
like a private label listing and a wholesale listing.
So on the screen what you're seeing
is a Sudocrem cream, well, it's a cream
which basically is a wholesale item.
Now, how do you identify the difference between wholesale
and private label?
Is simply by checking how many sellers
are selling this exact same product.
Now, on Amazon you can see
how many people are selling this exact same product
by simply going to check this option here.
So as you can see there are new 27 options, right?
Which mean there are 27 new sellers
selling this exact same product.
That way I will know
that this product is a wholesale product.
And the second way to make sure
is that you should be able to find this exact same product
with the exact same logo, brand name,
everything on a wholesaler, like for example,
Best Way wholesale has this exact same product.
Now, yes, this is 60 grams and this is 400 grams,
but you get what I'm trying to say.
Now this is an example of a private label listing.
As you can see this is a exact same looking listing,
but the amount of sellers
selling this exact same product is below two.
And well, I mean, below two is only one person,
but if there are two people and it has the same name,
so sold by if it's the same name and there are two people
it also means it private label product.
So, there's only one person selling the exact same product
which is why it's a private label product.
And you cannot, I'm sure,
or you 100% can't find this exact same product
with the exact same brand name and the brand logo.
You can probably find
the exact same type of the design
of the product from Alibaba or somewhere else,
but you'll need this exact same logo.
And obviously the rights
and the authorization from this exact seller
or this brand to sell this product,
but this is basically the difference
between private label and wholesale.
Now, the reason why wholesale
is better than private label
is because you can use existing listings
to just sell the product.
So you're basically looking for products
which are already selling, put it in your inventory,
and start selling that product.
And you don't need to spend anything on PPC,
which is basically marketing the product on Amazon.
You don't need to take any photos, nothing,
simply order it from a wholesaler,
send that product to Amazon and Amazon start selling it,
whereas in private label
you literally need to go from creating the brand,
to creating the product, to even creating the listing,
to taking the images, to doing your SEO,
making sure the description's good, spending money on ads,
all of this thing which means you will need a lot more money
to start private label.
You need around, I would say, well, from what I've heard
around 5,000 pounds minimum to start Amazon private label
but you can start wholesale with around 1,500 pounds.
Now in wholesale I'm experience,
so I can definitely tell you you can start Amazon wholesale
with around 1,500 pounds, but for private label
this is a rough estimation of what people have told me,
but in the future, I'll confirm if 5,000 pound
is enough to get started with private label.
However, the great thing about private label
is that you have no competition in your own listing
which means no one is allowed
to sell that product except you.
So you'll be making all the sales,
and in the future
if you wish to sell off this brand to someone
you can probably make millions.
Now that being said, as an experienced Amazon seller,
I would always recommend you start with wholesale
and arbitrage Amazon just to build that initial capital,
and you also get the understanding,
the experience of how to sell on Amazon.
And then once you have mastered it
then you can move on to private label
because you will have more money to play around with,
and you are more likely to make less mistakes
as you have experience of how to sell on Amazon.
It's basically playing a game
level one is arbitrage Amazon,
level two is wholesale Amazon,
and level three is private label.
In order for you to beat the boss at level three,
the private label boss,
you need to go through level one,
and level two to get the understanding
and the experience you need.
All right, so now I'm gonna go
into the jungle of information
also known as Google to start hunting
to become the FBA king.
Now it might take me a whole day,
so I'll see you guys soon.
- [Man] A few moments later.
- All right guys, so I'm back,
and I already have eye bags, that's how long the day was.
And as you can see how piles of notes here
which I'm gonna summarize it all for you
in this video now, obviously.
So, yeah, let's just get started.
Sorry for the quick interruption,
but when it comes to private labeling,
you're creating your own brand.
So you should register a company for that.
Now you must be saying,
but, Jats, how should I register a company?
Don't worry because I've got something special for you.
You can use Osome to do this.
You can register a company with Osome for just one pound
and get two months worth of free accounting if you do so.
Two months worth of free accounting,
that's an absolute bargain.
Now the great thing about using Osome
to register your company is that
once you're starting to make money
in your private label journey,
then you can also use them as your accountant,
because Osome is a dedicated e-commerce accounting company
who can do all your taxes for you.
All you have to do is simply drag
and drop invoices to the online platform
and all your work is done.
And you can literally spend time, all your time,
doing your product research
and packing for your Amazon business.
You can register your company today
using the link in the description.
I'm assuming you know the basics of Amazon FBA.
If you don't go watch this video to understand everything
'cause right now we're about to share
the five key differences or the major differences
between Amazon private label
and Amazon wholesale and arbitrage wholesale.
So the first difference is product sourcing.
In wholesale FBA you're looking for products like these
which have high reviews and high sales.
So the reviews are high and the sales are high
which means this is a perfect type of product
you are going to be selling.
However, in private label you are looking for a product
which for example, lemme just grab one,
for example this resistance ban which has less reviews
but it has high demand which means it has more sales.
The main reason being is because in private label
you are really looking for products
where there is less competition
to compete with other sellers
who are also going to be selling
the exact same type of product.
Now in the future I'll be making in detail
private label product sourcing videos,
but for now I'm just gonna talk from what I've learned,
but in the future
it'll be more from my theoretical perspective,
no, practical perspective.
The second major difference is sourcing from China.
In I was in wholesale I used to work with brands
and wholesalers in the UK,
which means I did not have to deal with those high
or in insane shipping rates
or any car customs or legal laws and everything
when it comes to ordering from abroad.
Now to source your private label products,
you'll be looking at a website like Alibaba
to try and find new products.
Now, because Alibaba is based in China,
and all the suppliers are actually based in China,
you'll be paying insane shipping rates
like I'm about to show you actually,
and also you'll need to pay customs
when it comes to ordering the products to UK,
'cause there's all type of other legal charges
which you pay.
Now, the average shipping cost as you can see on the screen
from China is around five to $9 per kilo,
and that is through air obviously.
So, if I was to order 100 kg in terms of products
it will cost me $500 just for shipping.
Now this does not even include the customs
which are, I think, custom and VAT.
So VAT is another 20%
and custom it's calculated in different amounts,
but it will almost cost me
around 800 to 900 pounds in just shipping alone
for ordering 100 kg.
But that being said,
the reason why you would want to order from China
because your cost of manufacturing the products
would be so much cheaper compared to the UK
because the labor cost in the UK
is a lot higher compared to China.
So that was the second difference.
Now the third major difference is creating your listing.
As you are gonna be manufacturing the whole product,
and creating a brand new name and images and everything,
you can't find that exact same product on Amazon anywhere.
So you will need to create the listing yourself.
And now creating listing
is not something which you can do easily
because you'll need to use keywords,
good description, good images,
good SEO in order to optimize your listing.
Now, I'll talk about why you should optimize
and why it's important to create good listing,
which is linked to this main difference.
With the wholesale Amazon
I can simply go to this exact listing
take the ASIN of this product,
which is just a number Amazon uses
to identify every single product,
and you can find that number right here
as you can see, lemme just scroll down.
So this round right here, I can take this,
copy and paste it into my Amazon sales central account
and use this exact listing and start selling on it,
whereas with a private label listing I cannot do that
as I just explained, because there is no products
or brands with that specific name
which you'll be creating on Amazon at all,
so you will need to do from scratch everything.
Moving on to the fourth major difference
which is Amazon PPC.
When it comes to selling online
advertising is one of your biggest costs
as you will need to market your products
so you can reach to your customers,
however, in Amazon wholesale
the best part was that you don't need to do that at all
because Amazon has millions of customers
coming on Amazon buying products.
And when it comes to wholesale products
which we can sell there is no need to market,
'cause those products are already selling,
and you can just use that listing
and start selling that exact same product.
However, in private label that won't be the case
because let's take an example.
Let's say you wanna sell toys for dogs.
Now, if your product which has a keyword of toys for dogs
you type your here on Amazon, toys for dogs.
If you type this in, now, lemme scroll down.
This is the first page of products on Amazon.
If I scroll down, there are seven other pages,
and if I go on the third page,
see on this page there are products
which are still being sold,
but they're not even coming on the first page.
When you create your listing with the product,
it'll be on the last page,
which is why you need to market the product,
so you can get onto the first page,
and start getting sales using Amazon PPC,
which is basically Amazon's advertising platform
for Amazon FBA.
Moving on to the fifth and final major difference
which is brand registry and trademark.
So, because you are creating your own brand,
and you don't want anyone else to jump on that listing
or use that exact same name of the product
and start selling it,
you need to trademark your product,
or your name, sorry, not the product, the brand name,
or the brand logo or the brand-
- [Man] A few inches later.
- Or the type of design you are selling.
So to explain this, let's go on Amazon and lemme show you.
So, this is a product, private label product on Amazon.
Now, the name of the brand is KONKY.
And so I wanna make sure that this is trademark.
If it's not trademark
then legally you technically cancel this product,
but let's just go here.
I don't recommend,
but I'm just trying to give you an example.
So, as you can see this word
or the brand name has been trademarked in the UK,
and in the UK you can use the gov.uk website to try
and to see if that name or the brand name is trademark.
You can also apply for your own one,
which is what you do when it comes to private label
just so you can be safe.
The second reason why you need to apply for a trademark
to sell on Amazon with your own brand
is because when you go on Amazon
and try and create a listing
it will ask you for the brand name,
and you need to enroll your brand name
into the Amazon's trademark
or Amazon's registry or brand registry
which is basically where Amazon will ask you for the brand,
the trademark ID, and all the information
so that when you go to creating listing
your brand will pop up as soon as you write the name,
and it will also make sure that
no one can ever jump on your listing,
and Amazon can know is just ban them if they do that.
This video is full of information,
but the reason why I'm doing this
because I wanna document everything from the start.
And if you enjoy this video
and you wanna start Amazon FBA yourself
then you can go watch this video.
It's a whole, I think 55 minute video or course,
which you can watch to start arbitrage Amazon
which is your level one to start with.
However, if you enjoy this video
don't forget to hit that like button
and subscribe to help me out.
And I'll see you in the next video.
Take care. Have an amazing day, and peace.