What New Sellers Don’t Know About Private Label Branding
In contrast to retail arbitrage or selling on behalf of major companies, private label branding has exploded on Amazon, making up a large majority of the sales on the massive e-commerce site. However, just like opening your own brick-and-mortar business, there are still nuances to be aware of for newcomers.
In this episode of Amazon Seller Secrets Revealed, our Amazon experts reveal things that new sellers may not know about private label branding and what to do about these critical steps.
Today’s question that focuses on private label branding is:
“What is one thing related to private label branding that most new sellers aren’t aware of?”
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Here is a more in-depth look at the expert answers:
Things new sellers should know about private label branding include…
Lesley Hensel, Partner at Riverbend Consulting
“So a huge problem with private label is that people think they develop a brand and they bring a product to market and then they just start making money. They forget a really important step which is testing. No matter what your product is, it needs to be tested before it comes to market. Between the ‘brand’ part and the ‘selling it’ part, and even simple products. I’ve got a guy who sells lemon squeezers. You think, ‘That doesn’t need testing.’ Yes, it does. Because he had lousy enamel on it and the paint was chipping off into people’s food. There is an opportunity for every product to cause you a liability issue, so no matter what it is, even though Amazon doesn’t make you test it, test it anyway.
Tim Jordan, President & Co-Founder of Hickory Flats
“People associate branding with a logo and I think most people aren’t aware that the logo doesn’t really mean anything. Branding is about focusing on a certain demographic, a certain niche, and really looking forward to the future. Some of my success on branding has been focusing on external markets. For instance, I know I’ve mentioned the subscription boxes. We’re now selling one of our own brands in subscription boxes and we’re getting more traffic than subscription box websites than we were on Amazon. So we’re getting a lot of really, really good brand exposure that way.”
Rolf Claessen, Partner at Freischem & Partner
“Most new sellers are not aware that if they are sourcing products from, let’s say Alibaba or Taobao, Aliexpress, or any other Chinese marketplace, they are actually liable for anything that they are selling in their country. For example, in the US, they are considered sellers and responsible for whatever they sell. If they come into a fight with a patent holder, a trademark holder, or design patent holder, then they will be liable. They have to pay the damages. Of course, they can also try to also then file a complaint against the producer in China, but they will have to file the complaint in China with the Chinese court. That will be very difficult and very costly.”
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Have more questions or suggestions on what new sellers should be aware of concerning private label branding? Let us know in the comments!