I have a distributor who can bring me products from China that sell very well on Amazon. In fact, the products on Amazon are his brand.
He came with an offer to make me a private label on one of his products. It’s the same product but with a different name. The price is very good. I just need to make a new listing.
His offer is for 20,000 thousand pieces. I could make about 4 different ones. The cost for all 20,000 thousand pieces would be around 11,000 euros.
What do you think, those who make private labels, or those who have information?
Your distributor’s offer of 20,000 units for €11,000 (~€0.55/unit) seems competitive, but verify if this includes:
Customization costs (e.g., labels, packaging redesign). Simple logo changes may add only “a few extra cents per product,” while functional modifications (e.g., molds) can cost 30k-200k.
Factor in freight costs, which can escalate due to distance or carbon taxes.
You should find a supplier for that product and take a low MOQ. Do some value edits to the product, run PPC, and see if it performs well. If it does, you should proceed with brand registry and trademark.
Keep in mind that you’re paying for more than just stock, launch costs for photos, listing, and PPC can easily hit half your inventory spend and remember you’ll have to give Amazon fees and branding expenses too… €11,000 price is good but plan your marketing budget carefully to get sales moving.
Your distributor’s offer sounds promising in terms of cost per unit (around €0.55 each), but launching a private label on Amazon involves more than just sourcing inventory. In addition to the €11,000 for the 20,000 units, you should also budget for the following:
Amazon FBA Fees: Roughly €3–€5 per unit depending on size, weight, and category if using FBA. Multiply this by 20,000.
Shipping & Customs: Sea freight from China can cost €2,000–€4,000+ depending on volume, plus import duties and VAT.
Branding & Packaging: Custom packaging, inserts, and logo design could cost €500–€2,000 depending on how polished you want it.
Listing Creation: Photos (professional lifestyle and white background) can cost €300–€800 per product. Copywriting and keyword optimization: €100–€300.
Advertising (PPC): To launch and compete, initial ad spend can range from €1,000–€3,000 per product in the first few months.
Amazon Brand Registry: Requires a registered trademark (€850–€1,500 if done via a lawyer or slightly less via DIY).
Storage Costs: If you send too much stock at once, FBA storage fees and long-term storage charges can add up quickly.
In total, launching 4 variations with 5,000 units each might realistically cost you between €20,000–€30,000 depending on your marketing aggressiveness and prep/logistics decisions. You’ll need to assess demand, check competition (with tools like Helium 10 or Jungle Scout), and make sure there’s room to differentiate your brand.
It sounds like a solid opportunity, but launching 20,000 units (€11,000) is risky without market proof. Even with a proven product, private label success depends heavily on PPC spend, listing optimization, reviews, and differentiation. For 4 variations, budget at least €3,000-€5,000 more for launch (ads, images, giveaways, etc.). If you’re new, start smaller to test the market.