I’m trying to keep an open mind, but also need a tiny bit more convincing that this business works. In finding products that sell for 4 times on Amazon what it costs per unit after shipping from China. For example: product costs $4.50 and is a $20 item in Amazon. Estimated FBA fees for the product are $9. I have to pay for shipping to the fulfillment center. Pay for a UPC code. Pay for PPC advertising for private label. Technically also could be paying the brand registration/ trademark fees. Professional seller fees. Product inspection fees.
MOQs are in the thousands for private label printing, so definitely nervous about the inventory.
Could use some encouragement, but also want realistic expectations.
I agree with @AmazonUKForumRefugee. While a 4x markup sounds great on paper, once you subtract FBA fees, shipping, advertising, and one-time brand setup costs like trademarks or GS1 UPCs, your real margin might shrink to 20–30% or even less at launch. That said, private label can work very well when you find a niche product with consistent demand, low competition, room for differentiation, and strong branding potential. The goal is to think long-term: you might not make much on the first order, but once you build ranking, reviews, and brand recognition, the reorder margins improve and your ad spend becomes more efficient. If you’re nervous about MOQs, consider starting with generic packaging and adding branding later, or ask your supplier if they’ll allow a smaller trial run.
As I said, realistically, private label isn’t a quick win, but for those who play the long game with smart sourcing and a brand-building mindset, it’s still one of the most scalable models in e-commerce.
I totally get it. The thing is that you don’t know how fast your item will be selling, or if it works or not. Could you start with 100pcs item only? Even if the costs end up higher, at least you will know and minimise your risk.
You need to create a brand, and have huge social media accounts mentioning your brand, run meta ads, Amazon PPC is not enough, PPC costs will kill your profit.
Try to sell higher-priced items and niche down further, not just dog food, but dog food for a specific kind of dog.
You can start with a small investment of 100–200 units for about three months. Check your numbers and see what changes need to be made to stay profitable or become profitable.
A private label product should be something that you designed and manufactured. If there is an existing product on Amazon that sells for $20, then it sounds like reselling generics to me.
“Private labeling refers to the practice of a retailer or business contracting a manufacturer to produce a product that is then sold under the retailer’s own brand name. Unlike white-label products, which are generic and sold to multiple retailers, private label products are unique to the brand that sells them.”
Since you don’t have a brand yet and don’t have a product, please note that if you just observed and identified something generic on Amazon, most likely by the time you manage to have it manufactured, the product will sell for $6.99 on Amazon, by 200 other sellers.
First of all, you need to design something yourself, then come up with a brand name, brand packaging, work on your brand presence and the whole process of registering a trademark and having it approved takes minimum a year. Without having your trademark approved, you won’t have access to any Brand Registry benefits.
Regarding the tariffs, I wouldn’t worry about this. The tariff rates are changing every day, once the orange man is out, they will be removed. Those who source from China will all find a way how to cope with the current situation.