Hi everyone,
I’ve been selling only through FBA for about 3 years, and now I’m thinking about getting into private label. Can anyone share what the typical costs are — things like advertising, sourcing from China, brand registration, etc.? Just trying to get an idea of what to expect.
Thanks a lot and have a great day!
You need 15k to 20k, this is how I started.
For private label, you need around $15k to $20k for a single product launch. About $800 is required for trademark registration with Brand Registry on Amazon. Sourcing costs depend on the item, but you can estimate $1,000 to $2,000 for the first inventory. You’ll also need additional funds for advertising, since PPC is expensive. This overall budget should be considered for the first year and covers a single product launch. If you’re interested, I can provide a proper plan of action and a detailed budget breakdown for an Amazon private label launch.
For private label the main costs break down into three areas.
First is product sourcing and manufacturing which usually starts with a 30 percent deposit and then the balance before shipping. Second is brand work which includes trademark and brand registry. In the US it’s around $350 for the trademark filing plus a few months of waiting.
Third is advertising. For launches most sellers set aside at least $3–5k just for PPC in the first 60 days.
One thing many overlook is the buffer for inventory reorders because running out of stock early kills momentum.
Good Luck
Depends on the market. Trademark registration in the US will cost about $800.
For the branding and stock, this depends on the product type, packaging and MOQ by your supplier, usually Alibaba.