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Amazon Private Label, WholeSale

For starting on Amazon there are two types of accounts or working strategy. Taking decision to choose one strategy is the basic question that comes into mind before starting Amazon business. Here we will discuss in detail about the differences, benefits, opportunities and risk factors, investments, responsibilities, pricing and other features and at the end we will conclude it for you to choose the best one for your business.

Private Label

Private label means that you are registering your own brand on Amazon. You are responsible for expanding it more and product sold under this brand. You can take a product from wholesale dealers and sell them under your own brand after printing your label on it.

Wholesale

In the wholesale model you can buy other brand products in bulk and sell them one by one to customers. The brand is already known to customers and they come to your store to buy the product of this brand.

Key difference between Private Label and Wholesale

The key difference between private label an wholesale are:

  1. Private labels has its own brand and wholesaler are selling other brand’s product
  2. Private labels can claim copyrights and have trademark limited on its brand
  3. No one can sell this brand product on amazon by pressing “have one to sell” button

  4. Wholesalers have not as much profit margin as private labels  because there are many other sellers selling the same product.

Here we are going to do a deep comparison between these accounts

FeaturePrivate LabelWholesale
Need new ASIN, product detail and images for listingYesNo
Start with low QuantityNoYes
Copyright and trademark Limited YesNo
Spend more money on Promotions and rankingYesNo
Price comparison with other dealersNoYes
Competition on ListingNoYes
Profit marginLucrativeSmall
Expand brand with more productsYesNo
Significant amount required to startYesNo
Calculate demand forecasting Mostly Guess workReal estates
A+ content for listingYesNo
Buy BoxAlways Got itInvolve other dealers to win buybox
Risk factorGreat risk factorSmall risk factor

Conclusion

After a detailed comparison between Amazon “Private label” and wholesaler we conclude that:

Wholesale is best when

  1. You have small investment
  2. Don’t want to take risk
  3. You don’t care about copyright issues
  4. Don’t know from which product you need to start

Private Label is best when

  1. You have a large amount to invest
  2. You are caring about your brand
  3. Going to start business for long time
  4. You have a good product or products to start