How to Sell on Amazon Private Label (Lessons from 500k in Sales) – A Guest Post from Brendan Cheng

Today’s post will be a guest post from Brendan Cheng sharing some of his journey selling with the Amazon Private Label process.  He has had some great results selling private label products on Amazon so far and has a lot of great information for those of you looking to learn more.

Brendan is always very helpful and positive when posting in FBA related facebook groups.  I asked him if he would be willing to put together a guest post about selling private label on Amazon after seeing a few of his posts on Facebook.  I am grateful that Brendan was willing to put together this information.  He shares a bit about his journey, and provides some tips for success.

Take it away Brendan:

Just over one year ago, I quit my job because I was sick of the 9 to 5 grind. I became unemployed because I was unhappy with my job and I wanted something more in life. For a few months, I wandered aimlessly trying to figure out what I actually want to do. I started to look online for business opportunities, and I’m glad I did. Maybe it was fate, maybe it was luck, but I found something called Amazon Private Label. 

Amazon Private Label Changed my Life

Fast forward 8 months, I sold over 1/2 million dollars of physical products online, with a profit margin of 33%, and on par to generate 7 figures sales by the end of 2016. The journey wasn’t easy by any means but well worth it. Like most people though, I wasn’t no business guru. But I worked hard, learned from mistakes, and was able to achieve these amazing results.  Here’s a screenshot of my sales since the beginning:

13219766_1706994129560037_1677883362_n

What is Amazon’s Private Label?

It’s a simple concept. You:

  1. Find a generic product and get it directly from the manufacturer.
  2. Slap your brand name on the private label product.
  3. Sell it on Amazon.

The more products you sell, the more money you will make. You can do all this from the comfort of your home, wherever you live in the world.

How to Sell on Amazon Private Label – Step by Step

  1. I started learning the Amazon Private Label process by gathering bits of information scattered throughout the web. I took the long way, which definitely can be shortened if you had a coach or followed a course.
  2. Without a product in mind, I took a leap of faith and just decided to go to one of the largest trade fairs in the world – Canton Fair in Guangzhou, China.
  3. While walking through the enormous market, I stumbled upon my golden product.
  4. What I liked about this product? The product is in a fairly competitive niche with high demand. The product stood out from the rest of the competition. A preliminary analysis on the market told me that customers were in fact looking for features that my product had to offer.
  5. After the first product took off, I continued to introduce more products that are different or better than my competitors.
  6. I became the leader in this niche, and was able to take control over the whole market.
  7. I launched my own e-commerce store to build a customer base, establish the brand’s presence, and be less reliant on Amazon.
  8. With the success of my first line of products, I am currently working on getting into a completely different market.

My Advice for Private Labeling on Amazon

  1. Work harder than everyone else around you, but work smart. A little bit of luck always helps too.
  2. Persistence is the key to success – don’t give up and keep at it. Good opportunities may only come once in a while, but when you do see one, jump on it and never let go.
  3. Be optimistic! Suspensions, lawsuits, etc are hurdles that you may have to face in your business, but I do not let fear hinder my path to success. I’m optimistic no matter what difficult tasks or obstacles are presented in front of me.
  4. Learn something NEW every single day. Absorb as much information as you can. Knowledge is everything.
  5. Always be humble, whether you are dealing with your supplier or others you meet online.
  6. Be good to others (customers or colleagues), and you will be be rewarded – don’t always just think about yourself. The more you give, the more you will receive back. I believe in good karma.

What’s next

  1. Launch new products in several new niches. The products = more sales.
  2. I want to build a REAL brand outside of Amazon. Sell to chain stores such as Walmart and Target.
  3. Master marketing outside of Amazon. Amazon sponsored ads is ridiculously simple compared to Google ads or Facebook ads. Like everything else, it’s all about testing and more testing.
  4. Automate the process – work less but smarter
  5. Reach my goal of $300,000/month by end of this year

13220141_1706994379560012_715568919_nThank you for taking the time to read my story. You can learn more about selling private label products on Amazon by visiting my website at www.amzninja.com, you can directly message me at brendan@amzninja.com, or leave a comment below.

4 thoughts on “How to Sell on Amazon Private Label (Lessons from 500k in Sales) – A Guest Post from Brendan Cheng”

  1. I think you should open a case study about How to choose a right product to sell on Amazon and How to lauching new product to get high ranking on Amazon Search Results.

    I am a beginner in Amazon FBA so I am looking for the great guide about the product and launching new product.

    Thanks

    1. Hi Mark,

      Thanks for the comment and the suggestion. A case study like this is definitely something I am considering for the future.

      Best Regards,
      Ryan

  2. Thanks for sharing. I read very similar stories, almost too good to be true, but you never know until you try. I’ve been transitioning on Amazon, selling for the last 7 years FBM, books mainly, beholden to one chain of used bookstores who then decided to sell on-line. Talk about putting all your eggs in one basket! I resisted FBA, you know, all the excuses, fees, etc. Now doing FBA for the last month and seeing great results doing OA, almost exclusively via Keepa. My past experience doing FBM has really helped me decipher the Keepa charts. Thinking now about OAXray and private label next. Thank you for the inspiration. It’s amazing how so many people in FBA are willing to share, are so candid. Refreshing. There really is a wealth of info out there and like Brendan says, learn something new every day. Education is power. At 50 I’m just getting started. This dog will always be learning new tricks! Thanks Brendan and Ryan!

  3. Do you speak Chinese? I think it would be an immense help when going to the Canton fair to be able to speak natively to the vendors.

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