Amazon has become the world’s biggest online retailer, now selling goods worth billions of dollars each year. But behind that success are third-party sellers, who account for half of the online retailer’s sales and earned Amazon billions of dollars in profit.
And increasingly, many of these sellers are selling branded products — what’s known as private label — under their own names. Some have even become millionaires by developing their own brands within Amazon’s marketplace. Check out thelist of top selling private label products on Amazon FBA!
Private label is nothing new. Retailers have used it to sell everything from batteries to milk for decades. But Amazon is giving these sellers a way to reach customers anywhere in the world and make money enforcing their brand identity at every step along the way.
That means not only manufacturing products with a seller’s logo or designs on them, but also handling logistics, packaging, customer service and returns, which can be particularly important in competitive markets such as baby clothes or electronics accessories like phone cases or chargers.
Private label products are very popular in the following categories:
Office supplies are probably the first thing that comes to mind when you think of private label products. In fact, they are the most popular and successful category of PLPs (private label products). The most popular private label products in this category include binders, pens, pencils and markers, paper, furniture, envelopes and mailers, computer supplies, and calendars and planners among others.
Health and Beauty
Health and beauty items are another category where PLPs have done well in recent years. They have gained popularity because people can buy them at low prices from retailers and still get quality products from some trusted brand names like Wal-Mart, Target etc. Some of the top selling label products from this category include pain relievers and fever reducers like aspirin, acetaminophen, and ibuprofen, and vitamins and minerals. Liquid gels, for example, generally has very high sales volume.
The electronics category is another popular area for private label brands. Private label TVs are among the most popular items, as are private label headphones and accessories. Generally, these items have a low price point and a high margin, making them attractive to both private label manufacturers and retailers.
Private label batteries are also popular, with some stores selling more than $3 billion worth of batteries annually.
Toys often make good private label products because they can be manufactured relatively cheaply overseas and then sold with a significant markup. Many retailers will start with lower-priced toys to gauge consumer reaction before investing in higher-margin products like video games or board games.
Women are shopping for clothes more than ever, and private labels are obviously taking advantage of this trend. The women’s clothing segment is the biggest in private label sales.
The baby product segment has seen strong growth and captured a huge portion of the market share over the last ten years. Products like diapers, wipes, pouches etc. are all available as private label items now, and they’re selling like hot cakes.
It is not surprising that cleaning products and detergents made it to this list as well. Not only do these items sell well in terms of volume, but they also have a high profit margin which places them among the top sellers for many supermarkets around the globe. Hence, it comes as no surprise that a significant percentage of all cleaning products sold on Amazon are private label brands.