Amazon Private Label
Your brand, Amazon's marketplace, global reach
Amazon private label businesses create their own branded products manufactured by third-party suppliers and sell them exclusively on Amazon. Unlike arbitrage or wholesale, you own the brand and listing, giving you more control over pricing, marketing, and long-term value. Products are sourced primarily from overseas manufacturers.
Avg Revenue
$250K
Profit Margin
27%
Acquisition Multiple
2x - 4x
Startup Cost
$10K - $50K
Difficulty
3/5
How It Works
Research product opportunities on Amazon, source a manufacturer (usually via Alibaba), create your branding and packaging, ship inventory to Amazon FBA, and launch with optimized listings and PPC advertising. Revenue grows by expanding to multiple products and building brand recognition within your niche.
Revenue Range
Pros
- +Own the brand and Amazon listing — full control
- +Higher margins than wholesale or arbitrage models
- +Brand equity creates a defensible, sellable asset
- +Can expand product line within the same brand
Cons
- -Product development and sourcing has a long lead time
- -Upfront inventory investment before any sales
- -Counterfeit sellers and listing hijacking are ongoing threats
Best For
Brand builders who want to create products and leverage Amazon's audience
Operating Costs
Product COGS (25-35%), Amazon fees (30-35%), PPC advertising (10-20% of revenue), shipping to Amazon, and product photography/branding.
Where to Buy
- Empire Flippers →
Buy established Amazon private label brands
- Quiet Light →
Premium brokerage for Amazon brand acquisitions
- Flippa →
Browse Amazon private label brands of all sizes
Quick Facts
- Category
- digital
- Difficulty
- 3/5
- Acquisition Price
- $500K - $1.0M