Amazon FBA Private Label vs. Wholesale vs. Resale vs. Creating Your Own Product

Amazon FBA Private Label vs. Wholesale vs. Resale vs. Creating Your Own Product

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Selling on Amazon is a bit of a spectrum. You have the resale online arbitrage on the lower part, then wholesale, private labeling and finally, in my opinion, creating your own product. In this video, we’re going to compare all the ways you can sell on Amazon and go over the pros and cons of each of them and figure out which one is right for you.

Resale Online Arbitrage – This is when you find something that you can buy for cheap and resell it on Amazon.

Pros
1. Quick Easy Money
2. Cost very little to start – The only startup cost is buying the actual product.
Con
1. Not scalable at all – It takes you going out and buying stuff and reselling it on Amazon. You need to constantly be hunting for new sales or new cheap opportunities that are you can then go and resell.

Whosale – Buying a lot of products from big companies and selling it on Amazon so you make a profit.

Pros
1. Easy to get started – All you have to do is find someone who is willing to sell their products at a wholesale price and then start selling on Amazon.
2. Semi Predictable Income – You know how much you should buy and how much you are going to sell compare with Online Arbitrage.
Cons
1. Costs more to start – There usually gonna have higher minimums to buy products on a wholesale price.
2. Suppliers can cut you off
3. Hard to sell off Amazon – It’s difficult to sell these products on your own website.

Private Labeling- Find a product that already exists, find a manufacturer then put your own label on it.

Pros
1. Good Margins – You’ll make the most money back as to compare with the other first two methods.
2. Suppliers can’t just cut you off – You can just find a different manufacturer when your original supplier cut you off.
3. Predictable Income
Cons
1. Nothing special about you – If it’s easy for you to get started for you, then that means it’s also easy for other people to get started as well.
2. Hard to sell off Amazon – It’s difficult to sell off Amazon unless you’re doing a great job of creating a brand.
3. Cost more to start – The manufacturer usually will require a decent amount of money for your first production run.

Creating Your Own Product- Creating something unique that doesn’t exist in the world yet.

Pros
1. Best margins – You can charge more because it’s a unique product
2. Create a Brand – You get brand loyalty and do fun things. You can also advertise on social media such as on Instagram.
3. Easy to Sell Off Amazon – You can create your own website so you are not totally reliant on Amazon.
4. Most Predictable Income – You will have a lot more repeat purchasers and brand equity
5. CrowdFund – You can use Kickstarter or IndieGoGo to raise a bunch of money and use that money for your first production run.
Cons
1. Takes Creativity – A lot of people struggle with coming up of idea for creating your own unique product. I do have a lot of different methods on how to come up with an idea for a product but the first and maybe most important one is, think about what do you wish existed in the world or what would you buy but it just doesn’t exist yet? Then go create that!

So which one of these should you do and when should you do them?
I might be a little bias as to what I think is the best method to make money on Amazon is, but that’s just because this is what works for me. That being said, each of these different ways of selling on Amazon has their place. If you are tight on cash and you need quick money, then Retail Arbitrage might make more sense. If you want to just dip your toe into the water then wholesaling on Amazon could work. For me personally, if you don’t have any idea for a product but you want to try your hand at all the rest of the pieces and sell on Amazon, then Private Labeling makes sense. But if you want to create a real brand, a real business, then creating a passion product by far is the best way in my opinion to make money both on Amazon and off Amazon.

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10 thoughts on “Amazon FBA Private Label vs. Wholesale vs. Resale vs. Creating Your Own Product”

  1. What if I don't want to do wholesale neither private label? what if I want to sell for example existed cups, manufactured in China, and sell them on Amazon! Can't people sue your life if you do private label with DBA? I can't afford LLC right now! I'm also not interested in AR.

  2. I would assume an own recipe branded nut butter is simply private labeling done well, you still need to product research, etc and you've chosen something that isn't a fad or complicated and it doesn't seem to solve a burning problem, the vino cards might be the more creative product and slightly further away from private labeling than this. Overall a great video but I think there is a little confirmation bias on your own product there which isn't really surprising as we all feel proud of what we can accomplish and rightly so. I'd be a little careful if your going to self-style this kind of product as pure product creation as I think it's actually closer to private labeling it just is at the upper end of the scale. Thank you for the video it has really helped me in choosing my business model going forward and I will also be looking into private labeling with a lean towards the more creative end over time. I gave you a like as well BTW 😉

  3. If a person creates their own product, and it's manufactured in China, can't the manufacturer steal it? Trademarks in China take two years.

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  5. There’s a product that exists in Asia but isn’t known in the West and isn’t even found anywhere online. I usually buy a couple of them whenever I go there. I want to be able to sell them through amazon. What’s the best method for me?

  6. Hello! I'm simply curious if it's possible to sell a product that doesn't exist on Amazon and get it from a wholesale supplier. As an example, try creating a new listing. what could be the issues?

    Thanks!

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