How to create a private label brand in Amazon Canada?

Selling private label products on Amazon Canada can be a profitable opportunity for brands looking to establish a strong online presence. By customizing and branding generic products, you can stand out in a competitive marketplace.

To create a private label brand on Amazon Canada¹, source generic products from manufacturers, customize them with your logo and packaging, and list them on Amazon as your own branded products. This strategy allows for differentiation and higher profit margins.

Building a private label brand might sound complex, but with the right strategy, it’s achievable even for first-time sellers². Let’s dive into the steps.

How to do a private label on Amazon?

Creating a private label brand³ on Amazon involves a structured process that sets you apart from generic competitors.

To do private label on Amazon, choose a product niche, source products from manufacturers, customize the branding, and create a professional Amazon listing to sell under your unique brand name.

Color palette and fabric samples

Step-by-Step Guide to Private Label on Amazon

1. Product Research:

   • Use tools like Jungle Scout or Helium 10 to identify products with high demand and low competition.
   • Focus on lightweight, non-fragile, and easy-to-ship items.

2. Find a Manufacturer:

   • Partner with suppliers from platforms like Alibaba or specialized factories like JF Apparel for clothing.
   • Request samples to ensure quality and negotiate MOQs (Minimum Order Quantities).

3. Customize and Brand:

   • Add your logo, unique packaging, and product inserts to create a branded experience.
   • Work with designers for professional packaging and labeling.

4. Set Up Your Amazon Seller Account:

   • Create a Professional Seller Account on Amazon Canada.
   • Enroll in the Brand Registry to protect your brand name.

5. Optimize Your Product Listing:

   • Write compelling titles, bullet points, and descriptions.
   • Use high-quality images and keyword optimization to rank better in search results.

6. Launch and Market Your Product:

   • Use Amazon PPC ads and promotions to drive traffic.
   • Encourage customer reviews for social proof.

Private label selling on Amazon Canada requires attention to detail, but with the right execution, it can build a successful brand.

How much does it cost to start an Amazon private label?

Cost is often a major consideration when starting a private label business.

Starting an Amazon private label business typically costs between CAD $3,000 and $7,000, depending on product type, supplier costs, and marketing expenses.

Cost Breakdown for Amazon Private Label

1. Product Samples: CAD $200 - $500 for testing multiple samples.
2. Initial Inventory: CAD $1,500 - $3,000 for the first order (varies by MOQ and product type).
3. Branding and Packaging: CAD $300 - $1,000 for logo design, custom packaging, and labels.
4. Amazon Fees:
   • Professional Seller Account: CAD $29.99/month.
   • Referral Fees: Typically 8-15% per sale.
5. Product Listing and Launch:
   • High-quality images: CAD $300 - $600.
   • Amazon PPC advertising: CAD $500 - $1,000 for launch campaigns.

While costs can add up, starting with smaller MOQs and focusing on high-demand products can help you scale efficiently.

Can I sell branded products on Amazon Canada?

If you’re considering selling well-known branded products, you need to know the rules.

Yes, you can sell branded products on Amazon Canada⁴, but you must have legal authorization or proof of purchase to avoid violating Amazon’s policies on trademarks and intellectual property.

Reviewing fabric samples

Requirements for Selling Branded Products

1. Authorized Reseller: If you’re selling branded products, you need to become an authorized reseller or purchase directly from the brand.
2. Proof of Purchase: Amazon often requires invoices or receipts to verify the authenticity of branded items.
3. Avoid Counterfeits: Selling fake branded products violates Amazon’s policies and can result in account suspension.

Alternative Option: Private label products allow you to create your own brand without dealing with trademark restrictions. This is ideal for sellers looking to avoid the challenges of branded resale.

For a sustainable Amazon business, private labeling is a safer and more profitable option.

Do I need an LLC to sell on Amazon in Canada?

Business registration requirements are often unclear for new sellers.

No, you don’t need an LLC to sell on Amazon in Canada. You can start as a sole proprietor, but registering as an LLC (or corporation) offers liability protection and tax benefits as your business grows.

Business Structure Options for Amazon Canada Sellers⁵

1. Sole Proprietorship:

   • Easy and inexpensive to set up.
   • Your personal and business finances are combined.
   • You’re personally liable for business debts.

2. Limited Liability Company (LLC):

   • Provides personal liability protection.
   • Separates personal and business finances.
   • Requires more paperwork and registration fees.

3. Corporation:

   • Suitable for larger businesses with growth potential.
   • Offers liability protection and tax advantages.

While starting as a sole proprietor is common, transitioning to an LLC as your private label business grows can provide added protection and credibility.

Conclusion

Creating a private label brand on Amazon Canada involves product research, sourcing from reliable manufacturers, and building a unique brand presence. While initial costs can range between CAD $3,000 to $7,000, private labeling offers greater control, profit margins, and long-term growth opportunities. Understanding legal requirements and business structures will set you up for success.