Work From Home Business Opportunity Explained: Amazon Private Label

Amazon private label is flexible and proven across over 150 countries.
Seth Kniep
Jul 19, 2022
Entrepreneurship
What is private label? What is Amazon FBA? And how in the world can you put them together to make money on your own time?

I will explain all of that and more. 

Today, I’m going to show you how you can build a thriving Amazon private label business from home.

Hi, I’m Seth, and I’ve been selling on Amazon since 2014. I’m also the CEO and co-founder of Just One Dime. My company works with entrepreneurs like you to help them build successful, thriving businesses on Amazon. Specifically, we work with sellers who create private label brands and products. 

At least 200,000 entrepreneurs have embraced this business model in the US alone. Hundreds of our students have broken away from their 9 to 5s after utilizing our teachings, and are now living with financial freedom.

What is private label?

Private label is a business model in which the seller creates their own branded products underneath their own private brand name. 

Generic V Private Label Product

Private label is the predominant business model we teach our students. That said, I have seen some Amazon sellers make extremely lucrative businesses following arbitrage, dropship, or wholesale models

Typically, when you sell your own branded products, 99% of the time you will not manufacture these products yourself. Most private label sellers source their branded products from manufacturers who then put the label’s brand name on the products.

Let’s say you want to sell dog pool floats.🐶💧

Dog Pool Float

You come up with the name “Dogfis” for your brand. You then work with a manufacturer who currently makes similar products. When they manufacture your inventory, however, they will make your dog floats unique-to-you by outfitting them with your brand logo.

Private Label Brand Logo

Boom—you’ve just created a private label business!

There are several advantages to the private label method, my favorite of which is that when you build a private label brand, you’re not just selling a product. Rather, you have the opportunity to create a brand that customers fall in love with. That means you have the capacity to turn your brand into a thriving company that can sell for a lot of money down the road. 💵

Grow Your Private Label Brand Into a Thriving Company That Sells for a Lot of Money

Can you do private label from home?

Unlike when you work for a massive corporation, or even a local business, when you own and operate your own private label business, you don’t have to work in an office Monday through Friday. Instead, you can operate your private label business from anywhere (and at any time) in the world. 

And I do mean anywhere: You might choose to work from your home, a coffee shop, a beach in the Philippines, or anywhere else you please. 

Run Your Private Label Business From Anywhere at Anytime

All you need is a computer and an internet connection to get started (just make sure it’s decent internet)!

Everything—and I do mean everything—for your private label business can be accomplished from a computer. 💻 

Let’s go back to our dog float example. When you research pet products to decide what you will sell, that’s online. 

And when you design your Dogfis logo and set up the company, that’s online too. In fact, all of these integral steps for your business take place online:

  • Finding and paying a supplier to manufacture your first batch of Dogfis dog floats
  • Ordering a product inspection to ensure those floats won’t deflate
  • Shipping your floats to the US for dog parents to purchase
  • Managing your Dogfis brand and store
Source Private Label Products From Anywhere at Anytime

Running a private label business not only gives you options for where you will work on your business, but also where you will sell your products: There’s eBay, Shopify, Walmart, Jet, and, our favorite, Amazon.

Why choose to sell on Amazon?

In 2021, Amazon boasted a whopping $683.85 billion in revenue across its platform. Additionally, over the past 15 years, Amazon’s revenue has grown by at least 20% year after year

However, for all of that growth, the majority of Amazon’s revenue comes from third party (independent, non-Amazon) sellers like me, like my students, like you can be soon. And we have found Amazon to be an incredibly lucrative place to start a business.

Much of Amazon's Revenue Comes From 3rd Party Sellers

You see, over the past few years, Amazon has optimized their third party selling platform to make it even easier for non-Amazon sellers to list their products, boast strong conversion numbers, and build thriving businesses. I actually helped with this: Amazon flew me out to their Seattle headquarters to consult on improving their third-party seller experience. 

Now, when you sell on Amazon, or any other ecommerce platform, you will pay fees. And sure, those fees might seem like a nuisance. 

But here’s the kicker: The fees you pay to Amazon to sell on their platform, to their hundreds of millions (you read that right) of customers, are such a small–nay, infinitesimal—price to pay for the level of exposure your products will get…if you do it right (we can show you how and coach you through the process).

If you’re unsure, just consider the ridiculous advertising cost you would have to spend to give your products the same level of exposure on Google if you were to launch independently. I’m talking thousands of dollars in ad spend just for a few shoppers to find your product. It’s insane. 

So yes, Amazon has fees. But they’re worth it, especially when you see the amount of work Amazon will put in for you. 

What is Amazon FBA?

FBA stands forfulfilled by Amazon”. It’s a system in which you have your private label products shipped to an Amazon fulfillment center (there’s hundreds worldwide). From there, whenever one of Amazon’s millions of shoppers purchases one of your products, Amazon packages it up, labels it, and ships it out. Additionally, Amazon handles the bulk of customer service for your FBA products. 

The Amazon FBA Process

Of course, there are fees associated with FBA. Amazon can’t offer this service for free. 

That said, FBA fees are actually quite small, again, compared to the exposure your products will get on Amazon’s platform, not to mention the hassle you avoid by not packaging, labeling, and shipping products on your own. 

When I started selling online, my family and I would stay up until the wee hours of the morning with a printer, a packing gun, and a seemingly endless supply of cardboard boxes. 📦 That is what is called FBM—fulfilled by merchant. We also like to refer to FBM as “fulfilled by me”. 

FBM is a perfectly viable option if you want to save money on Amazon fees, especially if you will sell exceptionally heavy and/or bulky products (but not your Dogfis floats). That said, if you do opt for FBM, I recommend you work with a third party logistics company to help you manage your inventory and shipping. 

Heads up: When some people refer to “Amazon FBA”, they may not strictly be speaking about “fulfillment by Amazon” and may instead be referring to private label.

There are pros and cons to both FBA and FBM. That said, it’s much easier to create streams of passive income through selling Amazon FBA.

How does Amazon FBA private label make “passive income”?

Passive income is money that you don’t have to actively work for. In a sense, it more or less just happens and you get richer in the process.

Ok, that’s a bare bones definition, but let’s expand on that. 🦴 

When you go to work five days a week at your nine to five, that income is active: You only make that money for the work you actively put into the company. 

Passive income can occur with no (simultaneous) effort on your part. With passive income, you can make money in your sleep

Passive Allows You to Make Money While You Sleep

That said, it does take some extensive hard work and setup to get to that point. 

Let me show you how it works with our Dogfis example: Here’s how it works…at least with Amazon FBA:

You create your dog float and its Amazon product listing, and you have your floats shipped to an Amazon fulfillment center. From there, you run hardcore, supremeley aggressive advertising on Amazon. This gets your floats in a place where the right, dog-loving shoppers (if you follow our methodology) will find them: On the top half of the first page of Amazon search results. Over 70% of Amazon sales happen on that first page. It’s crucial you get your products there.

Once your float is making sales thanks to advertising, you can slowly back off your ad spend. But because you did run such aggressive campaigns, your Dogfis float remains on that first page of search results where dog lovers can easily find them. 

Whenever a customer purchases your float, Amazon takes care of the rest. This frees up your time to deal with inventory replenishment, optimizing your listing, and even brainstorming new dog pool accessories (doggie towels?) to expand the Dogfis brand.

Over time, and especially as you see more and more sales, that income starts to become truly passive. A customer orders, Amazon ships, and you just have to pop onto your seller central account here and there to ensure that everything is running smoothly. You then get to spend the rest of your time doing whatever you want. 

This is the ultimate goal of Amazon FBA. It’s why I started Just One Dime: To teach sellers like you this path to making passive income, so that you have margin to do the things you love with the people you love. 

Forget asking a boss IF you can take a vacation. You just get to GO

You don’t work set hours determined by someone else. You can work at 4am if that’s when you’re at your best.

Work on Your Own Schedule

Moreover, the earnings of your work don’t go into someone else’s pockets. No, in fact the earnings from your hard work go into your seller central account, and from there into your business’s bank account, even while you sleep. And that’s the dream. 💤

I invite you to join me on this incredible journey. At least 30 Just One Dime students have become millionaires. Hundreds more have fired their bosses and now live the lives they only could have dreamt of. 

What we teach in our training is—well first off, tested—tried and true, step-by-step instructions that we know will work because myself and my badass coaches use it ourselves everyday. We don’t teach anything we wouldn’t try in our own stores. And we will walk you, side-by-side, through the entire process, from picking out the right company structure for your business all the way to selling your Amazon-built brand for an extremely lucrative profit. And we have plenty of student testimonials and success stories to show it. 

Yes, there is risk. But the reward is even greater. If you’d like to meet with a team member who can listen to your goals, share tips, and see how Just One Dime can help you, visit JOD.com/freedom to apply.

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Seth Kniep

Married a pearl. Fathered 4 miracles. Fired his boss. Turned a single dime into $104,857. Today, a self-made millionaire, Seth and his team of 8 badass coaches teach entrepreneurs how to build passive income on Amazon.

Dead serious about building income on Amazon with eight successful coaches in a community of badass Amazon sellers? Join the Amazon FBA Mastery membership.

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