Private Label Rights And Its Massive Growth In The World Of E-commerce!
The Rapid Growth Of Private Label Rights Across The World!
Brand loyalty may be a thing of the past according to some pundits. But to other critics and experts in the market, it’s not quite that cut and dry. It’s true that the millennial age is the cause of a significant shift in how shopping is done nowadays. A subject which we’ll be covering shortly in this article. With technology attached to us by the hip, we can do anything and everything with only a couple of clicks. And at nearly warp speed. With the rising rate of online shopping and growth of private label rights, most retailers would already be on the ball in grabbing the online market.
But there’s a fear among many merchants that the rise of private label rights will see their own revenue take an enormous hit due to elevated competition and cheaper prices. With reports that Amazon has not only ventured into the private label space but are making billions of dollars in sales has made the marketing world take notice. The success Amazon is having with the bulk of professional plr products is a significant wake-up call to numerous competing brands and merchants who are advertising to that same market.
The fear for the most part is Amazon’s dominant market share in the online space. Not only is their brand worldwide famous but their surge and success across a number of niches is worrying to competitors. Even more worrying to competitors is being in direct competition as they sell their products right on the Amazon marketplace itself. The biggest question is, should competing brands really be worried about Amazon’s trek into the private label rights world? Or is it a whole lot of panic over nothing?
Should Retailers And Sellers Be Worried About The Expansion of Amazon’s Private Label Rights Products?
Amazon has boosted the number of private label rights products on its marketplace considerably over the years. They’ve also added the Amazon Accelerator program inviting other companies and product-creators to create even more exclusive Amazon-branded products for the Amazon marketplace. The target for Amazon is to try to create a wider and wider catalogue of exclusive plr products. Amazon’s private label business could see around $30 billion in sales in the next 3 years if not sooner.
With over 100 private label rights products currently available on Amazon, competitors fear that Amazon could enter their space and become a ruthless competitor due to brand strength alone. This would be worrying to anyone who sells products in a specific category and suddenly has to deal with a major new competitor. But should sellers really be worried? The answer is likely no. When Amazon introduces a new plr product in any category on the Amazon marketplace, that category suddenly gets more gravity, more attention and more traffic. That means retailers who are selling products in the same category as Amazon are now getting even more targeted traffic due to Amazon’s promotion.
As an example, Amazon launched their own series of razors. One would think that all other competitors in the razors category would be doomed but that wasn’t the case. No retailer went out of business or saw their sales drop. As a matter of fact, many retailers saw their product sales increase tremendously. One retailer saw their sales increase by over 20% month over month. Reason being that Amazon isn’t in the game specifically to monopolize the market but rather to increase sales across all brands. And to provide shoppers with as many choices as possible for the best prices.
Is Brand Loyalty A Thing Of The Past With The Rise Of Millennials?
Amazon is smart enough to know that not every brand is a fit for every consumer. Some consumers just want something different or are loyal to a certain brand or just have an overall preference for a certain competitor. People love burgers but not everyone wants to go to McDonalds or Burger King. They may instead have a preference or what’s known as customer loyalty for the mom and pop burger joint down the street. The same applies to the online world. That’s why Amazon wants more third party brands and wants more retailers to market their products on the Amazon platform. There is no doubt that plenty of revenue is there to be shared for everyone in every space.
Amazon just helps to beef up the advertising as they push the categories more intensely when they launch their own products. At the end, every retailer gets more prime advertisement space and hence more attention from consumers. Millennials haven’t at all changed how people shop but more so in the way they shop. As companies evolve to try to cater to their primary demographic while beating competitors, they realize that having an online presence is a key factor in their success. That’s why retailers try to capture the online market which is monstrous. Any business that wants to either survive if not thrive needs to advertise online since more and more shoppers do their shopping on the internet.
Millenials are big shoppers and aren’t loyal to any brand specifically. But that’s until we look closer at the numbers. More affluent millenials tend to be more brand-loyal as they have more money to spend. The less affluent millennials tend to look for deals wherever they may be. But the reality is that good quality products will always attract shoppers. Retailers who create private label rights products won’t take money out of any other retailer’s pockets but rather bring more exposure to that category which is a win-win for everyone in the online world.
What Are The Best Selling Private Label Rights Products On Amazon Today?
Rather than rating all the many thousands of Amazon-branded exclusive plr products out there, it would be better to simply list the biggest sellers in Amazon’s private label catalogue. It should be noted that Amazon isn’t a category leader in every space. Amazon won’t create private label products in the sportswear category and expect to overtake Nike or Adidas or even come close. Nor does Amazon kill it with every exclusive product. Many products are busts, many are just barely hanging on, but many are also generating a ton of revenue. Here we will look at the top sellers in Amazon’s private label categories. The first and biggest of Amazon’s private label brands is AmazonBasics.
This is the oldest and most successful brand and makes up approximately 57% of sales across Amazon’s private label rights brands. Launched in 2009, AmazonBasics is a line of various household goods and electronics including USB cables, batteries, computer and camera accessories, tripods, speakers, exercise equipment, toasters, and several hundred other products. The second biggest seller in Amazon’s private label rights brands is Amazon Collection which contains their massive line of jewelry. And in third is Amazon Essentials which includes men’s and women’s clothing. Following that is Amazon Elements which contains an extensive line of vitamins and supplements.
Over 70% of all sales across Amazon’s private label brands include clothing, jewelry, household goods, electronics and vitamins. What’s most interesting is that approximately 70% of keyword searches performed on Amazon’s site is without any brand names included. More people are searching for “socks” or “running shoes” instead of “Reebok shoes” or “Nike socks”. There has been a considerable change in the online realm with how people shop. No longer are they as brand-driven. Now it’s also about pricing and convenience. Big brands will continue to flourish but there’s also room for others to get in on the action. The most important thing is quality and customer satisfaction.
How Are People Deciding Which Products To Purchase Between Various Unknown Brands?
If consumers see recognizable and popular brands like Target, Staples, IBM, Apple, or even Amazon, then they instantly know that these are likely quality products. If consumers see unknown brands, they are more inclined to compare pricing followed by user reviews. Known brands will always have the advantage over unknown brands. But the advantage with unknown brands is their cheaper pricing. As more and more consumers are less brand-driven and more needs-driven, they will opt for price and positive user-reviews before making a decision.
Those consumers who have the money and who shop only for known brand names will continue to stay loyal to the popular brands. Product quality is essential to success for any brand, but private label rights brands need to work for market share by building brand value. That happens by making customers happy and receiving good reviews. Positive user reviews can drive sales up by a phenomenal margin. So if you’re an entrepreneur looking to launch your own private label product, quality is essential. Make it great and your brand will thrive.
How Can I Create My Own Private Label Rights Products To Sell Online?
More and more people are going the route of building their own small-business. E-commerce has come a long way over the past decade with the growth of the Internet. And it’s considerably easier nowadays creating websites and online stores. Social media on top has given people a phenomenal avenue to advertise their businesses to the world. In many cases people tend to sell goods which are already out there on the market. You’ll see sellers reselling the same products which are being sold by numerous other sellers online.
This can be a challenge when you’re launching a business as it means you’re competing with a lot of people who already have an online presence selling the same stuff. To make it big in business, you need to have your own brand of unique products. Google nowadays pushes for website owners to build their own brand rather than trying to clone other online stores. If you’re looking to develop digital products or build high quality plr content to offer others the right to resell, the market is massive and there’s a ton of money to be made. If you want to create your own line of products for retail, you can make things easier by selling through Amazon using the Amazon Accelerator program.
How Does The Amazon Accelerator Program Work?
Amazon provides opportunities for entrepreneurs to create their own private label rights products through the Amazon Accelerator program. The advantage of selling through Amazon is that you automatically get digital shelf space on a platform that’s worldwide famous. That gives you more opportunity to compete with big brands. Amazon is on a mission to build its exclusive line of high quality plr products hence the reason they are inviting third party manufacturers to build products through the Accelerator program. Depending on what you hope to accomplish as a seller, you can go with Amazon to make things easier if you’re not experienced in selling or building products.
But if you’re wanting to create your own brand and not give up the potential to diversify by offering your products to other distributors and retailers, then going it alone would be better. You can create your own brand of products and use the Amazon Fulfillment option to ship your products to customers. It entirely depends on what path you want to take. The easier money is with Amazon where you follow their rules and your brand becomes theirs. But the potential for massive growth including having your own brand, your own customers and an unlimited ceiling is by doing it yourself. Every true entrepreneur who wants to be successful would rather create their own brand.
Which Private Label Rights Products Are Selling Like Hot Cakes Right Now?
Business is 1% invention and 99% innovation. In the retail world, the majority of products are the same and are sold at similar price points. People will like what they like at the end of the day. But the way to get into your customers’ good graces, as mentioned earlier, is by delivering a quality product. Good quality will result in positive reviews, greater brand growth and the potential to reach a wider customer-base. When you’re going head to head with either the big brands or private label brands for market share, you need to offer a competitive price most importantly. That will help you to get the attention of your target customers. All else being equal, you up your chances to compete with other retailers and sellers in your space.
Before you get into selling, you have to know what’s hot or what’s trending. There’s no point going into a market selling winter socks if you want to make sales year-round. If you’re looking to get your business going through your own brand of products with private label rights, here’s what’s selling. These products are proven sellers so it’s unlikely they’ll go out of style anytime soon. Evergreen is always the way to go as they are always a necessity for consumers. Reusable water bottles are first on the list. As people want to save money and be more environmentally friendly, the popularity of this product is growing fast. In the next 5 years, the market is certain to reach $10 billion. Next is essential oils which continues to see sales soar across numerous brands. With 200+ various essential oils used yearly, this market is worth around $4 billion.
Everyone loves and pays for entertainment. And so it’s no surprise that party games is also on the list of growing online categories in the PLR space. The games niche is worth $10 billion and continues to grow. People love their phones and they love buying accessories for their phones just as much. A great category for you to develop your own PLR brand. The phone accessories market will skyrocket past $100 billion in the next few years. Next up is tracking devices. More and more people want to track everything from their car keys to their spouses to their dogs. We’re looking at a market heading for $3 billion. There’s no stopping it. Other super hot categories are reusable bags, e-cigarettes, terrariums, smart backpacks, and LED lights.
Find Your Product And Set Sail!
There are so many thousands of potential product ideas for your private label rights business. So many entrepreneurs are competing for market share against the biggest selling brands. It shows that there is a space for every brand and a lot of revenue potential. But it doesn’t just happen overnight. You need a plan and you need to focus on your brand and creating a quality product. Amazon has proven that PLR is the way to go. You can launch an online store selling digital products like high quality plr ebooks and not have to take too much financial risk. If you want to ramp up your profit potential as a writer, you can create plr articles and sell them to bloggers or online marketers. Or you can create a physical product which has a lot more revenue potential as we discussed throughout this post.
If you’re wanting to make success happen with your own product-line then it’s entirely possible. In future blog posts, we will look at other product categories which are growing rapidly in 2019.8
