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How to Start an Amazon Private Label Business in 2025 (UK Guide)

  • Writer: Blue30
    Blue30
  • Sep 19
  • 5 min read

Updated: Sep 24

Selling on Amazon is no longer just about reselling other brands. More and more entrepreneurs are creating private label products—goods manufactured by a supplier but sold under your own brand name. This approach gives you greater control over pricing, branding, and customer loyalty, but it also comes with challenges.


Amazon Private Label

In this guide, we’ll break down what Amazon private label is, how it works, and the exact 7 steps you can take to launch your own profitable private label brand in the UK. We’ll also cover risks, costs, compliance, and strategies to stand out in a competitive marketplace.

What Is Amazon Private Label?

Private label means selling products that are manufactured by a third party but branded, packaged, and marketed as your own. Unlike wholesale (reselling another company’s brand) or dropshipping, private labelling allows you to own the customer relationship and build long-term value.


Example:

  • Wholesale = You buy Nike trainers and resell them on Amazon.

  • Private Label = You design your own activewear line, source it from a supplier, and sell it under your own brand.


The result? You’re not just selling a product—you’re building a brand.

Why Choose Private Label on Amazon UK?


✅ Higher margins – Set your own pricing instead of competing with other resellers.

✅ Brand control – Your name, your packaging, your customer reviews.

✅ Customer loyalty – Repeat buyers are more likely to return to your store.

✅ Room to scale – Expand into related products or categories under the same brand.


But it’s not risk-free. Upfront investment is higher than wholesale or dropshipping, and success depends heavily on product selection, marketing, and supply chain management.


Step 1: Research the Right Product

Product research is the foundation of private label success. The best products strike a balance between demand, competition, and profitability.


Checklist for choosing the right product:

  • Lightweight (under 2kg for cheaper shipping)

  • Sells consistently year-round (not overly seasonal)

  • Not fragile or easily damaged

  • Has potential for branding/packaging improvements

  • Solves a clear problem or meets a niche demand


Tools: Helium10 Black Box, Jungle Scout, Keepa, Amazon Best Seller Rank.

📌 Pro Tip: Look for products with 3,000–10,000 monthly searches in the UK, with fewer than 200 direct competitors.


Step 2: Validate Demand & Competition

Don’t just trust gut instinct—validate the numbers.

  • Check reviews: If the top listings all have 5,000+ reviews, competition is tough. Look for gaps.

  • Analyse price point: Can you price competitively while maintaining a 25–35% profit margin?

  • Keyword demand: Use keyword research tools to confirm steady search volume.

Example Case Study: A UK seller identified a gap in eco-friendly reusable kitchen sponges. Existing listings had poor packaging and few reviews. By rebranding and emphasising sustainability, they carved out a profitable niche.


Step 3: Find and Vet Suppliers

Once you’ve chosen a product, the next step is finding a reliable supplier.

Where to look:

  • Alibaba, Global Sources, 1688 (China)

  • UK/EU manufacturers (faster shipping, easier compliance)

What to check:

  • Minimum order quantity (MOQ)

  • Lead times (especially around holidays and Chinese New Year)

  • Product quality via samples

  • Certifications (UKCA, CE, food-grade materials if applicable)


📌 UK Compliance Tip: Make sure your supplier can provide proper documentation (Declaration of Conformity, lab tests). Without this, your goods could be held at customs or delisted from Amazon.


Step 4: Build Your Brand Identity

Your brand is more than a logo—it’s how customers perceive your product.

Key elements to build early:

  • Brand name & trademark (register with UKIPO for brand registry on Amazon)

  • Logo & packaging design (invest in professional design to stand out)

  • Unique value proposition (eco-friendly, premium, budget-friendly, innovative)

Amazon Brand Registry unlocks A+ Content, Sponsored Brands ads, and enhanced protection against copycats.


Step 5: Manage Shipping, Customs & FBA Prep

Getting goods into the UK and Amazon fulfilment centres is often the trickiest part.

Options:

  • Air freight: Faster, but expensive.

  • Sea freight: Cheaper, but takes 4–6 weeks.

UK-specific considerations:

  • Pay import VAT (20%) and customs duties depending on product type.

  • Ensure goods meet UKCA marking requirements post-Brexit.

  • Amazon has strict FBA prep & packaging requirements (labelling, barcodes, polybags, carton limits).


Using a 3PL service like Fast Pack can simplify prep and compliance, saving time and costly mistakes.


Step 6: Launch and Market Your Product

Launching is about more than just listing your product—it’s about visibility.

Essentials of a strong launch:

  • Optimised product title, bullet points, backend keywords

  • High-quality images + video if possible

  • Competitive pricing for the first 30–60 days

  • Amazon PPC campaigns targeting main and long-tail keywords

  • Promotions, coupons, and deals to drive initial traction


📌 Pro Tip: Encourage reviews through Amazon’s Vine Programme or Request a Review button.


Step 7: Scale and Expand

Once your first product gains traction:

  • Reinvest profits into inventory and marketing

  • Expand product line with related items (e.g. kitchen sponges → dish brushes → cleaning kits)

  • Use cross-selling and bundling strategies

  • Explore other Amazon marketplaces (Germany, France, US)


Long-term, building a brand portfolio increases business value and even creates the opportunity to exit via Amazon FBA business buyers.

Risks to Be Aware Of

  • High upfront investment (£2,000–£5,000 minimum to launch properly)

  • Cash flow issues if inventory ties up capital

  • Copycats entering once you succeed

  • Amazon policy changes or suspensions

  • Long lead times disrupting supply


Mitigation strategies: Diversify suppliers, build a strong brand, and keep at least 3 months of working capital.

Private Label vs Other Amazon Models

Model

Investment

Control

Profit Margin

Risk

Private Label

High (£2k–£5k+)

High

25–40%

Medium–High

Wholesale

Medium

Low–Medium

10–20%

Low

Dropshipping

Low

Very Low

5–15%

High (policy risks)

Retail Arbitrage

Very Low

Very Low

10–25%

Low

FAQs

How much money do I need to start Amazon private label in the UK?

Expect at least £2,000–£5,000 for inventory, branding, shipping, and marketing.

How long before I make a profit? Typically 3–6 months, depending on product demand and ad spend.

Do I need a trademark? Not required, but highly recommended for Amazon Brand Registry.

What about VAT? If your turnover exceeds £90,000/year (current threshold), you must register for VAT. Many sellers register earlier for compliance and credibility.

Private label vs white label – what’s the difference? Private label = products customised and branded for you.White label = generic products multiple sellers can brand.

Conclusion


Building an Amazon private label business isn’t a quick win—it’s a long-term strategy that rewards creativity, persistence, and smart decision-making. By owning your brand, you gain control over your profits, your product listings, and your customer relationships.


At Blue30, we specialise in helping sellers turn ideas into profitable brands. From market research and supplier sourcing to branding, listing optimisation, and fulfilment, our Amazon private label services are designed to give you the competitive edge.


Ready to launch your own private label brand on Amazon UK?

Get in touch with Blue30 today and let’s build your business together.


Blue30

 
 
 
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