Should you private label on Amazon or should you create your own product from scratch to sell? In this video, I’ll share with you the Pros and Cons of both of these and I’ll also tell you what my personal favorite way of making money on Amazon.

Private Label
– Is the process of taking a product that already exists, putting your brand on it and selling it on Amazon.

Pros
1. Easy to get started – You don’t need a lot of creativity, you just have to do a better job than other people. The only difficult part is product research which I I have a video of.
2. Passive Income – It’s a great way to make passive income because Amazon handles all the logistics and a lot of the marketing strategy for you.
3. Live and work from anywhere – Everything that you’re doing is online so there’s no restriction.

Cons
1. Easy for someone to copy you – It can happen in three different forms: It can come from other Amazon FBA seller copying you, Manufacturers from China can copy you and undercut their product, and the last but maybe the scariest of all is Amazon itself. They can make a private label of your product and sell it through Amazon basics or their other Private label product.
2. Not worth as much if you sell your company.

Create your own product
– It is very similar to Private Label but you try to create something new. Something that maybe doesn’t exist in Amazon yet.

Pros
1. There’s no competition – When you create something unique and that’s different from anything in Amazon, you don’t have any competition! No one will steal your sales or you don’t have to go into price wars. You get sales as long as there’s demand for what you’re selling.
2. You can sell on Shopify – You can offer discount codes and offer good reasons for people to go to your website.
3. Easier to do all the different types of Marketing such as Instagram, Facebook Ads, Influencer MArketing and others. It is hard to get a lot of buzz around a private label product as to compare with a unique product.
4. Kickstarter or Crowdfunding campaign – You can get everything up and running by raising funds and also see if anybody is interested with your product.

Cons
1. You need to do research – You need to spend a little bit more time to make sure that your unique product makes sense. The way that I got around this personally is I created a product that I am interested in. I call this as a passion product.
2. May be more money to start – May happen when you are creating a more elaborate product.

So which is the best way to make money online?
The answer is it depends you. Private label is an easy way to make quick cash once you get started, but creating your own Passion Product is the better way to actually build a real company. Almost all major successful companies did the same thing so this is something you may want to consider if you want to grow a real company.