Amazon Private Labeling Beverage Drinks Your Opportunity food business

(light pop music) – [Damian] Hey, guys. This is Damian from Marketing Food Online, so today’s podcast is gonna
cover the most popular beverages on Amazon that you can
actually make yourself through private labeling. Let’s get started. Alright, guys, so today’s podcast, I wanna cover a really interesting topic about private labeling,
something that doesn’t get a lot of airtime, and this is a category within Amazon that doesn’t have a lot of private label sellers, which is kinda quite interesting, because beverages on Amazon
is one of the top five food categories within
the food category itself, top five items to sell. And believe it or not,
you can literally get a private label for almost
any type of beverage on the market, and you can
compete with that market share through, and
even, as a matter of fact, a lot of these products
lend themselves perfectly to taking advantage of FBA, and of course, if you don’t know what FBA is,
that’s Fulfillment by Amazon. It’s basically where
you send the product in, and Amazon takes care of everything else as far as pulling, packing,
shipping, and customer service. So, I, myself, I’ve been
in the private label space on Amazon with the food category
for about three years now, and we are ever-increasing
our presence on Amazon with a private label that
we produce ourselves, so I wanted to bring a podcast
and bring some understanding to the idea that the market
for drinks online is gigantic. You have to understand the
philosophy and the mentality behind this, because everywhere, every state doesn’t really
have the same opportunity, as far as selections go, when it comes to drinks and beverages. Many states don’t have
certain types of water that somebody may want, or
there may be a K-cup coffee of some kind, there may be
like an organic protein shake that’s not accessible everywhere, and that’s one of the
advantages about being online, and of course, being on Amazon, is the idea that you can offer product to literally the entire planet, but of course, everywhere in the U.S., and it’s great because it
allows you to sell a product to someone who may not have it near them. Okay, so you might be wondering, okay, so what are those top selling beverages? So, the number one is actually
the Original Donut Shop, Donut Shop Keurig K-cup, okay? And then the second, I’m gonna
give you just the top three. I’m not gonna go through the entire list of 20-plus items here, but I’m
gonna give you some examples so you can understand that the potential for private labeling of
beverages is a really, really good one. Now, the second one is
actually an organic, plant-based protein powder, and then the third one is an ionized, excuse me, alkaline water, okay? And it’s a 12-pack. So, I’m gonna take these three and I’m gonna give you examples of what you could do,
potentially, with that. So, Donut Shop, coffee
in general, of course, is a gigantic market. Everybody knows that, okay? But when it comes to the
Donut Shop and K-cups, there are a lot of variations, of course, on the K-cup that sell very well. Now, there are companies that
can actually produce a private label K-cup similar
to that actual cup itself. Of course, K-cup is a trademarked
name, trademarked brand, but you can actually get
your own version of K-cups produced for you, believe it or not, and many of these companies that do this can do it on a very small scale. You don’t have to have gigantic minimums. There’s a lot of private label companies that have popped up
over the past few years in the food category, who
realize this and understand that smaller minimums
are actually opening up bigger opportunities, because
there’s a lot of companies who can utilize that because
they’re just starting. So, when it comes to being
competitive with that, you can put your private label product up that is similar to a
K-cup Donut Shop version, and get some additional
part of that market share. One thing a lot of people
don’t realize is this: some of the top selling products
within any category online, and it’s not even on
Amazon, it could be on eBay, it could be anywhere, many of these products
are top sellers, yes. They have a specific brand name, and some people enjoy that specific brand. Now, when it comes time to buying it, in a lot of instances, sellers
that offer these products are gonna have only so much in inventory. What I’m about to tell you is one aspect that a lot of people don’t realize. When you’re trying to
compete with a product, like let’s say K-cups,
the Donut Shop flavored regular coffee K-cup, okay, you have a product that’s
very comparable to it. It’s similar to it. You have your own brand,
your own name on it. When that product runs
out of inventory, okay, and it’s not being replenished
on a regular basis, and believe it or not,
this happens quite often, a lot of these brands that are trusted and that sell through very quickly, many times, the sellers
don’t replenish in time. When you have your own brand up there and you have an opportunity
to capture that sale, because someone definitely
is going to need coffee, it’s not something that, you know what, I can hold off for two weeks
until they get replenished, and then I’ll drink coffee then. That’s not how that works. So, when you’ve got a comparable
product similar to it, and it’s a private label product, you’re going to make
sales, and you also have an opportunity to offer
your product maybe at a slightly smaller price point
underneath the brand name, and allow yourself to
capture that sale as well. There’s a lot of parameters
and a lot of aspects to the decision buying, the buying decisions that consumers make online. Of course, it could be a brand they trust. It could be a flavor that they like. It could be a price point, but many of those things
aren’t as important, in some instances, as the price point, so if you offer a comparable
product that’s similar to what sells like crazy, and
you’re just slightly under that value, that price point
that it’s being offered at for the name brand, you’re
gonna capture that sale, and I’ve noticed that, the
reason why I say this is I noticed this from my own experience. Now, does that happen? Does that make the decision making on behalf of the consumer all the time? No, not necessarily, but the point is that,
when you begin to create a private label product,
nobody knows you from Adam. Okay, nobody knows your product. Okay, nobody knows your brand name, nobody knows any of that
stuff, but that’s fine. That does give you an advantage, because, as you begin to build a brand, people begin to try new things, plus if a supplier runs
out of a certain brand and somebody needs that type of a product, they’re going to buy yours. That’s just how I’ve
seen it work for myself, and I’ve even seen sellers,
I’ve contacted sellers over the past few years. I’ve asked them how they
do it, how does it work, and they’ve come up with
the same type of scenario, so it’s not necessarily
always, you know what? The brand name is so strong and so big, and I’m never gonna get
a foot in this market. That’s baloney, baloney,
especially when you’re online. When you’re in retail
stores, the difference is that you rely on the foot traffic to come and find your product,
so if you are, let’s say, in the middle of a very small town. You have a big store. Let’s just, as an example, use Wal-Mart, and there’s a certain
product that’s there, and it’s on the store shelves, they’re only relying upon
the foot traffic there. When you’re online,
there is no foot traffic. It is a gigantic market. It is a challenge to be found,
but there’s certain ways that you can take care
of that, as far as SEO and optimizing listings, social media. There’s other ways to drive traffic, so it’s not like it can’t be done, but being online is that you
have millions of eyeballs that are looking at your product
with the potential to sell. When you’re within a
brick and mortar retail, you’ve got maybe, what,
a couple hundred thousand within the immediate area,
or a few thousand people? That’s it. So, it physically sits there on the shelf and it waits for someone to buy it. So, back to what I was getting to before. So, K-cups, when it comes to the coffee, the K-cup style brewing,
that is a gigantic market, and there are co-packers
who can make that for you. Now, I’m gonna offer it down below. If you’re listening to this on YouTube, in the description, I’ll put a list. I’ve actually come up with
a huge list of co-packers for a variety of categories, and the top 20 questions that I personally would recommend you ask your co-packer. I put this resource together. You can check out the link down
below and take a look at it and see if it’s something
that’s right for you. But 20 questions that you
should ask your co-packer to see if it’s the right fit for you and the right fit for your product. It’s a really, really great resource, but getting back to the private labeling of these three particular items, so the next one’s gonna
be plant-based protein. These powders have been hugely popular, and the second best selling
is a chocolate fudge flavor plant-based protein powder. Now, where can I get that
private label, Damian, you might be asking. Well, they do have companies
that private label. Supplement companies, co-packing and private
label supplement companies offer this exact same type of product, even non-GMO, gluten free, organic, all of those criteria, they
can produce the same product with your name on it. Again, back to the same question is, okay, well, if this is the
number two selling one and it’s a specific brand, what makes you think
that mine’s gonna sell? Same scenario as the coffee. If it runs out of inventory or if it doesn’t have as
many sellers as it should and it’s so popular, you can
create one like your own, get in on that specific
category, that specific niche, and sell your own brand. You gotta also keep in mind
that these types of products are being reused over and over and over, and the reason why I say that is that, when somebody runs out of
a certain protein powder and they like it, they like that flavor, if they’re out of the
one that they don’t have that particular brand,
they’re going to go to the next best, second best thing. And if it’s available in
a different brand name, they’re gonna try it, and if it’s new, they’re
gonna try it, okay? A lot of times, people will
try things, but there could be a million people that’ll
buy your product right now because they simply wanna try it. If it’s good enough, the
quality’s comparable, and the price point is similar, then you’ve got a customer
who will come back. But, keep in mind, there’s a
lot of products on the market where people simply
quote, unquote try them, but you’re talking about
millions and millions of people who could potentially
be trying your product, and that is a lot of revenue when it comes to about $20 a pop. So, the next one in line, the
third top seller right now that’s on the beverage
category of Amazon is a ionized alkaline bottled water, okay? And this brand, actually, I’m looking at the information right now, this specific brand, I have
actually never heard of, and to find companies that could do this, yes, did you know there are companies that private label bottled water? And they also offer it in a variety of different types of packaging. As far as ingredients, the quality, being ionized, be alkaline,
et cetera, et cetera, there are companies that can do that. And all three of these,
again, meet that same criteria that, if it’s a new
product, people will try it. If it’s out of stock and
somebody desperately wants it and needs it, they’ll pay a premium. So, all of these factors come into play with doing private label food products, and gives you an opportunity to get your foot in the door, in a sense, to get your product out on the market. Now, going down through
the rest of the list, believe it or not, actually, the bulk of the beverages are
coffee-related, by the way. There’s some that are even
sparkling juice waters. They have a four-flavored pack of juice, sparkling juice water, and there are companies, by
the way, that do canning, private canning as well. Juices, sodas, all kinds of carbonated beverages, and that is, again, another category, another product within the
sparkling juice category that you can get your foot in the door with a private label as well. So, you might be thinking, you know what? It sounds great and all, Damian. You know, getting the private
label sounds exciting, but I don’t have a lot
of money to invest in it. Well, that’s actually not a bad thing, because like I said in the
opening of the podcast, there’s a lot of companies that are now reducing their minimums, bringing down the minimums
for smaller startups, so if you wanna get in on
some of this business online, which continues to grow, by the way, I read a
Forbes article that said the online food industry
as a whole, by 2025, will be in excess of $100 billion. Now, you might be thinking, that’s huge. Trust me, there is room
for plenty of other people to come into this category of food online, and if that’s what you’re looking to do, you are definitely in
a great time to do it, because probably, over the
last five to seven years, very, very small amount of time, five to seven years, if you look back about
seven, eight years ago, selling food online was
not something people did. They just went to the grocery store and picked up their products. Of course, with Amazon and a few other, eBay and other outlets and platforms that allow you to sell food
online, that share has grown. As more and more people do more eCommerce and more shopping online,
groceries are something that, if you can click a button, pay for it, and have it delivered to your door, it’s saving families
and saving people time from having to go anywhere. They could go to work one
day, and two days later, they come home from work,
and they’ve got a box in front of their door and
their groceries are delivered. So, this market is just in its infancy, and getting your opportunity
and getting yourself into it is a huge opportunity
that’s gonna grow and grow. It’s not gonna shrink. It’s not going away any time soon. So, in the beverage market, again, this podcast was dedicated specifically to beverages and drinks, and I’m gonna tell you,
this is just Amazon. You could, of course,
create your own website. You could sell them on eBay. You could sell it on Bonanza. There’s a lot of platforms you can get on, so having a private label food product is not as expensive as you
may think to get started, plus the category just continues to grow as far as sales and dollar amounts. You need to definitely be in on it. So, with that being said,
I’m gonna wrap this up, but I hope that was informative, and maybe open up your eyes to a new, different type of
product if you’re kind of still on the fence about what
you should be selling online in regards to food, and
you were looking to start a food business, but you’re just not sure. Beverages, I’m telling you. Goodness gracious, it’s huge. It’s gigantic. Take some time and investigate it. Look into it, and again, I have a handful of co-packing lists on my
website that I put together. I curated a whole bunch of co-packers for specific categories, and
then the top 20 questions. It’s a great resource. Definitely, it’s a downloadable. You can download that file. Take a look at it, and
I’ll see you guys on either my next YouTube
video, or on my next podcast. Take care.

4 Replies to “Amazon Private Labeling Beverage Drinks Your Opportunity food business

  1. This was great information. Thanks a lot.
    I’ve always wondered however, how is it economical to be shipping beverages nationwide? Isn’t the cost/weight prohibitive

Leave a Reply

Your email address will not be published. Required fields are marked *