📝 Pros and Cons of Listing a Generic Product on Amazon Seller Central
If you're considering selling on Amazon, you've probably thought about launching a generic product. While private labeled products are more sustainable in the long run, generic products are easier to launch and cost less. In this article, we'll go over the pros and cons of listing a generic product on Amazon Seller Central.
📌 Table of Contents
- **Introduction**
- **Pros of Generic Products**
- Smaller Minimum Order Quantity
- Less Expensive
- Good Timing
- **Cons of Generic Products**
- Hard to Stand Out
- No Brand Protection
- Harder to List on Seller Central
- No Brand Presence
- **Conclusion**
- **FAQ**
Introduction
Before we dive into the pros and cons of listing a generic product on Amazon, let's define what a generic product is. A generic product is a commodity product that is not branded and has no customization. It is a product that is already manufactured and readily available for purchase.
Pros of Generic Products
Smaller Minimum Order Quantity
One of the biggest advantages of launching a generic product is that you can get a much smaller minimum order quantity (MOQ). Since the manufacturer already has the product on hand, there is no need for customization. This means that you can order as little as 50 or 100 units, making the first order for this product very cheap.
Less Expensive
Another advantage of launching a generic product is that it is a lot less expensive than launching a private label product. You won't have to spend multiple thousands of dollars for your first order. Instead, you can spend a couple of hundred dollars or less. This makes it very easy to launch multiple products and test them out.
Good Timing
Generic products are faster to get to Amazon than private labeled products. This means that if you have good timing and launch a generic product at the right time, you can capitalize on the momentum of a trend or a new product release. For example, if the new iPhone just launched, you can launch a generic phone case for the iPhone and get it to Amazon within a month. This can lead to a lot of success if you price it low and ride the wave of the trend.
Cons of Generic Products
Hard to Stand Out
One of the biggest disadvantages of launching a generic product is that it is hard to stand out. Unless you are one of the first competitors out and are getting lots of sales and reviews, it is very hard to differentiate yourself. There is no actual leverage as opposed to an innovative private label product that has a good spin on the product that makes it more unique and has a higher perceived value.
No Brand Protection
Another disadvantage of launching a generic product is that there is no brand protection. Anyone can come on your listing and sell under that listing if they can make your product for cheap or even buy your product and sell it under your listing. This is where brand registered products and products you have an actual brand on Amazon can have the IP protection where you can kick that person off of your listing.
Harder to List on Seller Central
It is harder to list a generic product on Amazon Seller Central than it is to list a private label product. There are more steps and hoops to jump through, and it can be a lot more difficult to get past the requirements.
No Brand Presence
Finally, launching a generic product means that you don't have a brand presence. You're not building up a single product that can have multiple products that support that product, creating a brand revolving around a specific customer that an Amazon aggregator who buys Amazon Brands would be interested in buying from you.
Conclusion
In conclusion, generic products still do sell, but they are not as sustainable as private labeled products. While there are advantages to launching a generic product, such as a smaller MOQ and lower cost, there are also disadvantages, such as no brand protection and no brand presence. Ultimately, it's up to you to decide whether to launch a generic product or a private label product.
FAQ
Q: What is a generic product?
A: A generic product is a commodity product that is not branded and has no customization.
Q: What is the advantage of launching a generic product?
A: The advantage of launching a generic product is that it is easier and less expensive to launch than a private label product.
Q: What is the disadvantage of launching a generic product?
A: The disadvantage of launching a generic product is that it is hard to stand out and there is no brand protection.
Q: Can anyone come on my listing and sell under my listing if I launch a generic product?
A: Yes, anyone can come on your listing and sell under your listing if they can make your product for cheap or even buy your product and sell it under your listing.
Resources:
- Amazon Seller Central: https://sellercentral.amazon.com/
- GS1: https://www.gs1.org/
