Is Amazon Private Label Still Worth It?

Amazon private label has always been popular and one of the most accessible routes to get started in e-commerce. It involves sourcing generic products, branding them as your own, and selling them through Fulfilment by Amazon (FBA).

But as the platform matures, an important question remains: is Amazon private label still worth it today?

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The Evolution of Amazon Private Label

Private label selling on Amazon has changed significantly in recent years.

Sellers used to face less competition, lower ad costs, and listing optimisation was much simpler. At present, as e-commerce has evolved, the space is much more competitive and far more advanced.

Amazon now hosts millions of active sellers globally, with increasing competition across nearly every product category. According to Jungle Scout’s 2025 State of the Seller Report, over 60% of sellers operate private label businesses, highlighting just how saturated the model has become.

At the same time, Amazon’s algorithm has evolved, especially after the introduction of COSMO and Rufus.

Since Amazon’s AI-powered shopping, ranking is no longer driven purely by keywords and basic SEO. Instead, performance metrics such as conversion rate, sales velocity, and customer experience signals now play a more defining role. 

If you’d like to learn more about optimising your listings for Amazon’s algorithms, click here to read our COSMO blog.

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Rising Costs and Barriers to Entry

One of the most significant shifts at Amazon has been the increase in costs. Advertising on the platform, especially Amazon PPC, is a lot more competitive now than it used to be.

Marketplace Pulse (2025) data shows that cost-per-click (CPC) has been going up year after year, particularly in the most competitive, high-demand categories.

Additionally, sellers must now invest more heavily in:

• Premium product imagery and A+ Content
• Brand registry and storefronts
• Inventory management and logistics
• Review generation within Amazon’s strict compliance policies

This means private label isn’t really a ‘low-cost side hustle’ anymore because it requires a serious upfront investment to do properly.

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The Shift Toward Brand-Led Selling

One of the biggest shifts on Amazon right now is the move away from generic products towards strong, brand-led selling.

Shoppers are more selective, with higher expectations. They expect:

• Strong branding and differentiation
• Clear value propositions
• Trust signals (reviews, consistency, credibility)

The platform itself pushes this shift by including them in algorithm updates. Features such as Brand Stores, enhanced content, and video placements prioritise sellers who behave like real brands, not resellers.

Research from Statista (2026) highlights that over 70% of Amazon shoppers consider brand reputation before purchasing, reinforcing the importance of brand building within the platform.

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Is It Still Worth It?

The answer is nuanced.

Yes, Amazon private label is still worth it, but only under the right conditions.

It remains a viable model for businesses that:

• Enter with a clear niche and differentiation strategy
• Invest in data-driven keyword and market research
• Prioritise conversion optimisation over simple visibility
• Treat Amazon as a long-term brand-building channel

But if you’re expecting quick wins with little investment, the reality is very different.

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MR’s Perspective

At Market Rocket, we treat Amazon as a highly competitive search engine.

Success with private labels today isn’t really about finding a “winning product” anymore; it’s about getting the full marketing strategy right from start to finish:

• Search visibility through advanced keyword targeting
• High-converting listings built around user intent
• Continuous optimisation using performance data

In short, success comes down to how well you market the product, not just the product itself.

Final Thoughts

Amazon private label isn’t dead, but it is a completely different game now.

There’s still real opportunity, but only for those willing to invest in proper strategy, strong branding, and data-led decision-making.

In 2026, to achieve success on Amazon, it’s not enough to launch a product and hope it sticks. It’s about building something that actually stands out, earns trust, and converts consistently.

Selling on Amazon? Start by understanding what’s really driving your performance and where you can improve. If you’d like support, you can email us at amazon@marketrocket.co.uk or call 02037459090.