How much does a Amazon Private Label cost to buy?

A typical Amazon Private Label sells for 2x to 4x annual revenue. With average revenue of $250K, expect to pay $500K to $1.0M.

How much does it cost to start a Amazon Private Label?

Startup costs range from $10K to $50K depending on location, equipment, and scale.

Digital

/100 score

Strong

Amazon Private Label

Q: What are the profit margins for a Amazon Private Label?

The average profit margin for a Amazon Private Label is around 27%. Product COGS (25-35%), Amazon fees (30-35%), PPC advertising (10-20% of revenue), shipping to Amazon, and product photography/branding.

Your brand, Amazon's marketplace, global reach

Amazon private label businesses create their own branded products manufactured by third-party suppliers and sell them exclusively on Amazon. Unlike arbitrage or wholesale, you own the brand and listing, giving you more control over pricing, marketing, and long-term value. Products are sourced primarily from overseas manufacturers.

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Avg Revenue

$250K

Profit Margin

27%

Acquisition Multiple

2x - 4x

Startup Cost

$10K - $50K

Difficulty

3/5

How It Works

Research product opportunities on Amazon, source a manufacturer (usually via Alibaba), create your branding and packaging, ship inventory to Amazon FBA, and launch with optimized listings and PPC advertising. Revenue grows by expanding to multiple products and building brand recognition within your niche.

Revenue Range

Low End

$50K

Typical

$250K

High End

$1.0M

Pros

+Own the brand and Amazon listing — full control
+Higher margins than wholesale or arbitrage models
+Brand equity creates a defensible, sellable asset
+Can expand product line within the same brand

Cons

-Product development and sourcing has a long lead time
-Upfront inventory investment before any sales
-Counterfeit sellers and listing hijacking are ongoing threats

Best For

Brand builders who want to create products and leverage Amazon's audience

Operating Costs

Product COGS (25-35%), Amazon fees (30-35%), PPC advertising (10-20% of revenue), shipping to Amazon, and product photography/branding.

SBA Financing Estimator

Adjust the deal — see if it cash flows after debt service

$-2110/mo

after debt service

Deal price — $750K

Range: $380K (2×) to $1.3M (4×+)

Down payment — 15% ($113K)

SBA minimum equity injection is 10% for change-of-ownership

Interest rate — 8.00%

Current prime-based SBA rates: 7.5–10.5%

Loan term — 10 years (120 mo)

Standard SBA 7(a): 10 years for business acquisition

Down payment

$113K

15% equity injection

Loan amount

$638K

85% SBA-financed

Monthly payment

$8K/mo

$291K total interest

Monthly profit

$6K/mo

at 27% margin

Monthly cash flow after debt service

$-2110/mo

Margin does not cover debt service at these terms. Lower the deal price, increase the down payment, or extend the loan term.

Estimates only. Excludes owner compensation, capex, working capital draws, and taxes. Margin assumes average occupancy and volume. Actual SBA terms vary by lender and borrower profile.