Private Labeling of Cosmetic Products on Amazon

Running head: Research proposal
Private labeling of cosmetic products of Amazon
Name of Student
Name of the University
Author note

1RESEARCH PROPOSAL
ABSTRACT
A cost efficient method to expand the beauty market is by the private labeling of the
cosmetics. Here, the products are manufactured already; however, they are made branded under a
particular marketer or retailer. While there is not much barrier for entering into the cosmetics
marketing; yet it is necessary for the marketers to stay in the line within the industry standards.
However, discussing about the private labeling of the cosmetic product on Amazon, one of the
vital attractions of this approach is flexibility. It allows the sellers or the marketers to make
experiment regarding the changing customer demand and branding in the most affordable way.
Although the products under private label are usually sold at comparatively lower price than the
other existing brands, some of the private label brands are recently being positioned as the
premium products, having higher price tag. This research paper is going to discuss the
importance of private label cosmetic products on Amazon and the process by which the sellers
going to adopt this process; thereby adding more profit to the business environment.

2RESEARCH PROPOSAL
Table of Contents
Introduction......................................................................................................................................4
Background of the research.............................................................................................................4
Research aim and objectives............................................................................................................5
Research questions...........................................................................................................................6
Literature review..............................................................................................................................7
Private labeling of product and its importance............................................................................7
Critical analysis of private labeling approach.............................................................................8
Steps for selling private label cosmetic products on Amazon...................................................10
Choosing the product.............................................................................................................10
Research about the competition.............................................................................................10
Find the right private able manufacturer...............................................................................11
Develop the branding.............................................................................................................11
Create the listing....................................................................................................................11
Protect the product.................................................................................................................12
Taking advantages of fulfillment by Amazon (FBA)............................................................12
Start selling............................................................................................................................12
Research methodology...................................................................................................................14
Research Methods and techniques.............................................................................................14
Data collection method..............................................................................................................14

3RESEARCH PROPOSAL
Data Analysis and Interpretation...............................................................................................15
Research Instruments.................................................................................................................15
Sampling....................................................................................................................................15
Ethical Issues.............................................................................................................................16
Expected outcomes........................................................................................................................16
References......................................................................................................................................17

4RESEARCH PROPOSAL
Introduction
In order to achieve sustainability in today’s competitive market, every business; whether
it is online or offline, need to put major emphasis on customer satisfaction. Therefore, the current
age businesses are heading towards providing numerous products in an affordable price to the
customers; thereby expanding its market place (Fuchs et al. 2013). One such example is
Amazon; founded by Jeff Bezos, Amazon is an American based largest E-commerce company.
In addition, in terms of revenue, it is world’s largest internet company (Gala and Patil 2013).
However, as Amazon continuously expanding its marketplace, it offers the sellers to expand their
business by several means. Additionally, selling the private-label products is one emerging
business strategy that is becoming beneficial for Amazon. Despite of being a profitable and fairly
straightforward concept, running the business by getting the private-label products on Amazon is
not easy; rather it takes graceful dedication, research and great deal of time. There exist a number
of different categories of product; however, this research paper is going to focus on selling of the
private label cosmetic products on Amazon. Expanding the beauty market by introducing the
private label cosmetics can be proved as the low cost and profitable way.
Background of the research
Amazon.com or simply Amazon is the transactional electronic commerce business and
registered as the world’s largest online retailer by dealing with a vast area of product and a wide
range of customers and sellers. According to Lusk (2013), proceeding towards the private label
marketing has successfully turned out to be an efficient and profitable strategy for the small

5RESEARCH PROPOSAL
business. In addition to that, Choi, Lee and Friske (2018), found that, in the businesses that are
categorized as middling-size; especially those which have established their brand names in the
grocery categories (for example, the condiments, preserves, sauces, etc.) mainly focuses towards
the private label products. Furthermore, as opined by Gendel-Guterman and Levy (2017), in
case of private label distribution, it is vital for the business to have a certain size for satisfying
the mass market. Additionally, distribution of the privately labeled products to different stores,
having their own unique packaging as well as labeling, which further combined with the need for
the low pricing, is able to make the particular process less than cost effective (Senthilvelkumar
and Jawahar 2013). However, rapid adoption of private label products in case of the e-commerce
is one emerging trend; yet in its infancy. While the department stores and supermarkets have
added this concept into their business years before, the e-retailers are lagging behind; yet heading
towards the rapid adoption of this emerging trend.
Research aim and objectives
The aim of this research paper is to understand the adoption and importance of private
label products; especially the cosmetic products inside the e-business environment of Amazon.
Meanwhile, the objectives to which the research is going to put focus are as follows;
 To examine the importance of private labeling of the cosmetic products
 To critically evaluate the concept of private labeling
 To describe the ways by which sellers can start selling their private label products on
Amazon