Private Label VS Micro Private Label on Amazon

You want to do Private Label, right? Then reading this article is necessary for you. Most people still don’t know what PL is, what Micro Private Label is, and where to start. People are confused.

In this article, I will give you proper guidance on whether you should go for PL or MPL depending on your budget, what the main PL or MPL depending on your budget, what the main differences are, and how to start. I’ll also break down the budget for both the USA and UAE markets.

Insha’Allah this article will be very helpful for you.

Read How to Start a Business: My Journey from AED 1K to AED 100K in 6 Months

What is Private Label & Micro Private Label?

• PL (Private Label): Private Label means launching a product under your own brand name. For example, Dove is a shampoo brand, but if you launch a shampoo under the name “ABC Shampoo” in the USA, that’s called Private Label.
• MPL (Micro Private Label): MPL is just a smaller version of PL. There’s no big difference – it’s the same concept, but you start small for testing purposes. (Without registering the Trademark for your brand before starting).

If you have a low budget, you should start with MPL. Once you test and find the right product, you can move towards PL. That way, you minimize risk.

Read Starting a Business in the UAE: Registration, Free Zones, Finances, & Marketing

Budget Breakdown for USA or UAE Market:

• USA Market:
  • MPL can be started with around $3,000–$5,000.
  • PL usually requires $15,000–$40,000 depending on the product.
• UAE Market:
  • MPL can be started with about $1,000+.
  • PL requires around $6,000–$10,000+ for the UAE market.

So always start with MPL because the risk is lower and you can test multiple products. For example, you can launch 2–3 products with small quantities (like 150–200 units each). If one of them performs well, you can shift that product to PL by registering its trademark and scaling it.

Tips for Private Label in UAE

• Never depend on just one product. Test at least 2–3 products.
• Do proper research before choosing products.
• Hire professionals for PPC, photography, content writing (title, description, etc.). Don’t try to do everything yourself if you want to succeed.
• Start with small investments and expand step by step.

Read How to Make Money Online: Best Ways to Sell on Amazon UAE

Example Calculation for Micro Private Label:

• Suppose you buy 3 products, 150 units each, costing $1 per unit → $450.
• Add shipping → around $700–800.
• Add images and listing cost → $200.
• So, in about $1,200–1,500, you can launch 3 products for MPL.
• Then you run PPC (ads), which will also need additional budget.

Out of those 3 products, usually 1 will succeed (60–70% success ratio). Once you find the winning product, convert it into PL. That means registering a trademark for that product, scaling inventory, and creating a stronger brand identity.

Read How to Start Amazon FBA UAE – Complete Step-by-Step Guide

Brand Registry & Trademark:

• For MPL, you don’t need a trademark in the beginning. You can apply for your brand for free by submitting your logo and images to Amazon.
• Once your product succeeds and you move to PL, then you should register the trademark officially.

Avoid these Mistakes in Micro Private Label

• Never list MPL products as “Generic.” If you do, later you won’t be able to convert it into a brand listing.
• Don’t purchase too much stock in the beginning (200 units is enough for testing).
• Avoid very expensive products in the beginning (try to keep the cost around $3–4 per product including shipping).
• Always invest in professional photography and a good listing (content + SEO). Never compromise here because images and content decide whether customers click or not.

Read How to Find Top-Selling Products in UAE for Amazon

Conclusion for PL or Micro Private Label:

• Start small with MPL to minimize risks.
• Test multiple products, find the winning one, and then move towards Private Label.
• Work with experts and professionals in PPC, photography, and branding.
• Once your Private Label is established, secure it with a trademark and scale your brand.

Insha’Allah, I’ll also write separate articles on topics like brand registry and trademark registration.

Read How to Start a Business: My Journey from AED 1K to AED 100K in 6 Months

FAQs about PL & MPL (Amazon FBA)

1. What is the difference between Private Label (PL) and Micro Private Label (MPL)?

Private Label means creating a full brand under your own name (like launching your shampoo brand). It usually requires a big budget. Micro Private Label is a smaller version of PL, where you test 2–3 products with small quantities and less budget. If one works, you later convert it into full PL.

2. How much budget do I need to start MPL or PL?

• MPL (USA): $3,000–$5,000
• PL (USA): $15,000–$40,000
• MPL (UAE): Around $1,000+
• PL (UAE): $6,000–$10,000+

3. Why should I start with MPL instead of PL?

Because MPL helps you minimize risk. You can test multiple products with small money. If one product succeeds, you can scale it into PL. Starting with PL directly requires high investment and higher risk.

4. Do I need a trademark to start MPL?

No. MPL does not require a trademark in the beginning. You only need Brand Registry (which Amazon gives free if you provide logo & images). Trademark is required later when you move to full PL.

5. How many units should I order for MPL testing?

Start with 150–200 units per product. Test 2–3 products at once. Don’t invest in big quantities until you know which product sells well.

6. What is the biggest risk in Amazon PL/MPL?

• Choosing the wrong product.
• Investing too much money at the start.
• Poor product images or weak listings.
• Depending on only one product.

7. Can I manage everything by myself or do I need a team?

You can supervise, but for success you need professionals. For example:

• PPC expert for ads
• Photographer for product images
• Copywriter for title & description
  This makes your listing more professional and increases sales.

8. Should I list my MPL product as “Generic” on Amazon?

No. Never list as “Generic.” If you do, later you won’t be able to convert it into your brand listing. Always create the listing under your own temporary brand name.

9. How do I know if my product is successful in MPL?

If the product starts getting organic sales, good reviews, and shows demand in ads, it’s a winning product. Then you should order more inventory and convert it into PL.

10. What type of products should I avoid in the beginning?

• Very expensive products ($20+ per unit).
• Heavy or oversized items (high shipping costs).
• Complicated electronics with high return rates.
  Stick with small, lightweight products that cost $3–$4 including shipping.