🎄 Festive Rush - Deliveries might take a bit longer. We appreciate your patience.
Festive Period 2025
Cut-Off Times
Jungle Scout's research found that 23% of Amazon sellers spent between US$2,501 and US$5,000 to launch a private label business in 2024, while 18% invested US$5,001 to US$10,000. Those figures exclude freight, and many Australian sellers launching an Amazon private label brand underestimate freight's impact on landed cost until they have already committed to a supplier.
This guide explains what Amazon private label is, outlines realistic startup costs, and assesses whether the business model is profitable for Australian sellers after freight, Amazon fees, and advertising costs.
Get freight quotes for shipping inventory from your supplier to an Amazon fulfilment centre in Australia.
Get a Quote NowCompare freight options with Couriers & Freight before finalising your supplier agreement.
Amazon private label involves sourcing a product from a manufacturer, selling it under your own brand, and using Fulfilment by Amazon (FBA) or another fulfilment method to deliver customer orders. Unlike reselling existing brands, you own the product identity, packaging, and Amazon listing, giving you greater control over pricing and long-term brand value.
It is important to distinguish an Amazon private label business from Amazon's own private brands, such as Amazon Basics. Independent sellers own their trademarks, select their suppliers, and manage pricing, while Amazon develops and sells products under its own in-house brands.
For Australian sellers, importing private label products also requires compliance with customs requirements and applicable product regulations. For example, children's products must meet mandatory safety standards enforced by the Australian Competition and Consumer Commission (ACCC), and some therapeutic goods must be included in the Australian Register of Therapeutic Goods (ARTG) before they can be legally supplied in Australia.
A branded stainless steel drink bottle is a typical private label example.
Launching an Amazon private label business requires more than calculating manufacturing costs. Total investment includes product sourcing, branding, freight, Amazon fees, and advertising. Many first-time sellers focus on supplier quotations but overlook inbound logistics, even though freight significantly influences landed costs and profit margins.
Building an accurate cost model before placing an order determines whether a product remains commercially viable after accounting for every expense.
Manufacturing, freight, and advertising account for the largest share of startup costs. Freight represents the second-largest variable expense after manufacturing, yet many sellers calculate it only after confirming a supplier.
Freight costs fluctuate based on shipping method, carrier pricing, shipment size, and consolidation opportunities.
Sea freight provides a lower cost per unit than air freight. Conversely, air freight accelerates transit times, but increases landed costs, directly impacting breakeven timing on an initial shipment. Comparing carriers and consolidating compatible shipments lowers inbound logistics expenses.
Australian freight operators report 18-30% savings through improved dispatch consolidation and carrier selection, which directly increases profit margins on early shipments.
Amazon private label can be profitable. Product margin, sales volume, and total landed cost determine whether it works for a given product.
Manufacturing costs, Amazon fees, advertising, and inbound freight all shape how quickly you recover your initial investment.
Consider a stainless steel drink bottle that costs A$8.00 per unit to manufacture and sells for A$34.95 on Amazon Australia.
Inbound freight and import costs add A$3.00 per unit.
The Home and Kitchen referral fee (13%) takes A$4.54 per unit. The FBA fulfilment fee for a 251-500g parcel adds another A$7.64. Gross profit lands at about A$11.77 per unit before advertising.
If launch advertising costs A$1,500, approximately 128 units must be sold to recover that expense.
A second example is a set of reusable pantry storage containers retailing for A$49.95. Lowering inbound freight by A$1.50 per unit through consolidated sea freight increases gross profit by A$750 across a 500-unit shipment.
Freightos notes that air freight is far more expensive than ocean shipping for the same shipment. Managing freight costs before placing your first order remains one of the most effective ways to improve profitability.
Understanding your landed cost is essential before investing in an Amazon private label product. Landed cost includes every expense involved in shipping inventory from your supplier to an Amazon fulfilment centre, making it a key input when assessing profitability.
This process involves two freight stages: international freight from the supplier to Australia and domestic freight from the arrival port or depot to the Amazon warehouse.
Before booking freight, consider these factors:
Before confirming a supplier order, obtain accurate freight quotes to validate your landed cost and profit model. Couriers & Freight gives Amazon sellers access to multiple carrier quotes across both freight legs.
Book inbound logistics to your Amazon fulfilment centre with Couriers & Freight before your next supplier order ships.
Get freight quotes for shipping inventory from your supplier to an Amazon fulfilment centre in Australia.
Get a Quote Now
MHP
No Surcharge*
$16.50
$14
$15.50
$0
$15.50
$14.75
$0
$0
$0
$0
MHP Large Item
No Surcharge*
$16.50
$75
$62
$62
$60.10
$14.75
$0
$0
$0
$0
Residential Pickup
No Surcharge*
$6
$0
$9
--
$9
$10.60
$0
$0
$0
$38.50
Reidential pick up 30-99kgs
No Surcharge*
$63
$0
$9
$0
$9
$74.15
$20
Won't carry
Won't carry
$38.50
Residential pick up 100kgs+
No Surcharge*
$198
$0
$9
$0
$9
$158.87
$50
Won't carry
Won't carry
$38.50
Residential Delivery up to 29kgs
No Surcharge*
$6
$0
$9
--
$9.00
$10.60
$0
$0
$0
$38.50
Residential Delivery up 30-99kgs
No Surcharge*
$63
$0
$9
$0
$9
$74.15
$20
Won't carry
Won't carry
$38.50
Residential Delivery 100kgs+
No Surcharge*
$198
$0
$9
--
$9
$158.57
$50
Won't carry
Won't carry
$38.50
Tail Lift Pick up 50-99kgs Sydney / Melbourne
No Surcharge*
$45
$50-$250
$88
$88
$88
$44.07
$120
Won't carry
Won't carry
$61.50
Tail Lift Pick up 100-299kgs Sydney / Melbourne
No Surcharge*
$85
$50-$250
$88
$88
$88
$44.07
$120
Won't carry
Won't carry
$61.50
Tail Lift Pick up 300-499kgs Sydney / Melbourne
No Surcharge*
$120
$50-$250
$88
$88
$88
$44.07
$120
Won't carry
Won't carry
$61.50
Tail Lift Pick up 500kgs + Sydney / Melbourne
No Surcharge*
$250
$50-$250
$88
$88
$88
$44.07
$120
Won't carry
Won't carry
$61.50
Tail Lift Delivery 50-99kgs Sydney / Melbourne
No Surcharge*
$45
$50-$250
$88
$88
$88
$44.07
$120
Won't carry
Won't carry
$61.50
Tail Lift Delivery 100-299kgs Sydney / Melbourne
No Surcharge*
$85
$50-$250
$88
$88
$88
$44.07
$120
Won't carry
Won't carry
$61.50
Tail Lift Delivery300-499kgs Sydney / Melbourne
No Surcharge*
$120
$50-$250
$88
$88
$88
$44.07
$120
Won't carry
Won't carry
$61.50
Tail Lift Delivery 500kgs + Sydney / Melbourne
No Surcharge*
$250
$50-$250
$88
$88
$88
$44.07
$120
Won't carry
Won't carry
$61.50
Dead weight over 32KGS carton freight
No Surcharge*
$16.50
$75
$70
$70
$70
$14.75
$0
Won't carry
Won't carry
$0
Oversize Surcharge 1.20 - 1.54
No Surcharge*
--
$0
$0
$0
$0
$5.40
$10
$15
Won't carry
$0
Oversize Surcharge 1.55 - 1.85
No Surcharge*
$17
$20
$0
$0
$0
$11.93
$10
$15
Won't carry
$0
Oversize Surcharge 1.86 - 2.20
No Surcharge*
$37
$40
$0
$0
$0
$11.93
$10
Won't carry
Won't carry
$0
Pallet Surcharge
No Surcharge*
--
$0
$0
$0
$0
$0
$0
Won't carry
Won't carry
$0
Hand Unload Fee Carton
No Surcharge*
--
$0
$70
$70
$70
$47
$0
Won't carry
Won't carry
$61.50
Western Australia Regional Surcharge
No Surcharge*
%10
$0
$0
$0
$0
$0
$0
$0
$0
$0
*Surcharges may apply to areas/deimensions not listed
**Prices correct of 16th September 2024
Click to start shipping in less than 60 seconds