[deltron3030]

>The problem with this is that it's built in the backs of brands who were at one point well recognized brands on Amazon. Amazon took their sales data, determined it was a good market to move into, created specifications and reached out to their hundreds of sellers for a "private label opportunity".

It's different imo. They see what private label products sell on FBA (and the specs they need to fulfill), and then can just negotiate better deals from the same suppliers, because most FBA sellers ship straight from chinese factories to Amazon warehouses it's no secret where it's coming from. And for many product categories there aren't that many high quality factories anyway.

The important part are the specs and quality of the product, if you don't specify and interact with the factories, you'll get crap, if you spec by focusing on the wrong things you pay too much and still get crap. The FBA sellers are basically just testing the right mixture until Amazon steps in adopting their formula. A successfull low cost product is just that, a good enough quality at an as low as possible price.