Anyone here making profit selling private labeled amazon product ?

Yes you can make a profit this way

Make sure no patented product is copied else your fba listing will be removed..
You will then either have to pay for your inventory to be removed or you will have to pay for your inventory to be discarded.

If your product is original it will take time before sales start coming in, usually about 1-2 weeks. Once consumers start buying the product the sales rank will drop so its best to keep items in inventory because if you run out of inventory then the sales rank will go up again and then you will have to wait again for consumers to find your product and then start buying again.

I have been doing this for the last year or so, but I did it instinctively because it should become obvious very quickly that it's the best way to operate on Amazon. However, I would always recommend that you start smaller by looking for FBA opportunities where you can sell a product against an existing listing. In other words, if you notice that a Blue Widget has good sales numbers, but is entirely merchant fulfilled, I would test out trying to source that product thru Wholesale/Distributor channels and selling for a profit.

Most people flock to products that are already being sold thru FBA, but it's much easier to focus on products that sell OK thru merchant-fulfilled. The reason is because these are below the radar of the mega-sellers, but still have some upside because you see nice pops once a product becomes "Prime Eligible". You're not going to make a killing (in most cases) doing this because you have the middle-man markup, but you can get generate some cash flow and, more importantly, some familiarity with the way FBA works.