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What are the best Private Label Products and how do I grow my brand?

 Selling private label products is one of the most profitable e-commerce business.  With a little bit of tips, tools, and resources, you can develop and sell your own brand, giving you total control and maximum profits.  It's not as complex to sell online as you might think.  The proof of this is in the huge number of people that have success.  Sure, there is always a risk when starting an online business; but, if you can master the basics and build your expertise you can make a private label product business model work for you.

Private Label

Have you ever spent hours scrolling through an online shopping site and thought, "Is this the best quality product out there?" If so, you are not alone. The world of e-commerce is a virtual rabbit hole in which you can find anything and everything, and several of them at that. The downside of having so many goods and services is that most of them are subpar. Some business giants dominate the market, but all the other generic products around are precisely that: generic. This commonness leads to reduced customer interest, despite the products fulfilling the consumer's needs.

This provides an excellent opportunity for people like you who are just discovering the world of private label products. These products are the buyer's and seller's dream. By taking advantage of private label products, you could create a steady source of income that most would be too afraid to try. You don't need to worry, though. E-commerce is a business model, just like any other. By following the steps given in this guide, you can make it a successful one.

What are Private Label Products?

Private label products are goods that are manufactured by someone else but have your brand's label on top of them. It is any product that is independently produced by a third-party and then labeled with your own company's brand. Many companies have their private label products, which they use to bring in a nice profit. An example would be Amazon's private-label brands, AmazonBrands (picture), that sells everything from home necessities to tech accessories at competitive prices.

 

 

 

 

 

However, private label products offer the most significant opportunity for small-time businesses. There is no shortage of companies producing generic items at competitive prices. The concept of selling private label products is to take those very same products and customize them, so they stand out from the competition.

By adding value to these products, you will be able to sell it with a profit and start earning big money.

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White Label vs Private Label vs Wholesale

White Label – a process where you buy someone’s product, and then you just brand it as
your own. In this set-up, you have no control over the quality of the formula of the goods.
Private Label – a process where you contact a manufacturer, and then ask this
manufacturer to create products according to your instructions.
Wholesale – this is a business model where you buy products in bulk, but they are already
branded and all you need to do is to sell them on retail. For example, you can buy hundreds
of a name brand shoe at a discounted price, and then sell it on retail to make a pro

Starting Your Private Label Product Business

The process of starting a private label business generally follows these seven steps. These steps involve everything from the creation of a private label product idea to its delivery to the customer's home.

 

Brainstorm for ideas:

 

This is arguably the most crucial step. You need to choose a product that will be:

  • high in demand,

  • on the lower or medium range of prices,

  • easy to produce,

  • pack and ship,

  • customizable, and

  • part of a market that is not too saturated by other competitors.

 

You can check out Amazon's bestsellers list or use Jungle Scout to search up the number of searches of a particular product to see what people are interested in, the average price, average reviews, sales rank, daily sales, and the demand score.  This is an absolute must tool to have if you want to see your private label product on Amazon.

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Research the Market & Your Competition

The next part of the process is to see if your idea is viable. This involves studying market trends in detail to see if they're on the rise or declining. The research will help you understand the scope of selling your particular product and also tell you which audience to target. Insights will help you find the most profitable idea to pursue and show you the chances of its success.  Use free tools like Google Trends and Free Amazon tools.

Remember, when selling on a site like Amazon or eBay, you are directly competing with other sellers who are selling the same product. You have to think of it as a customer. What product would you like to buy? You can do this by looking into how your competitors are doing. What is the product's price? How well is their product doing? Do they have good reviews? Is their product listing comprehensive? These questions can help you understand the scope of your product and how you can outshine your competitors.

Find a trusted Manufacturer

The second most crucial step in starting your private label business is to find a trustworthy manufacturer. This is not only someone who offers you the lowest prices, but someone who works well with you is good at what they do, and who is willing to negotiate.

How much can they customize for you? What is their minimum order quantity (what is the minimum number of product units you would need to order)? How long will they take to manufacture and ship the product? How reliable was their sample (if they agree to give you some, always ask for samples)?

Customize your product and brand

You don't have to be a designer to get this done. There are a lot of freelancers on sites like Fiverr or Upwork that can help you achieve your desired result. You can upload your project specifications (the kind of logo, product design, and packaging you want) on Upwork and have graphic designers bid on them. Then, it's merely a matter of choosing one to create them for you. You can send the final design to your manufacturer afterward so that they can start manufacturing products.  However, if you choose to design your own logo and product design I would use Canva; they have so many templates with great ideas you can already use.

List it Online & Sell...Sell...Sell...

You should try to customize your product's listing as much as possible. Your product's title should include keywords. You should take and upload good pictures of the product (if it looks good, it's already caught the customer's attention).

You should also make the description as detailed and as attractive as possible, and try to set it apart from your competitors in any way possible. If the customer is on your product's page, make sure your listing is convincing to guarantee a sell.

The fulfillment by Amazon (FBA) program is an excellent way to distribute your product. By paying a service fee, you'll be eligible for all its benefits that include packaging, shipping (sometimes even Prime!), and customer service. You send your product to Amazon's distribution centers, and they list it as being online, allowing customers to begin shopping.

Here, it is essential to mention that promotions go a long way to promote sales. You can use Google Adwords, Pinterest, Facebook, other social media platforms, or sponsored ads by Amazon to increase traffic and selling of your product. You might even consider creating your eCommerce website later on.

Some Roadblocks to be mindful of

Changing Market

One of the best and worst things about the market is how quickly it turns. A product may be high in demand one day and utterly irrelevant by the time your shipment of inventory arrives. This can end up with you having dead stock on your hands that you cannot sell anymore. You can avoid this by extensively researching the market. Something like fidget spinners can go out of demand, but it is unlikely that hair care will.

 

Capital

This can be an essential consideration for a lot of new sellers. Before listing and selling your product, you need to pay upfront for a minimum number of units as well as for services like the Amazon fulfillment program (if applicable), shipping, design, or any other costs that may arise. You will likely (though not necessarily) be spending a lot of money to set up your private label business before it can start giving you returns. The key is to be patient and trust the process.

 

Quality Control

Since you are not the one manufacturing the product, you have little control over how it ends up. You can customize the product to the best of your ability and control for other factors yet still end up with some bad units. This can lead to unsatisfied customers and a bad name for your brand. However, this risk is a part of the business. You can minimize the risk by being involved in the production process and asking for samples from all the manufacturers you consider so that you can find the best one.

 

Liability

With private label brands, the responsibility for the product's performance ends up falling on the retailer, since it carries their name. Should the product not work, go against regulations, or have side effects, such as in the case of food products or supplements, you could have to deal with legal claims. You should discuss this with your supplier beforehand to avoid a mess later on. Discuss the clauses of liability and have it in writing. More importantly, try to avoid products that can create problems like this and pay proper attention when choosing a manufacturer!

8 Of The Best Selling Private Label Products

While an excellent place to start researching private label bestsellers is on an e-commerce site like Amazon or using a search engine like Jungle Scout, here are a few ideas to get the gears in your head rolling. These are some of the most selling private label products that you should explore when choosing products. Who knows, you might find something that calls to you!

Hair Products

Hairstyling and care are something that never goes out of fashion. This industry is thriving in the self-care movements as it caters to hair care enthusiasts who want to improve their hair's health. The various products on the market include everything from shampoo to hair masks. People use them all year round, ensuring constant demand. All this makes hair products a booming industry.

 

Water Bottles

Sometimes, the greatest opportunities lie in the most basic things. Take the creators of the Hydroflask, The Bend, who produced an environment-friendly, stainless steel bottle. This water bottle quickly took command of the market and had competitors scrambling to recreate such a simple product. Its glory days persist as this easy to produce, lightweight, and a reusable everyday accessory. It has become a consumer favorite, proving one thing: the water bottle market holds many profitable opportunities.

 

Yoga

Recently, yoga has become a mainstream activity for many, due to its commercialization and ease of access. The available products range from yoga sportswear to mats, straps, and blocks to help beginners embrace this lifestyle. Apart from this, instructional books, guides, and videos are trendy, boosting the surge in the industry's popularity and profits.

 

Keto Food

Over the years, many specific diets have come and gone, but no meal plan has flourished or persisted quite like the Keto diet. The special thing about the Keto diet is that it has a dedicated fan base. A large number of people swear by this weight control method. Meal plans, day to day planners, blogs, informational programs, and Keto food delivery are some famous markets where this audience shops.

 

Cosmetics

The cosmetic industry is one of the fastest-growing markets, estimated to value at 805 billion dollars by 2023. The major subcategories of cosmetics include makeup, skincare, color cosmetics, and personal care items and toiletries. Companies are always on the lookout for new, progressive ideas for cosmetic trends that will make them stand out. Therefore, small businesses have had much success in becoming a consumer favorite due to their customizability.

 

LED Lights

LED lights were the eureka moment for the lighting industry. They were a product that would use less energy with a longer lifetime compared to fluorescent or incandescent lights. The market is expected to grow to nearly 24 billion USD globally by 2022. These efficient lights have been converted into multiple types of products to attract different audiences, e.g., LED lamps or the recent trend of LED strip lights. These products are included in room decor, and customized versions of these lights can be an optimum market to explore.

 

Phone Accessories

If there's one good thing that's come out of a smartphone being in every other person's possession, it's the opportunity for accessories. Phone accessories are an industry that continually evolves to fit the demand of the consumers. What remains consistent is the compact and easy to use properties of the item. Pop sockets and phone cases are leading phone accessories that don't lose popularity because of their flexible look, size, and quality.

 

Essential Oils

Self-care and wellness movements have increased another consumer demand, as people have discovered the benefits of essential oils. These oils were primarily used for aromatherapy. However, research has found numerous health and cosmetic benefits of essential oil use, attracting customers. They can either be diffused in the air or applied to the skin. Since each essential oil has its benefit, the market has a broad customer base.

A Few Commonly Asked Questions

How do private label products make money?

Private label product retailers purchase products from a manufacturer in bulk, usually at discounted prices. By customizing the product and making it a better fit for the market, they attract a high volume of customers. These products typically have a high-profit margin and generate impressive revenue once people start buying. Amazon's revenue calculator can help you estimate profitability though it is by no means set in stone.

The best part of having a private label brand is that once your products succeed in their markets, they attract loyal customers. These customers will recommend your brand to others and keep buying from you. This will allow you to have steady sales and income.

 

Can I buy a product and sell it under my name?

You cannot take another company's branded product and sell it off as your own. You can, however, sell products that were produced for the purpose of being sold by a private label. Private label products are created exclusively for a seller. They are usually different from the generic products the manufacturer produces otherwise. The seller pays for the product and for any customization they request. They can, therefore, legally sell the product under their private label. This is something that is discussed with the manufacturer beforehand.

 

Where can I find private label manufacturers?

You can search up private label manufacturers on forums like Reddit or Facebook, or source them from online seller communities' recommendations. A simple Google search can also yield relevant results for manufacturers. Online sites like Alibaba also allow you to look up manufacturers by product or category, making the search easier. Additionally, you can find private label manufacturers near you by sourcing contacts in your area or checking out trade shows.

Conclusion

Private label products aren't losing popularity anytime soon and are becoming the staple of a popular business model. If you want a slice of this lucrative pie, all you need is an idea and the will to follow it through. People don't establish businesses overnight, but it becomes easy once you get started. While there is no gain without some pain, we can assure you that the gain from this business makes all the pain worth it. The only question is, are you ready to start?

I have put together a must-have  Product Launch Marketing Planner so you can work through your product launch process in a clear, systematic manner.  Keep organized, keep on track for your product launches.  It can be used over and over again for all of your products or private label products. 

Product Launch Planner
Product Launch Planner
Product Launch Planner
Product Launch Planner
Product Launch Planner
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Product Launch Planner
Yes, Send me the 2 FREE Business Plan Templates!
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© 2019 How to Start a Business SGTanya Disclosure:

This website contains affiliate links, that may provide me with a small commission if you decide to make a purchase, at NO cost to you. You can trust the integrity of my balanced, independent advice.  I only recommend products or services I use personally or have first-hand knowledge and that I believe will add value to my readers.

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