A private label product is manufactured by a third-party manufacturer and sold under the retailer’s brand name. You choose the brand specifications, how it’s packaged, what the label should look like, and all processes excluding the production part.
You pay to have the product manufactured and delivered to your store.
Many businesses benefit a great deal from private label products. You can too.
The most important thing is to pick the right niche, choose the right product, do market research, work with the right supplier, market effectively, and put in the hours.
Understand that you won’t make a 6-figure income overnight. It’s a process that you have to commit to and invest time in.
If you do it right, you can generate passive income and even reach your six-figure income goals.
We’ll talk about effective ways to profit from private label products so you can grow your business.
FIND A NICHE MARKET
You can sell any white label product you want in different industries.
However, finding a niche and focusing on it is the best way to get leads and succeed.
That is because you won’t be targeting everyone and anyone.
Instead, you’ll focus on a specific audience which makes it easy for you to choose the right product and ensure sales.
You’ll know what your target audience wants, choose a product that can guarantee profits, and reach your goals.
So, research different niche markets and know the type of private label products that have good returns.
It helps you avoid losses and ensure you start a business with significant returns.
Search on Google, Amazon, and Alibaba for the best products to sell.
You can also consider your interests and align them with the niche you want to select.
The most important thing to do is to pick a niche that has a market demand and stick to it.
Some of the most profitable niches are technology, health, finance, fashion, and electronics.
PICK THE RIGHT PRODUCT
The only way to get sales and profit from your business venture is to pick the right product.
You want to make sure you sell something that people want and are willing to spend their money on.
So, identify products that are in high demand and find a way to stand apart from the crowd and attract attention.
This is because you’ll have too much competition although you are guaranteed to make profits.
Go on Amazon and other reputable marketplaces. Search for best-sellers and gain insights on the best products to focus on.
Consider how much you need for the production process and packaging. Determine how much profit you’ll get to avoid losses.
It’s advisable to focus on products that give you a 50 percent profit margin or at least 30 percent.
The best way to ensure the products are profitable is to do market research, identify your audience, determine interest, estimate production costs, study how competitors set their prices, and define your value proposition.
Another option is to use Google Trends or Google Ads.
Identify terms your target audience use to find certain products.
Learn about their needs and interests.
Know how many people search for a particular product per month.
The higher the number of searches the higher your chances of success.
You can also practice social listening and understand what your audience wants, what they are interested in, and what they are willing to buy.
Use Pinterest Trends, Instagram Explore, Ahrefs, Facebook Ad Library, and BuzzSumo to gain insights into customer needs.
KNOW YOUR COMPETITORS
Remember that other sellers are already offering similar private labeled items you want to focus on.
So, know who they are, study their strategies, and find a way to offer a better product.
If you can’t create a better product, make one that matches theirs in terms of quality.
You want to position yourself in such a way that gets buyers interested in what you are selling and get them to choose you above the competition.
That doesn’t necessarily mean charging less for the same product.
Be creative about it and find better ways to stand apart from the crowd.
Identify your top 6 competitors and analyze their marketing strategy and pricing strategy.
Know the number of people selling similar products on the platform you are doing your research on.
Determine the average price for the product you want to sell and the average product review rating.
On Amazon, you can find the number of people selling the product by searching for it and then looking at the numbers that appear just below the main menu and above the results.
The numbers will have the searched phrases or keywords at the end.
It’s advisable to pick a product that’s in demand but has limited competition to avoid failure. Especially when you are starting.
The goal is to make sure you select one that will allow you to build your brand and sell.
WORK WITH THE RIGHT MANUFACTURER
The only way to succeed is to work with a reputable manufacturer or one who will deliver as expected.
You don’t want to choose companies that can’t meet your standards or ones that produce low-quality products.
This is because the quality of your product determines the number of clients and sales you attract.
You have to ensure quality and add value to your customers’ lives to get them to continue doing business with you.
Remember that the only way for you to build a strong and successful brand is to understand your audience’s needs, pick the right product, and meet expectations.
So, look for suppliers that can cater to your specific needs and help you reach your goals.
Pick at least 10 manufacturers and contact them.
Find out if they offer private labeling and inquire about the production process and costs.
Know what you are required to do to start working with them. For example, do you have to set up a prepaid account? Are there any monthly fees? And What are the minimum and maximum order prices?
Asking these questions helps you choose the right supplier and ensure a long-term partnership.
You’ll know what’s expected from you and understand the supplier’s requirements. Which makes it easy for you to create a successful brand that your customers enjoy interacting with.
Find private label suppliers on SupplyMeDirect, Alibaba, Printful, Thomasnet, and Dripshipper.
Search for manufacturers on the best private label sites to minimize frustrations, speed up production time, ensure you have quality products and start earning.
You can conduct your searches in various ways. Including product type, price, minimum order, the material used, and rankings.
Work with high-ranked sellers to avoid scams and build a successful private label business.
The best thing about finding suppliers on reputable sites is that the sellers allow you to buy hundreds or thousands of each product per order.
It all depends on your needs, preferences, and goals.
Contact every supplier you wish to work with to learn more about their private label services.
Find out if they offer private label packaging as well. If not, decide whether you’ll work with that particular supplier or one that offers to handle the packaging process.
If the company has a great reputation and you want to work with them but they don’t offer packaging services, determine the best way to package and brand your products.
You can hire a designer, for example, or work with your team.
Paying the full order price can be difficult if you are starting. Especially when you want to buy lots of items. So, negotiate a lower order price to navigate that.
Most suppliers are more than willing to negotiate. All you need to do is convince them.
Another option is to find a local supplier to minimize shipping costs.
Identify reputable manufacturers and approach them.
Find out if they create private label products and learn more about the entire process.
GET PRODUCT SAMPLES
One thing that can make it difficult for you to brand successfully and make profits is buying and selling without testing.
So, ask your supplier to send product samples so you can test quality.
You can ask every supplier you wish to work with to send a sample and then decide which product is best.
This is a great way to ensure the products meet your standards and protect your reputation.
Remember that buyers judge you based on the kind of product you sell to them. So, the products must be worthy of your name.
It’s your name on the line. Not the manufacturer’s name.
You have to do due diligence to build a strong brand reputation.
You have to test the product before buying from your supplier and selling to your customers.
Note that some suppliers will charge you for sample products. Especially if it’s your first time working with them.
However, don’t let that stop you. If you’ve done your research and want to work with the manufacturer, go ahead and pay for the samples. It will be worth it.
Choose your top 5 suppliers and request quotes.
The quotes should indicate the number of items ordered, product prices, private labeling fees, packaging fees, production costs, shipping fees, and production time.
DESIGN YOUR BRAND
You have to design your product packaging whether or not your supplier takes care of the packaging process.
That means you have to pick a brand name, fonts, logo, primary colors, and mantra.
Make sure you send the right message with your packaging.
Invest time into the process and research how other sellers in your industry represent their brands.
View their product packaging for inspiration but come up with your own design or style.
The way your product is packaged and presented to buyers is key to driving sales.
So, invest in the process.
FOCUS ON VALUE AND QUALITY
Focus on value and quality to drive engagement, attract more leads, increase conversions, and gain a competitive edge.
Don’t just be concerned about pricing your items right, avoiding losses, and making profits.
All that will fall into place if you get the product quality right and ensure it adds value to your customers.
Value is the main thing shoppers consider when making buying decisions.
So, if you get the product right, you’ll attract sales and make as much money as you need.
Communicate your brand values, mission, and vision.
Help prospects understand what you stand for and show you care about improving their lives.
For example, you can talk about what your organization does for the community, how your products benefit buyers and a few things that set you apart from the competition.
The goal is to show potential customers that engaging in business with you is worthwhile.
SET YOUR PRICE RIGHT
Building a successful private label business can be challenging when you are starting.
If you don’t do enough research, work with the wrong supplier, or fail to come up with the right pricing strategy, you’ll incur losses.
So, create an effective pricing strategy and set your prices right.
Make sure you earn more money than you spend on the production, marketing, and distributing processes.
Factor in production costs, packaging costs, shipping costs, and marketing costs when setting the product price.
Know the market price for your product and set yours lower for the first 3 to 6 months to get the word out and gain a competitive edge.
Don’t set the price too low because it can lead to losses.
You can offer 10 % discounts for a limited time to create a sense of urgency and bring in sales.
If you sell high-quality products that match or beat the competition, you’ll attract attention and have lots of orders.
So, determine how you’ll store your products and fulfill orders.
Decide whether you’ll sell from your retail store, get the supplier to ship to your customers, or use reputable marketplaces like Amazon for your storage and shipping needs.
Most private label brands prefer dropshipping as it makes it easy for you to fulfill orders.
Dropshipping is when your supplier handles the production and distribution processes.
The supplier manufacturers the product and ships it directly to your customers.
You only get billed for the products sold.
This is the best option if you are only starting and can’t afford to buy wholesale products upfront.
PICK THE RIGHT MARKETPLACE
Choosing your private label product and designing your packaging isn’t enough.
It won’t get you the attention you need.
You have to make sure your target audience knows you exist and connect with your brand.
You have to get your products in front of your potential customers and reach as many people as you can.
That’s why selling on reputable online marketplaces is highly recommended.
Your products will reach millions of people within a short period.
You’ll be able to reach the right audience and promote to people who are already buying products that are similar to yours. Which makes it easy for you to drive engagement, build brand awareness, and enhance sales.
Sell on Amazon, Walmart, Alibaba, or Etsy.
Create a listing for your product on your chosen platform.
Use quality product images, choose the right keywords, write a compelling description, and pick the right categories to ensure you reach the right people and improve your rankings.
Understand the platform you choose and leverage SEO.
If you choose to work with Amazon, for example, learn Amazon SEO hacks to boost visibility and sell more products.
CREATE YOUR STORE
Take it a step further and set up an online store for your products.
The best thing about this is that you are not limited when it comes to promoting your products.
Having your own store enables you to advertise your products whichever way you want and upload as much promotional content as you need.
You can use videos, GIFs, audio, and more to capture attention and drive sales.
So, in addition to working with the right marketplace, set up an ecommerce store and start promoting your products.
Build your store with Shopify, WooCommerce, or BigCommerce.
Upload content that makes it easy for your target audience to connect with your brand.
Talk about your products, upcoming promotions, interesting events, and so on.
Leverage email marketing to get leads.
Run campaigns, share content relevant to your industry in your emails to nurture leads, build meaningful relations, increase traffic to your products, and enhance sales.
Use paid advertising, content marketing, and social media to increase traffic to your store.
Running a private label business can be profitable if you have the right strategy in place.
You have to pick the right niche, choose the right product, work with the right supplier, improve your brand’s image, sell on reputable marketplaces, market your products the right way, and leverage search engine optimization.
Research the competition and know as much as you can about the manufacturer you want to work with to ensure profits.