6 Essential Tips for Private-Label Selling

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Private label selling has fast become one of the most popular e-commerce business strategies in the world. Whether you adopt a drop shipping style approach or you opt for the Fulfilled-by-Amazon (FBA) route, it’s a great way to turnover profit quickly. 

In a nutshell, private-label selling is where you buy or hire a manufacturer to make an unbranded generic product. Then you brand it, label it, and sell it. You don’t own the patent; you simply own the private label.

The beauty of private-label selling is that you don’t need to create a concept or product to bring to the marketplace. You observe trends and try to take advantage of a product that’s already selling well. FBA makes the process even easier by storing your products and completing orders on your behalf. 

Although the concept is straightforward, private-label is by no means easy. There is generally a relatively high startup cost involved in purchasing or manufacturing your products. Depending on your product selection, there may be significant competition. There’s no guarantee that your product will sell, so there is a moderate risk involved.

If you’re thinking of taking on a private-label selling venture, here are six essential tips to get you started.

  1. Choose the right product

This is the first and most important part of the process. It may be time-consuming to brainstorm and trawl through thousands of potential products, but it is absolutely necessary. Here are some things to consider when deciding on a product:

  • Is there a market for the product?
  • Is the size optimal for international shipping?
  • Is the weight optimal for international shipping?
  • Is the product a key accessory to an already popular item? E.g., iPhone protective case. 
  • Is the product durable?
  • Is it affordable to launch?
  1. Market research

When deciding your product, some initial market research is necessary to deem whether or not it’s viable to sell. Once your product is greenlit, further market research must be carried out. This will help you to determine pricing, packaging, labeling, and advertising. Research competitors to gain market insights. 

  1. Consider alternative suppliers

Study the supplier landscape closely. Although Alibaba is the most popular place to source products for private-label selling, you should consider some other options. 

Alibaba Alternative: Top 20 sites like Alibaba, is a comprehensive list of suppliers you may not have known about. 

  1. Branding is key

The branding, logo, packaging, and labeling gives your product identity. It could be a deciding factor in a customer’s choice between you and a competitor. 

Professional design can help set you apart in the market, leading to increased sales. Ensure that the overall design aligns with the interests of your target market.

  1. Choose your fulfillment strategy

Once your product is on the market, you must find an efficient method for completing and fulfilling orders promptly. 

Amazon’s fulfillment service, FBA, is a convenient, reliable, and cost-effective way of doing this. 

If you decide to adopt your own fulfillment method, you need to consider:

  • Packaging options.
  • Storage space.
  • Courier services.
  • Fulfillment confirmation methods. 
  1. Optimize your listing

Wherever you decide to sell your product, you must market it correctly. Optimize your listing through professional photographs, excellent copywriting, and targeted advertising. 

This is where SEO and digital marketing strategy is key. 

(Cover Image Source: Serpstat from Pexels.)

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About Author

Larry

Larry is the father of 5 wonderful kids. He has his normal "offline" job but has also been running an online business for over 15 years. When he is not working on websites or blogging, he enjoys video gaming and watching sports.

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