- 250+ products to customize
- No upfront inventory fees
- All the money-making potential
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You may be thinking about starting your own business but are deterred by the thought of all the stresses and pressures that come with it. Yes, starting and running a business is no easy feat, but seeing what you've built is rewarding.
While not entirely new, the business model known as private-labeling is a great option for many looking to get their business off the ground running. It's also a great option for those who already have an established brand but want to expand their product catalog.
Selling private-label products (and private-label brands in general) is easily becoming one of the most profitable ecommerce business models.
About 36% of Bazaar Voice survey respondents said they planned to purchase more private-label products in the next year compared to previous years, while over half have switched to private-label products from their preferred name brands. With these stats, it's easy to see why more and more people are jumping on the private-label business bandwagon.
In this article, we'll provide a comprehensive guide on how to start your very own private-label business. Once we've established the basics to get things moving, we'll do a deep dive into some of the best products you can sell under your private-label brand.
Here's what we'll cover:
- What are private-label products?
- How to start a private-label business online?
- What are the top private-label products to sell online?
If you're keen to get all of our best tips and tricks on starting a private-label business, grab your coffee, a pen, and paper. Let's start!
Private-label products: what are they, and why should you be selling them online?
Private-label products are uniquely tailored goods that a retailer gets produced by a third-party manufacturer and then sells the goods under their (retailer's) own brand name. It allows the retailer to outsource the production while remaining heavily involved in the product specifications, design, and materials used.
The rise in popularity of private-label products boils down to the multiple benefits of using a private-label manufacturer.
In 2023, there was a 4.7% increase in private-label sales across the United States, reaching a total of $236 billion dollars. Some of the biggest private-label businesses include Amazon Basics and the Specially Selected range from ALDI.
Using the private-label business model is like having the best of both worlds. You simplify the product manufacturing process, which can often be time-consuming and overwhelming, while still having the freedom to make custom modifications to your products.
FAQ
Private labeling is when you take products made by private-label manufacturers and add your own brand on them. The private-labeling process is super simple: find a reliable private-label manufacturer, choose a product that fits your needs, tweak it to match your brand, and voilà! You’ve got a product collection with your own private labels. It's a smart way to create unique offerings, grow your brand, and cut out a lot of the headaches of traditional manufacturing.
Finding good private-label manufacturers is key to nailing private labeling. Start by browsing directories like Alibaba or ThomasNet. Check reviews, request samples, and see if they offer customization options to fit your product line. Don’t rush into a partnership, though! Test their product quality, negotiate fair terms, and make sure their production timelines align with your needs. Building a solid relationship with your private-label manufacturer can make all the difference in launching a smooth, successful product line.
Private labeling is a no-brainer if you want to build your brand without breaking the bank. With private-label manufacturers handling production, you can focus on designing packaging, building your product line, and getting it to market faster. Plus, you get to skip all the upfront costs of traditional manufacturing, so your budget can go toward growing your business. It’s also a game-changer for standing out in a crowded market. You’re not just reselling generic products, you’re creating something unique that reflects your brand. Add in higher profit and the ability to quickly adapt to trends, and private labeling becomes a winning formula for ecommerce success.
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