Start a Private Label Business With Already-Proven Products

What is private labeling and how does it work?

Private label products, similar to white label products, are goods created by one company to be sold and branded by another company. A business owner selling private label products is looking for a product they can put their own brand name on and sell as if it’s their own. Clothing and cosmetics are common private label products, as are condiments sold in grocery stores.

Total retail sales in the US for private label products hit $5.47 trillion in 2019 and are projected to hit $5.94 trillion in 2024, according to data from Statista. That’s no surprise, considering you see private label products in most major retail stores. Target has its Archer Farms private label, for example, Walmart has Great Value, and Costco has Kirkland.

Advantages of private labelling

Private labeling has a number of advantages that span beyond simplifying the product development process. Some of those advantages include:

• Control over production. You direct third-party manufacturers in terms of materials and ingredients, quality, and production rate.
• Control over pricing. As the seller, you determine your pricing strategy and have control over how you optimize production costs, which helps with creating a healthy profit margin.
• Adaptability. Smaller retailers can move quickly to get a private label product in response to rising market demand for a new feature, while larger companies might not pursue a niche product.
• Control over marketing and branding. You choose how to promote and package private label products before making them available for sale.

Disadvantages of private labelling

While there are many benefits to private labeling, it doesn’t come without its challenges:

• Manufacturer dependency. Because a third-party manufacturer handles production, you’re largely at their mercy. That’s why it’s so important to find a reputable and reliable manufacturer to work with.
• Difficulty building loyalty. It can take time to get traction when starting a brand from scratch. This is one reason why private label products are great for people and brand names who already have an established audience that trusts them.
• Poor consumer perception. Private label products commonly have a reputation for being cheap or low quality. However, that perception is changing. Many consumers around the world believe the quality of private label products is improving.

• Private label manufacturers for creating a custom branded product line

  While many private label manufacturers may seem similar, it’s important to vet them carefully to find the one that suits your business now and in the future. You have to consider what types of products you want to make and sell, where you want to sell and ship them, and how high you can price them.

  Below is a quick overview of some of the best private label manufacturing services and product sourcing apps for all kinds of goods. Most here have a Shopify app you can use to connect directly to your online store.

Tips for starting a private label business

When you sell private label products, you don’t have to worry about product development—or inventory investments in many cases. But before you begin, it’s important to consider a few things:

1. Find a niche market to sell products

There are lots of private label products you can sell, spanning pretty much every industry. Some of the most popular private label products are:

• Hair products
• Body products
• Pet products
• Baby products
• Beard grooming products
• Health products

To figure out specifically what to sell, explore different niche markets within those categories. When you sell to a niche market, you can use highly targeted marketing and advertising strategies to get your brand and products out there.

2. Contact CroDropshipping

Once you know what you want to sell, it will be very hard work to compare different manufacturers and suppliers who have those items. CroDropshipping will do all work for you. We will help you to ask if the manufacturer has a minimum order value, as you’ll need to navigate if you want to hold the stock or set up a prepay account with the manufacturers.

3. Order samples

It’s important to test the product yourself before you make it available for purchase. While something may look great online, and even sound great once you’ve gotten in touch with the manufacturer, the reality may be completely different. So you’ll want to do your due diligence to ensure the quality of products is up to your standards and expectations.

4. Set up an online store

You have your manufacturer and your products, now it’s time to set up your online store. With Shopify, you can choose from and customize free and paid ecommerce templates. Once you’ve set up your online store, you can browse the Shopify App Store to find the apps you need to manage your private label business, including any of the options listed above.

5. Add your products to your store

When adding products to your store, you’ll want to do the following:

• Write compelling product descriptions. Product descriptions should be information- and benefits-oriented, as opposed to focused on listing features and specs.
• Get high-quality product images. Product photos give shoppers an idea of what the item looks like—it’s the best they can get without being able to see the product in person. Sometimes the manufacturer can provide images to you.
• Determine your pricing strategy. It’s important to price high enough to make a decent profit but not so high you outprice your customers.

6. Launch and market your store

When you’re ready to reveal your store and private label products to the public, it’s not as simple as turning on a switch. You have to build awareness and drive traffic to your site if you expect to make any sales.

For new stores, paid advertising on channels like Google, Facebook, and Instagram are a great way to get your name out there. Then you can supplement those efforts with email marketing, social media, content marketing, SEO, and customer loyalty programs.

Launch your private label brand

Starting a private label brand takes the hassle out of product development. You can start your own private label and work directly with CroDropshipping to create products your customers will want to buy—all with your unique branding and logo on it. Private labeling is a great way to get started with selling your own products online.