Updated: Oct 4, 2022
Private label products have become an ideal, profitable, and most sought-after category for an e-commerce entrepreneur. Did you know that Kirkland Signature (a private label brand of Costco) was valued at $75 billion?
According to the Food and Marketing Institute, private label products earned a total of $138 billion from US grocery alone. The Private Brand Intelligence Report said that 81% of shoppers buy private label products every time they shop, and 85% trust private label products than other brands.
What is Private Labeling?
Selling a private label product is offering a third-party manufacturer product under your brand name. In this model, you contact the manufacturer and explain the product's details that you want to sell. Then the manufacturer creates the product, packs it as per your preference and delivers it to your store so that you can retail it as your product.
There are many instances of private labeling in the regular world. Amazon sells multiple third-party clothing brands on its platform. However, it sells its own clothing brand – Amazon essentials – a private label product.
How is private label different from wholesaling and reselling?
In wholesaling or reselling, you get the product in bulk quantity and then sell it at retail prices without naming it as your own brand or in your own packaging.
How to find private label manufacturers?
Private label manufacturers are usually the ones who supply the product wholesale and for dropshipping. The platforms are the same, you just have to contact the manufacturer on these platforms and tell them your concern. The manufacturers will then supply the product for private label.
You can even send them the design of your tags and packaging so that they can customize the product as per your branding standards. We would suggest letting the manufacturer handle your product's branding, as it would be much cheaper in cost than getting the branding done yourself. But it would be best if you always had a choice in the matter.
How to evaluate a private label manufacturer?
Finding a trustworthy manufacturer for your product is an essential part of the private label business. Here are some points to note while evaluating the manufacturer.
- The manufacturer should be the product expert
Always lookout for a specialist who is a specialist in making the particular kind of product you are seeking. You do not need to stick with one manufacturer if you need entirely different lines of products.
- Look for the best price possible
Do not just stick with one platform. Search until you find the best price for the product. The manufacturing will favorably affect your profit margins. Make sure to ask about bulk buying, discounts, sample products, and shipping charges.
- Ask for samples & ensure product quality
When it comes down to making a brand, compromising on the quality of the product won’t do you any good. Keep searching for the manufacturer on different platforms, read manufacturer reviews, and when you do find a genuine manufacturer, ask them for a sample product to test for complete satisfaction.
- Check the delivery time
Before finalizing any manufacturer for your private label business, always ask them about the delivery times so that you can manage your inventory better.
- Read reviews and customer feedback
Many forums and platforms provide consumer reviews and feedback of manufacturers. So, always read them before making any commitment to the manufacturer.
Private label vs. white label
Many beginners think white label and private label as the same thing, and to some extent, it is the same thing but there are minute differences.
A manufacturer produces the bulk white label products to distribute to retailers, and then it is rebranded as the retailer’s product. This is known as white labeling. White label products are made to be distributed to many retailers, who sell it as their own product.
On the other hand, private label products are specially made for a specific retailer, and they can then customize it as per their preference. That’s how the product becomes the possession of the retailer entirely.
Now that you have a better idea about what private label products are and how they work, it’s time to put your own million-dollar idea to work. If you’re still looking for some inspiration and are not entirely sure about the current trends, here are some top trending white label products that are easy to brand and sell online.
1. High-end beauty products
Skincare products remain one of the most popular private label products in 2021. From beauty and cosmetics to medical ointments and lotions, skincare products are relatively cheap and can be adapted to suit different brands. Private label skincare is so effective; the trouble is making yours stand out from all the others.
Customize your line of beauty products to sell under your own brand with Moe's groupF. Leveraging science and nature, our luxury, vegan products are the industry’s most potent & effective skin and hair care formulations.
2. CBD Products
Shoppers are specifically exploring products made from cannabidiol (CBD) as it contains calming and analgesic qualities of marijuana but without the psychoactive effects (euphoric high). CBD can be sold as tinctures, oils, balms or even edibles. They can also be added to any existing beverage or pet product.
Moe's group can help you create your own CBD wholesale private label.
3. Luxury candles
Cheap and easy to make, candles have always been a major offering by private-label sellers and DIY retailers.
There’s no reason to believe that this will change in 2021; moreover, we’re also seeing the emergence of a new trend within the industry - Soy candles. Not only are they more eco-friendly than regular paraffin or beeswax candles, they also have a lower melting point than traditional candles, which means they last longer and survive better in cold temperatures.
At Moe's group, we have an elite marketing team that can think of your brand's perfect vision. Call us at +1 888-270-0595 or write to us today!