If you’re an entrepreneur with a new business on the horizon but don’t want the hassle of manufacturing, private labeling is a great solution. Selling your products can be a laborious and stressful experience if you don’t have a successful formula in place.
Trying to manufacture, brand, market, and promote your product can be overwhelming if you’re not sure of the process. But once you consider private labeling, you’re likely to find everything can go a lot smoother and much more efficiently.
So what exactly is private labeling and how does it work? That's exactly what we will cover in this article.
How Does Private Labeling Work? 🏷️
Private labeling is a pretty straightforward process. It’s used for the store brand, house brand, or own-brand products that are sold in stores by one retailer, while made by a separate manufacturer.
It can be a lucrative partnership that helps both the brand and the manufacturer make money. The brand gets special products that can be sold for a higher profit, and the manufacturer stays busy making these products. It’s a win-win!
To understand how private labeling can work with a small business, let’s use ‘John’ as an example.
- John wants to start an eco-friendly cleaning products line. He’s noticed a gap in the market as there are plenty of cleaning products but not many environmentally friendly options. He’s quickly decided that he’s not prepared (or qualified) to make the cleaning products himself and looks around for a manufacturer.
- John finds a company that use natural ingredients in their products and agrees on a contract for them to produce under his brand. He designs a unique brand focusing on sustainability and the health benefits of using natural cleaning products – while his manufacturer concentrates on quality control and efficiency.
Examples of well-known, lucrative private labels are Walmart’s ‘Great Value’ store brand food…
…and Amazon’s ‘Basics’ range.
How Can Private Labeling Help My Business? 📈
Private labeling is a great idea for entrepreneurs hoping to make their mark on their industry while keeping some control over their products. Whether you’re a startup working to make your mark or an experienced retailer expanding your product range, private labeling can provide a good balance between control and convenience.
Let’s have a look at some of the advantages of private labeling:
Control over your brand
What retailer wants to hand over control of their product line? With private labeling, there’s no risk of that as it allows businesses to keep creative control over their branding and the private label products they choose to sell.
Higher profit margins
Bypass the middleman and work directly with manufacturers. This way your business operational costs will be lower and you’ll have higher profits.
The chance for product exclusivity
Product exclusivity is an option in private labeling which means that a store sells a unique product that you can't find anywhere else, under its own brand name. It’s not always guaranteed however, as a manufacturer is free to make similar or identical products for any number of retailers.
But if you agree on exclusivity with your manufacturer, you have a very strong USP for your product.
Customer loyalty
Private labeling can keep customers coming back as it can be an affordable option that provides consistent quality. Retailers are protective of their products and only want the best in manufacturing.
By choosing only top-notch manufacturers for their private label products, they’re ensuring their products meet high standards. Having a careful selection process like this, along with the unique offerings of private labeled products can make customers trust and stay loyal to the retailer's brand.
5 Great Ideas for Private Labeling 🏷️
Globally, ecommerce is a huge powerhouse, making trillions every year. If you want a piece of that action, selling private-label brands and products is an increasingly profitable option.
Whether you’re a large or small company, as long as you understand the market and what will sell, you can be successful.
So, what are the most profitable products for private labeling? Let’s have a look at some of the most popular:
1- Water bottles – Gembah
In today’s health-and-fitness-obsessed world, stylish water bottles have become the accessory to have. They are a go-to product for private labeling due to their global appeal and user-friendly manufacturing process. If you’re looking into this eco-friendly market, Gembah is a great platform to help you.
Helping you to create your own brand, Gembah offers a network of manufacturers for you to choose from. Not to mention connecting you with excellent product designers to make your product really stand out. Its project management tools give you everything you need on one platform, providing a quick and smooth way to create your product.
What about pricing?
Gembah provides a tailored quote on request, making sure that you have everything you need to bring your idea to life. You can create a free account on their website and ask for prices before committing to anything.
2- Coffee – Path Coffee Roasters
If you’re planning on starting an ecommerce coffee brand, you’ll know that there are few things better than a freshly roasted cup of Joe. But unless you want to get into the precise details of roasting, packaging and shipping, you’ll need a manufacturer for your private labeling.
With Path Coffee Roasters, all you’ll need to do is create your brand and market it, while they do all the heavy lifting. They produce and ship your coffee through their dropshipping program and put careful thought into the quality and design of their stock bags and labels.
How is it priced?
With Path Coffee Roasters’ Roasters Choice Subscription, from $18 a month, you can choose from 12-ounce or 5-pound bags of whole bean or ground coffee.
They also offer loyalty points and rewards, where you can get 1 point for every $1 you spend and 25 points when you create an account.
3- Pet products – Pets Choice
If you want to design and sell your own brand of pet food or treats, it’s essential that you source an experienced manufacturer. Fans of BBC’s The Apprentice will tell you – amateurs should not be creating pet food. So let Pets Choice be your choice.
This leading UK manufacturer of private-label wet and dry food has over 30 years of experience in creating premium products. Brands they work with through private labeling include Bob Martin, Felite, Webbox, and Tasty Bone. Due to this experience, they have a global reach for those retailers who want to connect with international consumers.
What is pricing like?
Contact Pets Choice with your requirements and a member of their experienced team will put together a competitive quote for you.
4- Supplements – My Private Label
Whether you’re interested in anti-oxidants, multivitamins, fish oil, or even special formulas for digestion, custom-made supplements are a fast-growing industry. Private labeling works well with this product as the partnering of an experienced manufacturer and unique branding can be a recipe for success.
My Private Label can offer a quick, smooth process, making private labeling easy for you. You can discuss your own bespoke product and design with their experienced team and leave the manufacturing to the professionals. All you need to do is concentrate on your design and marketing materials – the fun part! And if you need assistance with marketing, My Private Label can help with that too.
How do I get a price?
As each order will be specifically customized, prices and quotes are available upon request. They also offer a free-of-charge custom label design service for any orders over £5,000 (including VAT).
5- Cosmetics – Cosmiko
If you’ve been dreaming of having your own range of skincare, finding just the right manufacturer for your private-label products is essential. With so many skin types and dermatological sensitivity, there’s a lot to consider when creating skin care products. Consumers are looking for high-quality, natural, hypoallergenic and personalized products. Any old moisturiser just won’t do.
Cosmiko works with skincare professionals and leading researchers to make sure that you develop a unique private-label cosmetic range. They tailor products to whatever market or application that you want and ensure that they are natural, hypoallergenic and suitable for all skin types.
Finished products are supplied in eco-friendly bottles, jars, and tubes and your private label brand is applied with a high-quality finish. They also offer a bespoke outer box print service, which includes full-color printing, foiling or embossing, plus cello wrapping. Sounds luxurious!
Cosmiko pricing
They work to a minimum quantity of 250 units per product, to ensure value for money. Quotes are available on request and Cosmiko also offers access to a government-backed start-up loan for those who may need extra financing.
How to Use Private Labeling in Your Business in 5 Easy Steps📦🔖
Private labeling can be a game-changer for your business, allowing you to offer unique products under your own brand name. Here's how to get started in five easy steps:
1- Find your market
Knowing your audience is crucial because it helps you decide what to sell and how to brand it. With private labeling, you can create, design and promote your product's branding and focus on your target audience.
2- Choose a good supplier
It's important to choose a supplier that is dependable, reasonably priced, and makes high-quality items. You need a supplier you can work with long-term. Develop a great working relationship with your manufacturer and you’ll see the results in terms of both quality and ease of use.
3- Design your brand
When designing your brand, you need to create a unique logo, labels, and packaging. And don’t forget to reflect clearly on what your business stands for. Doing this will mean your product will be easy to spot and hard to forget for consumers.
4- Advertise and market
Advertise your private label product by focusing on what your customers want and where they spend their time – like social media or on search engines. Make sure your ads highlight what makes your product special and different.
5- Review and improve
To help your business grow, it's important to regularly review your product range. Make sure all your products are consistent in quality and style.
This makes your brand easy to recognize and helps build trust with your customers. By regularly updating your products, you can keep up with what makes your customers happy and stay ahead of competitors.
Enhancing Your Business With Private Labeling
When it comes to creating your own brand, it can clearly be a very challenging task. You may know exactly what type of product you want to sell, but have little to no experience of the manufacturing process.
That's where Whop comes in. Whop is an entrepreneur's best friend, taking care of everything from community monetization to membership management, affiliate programs, digital product fulfillment, customer service, and more. Whop supports entrepreneurs to sell their products while supporting continued growth and scalability. To date, more than $250,000 worth of digital products and services have been produced, marketed, and sold to consumers through Whop’s innovative platform.
So, whatever your business, explore Whop and discover how we can help. From ecommerce groups that connect you with manufacturers, to learning the ins-and-outs of dropshipping from experienced experts, or even creating your own online hub for creating and selling digital products, you can do it all with Whop.
